2013 -- H 5260

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LC00663

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TOWNS AND CITIES -- AUDIT OF ACCOUNTS AND INSTALLATION OF

SYSTEMS

     

     

     Introduced By: Representatives Marcello, Hearn, Nunes, Serpa, and Fellela

     Date Introduced: February 05, 2013

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 45-10-4 of the General Laws in Chapter 45-10 entitled "Audit of

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Accounts and Installation of Systems" is hereby amended to read as follows:

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     45-10-4. Annual post audit required. -- (a) Each municipality and regional school

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district in the state, prior to the close of the fiscal year, shall retain the services of one or more

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independent certified public accountants holding a certificate from the state of Rhode Island, or

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from any other state with whom the state board of accountancy has a reciprocal relationship, to

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make a detailed post audit of the financial records of the municipality or regional school district

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for the preceding fiscal year in accordance with generally accepted auditing standards and

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government auditing standards. School districts which are part of the primary government of a

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municipality shall be included in the municipality's post audit and shall not be required to obtain a

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separate post audit. The selection of auditors pursuant to this section shall be subject to the final

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approval of the state auditor general. The municipality or school district shall not engage the

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auditors or enter into a contract for those services until the auditor general gives his or her written

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authorization. The term school district shall include regional school districts. At the request of the

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auditor general, the audit firm for each municipality or school district shall release any and all

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information obtained in the course of the engagement to the Rhode Island state auditor general (or

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his or her designee). This information includes, but is not limited to, financial data, analysis, work

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papers and memorandum. Audit work papers of the independent auditors shall be made available

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to the auditor general (or his or her designee) upon request. The request for such information by

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the auditor general shall be responded to promptly. Failure to provide this information shall

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constitute a breach of contract by the audit firm. The auditor general shall have standing to bring

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an action in the superior court to compel the audit firm to provide the information listed in this

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section.

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     (b) Notwithstanding any provision of law to the contrary contained in any general or

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public law, rule or regulation, no person or firm shall serve as auditors or prepare audited

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financial statements on behalf of the same municipality for more than seven (7) consecutive

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years.

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     SECTION 2. This act shall take effect upon passage.

     

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LC00663

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TOWNS AND CITIES -- AUDIT OF ACCOUNTS AND INSTALLATION OF

SYSTEMS

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     This act would require towns and cities to change auditors or auditing firms every seven

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(7) years.

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     This act would take effect upon passage.

     

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LC00663

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H5260