Chapter
353
2005 -- S 0868 SUBSTITUTE A
Enacted 07/19/05
A N A C T
RELATING TO TOWNS AND CITIES -- AUDIT OF ACCOUNTS AND INSTALLATION OF SYSTEMS
Introduced By: Senators Gallo, P Fogarty, and Walaska
Date Introduced: March 02, 2005
It is enacted
by the General Assembly as follows:
SECTION
1. Section 45-10-4 of the General Laws in Chapter 45-10 entitled "Audit of
Accounts
and Installation of Systems" is hereby amended to read as follows:
45-10-4.
Annual post audit required. -- Prior to the close of the fiscal year
of each city
and
town Each municipality and
regional school district in the state, the city or town prior to
the
close
of the fiscal year, shall retain the
services of one or more independent certified public
accountants
holding a certificate from the state of Rhode Island, or from any other state
with
whom the
state board of accountancy has a reciprocal relationship, to make a detailed
post audit
of the
financial records of the city and town municipality or regional
school district for the
preceding
fiscal year in accordance with generally accepted auditing standards and
government
auditing
standards. School districts which are part of the primary government of a
municipality
shall
be included in the municipality's post audit and shall not be required to
obtain a separate
post
audit. The selection of auditors
pursuant to this section shall be subject to the final approval
of the
state auditor general. The municipality or school district shall not engage
the auditors or
enter
into a contract for those services until the auditor general gives his or her
written
authorization.
The term school district shall include regional school districts. At the
request of
the
auditor general, the audit firm for each municipality or school district shall
release any and all
information
obtained in the course of the engagement to the Rhode Island state auditor
general (or
his/her
designee). This information includes, but is not limited to, financial data,
analysis, work
papers
and memorandum. Audit work papers of the independent auditors shall be made
available
to
the auditor general (or his/her designee) upon request. The request for such
information by the
auditor
general shall be responded to promptly. Failure to provide this information
shall
constitute
a breach of contract by the audit firm. The auditor general shall have standing
to bring
an
action in the superior court to compel the audit firm to provide the
information listed in this
section.
SECTION 2. This act shall
take effect upon passage.
=======
LC02660/SUB A
=======