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2012 -- S 2103 | |
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LC00657 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO TOWNS AND CITIES -- AUDIT OF ACCOUNTS AND INSTALLATION OF | |
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SYSTEMS | |
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Introduced By: Senator Beatrice A. Lanzi | |
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Date Introduced: January 18, 2012 | |
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Referred To: Senate Finance | |
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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 three (3) consecutive years. |
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SECTION 2. This act shall take effect upon passage. |
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LC00657 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO TOWNS AND CITIES -- AUDIT OF ACCOUNTS AND INSTALLATION OF | |
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SYSTEMS | |
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This act would require towns and cities to change auditors or auditing firms every three |
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(3) years. |
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This act would take effect upon passage. |
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LC00657 | |
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