|
§6-9-7. Examinations into affairs of local public
offices; penalties.
(a) The chief inspector has the power by himself or herself, or by any
person appointed, designated or approved by the chief inspector to
perform the service, to examine into all financial affairs of every
local governmental office or political subdivision and all boards,
commissions, authorities, agencies or other offices created under
authority thereof. An examination shall be made annually, if required,
to comply with the Single Audit Act and when otherwise required by law
or contract. When that act does not apply, unless otherwise required by
law or by contract, the examination shall be made at least once a year,
if practicable. Furthermore, the chief inspector shall furnish annually
to the Legislature a list of each local government office or political
subdivision and all boards, commissions, authorities, agencies or other
offices created under authority thereof and the year of its most recent
completed audit.
(b) When required for compliance with regulations for federal funds
received or expended by county boards of education the chief inspector
or his or her designee, including any certified public accountant
approved by the chief inspector shall conduct and issue an audit report
within the time specified in controlling federal regulations.
Examinations of other local governments shall be conducted and audit or
review reports issued in accordance with uniform procedures of the chief
inspector.
(c) A county board of education may elect, by the first day of May of
the fiscal year to be audited, to have its annual examination performed
by a certified public accountant approved by the chief inspector to
perform the examinations. When this election is made, a copy of the
order of the county board making the election shall be filed with the
chief inspector and the state board of school finance. The county board
of education is allowed to contract with any certified public accountant
on the chief inspector's then current list of approved certified public
accountants, unless the state board of school finance or the prosecuting
attorney of the county in which the board is located timely submits to
the chief inspector a written request for the examination to be
performed by the chief inspector or a person appointed by the chief
inspector, or the chief inspector determines that a special or unusual
situation exists. The county board shall follow the audit bid
procurement procedures established by the chief inspector in obtaining
the audit.
(d) The chief inspector shall, at least annually, prepare a list of
certified public accountants approved by the chief inspector to perform
examinations of local governments. Names shall be added to or deleted
from that list in accordance with uniform procedures of the chief
inspector. When each list or updated list is issued, the chief inspector
shall promptly file a copy of the list in the state register and send a
copy to the state board of education, the state board of school finance
and to local governments who request a copy.
(e) A county board of education, when procuring the services of a
certified public accountant on the chief inspector's list, shall follow
the procurement standards prescribed by the grants management common
rule, OMB Circular A-102 "Grants and Cooperative Agreements with
State and Local Governments" in effect for the fiscal year being
examined, or in any replacement circular or regulation of the office of
management and budget and in addition shall follow those standards as
determined by the office of chief inspector.
(f) The approved independent certified public accountant making
examinations under this section shall comply with requirements of this
section applicable to examinations performed by the chief inspector,
including applicable requirements of the federal government and uniform
procedures of the chief inspector applicable to examinations of county
boards of education.
(1) Upon completion of the certified public accountant's examination and
audit or review report, the certified public accountant shall promptly
send two copies of the certified report to the county board of education
who shall file one copy with the federal audit clearing house. The
certified public accountant shall send one copy of the certified report
to the state board of school finance, and one copy to the chief
inspector.
(2) If any examination discloses misfeasance, malfeasance or nonfeasance
in office on the part of any public officer or employee, the certified
public accountant shall submit his or her recommendation to the chief
inspector regarding the legal action the approved certified public
accountant considers appropriate, including, but not limited to, whether
criminal prosecution or civil action to effect restitution is
appropriate, and three additional copies of the certified audit report.
After review of the recommendations and the audit report, the chief
inspector shall proceed as provided in subsection (n) of this section.
For purposes of this section and section thirteen, article nine-b,
chapter eighteen of this code, a certified audit report of an approved
certified public accountant shall be treated in the same manner as a
report of the chief inspector.
(g) On every examination, inquiry shall be made as to the financial
conditions and resources of the agency having jurisdiction over the
appropriations and levies disbursed by the office and whether the
requirements of the constitution and statutory laws of the state and the
ordinances and orders of the agency have been properly complied with and
also inquire into the methods and accuracy of the accounts and such
other matters of audit and accounting as the chief inspector may
prescribe.
(h) If a local government office is not subject to a single audit
requirement under federal regulations or if it is not otherwise required
by law or contract to undergo an annual audit and its expenditures from
all sources are less than three hundred thousand dollars during the
fiscal year the chief inspector may choose to perform either a review or
audit on the local government office and may in his or her discretion
determine the frequency of such review or audit.
(i) The chief inspector or any authorized assistant may issue subpoenas
and compulsory process, direct the service thereof by any sheriff,
compel the attendance of witnesses and the production of books and
papers at any designated time and place, selected in their respective
county, and administer oaths.
(j) If any person refuses to appear before the chief inspector or his or
her authorized assistant when required to do so, refuses to testify on
any matter or refuses to produce any books or papers in his or her
possession or under his or her control, he or she is guilty of a
misdemeanor and, upon conviction thereof, shall be fined not more than
one hundred dollars and imprisoned in the county or regional jail not
more than six months.
(k) A person convicted of willful false swearing in an examination is
guilty of a misdemeanor and, upon conviction thereof, shall be fined not
more than one hundred dollars and imprisoned in the county or regional
jail not more than six months.
(l) Except as otherwise provided in this section, a copy of the
certified report of each examination shall be filed in the office of the
commissioner, chief inspector with the governing body of the local
government and with other offices as prescribed in uniform procedures of
the chief inspector.
(m) If any examination discloses misfeasance, malfeasance or nonfeasance
in office on the part of any public officer or employee, a certified
copy of the report shall be filed by the chief inspector with the proper
legal authority of the agency, the prosecuting attorney of the county
wherein the agency is located and with the attorney general for such
legal action as is proper. At the time the certified audit report is
filed, the chief inspector shall notify the proper legal authority of
the agency, the prosecuting attorney and the attorney general in writing
of his or her recommendation as to the legal action that the chief
inspector considers proper, whether criminal prosecution or civil action
to effect restitution, or both.
(n) If the proper legal authority or prosecuting attorney, within nine
months of receipt of the certified audit report and recommendations,
refuses, neglects or fails to take efficient legal action by a civil
suit to effect restitution or by prosecuting criminal proceedings to a
final conclusion, in accordance with the recommendations, the chief
inspector may institute the necessary proceedings or participate therein
and prosecute the proceedings in any court of the state to a final
conclusion.
(o) A local government that is not a county board of education may
elect, by the first day of May of the fiscal year to be audited, to have
its annual examination performed by a certified public accountant
approved by the chief inspector to perform the examinations. When this
election is made, a copy of the order of the governing body making the
election shall be filed with the chief inspector. An electing local
government is allowed to contract with any certified public accountant
on the chief inspector's then current list of approved certified public
accountants, unless the prosecuting attorney of the county in which the
local government is located timely submits to the chief inspector a
written request for the examination to be performed by the chief
inspector or a person appointed by the chief inspector, or the chief
inspector determines that a special or unusual situation exists: Provided,
That the audit of a local government may be performed by the chief
inspector at his or her discretion. The local government shall follow
the audit bid procurement procedures established by the chief inspector
in obtaining the audit: Provided, however, That the chief
inspector may elect to conduct the audit of a local unit of government
with one or more members of his or her audit staff where, in the opinion
of the chief inspector, a special or unusual situation exists.
| 
