Bill Text: GA HB831 | 2009-2010 | Regular Session | Comm Sub

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Bill Title: State auditor; certain state or local government entities' failure to perform audits required by law; provide for effects

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2010-04-01 - Senate Read Second Time [HB831 Detail]

Download: Georgia-2009-HB831-Comm_Sub.html

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10 LC 34 2680S

The Senate Government Oversight Committee offered the following substitute to HB 831:

A BILL TO BE ENTITLED
AN ACT

To amend Article 2 of Chapter 6 of Title 50 of the Official Code of Georgia Annotated, relating to the state auditor, so as to define a term; to provide that each local government shall enter into a contract with an independent auditor not later than 180 days following the end of the fiscal year or after such other date an audit is required by law to perform any required audit; to provide for an extension; to provide that in the event of failure of a local government to so contract, the state auditor shall contract with an independent accountant to perform such audit; to provide that an amount equal to 50 percent of the audit shall be withheld from funds due to be disbursed to such local government; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 2 of Chapter 6 of Title 50 of the Official Code of Georgia Annotated, relating to the state auditor, is amended by adding a new Code section to read as follows:

"50-6-33.

(a) As used in this Code section, the term 'local government' means any political subdivision or local governing authority of this state.

(b) Each local government shall enter into a contract with an independent auditor not later than 180 days following the end of the fiscal year or after such other date an audit is required by law to perform any required audit. A local government may request from the state auditor an extension if delay is caused by extenuating circumstances beyond its control. The state auditor may, in his or her discretion, grant an extension not to exceed 60 days.

(c) If a local government fails to enter into a contract with an independent auditor as required by subsection (b) of this Code section, then the state auditor shall enter into a contract with an independent auditor to perform the required audit. After such contract becomes final, the local government shall be liable for the full cost of such audit as provided in subsection (d) of this Code section.

(d)(1) If the state auditor contracts with an independent auditor as provided in subsection (c) of this Code section, the state auditor shall notify the local government, the Department of Revenue, and the Department of Community Affairs by certified mail, return receipt requested, and shall provide the cost of such audit. The Department of Revenue shall withhold from disbursal to such noncomplying local government an amount equal to 150 percent of the cost of the audit. Such amount shall be withheld from all funds, including, without limitation, sales tax receipts, not to include funds from any special purpose local option sales tax or sales tax for educational purposes, due to the local government.

(2) If the Department of Revenue is not in possession of sufficient funds due to the local government to cover the amount specified in paragraph (1) of this subsection, the department shall notify the Department of Community Affairs of the deficiency, and that department shall withhold the remainder from any funds in its possession due to be disbursed to the local government.

(3) From funds withheld as provided in paragraphs (1) and (2) of this subsection, the Department of Revenue and the Department of Community Affairs shall transmit to the state auditor an amount equal to the cost of performing the audit. Such departments shall transfer to the general fund of the state treasury an amount equal to 50 percent of the cost of the audit as a penalty.

(e) Willful obstruction by any person of the performance of an audit by an independent auditor selected by the state auditor as provided in subsection (b) of this Code section may be prosecuted as a misdemeanor."

SECTION 2.

All laws and parts of laws in conflict with this Act are repealed.