Bill Text: AZ SB1066 | 2015 | Fifty-second Legislature 1st Regular | Introduced
Bill Title: Political subdivisions; financial audit reports
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2015-04-13 - Chapter 268 [SB1066 Detail]
Download: Arizona-2015-SB1066-Introduced.html
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REFERENCE TITLE: political subdivisions; financial audit reports |
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State of Arizona Senate Fifty-second Legislature First Regular Session 2015
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SB 1066 |
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Introduced by Senator Pierce
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AN ACT
aMENDING SECTION 9-481, Arizona Revised Statutes; AMENDING TITLE 11, chapter 4, ARTICLE 3, Arizona Revised Statutes, BY ADDING SECTION 11-661; AMENDING SECTIONS 15-1473 AND 42-17103, Arizona Revised Statutes; RELATING TO POLITICAL SUBDIVISION FINANCIAL REPORTING.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 9-481, Arizona Revised Statutes, is amended to read:
9-481. Audits of cities and towns; posting; budget
A. The governing body of each incorporated city or town shall cause an audit to be made by a certified public accountant or public accountant who is currently licensed by the Arizona state board of accountancy and who is not an employee of the city or town. Audits shall be made for each fiscal year for all incorporated cities. Audits shall be made at least once for every two fiscal years for all incorporated towns, and the audit shall include financial transactions during both fiscal years.
B. The audit and the audit report shall include all of the accounts and funds of the city or town, including operating, special, utility, debt, trust, and pension, and all other money or property for which the city or town, or any department or officer of the city or town, is responsible either directly or indirectly. The audits shall be made in accordance with generally accepted auditing standards. The consequent audit report shall contain financial statements that are in conformity with generally accepted municipal accounting principles and shall set forth the financial position and results of the operations for each fund and account of the city or town. The audit report shall also include the following:
1. The professional opinion of the accountant or accountants with respect to the financial statements or, if an opinion cannot be expressed, a declaration of the reasons an opinion cannot be expressed.
2. Beginning with fiscal year 2003‑2004, A determination as to whether highway user revenue fund monies received by the city or town pursuant to title 28, chapter 18, article 2 and any other dedicated state transportation revenues received by the city or town are being used solely for the authorized transportation purposes.
C. The audit shall begin as soon as possible after the close of the fiscal year, although interim auditing may be performed during the year or years under audit. The audit shall be completed and the final audit report shall be submitted within six months after the close of the fiscal year or years audited pursuant to section 41-1279.07, subsection C.
D. Not less than three at least four copies of the audit report shall be signed by the auditor and filed with the city or town. The city or town shall immediately do the following:
1. Make one copy of the report a public record which shall be that is open to the public for inspection. and
2. File one copy of the report with the auditor general pursuant to section 41‑1279.07, subsection C.
3. Submit one copy shall be deposited with the Arizona state library, archives and public records of the report to the secretary of state.
E. The financial statements required to be filed with the auditor general pursuant to section 41‑1279.07, including the audit report, must be posted in a prominent location on the official website of the city or town no later than seven business days after the date of filing the financial statements with the auditor general. The financial statements must be retained and accessible in a prominent location on the official website for at least sixty months.
F. If the governing body of a city or town fails to file its financial statements as prescribed by section 41‑1279.07 within ten months after the close of the fiscal year, the governing body shall include a form, as prescribed by the auditor general, in the published budget in the subsequent fiscal year pursuant to section 42‑17103 stating that the governing body failed to comply with the requirements of section 41‑1279.07.
G. If the governing body of a city or town fails to file its financial statements as prescribed by section 41‑1279.07 within eighteen months after the close of the fiscal year, the governing body may not adopt a general fund budget in the subsequent fiscal year that exceeds the amount budgeted in the current fiscal year.
Sec. 2. Title 11, chapter 4, article 3, Arizona Revised Statutes, is amended by adding section 11-661, to read:
11-661. Posting of financial statements; budget
A. The financial statements required to be filed with the auditor general pursuant to section 41‑1279.07 must be posted in a prominent location on the official website of the county no later than seven business days after the date of filing the financial statements with the auditor general. The financial statements must be retained and accessible in a prominent location on the official website for at least sixty months.
B. If the board of supervisors of a county fails to file its financial statements as prescribed by section 41‑1279.07 within ten months after the close of the fiscal year, the board of supervisors must include a form, prescribed by the auditor general, in the published budget in the subsequent fiscal year pursuant to section 42‑17103 stating that the board of supervisors failed to comply with the requirements of section 41‑1279.07.
C. If the board of supervisors of a county fails to file its financial statements as prescribed by section 41‑1279.07 within eighteen months after the close of the fiscal year, the board of supervisors may not adopt a general fund budget in the subsequent fiscal year that exceeds the amount budgeted in the current fiscal year.
Sec. 3. Section 15-1473, Arizona Revised Statutes, is amended to read:
15-1473. Uniform system of accounting for community college districts; duties of auditor general; posting; budget
A. The auditor general shall determine the accounting systems, accounting methods and accounting procedures for use by the community college districts.
B. The auditor general, in conjunction with the community college districts, shall prescribe a uniform system of accounting as provided in section 41‑1279.21 for use by all community college districts.
C. The financial statements required to be filed with the auditor general pursuant to section 41‑1279.07 must be posted in a prominent location on the official website of the community college district no later than seven business days after the date of filing the financial statements with the auditor general. The financial statements must be retained and accessible in a prominent location on the official website for at least sixty months.
D. If the community college district board of directors fails to file its financial statements as prescribed by section 41‑1279.07 within ten months after the close of the fiscal year, the board of directors must include a form, prescribed by the auditor general, in the published budget in the subsequent fiscal year pursuant to section 15-1461 stating that the board of directors failed to comply with the requirements of section 41‑1279.07.
E. If the community college district board of directors fails to file its financial statements as prescribed by section 41‑1279.07 within eighteen months after the close of the fiscal year, the board of directors may not adopt a general fund budget in the subsequent fiscal year that exceeds the amount budgeted in the current fiscal year.
Sec. 4. Section 42-17103, Arizona Revised Statutes, is amended to read:
42-17103. Public access to estimates of revenues and expenses; notice of public hearing; access to adopted budget
A. The governing body of each county, city or town shall publish the estimates of revenues and expenses, or a summary of the estimates of revenues and expenses, and a notice of a public hearing of the governing body to hear taxpayers and make tax levies at designated times and places. The summary shall set forth the total estimated revenues and expenditures by fund type, truth in taxation calculations and primary and secondary property tax levies for all districts. A complete copy of the estimates of revenues and expenses shall be made available at the city, town or county libraries and city, town or county administrative offices and shall be posted in a prominent location on the official websites, or on a website of an association of cities and towns for cities and towns that do not have official websites, website of the city, town or county no later than seven business days after the estimates of revenues and expenses are initially presented before the governing body. A complete copy of the budget finally adopted under section 42‑17105 shall be posted in a prominent location on the official websites no later than seven business days after final adoption.
B. Beginning with fiscal year 2011‑2012, both the estimates of revenues and expenses initially presented before the governing body and the budget finally adopted under section 42‑17105 shall be retained and accessible in a prominent location on the official websites, or on a website of an association of cities and towns for cities and towns that do not have official websites, website of the city, town or county for at least sixty months.
C. The summary of estimates and notice, together with the library addresses and websites where the complete copy of estimates may be found, shall be published once a week for at least two consecutive weeks after the estimates are tentatively adopted in the official newspaper of the county, city or town, if there is one, and, if not, in a newspaper of general circulation in the county, city or town.
D. If a truth in taxation notice and hearing is required under section 42‑17107, the governing body may combine the notice under this section with the truth in taxation notice.
