H. B. 4396
(By Delegate White)
[By request of the Department of Administration]
[Introduced
February 8, 2010
; referred to the
Committee on Government Organizations then Finance.]
A BILL to amend and reenact §5A-2-33 of the Code of West Virginia,
1931, as amended, relating to the financial accounting and
reporting section of the Finance Division of the Department of
Administration and the powers and duties of the Comptroller to
give the authority to take actions necessary to require
audited and unaudited agencies to comply with the deadlines
set forth for the preparation of the comprehensive annual
financial report.
Be it enacted by the Legislature of West Virginia:
That §5A-2-33 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 2. FINANCE DIVISION.
§5A-2-33. Financial accounting and reporting section; comptroller;
powers and responsibilities.
The financial accounting and reporting section created under
section one of this article shall be under the control and
supervision of a comptroller. The provisions of this section shall
apply to all component units of state government, as defined by
generally accepted accounting principles.
The comptroller, under the direction and supervision of the
director of the Finance Division, has the power and responsibility
to:
(1) Maintain financial records supporting the comprehensive
annual financial report required under subsection (8) of this
section, in accordance with generally accepted accounting
principles;
(2) Maintain the official chart of accounts of the state;
(3) Maintain the centralized accounting system;
(4) Maintain the statewide accounting policies and procedures;
(5) Direct the establishment and maintenance of an adequate
internal control structure by the various component units of state
government;
(6) Verify the periodic reconciliation of assets as reported
by the board of Investments and budgetary fund balances as reported
by the State Auditor;
(7) Issue management financial reports by component unit and
department, as well as consolidated management financial reports,
as follows:
(a) (A) Monthly budgetary basis reports by revenue and
expense, budget compared to actual, and encumbrances; and
(b) (B) Financial position reports, including, but not limited
to, cash, investments, indebtedness, obligations and accounts
payable.
(8) Issue a comprehensive annual financial report in
accordance with generally accepted accounting principles;
(9) Have the general purpose financial statements of the state
audited annually by independent certified public accountants;
(10) Require the state pension systems, workers' compensation
commission funds, Public Employees Insurance Agency, Board of Risk
and Insurance Management and the various other component units of
the state to prepare financial statements audited by independent
certified public accountants and submit the audited financial
statements to the financial accounting and reporting section in the
form and within the time frames established by the financial
accounting and reporting section.
In addition, unaudited agencies
included in the comprehensive annual financial report shall submit
required information in the form and within the time frames
established by the financial accounting and reporting section:
Provided, That if any agency included in the comprehensive annual
financial report, audited or unaudited, fails to provide financial
information by the required deadlines, the State Comptroller shall
notify the State Auditor and the Director of the Budget Division of the Department of Revenue who shall employ whatever means
necessary, including the withholding of allotments, the withholding
of any funds payable to the agency, or the refusal to honor salary
claims for agency fiscal and executive staff, or all of these, to
ensure immediate corrective actions;
(11) Maintain controls over access to the centralized
accounting system and the required modifications, as well as edits,
controls and tables;
(12) Promulgate legislative rules in accordance with article
three, chapter twenty-nine-a of this code to effectuate the intent
and purpose of this section:
Provided, That such rules may
initially be implemented by emergency rule; and
(13) Do all things necessary and convenient to maintain the
centralized accounting system, to issue financial reports of the
state and to carry out its powers and responsibilities.
NOTE: The purpose of this bill is to give authority to the
Finance Division, the State Auditor and the Budget Section of the
Division of Revenue to take actions necessary to assure audited and
unaudited agencies included in the comprehensive annual financial
report comply with all deadlines established by the Finance
Division of the Department of Administration.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.