ENROLLED
Senate Bill No. 573
(By Senators Minard, Yost, Snyder, White,
Edgell, Boley, Chafin and Stollings)
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[Passed March 13, 2010; in effect ninety days from passage.]
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AN ACT to amend and reenact §6-9-7 of the Code of West Virginia,
1931, as amended, relating to allowing audits to be published
electronically with notice to the proper authorities.
Be it enacted by the Legislature of West Virginia:
That §6-9-7 of the Code of West Virginia, 1931, as amended, be
amended and reenacted to read as follows:
ARTICLE 9. SUPERVISION OF LOCAL GOVERNMENT OFFICES.
§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 May 1 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 $300,000 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 $100 and imprisoned in 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 $100 and imprisoned in 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 published
electronically by the chief inspector with notice of the publishing
sent in writing to 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 published, 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 May 1 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.
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