HB-4184, As Passed Senate, June 25, 2009
February 5, 2009, Introduced by Rep. Ball and referred to the Committee on Intergovernmental and Regional Affairs.
A bill to amend 1919 PA 71, entitled
"An act to provide for the formulation and establishment of a
uniform system of accounting and reporting in the several
departments, offices, and institutions of the state government, and
in all county offices; to provide for the examination of the books
and accounts of each state department, office, and institution, and
of each county office; to provide for financial reports from all
those departments, institutions, and offices, and for the
tabulation and publication of comparative financial statistics
relating to the departments, institutions, and offices; to provide
for the administration of this act; to provide for the powers and
duties of the department of treasury, the state treasurer, the
library of Michigan and depository libraries, and other officers
and entities; to provide penalties; and to provide for meeting the
expense authorized by this act,"
by amending sections 4 and 5 (MCL 21.44 and 21.45), as amended by
2002 PA 370.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. It shall be the duty of each county office to make an
annual financial report in accordance with forms prescribed by the
state treasurer, which shall be uniform for all accounts of the
same class. The reports shall be made in duplicate, 1 copy of which
shall, within 6 months after the close of each fiscal year, be
filed in the office of the state treasurer, and shall contain an
accurate statement in summarized form showing, for each fiscal
year, the amount of all collections and receipts from all sources,
and their disposition, all accounts due the public treasury but not
collected, the amount of expenditures for every purpose and by what
authority authorized, the amount of indebtedness, the cost of
operation of all industrial activities and financial results
obtained, balance of funds on hand at the close of each fiscal
period, together with any other information as may be required by
the
state treasurer. The substance of these reports shall be
arranged
by the state treasurer and published at the expense of the
state
in an annual volume of comparative statistics, and shall be
in
the form as shall show the comparative receipts from the various
sources
of revenue and the comparative costs of county government.
A
sufficient number of copies of the volume shall be published to
furnish
a copy to each member of the legislature, a copy to each
county
office, and 200 copies for general distribution.
Sec. 5. (1) The state treasurer is the supervisor of the
accounts of all county offices. The state treasurer may examine, or
cause to be examined, the books, accounts, and financial affairs of
each
county office. The examination shall be made at least once in
each
year, or as often as the state treasurer considers it to be
for
the public good. The state treasurer may employ auditors,
examiners,
and assistants as he or she considers necessary, the
number
and compensation of whom shall be subject to the approval of
the
state administrative board and shall be within the limits of
the
amount of money appropriated for that purpose. In addition to
their
compensation, they shall be paid their necessary traveling
expenses,
which compensation and expenses, when audited and
approved
by the state treasurer, shall be paid by the state
treasurer
out of the fund appropriated for that purpose, upon
warrant
of the proper officer. The state treasurer shall receive
his
or her actual traveling expenses incurred while engaged in
administering
the provisions of this act, which shall be paid by
the
state treasurer out of the funds appropriated for that purpose.
(2) A county shall obtain an annual audit of its financial
records, accounts, and procedures and may retain certified public
accountants to perform the audits. If a county fails to provide for
an audit, the state treasurer shall either conduct the audit or
appoint a certified public accountant to perform the audit. The
entire cost of any audit shall be borne by the county.
(3) The state treasurer shall prescribe minimum auditing
procedures and standards, and these shall conform as nearly as
practicable to generally accepted auditing standards and procedures
established by the American institute of certified public
accountants.
(4) A report of the auditing procedures applied in each audit
shall be prepared on a form provided for this purpose by the state
treasurer. The state treasurer may require that the audit report,
or the report of auditing procedures, or both, that are required by
this subsection to be filed with the state treasurer be filed in an
electronic format prescribed by the state treasurer.
(5) One copy of every audit report and 1 copy of the report of
auditing procedures applied shall be filed with the state
treasurer.
(6) The copy of the audit report and the copy of the report of
auditing procedures applied required by subsection (5) shall be
filed with the state treasurer within 6 months after the end of the
fiscal year of a county for which an audit has been performed under
this section. The chief administrative officer of a county may
request an extension of the filing date from the state treasurer,
and the state treasurer may grant the request for reasonable cause.
A chief administrative officer who requests an extension under this
subsection shall, within 10 days of making the request, inform the
governing body of the county in writing of the requested extension.
(7) Every audit report required under this section shall do
all of the following:
(a) State that the audit has been conducted in accordance with
generally accepted auditing standards and with the standards
prescribed by the state treasurer.
(b) State that financial statements in the audit reports have
been prepared in accordance with generally accepted accounting
principles and with applicable rules and regulations of any state
department or agency. Any deviations from such principles, rules,
or regulations shall be described in detail.
(c) Disclose any material deviations by the county from
generally accepted accounting practices or from applicable rules
and regulations of any state department or agency.
(d) Disclose any fiscal irregularities including, but not
limited to, any defalcations, misfeasance, nonfeasance, or
malfeasance that came to the auditor's attention.
(8) A financial audit of a county that is performed by a
certified public accountant in a manner consistent with auditing
procedures and standards established by the state treasurer and
that is filed with the state treasurer shall constitute an audit of
county accounts by competent state authority for purposes of
section 21 of article IX of the state constitution of 1963.
(9) As used in this section, "chief administrative officer"
means that term as used in section 2b(3)(f) of the uniform
budgeting and accounting act, 1968 PA 2, MCL 141.422b.