MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Accountability, Efficiency, Transparency
By: Senator(s) Clarke, Dawkins, Jackson (11th), Jackson (32nd), Jordan, Wiggins
AN ACT TO AMEND SECTION 7-7-81, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE STATE AUDITOR TO AUDIT PROGRAM FUNDS FROM THE FEDERAL RESTORE ACT, GULF ENVIRONMENTAL BENEFIT FUND, AND FEES DERIVED FROM THE NATURAL RESOURCES DAMAGES ASSESSMENT PURSUANT TO THE 2010 DEEPWATER HORIZON EXPLOSION AND OIL SPILL; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 7-7-81, Mississippi Code of 1972, is amended as follows:
7-7-81. (1) The State
Auditor shall have the authority to preaudit or postaudit, conduct performance
audits and reviews, investigate projects, entities and their use of any funds
provided to the state or any of its agencies or subdivision, or any nonprofit
organization, from the federal American Recovery and Reinvestment Act of 2009,
the federal RESTORE Act, the Gulf Environmental Benefit Fund, and fees derived
from the Natural Resources Damages Assessment pursuant to the 2010 Deepwater
Horizon explosion and oil spill, and * * * their successors. If sufficient
resources are available, the State Auditor shall maintain an official Web site
and provide public access to copies of audit reports of state and local
government entities receiving funds from the American Recovery and Reinvestment
Act, the federal RESTORE Act, the Gulf Environmental Benefit Fund, and fees
derived from the Natural Resources Damages Assessment pursuant to the 2010
Deepwater Horizon explosion and oil spill, and * * * their successors. The State Auditor
shall have the authority to recover costs associated with auditing and
investigating such projects and funds within the limits of federal law from any
such entity that receives such funds. In addition, the State Auditor shall
have the authority to contract with qualified certified public accounting firms
to perform selected engagements under this section, if funds are made available
for such contracts by the Legislature, the governmental entities covered by
this section or by the federal government. All files, working papers, notes,
correspondence and any other data compiled by the audit firms in connection
with the engagements shall be available upon request, without cost, to the
State Auditor for examination and abstracting during the normal business hours
of any business day.
(2) A special fund, to be
designated as the "Auditor's Enhanced Accountability Fund," shall be
created within the State Treasury. The fund shall be maintained by the State
Treasurer as a separate and special fund, separate and apart from the General
Fund of the state. Within the limits of federal law, initial funds
shall be deposited from each governing entity receiving monies from the
American Recovery and Reinvestment Act * * *, the federal RESTORE Act, the Gulf
Environmental Benefit Fund, and fees derived from the Natural Resources Damages
Assessment pursuant to the 2010 Deepwater Horizon explosion and oil spill,
based on a sliding scale to be determined by the State Auditor. Subsequent and
additional funds may be deposited from any source made available to the
Department of Audit for such purposes. Unexpended monies from the
American Recovery and Reinvestment Act * * *, the federal RESTORE Act, the Gulf
Environmental Benefit Fund, and fees derived from the Natural Resources Damages
Assessment pursuant to the 2010 Deepwater Horizon explosion and oil spill,
remaining in the fund at the end of a fiscal year shall not lapse into the
State General Fund, and any interest earned or investment earnings on amounts
in the fund shall be deposited into such fund, but shall be held to pay for
postaudit and investigative costs for related * * *
expenditures and programs. Monies deposited into the fund shall be disbursed,
in the discretion of the State Auditor, to pay the allowable costs of
additional preaudit, postaudit, investigative, or other allowable or
accountability requirements not funded through regular appropriations or
special fund billing provided in this section. Monies in the special fund may
be used to reimburse reasonable actual and necessary costs incurred by the
State Auditor to accomplish objectives under this section. The State Auditor
shall maintain a specific accounting of actual costs incurred for each project
for which reimbursements are sought and shall provide a report to the
Legislature within sixty (60) days from the end of each fiscal year regarding
the nature and amounts of all expenditures. The Department of Audit may
escalate its budget and expend such funds in accordance with rules and
regulations of the Department of Finance and Administration in a manner
consistent with the escalation of federal funds.
SECTION 2. This act shall take effect and be in force from and after July 1, 2014.