Senate Bill 2004

AN ACT TO AMEND SECTION 19-11-13, MISSISSIPPI CODE OF 1972, TO PROVIDE EACH COUNTY A REMEDY FOR DAMAGES TO THE COUNTY CAUSED BY THE CLERK OF A COUNTY BOARD OF SUPERVISORS’ FAILURE TO COMPLY WITH THE PRESCRIBED METHOD OF UNIFORM BUDGET REPORTING AS SET OUT BY THE STATE AUDITOR; TO CREATE A NEW CODE SECTION 19-11-28, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT UPON NOTICE FROM THE STATE AUDITOR OF THE TIME PERIOD OF THE AUDIT, THE BOARD OF SUPERVISORS FOR EACH COUNTY SHALL PROVIDE THE REQUIRED INFORMATION WITHIN A REASONABLE PERIOD OF TIME AND IN THE MANNER PRESCRIBED IN SECTION 19-11-13; TO PROVIDE THE STATE AUDITOR WITH REMEDIES AGAINST THE COUNTY BOARD OF SUPERVISORS FOR NONCOMPLIANCE WITH SECTION 19-11-13 OR AN INABILITY TO PROVIDE THE REQUIRED INFORMATION IN A TIMELY MANNER; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 19-11-13, Mississippi Code of 1972, is amended as follows:

19-11-13. (1) The clerk of the board of supervisors of each county shall open and keep a regular set of books, as prescribed by the State Auditor, as the head of the State Department of Audit, or by the director thereof appointed by the State Auditor. Such set of books, known as the "Uniform System of Accounts for the Counties," shall always be subject to inspection within office hours by any citizen desiring to inspect same. Said books shall contain accounts, under headings, corresponding with the several headings of the budget, so that the expenditures under each head may at once be known. It shall be the duty of said clerk to enter all receipts and expenditures in the said books or system of accounts monthly, post and balance the ledgers thereof at the end of each month so that all information needed for a comprehensive review of operations of the county under budgetary limitations may be readily obtainable. Such books shall be paid for out of the general county fund, upon the order of the board of supervisors.

(2) For failure to perform any duty herein required, said clerk shall be subject to suit on his bond for any damage that the county may sustain by reason of such failure. Such suit, or suits, shall be brought by any attorney designated and empowered to do so by the proper governing authorities of such county.

SECTION 2. The following shall be codified as Section 19-11-28, Mississippi Code of 1972:

19-11-28. Upon notice from the State Auditor, the board of supervisors of each county shall provide the required financial information in accordance with procedures and reporting requirements prescribed by the State Auditor in accordance with Section 19-11-3(1) and in compliance with Section 7-7-211(e). In a fiscal year in which the State Auditor has contracted an independent specialist or firm for the county audit, the county board of supervisors shall cause all books to be audited in accordance with Section 7-7-211(e). The State Auditor shall give reasonable notice to counties regarding the time period during which the State Auditor, or contracted specialist or firm, will perform an audit. If, in the opinion of the State Auditor, the county has not initiated efforts to comply with the requirements of Section 19-11-3(1), the State Auditor shall issue a certificate of noncompliance to the clerk of the county, Department of Revenue and the Attorney General. Thereafter, the Department of Revenue shall withhold from all allocations and payments to the county that would otherwise be payable the amount necessary to pay one hundred fifty percent (150%) of the cost of preparing the required audit or report by the State Auditor or the contracted independent specialist or firm. The State Auditor shall notify the Department of Revenue of the amount in writing, and the Department of Revenue shall transfer that amount to the budget of the State Auditor. If the State Auditor contracted a specialist or firm for the audit, the Department of Revenue shall pay the specialist or firm in accordance with Section 7-7-211(e). The State Auditor is authorized to escalate, budget and expend these funds in accordance with rules and regulations of the Department of Finance and Administration consistent with the escalation of federal funds. The State Auditor shall not unreasonably delay the issuance of a written notice of cancellation of a certificate of noncompliance but shall promptly issue a written notice of cancellation of certificate of noncompliance upon an affirmative showing by the municipality that it has come into substantial compliance.

SECTION 3. This act shall take effect and be in force from and after July 1, 2016.