2002

State of Wyoming

02LSO-0102.W3

 

 

 

WORKING DRAFT

 

 

 

HOUSE BILL NO.      

 

 

Special districts-reporting.

 

Sponsored by:

 

 

A BILL

 

for

 

AN ACT relating to special districts; providing for reporting requirements of special districts as specified;  providing for dissolution; and providing for an effective date.

 

Be It Enacted by the Legislature of the State of Wyoming:

 

Section 1.  W.S. 9-1-507(a)(iii)(intro) and (C) and by creating new subparagraph (D) and (vii), (j) and by creating a new subsection (k), 16-4-121(f), 22-29-401(a)(iii) by creating a new subparagraph (C) and 22-29-408(a)(ii) by creating a new subparagraph (D) are amended to read:

 

9-1-507.  Examination of books of state institutions, agencies and certain districts and entities; independent audit authorized; guidelines.

 

(a)  The director of the state department of audit shall:

 

(i)  Supervise the books, financial accounts and financial records of all state agencies and institutions, counties, school districts and municipalities within the state;

 

(ii)  Repealed by Laws 1993, ch. 75, §2.

 

(iii)  Require state institutions, state agencies, the entities described in W.S. 16-4-104(g) not receiving loans or grants from the state loan and investment board and incorporated cities and towns with a population of less than four thousand (4,000) inhabitants to file with the department such reports of the books and accounts of the institution, agency, district or entity as the director deems necessary. The director shall promulgate rules under which special districts described in W.S. 16-4-104(g) and not receiving loans or grants from the state loan and investment board shall prepare and file an annual report of their books and records with the department of audit. These rules shall apply to special districts which are subject to administration by the courts as provided in subsection (e) of this section. These rules shall provide for different levels of oversight, at the expense of the district, depending upon the higher of the total revenues received or expenditures made by the district during the fiscal year under review subject to the following limitations:

 

(A)  At least one million dollars ($1,000,000.00) - an audit by a certified public accountant shall be required;

 

(B)  At least one hundred thousand dollars ($100,000.00) but less than one million dollars ($1,000,000.00) - requirements shall be greater than those in subparagraph (C) of this paragraph but less than those in subparagraph (A) of this paragraph. The rules shall provide for more stringent oversight requirements for districts with higher total revenues within this range than the requirements for districts with lower total revenues within this range;

 

(C)  Less than one hundred thousand dollars ($100,000.00) but more than twenty-five thousand dollars ($25,000.00) - the only requirements shall be a proof of cash procedure conducted by an independent third party with a certification from two (2) authorized representatives of the district that the proof of cash procedure was performed by the independent third party in accordance with procedures required by the director and that to the best of their knowledge the financial information used was complete and accurate;.

 

(D)  Twenty-five thousand dollars ($25,000.00) or less – the only requirement shall be the annual report of district revenues, expenses and ending cash balance.

 

(iv)  Require corrections of faults or erroneous systems of accounting and when necessary instruct county and municipal officers in the proper mode of keeping accounts;

 

(v)  Perform an audit or specified procedures of any books and records of any state institution, state agency, incorporated city or town with a population of less than four thousand (4,000) inhabitants or any district or entity described in W.S. 16-4-104(g) not receiving loans or grants from the state loan and investment board, whenever the director feels the audit or procedures are necessary. In lieu of performing such audit or procedures, the director may accept an audit or specified procedures performed by a certified public accountant;

 

(vi)  Conduct performance measure reviews based on the standards developed in W.S. 28-1-115(a)(ii)(A).  The director shall determine the means to be used to verify and validate the performance measures.  The results of the reviews shall be reported to the agency head, governor, secretary of state and the legislative service office;

 

(vii)  Require each county, city and town, special district and joint powers board in this state to report to the department revenues received and expenditures made each fiscal year.  The reports shall be made not later than September 30 for the prior fiscal year.  The format of the reports required by this paragraph shall be established by the department of audit by rule.

 

(b)  Repealed by Laws 1993, ch. 75, §2.

 

(c)  Audit procedures performed on all state agencies, institutions and municipalities as defined in W.S. 16-4-102(a)(xiv) within the state shall be performed in accordance with current government audit standards issued by the United States comptroller general and within the standards for audit of governmental units as promulgated by the American Institute of Certified Public Accountants.

 

(d)  The director may authorize an independent certified public accountant to review the financial statements of districts and entities described in W.S. 16-4-104(g) in lieu of the requirements of W.S. 16-4-121(f) in accordance with statements on standards for accounting and review services issued by the American Institute of Certified Public Accountants and any other agreed upon procedures as determined by the director, if the district or entity provides to the director:

 

(i)  A written request for such a report; and

 

(ii)  Evidence that the total receipts or revenue of the district or entity, excluding loans or grants from the state loan and investment board, for the twelve (12) month period immediately preceding the date of the written request does not exceed twenty-five thousand dollars ($25,000.00).

 

(e)  The director may waive the oversight requirements of paragraph (a)(iii) of this section for special districts created by and subject to administration by the courts, if the district provides to the director:

 

(i)  An annual written request for a waiver within thirty (30) days after the required annual filing of financial information with the court;

 

(ii)  A copy, certified by the court, of the receipts and disbursements of the district for the fiscal year for which the waiver is requested;

 

(iii)  A copy of the annual budget with the court authorized assessments for the year following the year for which the waiver is requested;

 

(iv)  Other information as the director may reasonably require.

 

(f)  No state agency or board shall impose requirements for audit procedures to be performed upon any public entity described in subsection (c) of this section which exceed the requirements of subsection (c) of this section unless those requirements have been authorized through rules or regulations promulgated by the director of the department of audit and the state agency or board provides funding for the additional audit requirements.

 

(g)  No state agency or board shall require of any recipient of grants or funds, as a condition of receiving the grant or funds, any audit procedures to be performed which exceed the requirements in subsection (c) of this section unless the state agency or board provides funding for the additional audit requirements through a specific amount in the grant of funds, or unless the requirements are specifically authorized by statute.

 

(h)  The department of audit shall have authority to promulgate rules and regulations to carry out the provisions of the audit procedures authorized by this section including, unless otherwise provided, setting the dollar limits at which audits authorized under subsections (f) and (g) of this section are to be performed for governmental entities in this state and any recipient of state funds.

 

(j)  The director of the department of audit shall certify:

 

(i)  To the state treasurer by October 5 of each year, a list of counties, cities and towns which have failed to comply with paragraph (a)(vii) of this section.  The state treasurer shall withhold the annual distribution, which would otherwise be made under W.S. 9-2-1014.1, to any county, city or town failing to comply with paragraph (a)(vii) of this section.  The withheld distribution shall be retained in the budget reserve account until the director of the department of audit certifies that the county, city or town has filed the required report;.

 

(ii)  To the board of county commissioners and to the special district by October 5 of each year any special district in the county which has failed to comply with paragraph (a)(vii) of this section.  If, by November 30 of that same year, the district has failed to comply with paragraph (a)(vii) of this section, the director of the department of audit shall file notice with the county commissioners and the county treasurer.  The county treasurer shall withhold any further distribution of money to the district until the county commissioners certify to the county treasurer that the district has complied with all reporting requirements.  If the county treasurer does not collect or distribute any funds to or for the district, the county commissioners shall seek to dissolve the special district in accordance with W.S. 22-29-401 et seq.;

 

     (iii)  To the court and to the special district by October 5 of each year any special district created by and subject to administration by the court which has failed to comply with paragraph (a)(vii) of this section.  If, by November 30 of that same year, the district has failed to comply with paragraph (a)(vii) of this section, the director of the department of audit shall file notice with the court and the county treasurer.  The county treasurer shall withhold any further distribution of money to the district until the court certifies to the county treasurer that the district has complied with all reporting requirements.  If the county treasurer does not collect or distribute any funds to or for the district, the court shall seek dissolution of the special district by the court.

 

(k)  The director of the department of audit shall report on or before December 31 of each year to the governor and the legislature, financial information regarding counties, cities, towns and special districts.  The information shall be obtained from the annual reports collected from the required reports in this section and shall be in a form required by the director.

 

16-4-121.  Required annual audits; conduct; expenses; commencement and completion; additional requirements for school audits.

 

(f)  Except as provided in W.S. 9-1-507(d), districts and entities described in W.S. 16-4-104(g), excluding incorporated cities or towns under four thousand (4,000) inhabitants, receiving loans or grants from the state loan and investment board and County memorial hospitals and hospital districts shall have an annual audit conducted by an independent certified public accountant in accordance with generally accepted government auditing standards applicable to the district or entity. The audit expense shall be included in the operating budget of the district or entity.

 

22-29-401.  Dissolution procedure.

 

(a)  Dissolution of a district may be initiated:

 

(iii)  By resolution of the county commissioners if:

 

(A)  Either:

 

(I)  The district at the time of the regular district election has not elected district directors as required by the principal act; or

 

(II)  The territory within the district is uninhabited; and

 

(B)  The county commissioners determine that it is in the best interest of the people of the county that the district be dissolved and liquidated;. or

 

(C)  The director of the department of audit has notified the commissioners of the district's failure to comply with the reporting requirements of W.S. 9-1-507.

 

22-29-408.  Dissolution without election.

 

(a)  The election required by W.S. 22-29-404 shall be dispensed with and the county commissioners shall declare the district dissolved if the county commissioners find that:

 

(i)  Dissolution is in the interest of the people of the county; and

 

(ii)  At least one (1) of the following:

 

(A)  The territory within the affected district is uninhabited;

 

(B)  The district has failed regularly to elect district board members in accordance with the principal act of the district; or

 

(C)  That the district is not active and that there is no need for the district; . or

 

(D)  The director of the department of audit has notified the board of county commissioners of the district's failure to comply with the reporting requirements of W.S. 9-1-407.

 

Section 2.  W.S. 9-1-507(d) is repealed.

 

Section 3.  This act is effective July 1, 2002.

 

(END)