PRIOR PRINTER'S NOS. 2510, 3092 PRINTER'S NO. 3182
No. 2021 Session of 1995
INTRODUCED BY SATHER, MERRY, PISTELLA, HENNESSEY, WOZNIAK,
PETTIT, GORDNER, GEIST, SEMMEL, STERN, E. Z. TAYLOR, MILLER,
BAKER, SAYLOR, MAITLAND, STEIL, MICOZZIE, TRELLO, BOSCOLA,
ROBINSON AND RUBLEY, SEPTEMBER 25, 1995
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 11, 1996
AN ACT
1 Amending the act of August 9, 1955 (P.L.323, No.130), entitled
2 "An act relating to counties of the third, fourth, fifth,
3 sixth, seventh and eighth classes; amending, revising,
4 consolidating and changing the laws relating thereto,"
5 further providing for taking money and property by gift, for
6 creation of a capital reserve fund, for the operating reserve
7 fund, for billing and collecting by the county treasurer, for
8 functions of the controller, for custody of documents, for
9 books of fiscal affairs, for settlement of accounts, for
10 audit of accounts, for claims against a county, for reports
11 to commissioners, for fees of witnesses and jurors, for
12 receipts and accounts of money due a county, for preparation
13 of proposed annual budget, for amending budgets, for levies,
14 for tax rates, for appropriations, for filing the budget, for
15 notice and for the preparation of uniform forms; and
16 providing for refusal to submit to examination and for the
17 procedure for approval.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Sections 510, 512 and 513 of the act of August 9,
21 1955 (P.L.323, No.130), known as The County Code, are repealed.
22 Section 2. Section 1701.1 of the act, amended June 25, 1968
23 (P.L.257, No.121), and December 13, 1982 (P.L.1205, No.276), is
24 amended to read:
1 Section 1701.1. Billing and Collection of Third, Fourth,
2 Fifth, Sixth, Seventh and Eighth Class County Taxes.--(a) The
3 county commissioners of each county of the third, fourth, fifth,
4 sixth, seventh and eighth class may, by resolution, provide for
5 the billing and collecting by the county treasurer of all county
6 and county institution district taxes levied within a third
7 class city by the authorities empowered to levy such taxes.
8 (a.1) The county commissioners of each county of the third,
9 fourth, fifth, sixth, seventh and eighth class may, by
10 resolution, provide for the billing and collection of all county
11 taxes in municipalities existing or organized under the act of
12 April 13, 1972 (P.L.184, No.62), known as the "Home Rule Charter
13 and Optional Plans Law," that have eliminated the elective
14 office of tax collector, by the authorities empowered to levy
15 such taxes.
16 (b) In counties of the third, fourth, fifth, sixth, seventh
17 and eighth class [in which], the county commissioners may <--
18 provide, by resolution, for the billing and collection of all
19 county and county institution district taxes [levied in third <--
20 class cities[, the]. The county commissioners shall have the <--
21 power and authority by resolution, to vest in the county
22 treasurer the duties and responsibilities of billing and
23 collecting county and county institution district taxes. Such
24 resolution shall be adopted by the county no later than the
25 first day for the circulation of nomination petitions for the
26 office of tax collector within the county and shall take effect
27 upon the first day of the next succeeding term of office of tax
28 collector following adoption of the resolution.
29 (b.1) In counties of the third, fourth, fifth, sixth,
30 seventh and eighth class in which the county commissioners
19950H2021B3182 - 2 -
1 provide, by resolution, for the billing and collection of all
2 county taxes levied in municipalities existing and organized
3 under the "Home Rule Charter and Optional Plans Law," that have
4 eliminated the elective office of tax collector, the county
5 commissioners shall have the power and authority, by resolution,
6 to vest in the county treasurer the duties and responsibilities
7 of billing and collecting county taxes.
8 (c) The county commissioners may appoint such other employes
9 as may be necessary to carry out the provisions of this section.
10 (d) The compensation of personnel and other expenses of
11 billing and collecting county and institution district taxes
12 pursuant to this section shall be paid out of the general fund
13 in the county treasury. The compensation and number of such
14 employes other than the county treasurer shall be governed by
15 the provisions of this act relating to the county salary board.
16 If the county treasurer is designated as the collector of the
17 county and county institution district taxes he shall not
18 receive added compensation for performing such functions.
19 (e) The treasurer shall be governed by the provisions of the
20 act of May 25, 1945 (P.L.1050) known as the "Local Tax
21 Collection Law" and its amendments.
22 Section 3. Section 1702 of the act, amended October 1, 1981
23 (P.L.284, No.96), is amended to read:
24 Section 1702. Functions of the Controller.--(a) Subject to
25 the power and duty of the county commissioners to manage and
26 administer the fiscal affairs of the county, the controller
27 shall supervise the fiscal affairs of the county including the
28 accounts and official acts relating thereto of all officers or
29 other persons who shall collect, receive, hold or disburse the
30 public [moneys] assets of the county. The discretionary powers
19950H2021B3182 - 3 -
1 of the controller shall not be applicable to the management of
2 the fiscal policies of the county commissioners, or to matters
3 not involving the accounts and transactions of officers or other
4 persons of the county[, but the controller shall]. The
5 controller may only refuse to authorize any fiscal transaction
6 which is, by law, subject to his supervision or control where it
7 appears that such transaction is not authorized by law, or has
8 not been undertaken according to law, or has not received
9 approval according to law, or as to which he desires upon
10 reasonable grounds to investigate for or has already discovered
11 any fraud, flagrant abuse of public office or any criminal act
12 or neglect of any officer or other person of the county relating
13 to their public accounts and transactions. He may at any time
14 require from any such officers or other persons, in writing, an
15 account of all [moneys or property] assets which may have come
16 into their control. Immediately, on the discovery of any default
17 or delinquency, he shall report the same to the commissioners
18 [who shall immediately take action to recover the money] and to
19 the district attorney of the county for such prosecution as may
20 be warranted, and shall take immediate measures to secure the
21 public [moneys or property] assets.
22 (b) Pursuant to subsection (a), the county commissioners
23 may, for the purpose of meeting Federal or State requirements or
24 for the purpose of internal management, contract with or employ
25 an independent certified public accountant or public accountant
26 for the purpose of preparing or conducting a report or audit of
27 the fiscal affairs of the county, independent of and/or in
28 addition to, that conducted by the county controller or
29 auditors. Such contracts shall be discussed with the controller
30 prior to execution, and the controller shall be afforded an
19950H2021B3182 - 4 -
1 opportunity to comment.
2 Section 4. Sections 1704 and 1705 of the act are amended to
3 read:
4 Section 1704. Custody of [Valuable] Documents.--The
5 controller shall have the custody of all title deeds to real
6 estate owned by the county, and of all contracts entered into by
7 or on behalf of the county, and of all books, documents and
8 papers relating to its financial affairs, and of all bonds and
9 other obligations issued by said county, when paid. Such bonds
10 and other obligations, when so paid, shall be distinctly
11 cancelled by the controller and carefully and regularly filed, a
12 register of which cancellation shall be kept by him in a book to
13 be provided for that purpose.
14 Section 1705. Books of Fiscal Affairs.--The controller shall
15 keep a full and regular set of books in [detail, by double
16 entry] accordance with generally accepted accounting principles,
17 of all the fiscal operations of the county, embracing as many
18 accounts, under appropriate titles, as may be necessary to meet
19 Federal and State reporting requirements and to show distinctly
20 and separately all the property of the county, its [receipts]
21 revenue and expenditures, and all debts and accounts due by the
22 county officers or others, and the amount raised from each
23 source of revenue, and the expenditures in detail, and
24 classified by reference to the objects thereof. He shall
25 prescribe and administer the form and manner of keeping the
26 official books and papers [used by each of the officers of said
27 county] in connection with the fiscal affairs of the county.
28 Where the controller prescribes a [new system of accounting as
29 to the fiscal affairs of the county offices, it] change in the
30 form and manner of keeping the official books and papers, any
19950H2021B3182 - 5 -
1 costs necessary for implementation shall be subject to the
2 approval of the county commissioners.
3 Section 5. Section 1720 of the act, amended May 6, 1981
4 (P.L.49, No.16), is amended to read:
5 Section 1720. Controller's Settlement of Accounts; Report to
6 Common Pleas; Publications; Financial Report to Department of
7 Community Affairs.--(a) The controller shall, at the end of
8 each fiscal year, complete the audit, settlement and adjustment
9 of the accounts of all county officers. He shall, before the
10 first day of [April in every] the seventh month of each fiscal
11 year, make a report, verified by oath or affirmation, to the
12 Court of Common Pleas of said county, of all [receipts] revenue
13 and expenditures of the county for the preceding fiscal year, in
14 detail, and classified by reference to the object thereof,
15 together with a full statement of the financial conditions of
16 the county. The report shall be in detail, determining all of
17 the following:
18 (1) Whether the financial statements of the county fairly
19 represent its financial position and the results of its
20 financial operations are in accordance with generally accepted
21 accounting principles.
22 (2) Whether the county has internal accounting and other
23 control systems to provide reasonable assurance that its
24 operation is in compliance with statutes and regulations.
25 (b) A concise summary of this report shall thereupon be
26 published one time in such newspapers published in said county
27 as the controller may direct[, but the aggregate cost thereof
28 shall not exceed fifteen hundred dollars ($1500) in any one year
29 in any county], to be paid for out of the county treasury. Such
30 report may also be published in printed pamphlets at the cost of
19950H2021B3182 - 6 -
1 the county, the number and cost of such pamphlets to be
2 determined by the controller and the county commissioners. The
3 controller shall also, before the first day of [April] the
4 seventh month of the fiscal year, make an annual report to the
5 Department of Community Affairs of the financial condition of
6 the county, on forms furnished by the Secretary of Community
7 Affairs, and subject to the penalties provided in section one
8 thousand seven hundred twenty-one of this act for auditors
9 refusing or neglecting to make similar reports. Within the
10 summary of the [auditor's or] controller's report, there shall
11 be a notice to the public that the entire text of the report
12 shall be available for public inspection during regular business
13 hours in the office of the [auditor or] controller.
14 Section 6. Section 1721 of the act, amended October 5, 1967
15 (P.L.342, No.147), April 18, 1978 (P.L.36, No.18) and May 6,
16 1981 (P.L.49, No.16), is amended to read:
17 Section 1721. Audit of Accounts by Auditors; Report to
18 Common Pleas; Publications; Financial Report to Department of
19 Community Affairs.--(a) The auditors shall, in accordance with
20 generally accepted auditing standards, audit, settle and adjust
21 the accounts of all county officers [of the county], and make an
22 annual report thereof, on or before the first day of the
23 [following May] seventh month following the close of the fiscal
24 year, to the court of common pleas, unless upon due cause shown
25 the court shall grant an extension of time therefor. Said report
26 shall be in detail, [showing distinctly and separately all
27 receipts and expenditures of the several offices, and all debts
28 and accounts due, and the amount raised from each source of
29 revenue, and the expenditures in detail and classified by
30 reference to the object thereof, together with a full statement
19950H2021B3182 - 7 -
1 of the financial conditions of the county, and a statement of
2 the balance due from or to such county officers.] determining
3 all of the following:
4 (1) Whether the financial statements of the county fairly
5 represent its financial position and the results of its
6 financial position and the results of its financial operations
7 are in accordance with generally accepted accounting principles.
8 (2) Whether the county has internal accounting and other
9 control systems to provide reasonable assurance that its
10 operation is in compliance with statutes and regulations.
11 (b) The auditor's report shall be prepared and within ten
12 days after being filed in the court of common pleas, a concise
13 summary thereof shall be published, once, in at least two
14 newspapers published in said county; or if not more than one
15 newspaper is published in the county, then in such newspaper; or
16 if there be no newspaper published in the county, then in one
17 newspaper of general circulation in said county. The expense of
18 the publication of said summary shall be paid by the county.
19 Within the summary of the auditor's [or controller's] report,
20 there shall be a notice to the public that the entire text of
21 the report shall be available for public inspection during
22 regular business hours in the office of the auditor [or
23 controller].
24 (c) The county auditors shall also make an annual report of
25 the financial condition of the county to the Department of
26 Community Affairs, which report shall be signed by a majority of
27 the auditors, and duly verified by the oath or affirmation of
28 one of the auditors. The report shall be presented on a form
29 furnished by the Secretary of Community Affairs, and shall be
30 filed on or before the first day of the [following May] seventh
19950H2021B3182 - 8 -
1 month following the close of the fiscal year.
2 (d) Any auditors refusing or wilfully neglecting to file the
3 report required by this section shall, upon conviction thereof,
4 in a summary proceeding brought at the instance of the
5 Department of Community Affairs, be sentenced to pay a fine of
6 five dollars ($5) for each day's delay beyond said first day of
7 [May] the seventh month following the close of the fiscal year,
8 and costs. All fines recovered shall be for the use of the
9 Commonwealth.
10 Section 7. Sections 1722, 1722.1, 1723, 1724 and 1724.1 of
11 the act are repealed.
12 Section 8. The act is amended by adding a section to read:
13 Section 1724.2. Audits.--(a) It shall be the duty of the
14 controller or auditors to annually audit, settle and adjust the
15 following in accordance with generally accepted auditing
16 standards and applicable Federal and State laws:
17 (1) Accounts of every district justice within the county.
18 (2) Accounts for moneys appropriated by the county to units
19 of the Pennsylvania National Guard.
20 (3) Accounts for taxes, penalties, costs and fines collected
21 by the county treasurer and belonging to a political subdivision
22 or to the Commonwealth.
23 (4) Accounts for moneys collected or disbursed by the county
24 prothonotary, the county clerk of courts, the register of wills,
25 the recorder of deeds, the clerk of the orphans' court, the
26 sheriff, the district attorney or any subdivision of the court
27 of common pleas.
28 (b) Reports of such audits shall be made to both the court
29 of common pleas and the board of county commissioners, together
30 with a statement of balances due from or to the appropriate
19950H2021B3182 - 9 -
1 officer. Such report may include a determination of whether the
2 accounts or operations conform with generally accepted
3 accounting principles. A certified copy of such report shall be
4 forwarded to the Auditor General or the Department of Revenue,
5 as the case may be, within ten days after it is prepared.
6 (c) For the purposes of this act relating to the audits of
7 accounts, money held by any county official in escrow shall be
8 deemed the same as county funds or public money and shall be
9 audited by the controller or auditors.
10 (d) The controller or auditors may, in accordance with
11 generally accepted auditing standards, audit, settle and adjust
12 the accounts or review the operations of any officer or other
13 person who collects, receives, holds or disburses the public
14 assets of the county, and may determine whether the accounts or
15 operations conform with generally accepted accounting
16 principles.
17 (e) The controller or auditors may, in accordance with
18 generally accepted auditing standards and for the purpose of
19 inclusion of the accounts in the county's general purpose
20 financial statements, audit, settle and adjust the accounts and
21 analyze the operations of any authority that collects, receives,
22 holds or disburses public assets of the county, and may
23 determine whether the accounts or operations conform with
24 generally accepted accounting principles. To comply with the
25 provisions of this subsection, the controller or auditors may
26 utilize any existing audit of the authority required by law.
27 (f) If the controller or auditors and county commissioners
28 disagree about the application of generally accepted accounting
29 principles or of Federal or State law in an audit, settlement or
30 adjustment, the parties shall appoint a mutually agreed to
19950H2021B3182 - 10 -
1 professional with expertise relevant to the dispute to settle
2 the dispute. If the controller or auditors and county
3 commissioners are not able to agree on the appointment, the
4 appointment of a professional to settle the dispute shall be
5 made by the court of common pleas of the county from a list of
6 names, three of which are furnished by the controller or
7 auditors and three of which are furnished by the county
8 commissioners.
9 Section 9. Sections 1727 and 1750 of the act are amended to
10 read:
11 Section 1727. [Commitment to County Jail] Refusal to Submit
12 to Examination.--If any person appearing before the controller
13 or auditors for examination shall refuse to take oath or
14 affirmation, or after having been sworn or affirmed shall refuse
15 to make answer to such questions as shall be put to him by the
16 controller or auditors touching the public accounts or the
17 official conduct of any public officers, he shall be guilty of a
18 misdemeanor [and, upon conviction thereof, shall be sentenced to
19 pay a fine of not more than two hundred dollars ($200), or to
20 undergo imprisonment for not more than sixty days].
21 Section 1750. Claims Against County.--The controller or the
22 county commissioners in counties having no controller shall
23 scrutinize, audit and decide on all bills, claims and demands
24 whatsoever against the county, except such as are otherwise
25 provided for in this subdivision. All persons having such claims
26 shall first present the same to the controller or to the county
27 commissioners [as the case may be] and, if required, make oath
28 or affirmation before him or them to the correctness thereof.
29 The controller or the commissioners, as the case may be, may, if
30 he or they deem it necessary, require evidence, by oath or
19950H2021B3182 - 11 -
1 affirmation, of the claimant and otherwise that the claim is
2 legally due and that the supplies or services for which payment
3 is claimed have been furnished or performed under legal
4 authority. He or they may inquire or ascertain whether any
5 officer or agent of the county is interested in the contract
6 under which any claim may arise, or has received or is to
7 receive any commission, consideration or gratuity relating
8 thereto, or whether there has been any evasion of the provisions
9 of this act by making two or more contracts for small amounts
10 which should have been in one. If he or they shall find that
11 there has been any evasion, or that any such officer or agent is
12 so interested, he or they shall refuse to approve the claim.
13 Section 10. Section 1751 of the act, amended July 1, 1978
14 (P.L.723, No.129), is amended to read:
15 Section 1751. [Voucher Check System] Procedure for
16 Approval.--The controller shall [draw and certify vouchers for]
17 date, upon receipt, all bills, claims and demands presented to
18 him, which he approves and only for such as he approves, and
19 shall forward [the vouchers together with checks therefor with]
20 the bills, claims or demands along with checks therefor to the
21 county commissioners for their approval or, if already approved
22 by the commissioners, for their signatures as provided in this
23 section. If the county commissioners approve [a voucher] payment
24 of a bill, claim or demand, at least two commissioners shall
25 sign the check as properly drawn upon the county treasury. In
26 such cases facsimiles of their signatures may be used. The bill,
27 claim or demand[, and the voucher therefor,] shall be returned
28 to the controller for filing in his office and the check shall
29 be forwarded to the county treasurer. The county treasurer shall
30 sign the check as his draft upon the county treasury, but he
19950H2021B3182 - 12 -
1 shall not sign any check not already signed, as herein provided,
2 by the commissioners and the controller. [Vouchers shall be
3 numbered serially before the controller forwards them to the
4 county commissioners and every check incident thereto shall bear
5 the same serial number as the voucher] Every check issued shall
6 include reference to its corresponding bill, claim or demand as
7 well as the number or numbers which may be put upon it by the
8 county treasurer. If the county commissioners refuse to approve
9 any bill, claim or demand, they shall return the same together
10 with the voucher and check involved to the controller for filing
11 in his office. In counties not having a controller, the county
12 commissioners shall approve each transaction and the [voucher
13 and] check shall be drawn by their chief clerk who shall keep
14 files of the bills, claims or demands involved [and of the
15 vouchers]. At least two commissioners shall sign the checks
16 either personally or by facsimile, and they shall be forwarded,
17 as hereinbefore provided, to the county treasurer for his
18 signature. In all cases the cancelled checks, or official bank
19 record thereof, shall be filed in the office of the county
20 treasurer, but he shall transmit, at such times as the
21 controller shall establish, a list of all checks paid from the
22 county treasury and not previously transmitted, [giving their
23 voucher serial numbers] along with appropriate identification.
24 The county treasurer and the controller in those counties having
25 a controller are authorized to use a facsimile signature on any
26 check [for the payment of wages or salaries of county employes]
27 which they are required to sign.
28 Section 11. Sections 1752, 1753, 1754 and 1760 of the act
29 are amended to read:
30 Section 1752. Claims Not Approved by Controller.--If the
19950H2021B3182 - 13 -
1 controller does not approve a claim, bill or demand presented to
2 him, he shall within thirty days forward it to the county
3 commissioners together with his notice that he has [refused]
4 disapproved the claim, bill or demand or is unable to approve
5 the same and his reasons therefor. The county commissioners
6 shall consider the claim, bill or demand and, if they consider
7 that it should be paid by the county, they shall so notify the
8 controller. If the controller thereafter continues to refuse his
9 approval no payment shall be made thereon by the county except
10 pursuant to an order of court upon a proper issue thereto
11 directing the controller to approve payment.
12 Section 1753. [Controller's Register of Vouchers;] Reports
13 to Commissioners.--[The controller shall keep a register of all
14 vouchers drawn and a copy of each voucher. When the check or
15 checks drawn upon each voucher has been paid by the treasury the
16 controller shall cancel the voucher or otherwise indicate the
17 payment.] The controller shall report to the commissioners
18 monthly or oftener, if required by them, the amount of
19 outstanding checks registered and the amount of money in the
20 treasury or the amount of any particular unencumbered
21 appropriation items involved.
22 Section 1754. Fees of Witnesses and Jurors.--Fees of jurors
23 and witnesses shall be ascertained by the courts of the county
24 entered upon the records thereof and duly certified by their
25 respective clerks to the commissioners being first sworn to or
26 affirmed before the controller or the chief clerk of the
27 commissioners as the case may be. The commissioners, then, may
28 draw [voucher] checks therefor without approval of the
29 controller. The certificates shall be filed with the controller
30 or the commissioners where there is no controller after the
19950H2021B3182 - 14 -
1 [voucher] checks are issued.
2 Section 1760. Receipts and Accounts of Money Due County.--
3 The county treasurer shall receive and receipt for all moneys
4 due or accruing to the county. He shall keep proper accounts of
5 all moneys received and disbursed. His books shall be, at all
6 times during office hours, open to the inspection of the
7 controller[, or] and, for inspection or other management
8 purpose, to the commissioners, or any of them in counties having
9 no controller. He shall issue receipts, at least in triplicate,
10 for all moneys received for the county, and shall transmit the
11 duplicate or triplicate thereof daily to the controller, or to
12 the county commissioners in counties having no controller. Said
13 receipts shall be serially numbered, shall indicate the amount
14 of money received, from whom, on what account and the date. He
15 shall likewise keep daily records of all disbursals from the
16 county treasury, and shall forward daily records thereof to the
17 controller, or the commissioners as the case may be. The
18 controller, or the chief clerk of the commissioners where there
19 is no controller, shall have the right to a certified daily or
20 monthly deposit slip from the county depository or depositories,
21 without prejudice to the said depositories, of all moneys
22 deposited in the name of the county by the treasurer. In
23 counties having no controller, the treasurer shall render, at
24 least quarterly and oftener, if required, a statement of all
25 moneys received and disbursed since his last statement, showing
26 the balance remaining in his accounts and the names of the
27 collectors having arrearages in taxes with the amounts thereof.
28 He shall state his accounts at the end of each fiscal year,
29 producing his vouchers, which statement and vouchers shall be
30 examined by the commissioners and delivered by them to the
19950H2021B3182 - 15 -
1 auditors for settlement.
2 Section 12. Sections 1781 and 1782.1 of the act, amended or
3 added December 14, 1967 (P.L.831, No.357), are amended to read:
4 Section 1781. Preparation of Proposed Annual Budget.--(a)
5 The commissioners, at least [thirty] ninety days prior to
6 adopting the budget, shall begin the preparation of the proposed
7 budget for the succeeding fiscal year.
8 (b) [The] At the request of the commissioners, but in no
9 case less than ninety days prior to the deadline for adoption of
10 the budget by the commissioners, the controller shall transmit
11 to the commissioners a comparative statement of revenues for the
12 current and the immediately preceding fiscal year, fund balances
13 projected for the close of the current fiscal year, and a
14 comparative statement of expenditures, including interest due
15 and to fall due on all lawful interest bearing debts of the
16 county for the same years.
17 (c) The controller's statement shall also indicate the
18 amounts of all appropriation requests, submitted to the
19 controller or to the commissioners and supplied by them to the
20 controller, from the several county offices and agencies,
21 including estimates of expenditures contemplated by the
22 commissioners as forwarded by them to the controller.
23 (d) Said statements[, in such form and detail as the
24 commissioners direct,] shall be prepared [upon a form or forms
25 furnished, as provided in this subdivision, by the Department of
26 Community Affairs of the Commonwealth] in such reasonable form
27 and detail as the commissioners direct. With this information as
28 a guide, the commissioners shall, within a reasonable time,
29 begin the preparation of a proposed budget for the succeeding
30 fiscal year.
19950H2021B3182 - 16 -
1 (e) In counties not having a controller, the commissioners
2 shall prepare the statements hereinbefore required.
3 Section 1782.1. Amending Budget; Notice.--During the month
4 of January next following any municipal election the
5 commissioners of any county may amend the budget and the levy
6 and tax rate to conform with its amended budget. A period of ten
7 days' public inspection at the office of the chief clerk of the
8 proposed amended budget, after notice by the chief clerk to that
9 effect is published once in a newspaper as provided in section
10 110 of this act, shall intervene between the proposed amended
11 budget and the adoption thereof. Any amended budget must be
12 adopted by county commissioners on or before the fifteenth day
13 of February.
14 No such proposed amended budget shall be revised upward in
15 excess of ten per centum in the aggregate thereof or as to an
16 individual [item] function in excess of twenty-five per centum
17 of the amount of such individual [item] function in the proposed
18 amended budget.
19 Within fifteen days after the adoption of an amended budget
20 the chief clerk shall file a copy thereof in the office of the
21 Department of Community Affairs.
22 Section 13. Section 1783 of the act, amended October 5, 1967
23 (P.L.342, No.147), is amended to read:
24 Section 1783. Annual Budget Appropriations and Tax Rate;
25 Filing Budget.--The budget shall reflect as nearly as possible
26 the estimated revenues and expenditures for the year for which
27 it is prepared. [It shall be prepared on forms provided in
28 accordance with this subdivision by the Department of Community
29 Affairs.] The commissioners shall, upon adopting the budget,
30 adopt the appropriation measures required to put it into effect,
19950H2021B3182 - 17 -
1 and shall fix such rate of taxation upon the valuation of the
2 property taxable for county purposes as will, together with all
3 other estimated revenues of the county, excluding operating,
4 capital and other reserve funds, raise a sufficient sum to meet
5 the said expenditures. Within fifteen days after the adoption of
6 the budget, the commissioners shall file a copy thereof in the
7 office of the Department of Community Affairs on forms provided
8 in accordance with this subdivision by the Department of
9 Community Affairs.
10 Section 14. The act is amended by adding sections to read:
11 Section 1784.1. Take Money and Property by Gift, Etc.--The
12 county commissioners may take by gift, grant, devise or bequest,
13 any money or property, real, personal or mixed, for the benefit
14 of the county.
15 Section 1784.2. Capital Reserve Fund for Anticipated Capital
16 Expenditures.--(a) The county commissioners shall have the
17 power to create and maintain a separate capital reserve fund for
18 anticipated legal capital expenditures. The money in the fund
19 shall be used, from time to time, for the construction, purchase
20 or replacement of or addition to county buildings, equipment,
21 machinery, motor vehicles or other capital assets of the county,
22 and for no other purpose.
23 (b) The county commissioners may, annually, appropriate
24 moneys from the general county funds, not to exceed ten per
25 centum of the county operating budget, to be paid into the
26 capital reserve fund, or place in the fund any moneys received
27 from the sale, lease or other disposition of any county property
28 or from any other source, unless received or acquired for a
29 particular purpose. The fund shall be controlled, invested,
30 reinvested and administered, and the moneys therein and income
19950H2021B3182 - 18 -
1 from such moneys expended, for any of the purposes for which the
2 fund is created, in such manner as may be determined by the
3 county commissioners. The money in the fund, when invested,
4 shall be invested in a manner consistent with the provisions of
5 section 1706. This subsection shall not be construed to limit
6 the powers of the county to the use of moneys in the capital
7 reserve fund in making lawful capital expenditures.
8 Section 1784.3. Operating Reserve Fund.--(a) The county
9 commissioners shall have the power to create and maintain a
10 separate operating reserve fund in order to minimize future
11 revenue shortfalls and deficits, provide greater continuity and
12 predictability in the funding of vital government services,
13 minimize the need to increase taxes to balance the budget in
14 times of fiscal distress, provide the capacity to undertake
15 long-range financial planning and develop fiscal resources to
16 meet long-term needs.
17 (b) The county commissioners may annually make
18 appropriations from the county general fund to the operating
19 reserve fund, but no appropriation shall be made to the
20 operating reserve fund if the effect of the appropriation would
21 cause the fund to exceed five per centum of the estimated
22 revenues of the county's general fund in the current fiscal
23 year.
24 (c) The commissioners may at any time, by resolution, make
25 appropriations from the operating reserve fund for the following
26 purposes only:
27 (1) to meet emergencies involving the health, safety or
28 welfare of the residents of the county;
29 (2) to counterbalance potential budget deficits resulting
30 from shortfalls in anticipated revenues or program receipts from
19950H2021B3182 - 19 -
1 whatever source; or
2 (3) to provide for anticipated operating expenditures
3 related either to the planned growth of existing projects or
4 programs or to the establishment of new projects or programs if
5 for each project or program appropriations have been made and
6 allocated to a separate restricted account established within
7 the operating reserve fund.
8 (d) The operating reserve fund shall be invested, reinvested
9 and administered in a manner consistent with the provisions of
10 section 1706.
11 Section 15. Section 1785 of the act, amended October 5, 1967
12 (P.L.342, No.147), is amended to read:
13 Section 1785. Committee to Prepare Uniform Forms.--(a) The
14 [budget and] report forms specified in the foregoing sections of
15 this article shall be prepared by a committee consisting of
16 three representatives from the [Pennsylvania State Association
17 of] County Commissioners Association of Pennsylvania, three
18 representatives from the Pennsylvania State Association of
19 County Controllers, one certified public accountant, one member
20 of the Senate and one member of the House of Representatives of
21 the General Assembly, who shall be members of the Local
22 Government Commission, designated by the chairman of said
23 commission, and the Secretary of Community Affairs or his agent
24 who shall be a person trained in the field of municipal finance.
25 (b) [Such] Except for the certified public accountant, who
26 shall be appointed by the Governor, such representatives shall
27 be appointed by the president of each said organization. In the
28 case of representatives of the county commissioners, one shall
29 be appointed from a county of either the third or fourth class,
30 one from a county of either the fifth or sixth class, and one
19950H2021B3182 - 20 -
1 from a county of either the seventh or eighth class. The
2 president of each said organization shall supply to the
3 Department of Community Affairs the names and addresses of such
4 representatives immediately upon their appointment. Said
5 representatives shall serve without compensation, but they shall
6 be reimbursed by the Commonwealth for all necessary expenses
7 incurred in attending meetings of the committee.
8 (c) The committee shall meet at the call of the Secretary of
9 Community Affairs or his agent, who shall serve as chairman of
10 the committee. The Secretary of Community Affairs may call
11 meetings of the committee, and shall do so at the request of the
12 secretary of either of said associations, but in every case
13 there shall be at least two weeks' notice to each member of the
14 committee of any such meeting.
15 (d) In preparing the uniform forms for both budgets and
16 annual reports, the committee shall give careful consideration
17 to the differing legal requirements and needs of the counties of
18 the several classes, producing, if necessary, separate forms for
19 certain classes of counties or groups of classes.
20 (e) It shall be the duty of the Secretary of Community
21 Affairs or his agent to see to it that the forms required by
22 this section are prepared in cooperation with said committee.
23 Should said committee for any reason fail to furnish such
24 cooperation, the Secretary of Community Affairs or his agent
25 shall complete the preparation of the forms. After their
26 preparation, he shall issue said forms and distribute them
27 annually, as needed, to the commissioners, controller or
28 auditors of each county.
29 (f) It shall be the duty of the Secretary of Community
30 Affairs to include within the budget and report forms specified
19950H2021B3182 - 21 -
1 in this article the changes necessitated by the provisions of
2 this act in regard to property, powers, duties and obligations
3 of institution districts transferred to counties and the
4 committee established by this section shall not be responsible
5 therefor.
6 (g) It shall be the duty of the Secretary of Community
7 Affairs to convene the committee to assist counties in coming
8 into compliance with generally accepted accounting principles.
9 Section 16. This act shall take effect as follows:
10 (1) The amendment of section 1705 of the act relating to
11 generally accepted accounting principles shall take effect
12 the third full fiscal year following the enactment of this
13 act.
14 (2) The amendment of sections 1721 and 1724.2 of the act
15 relating to audits undertaken in accordance with generally
16 accepted auditing standards shall take effect the third full
17 fiscal year following the enactment of this act.
18 (3) This section shall take effect immediately.
19 (4) The remainder of this act shall take effect in 60
20 days.
F21L16JAM/19950H2021B3182 - 22 -