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SENATE AMENDED
PRIOR PRINTER'S NOS. 1415, 1738, 2814
PRINTER'S NO. 2937
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1203
Session of
2019
INTRODUCED BY RYAN, BERNSTINE, T. DAVIS, GLEIM, GROVE, JAMES,
KINSEY, MILLARD AND GILLEN, APRIL 15, 2019
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, NOVEMBER 20, 2019
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in municipal authorities, further
providing for money of authority.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 5612(b) of the Title 53 of the
Pennsylvania Consolidated Statutes, AMENDED MAY 1, 2019 (P.L.25,
NO.4), is amended to read:
§ 5612. Money of authority.
* * *
(b) Report.--A required annual report shall be published in
accordance with the following:
(1) Every authority whose fiscal year ends December 31
shall file on or before July 1 an annual report of its fiscal
affairs covering the preceding calendar year with the
Department of Community and Economic Development and with the
municipality creating the authority on forms prepared and
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distributed by the Department of Community and Economic
Development. Authorities whose fiscal year does not end on
December 31 shall file the report within 90 days after the
end of their fiscal year.
(2) Every authority shall have its books, accounts and
records audited annually by a certified public accountant,
and a copy of his audit report shall be filed in the same
manner and within the same time period as the annual report.
The audit shall comply with the following standards , IF
APPLICABLE :
(i) The generally accepted government auditing
standards, including the standards published by the
General GOVERNMENT Accountability Office.
(ii) The Single Audit Act of 1984 (31 U.S.C. § 7501
et seq.).
(iii) 2 C.F.R. CFR Pt. 200 (relating to the Uniform
administrative requirements, cost principles and audit
requirements for Federal awards).
(iv) Any other Federal or State requirements for an
audit relating to the finances of an authority .
(3) A concise financial statement shall be published
annually at least once in a newspaper of general circulation
in the municipality where the principal office of the
authority is located. If the publication is not made by the
authority, the municipality shall publish such statement at
the expense of the authority.
(4) If the authority fails to make such an audit OR IF
THE MUNICIPALITY DETERMINES THAT THERE IS A NEED FOR A
REVIEW, then the controller, auditor or accountant designated
by the municipality is hereby authorized and empowered from
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time to time to examine at the expense of the authority the
accounts and books of it, including its receipts, BILLING
SYSTEMS, disbursements, contracts TRANSPARENCY OF CONTRACTS
AND HOW THE CONTRACTS ARE AWARDED, leases, sinking funds,
investments, COMPLIANCE WITH RELEVANT FEDERAL AND STATE
STATUTES, CONFLICTS OF INTEREST BY THE AUTHORITY AND ITS
BOARD MEMBERS, STAFF AND CONTRACTORS and any other matters
relating to its finances, operation and affairs. In the
course of performing a financial audit under this subsection
the municipality may request the Auditor General to perform
the audit . IF THE REVIEW BY THE MUNICIPALITY IS CONDUCTED
WITHIN A YEAR OF AN AUTHORITY'S ANNUAL AUDIT REQUIRED UNDER
PARAGRAPH (2), THE REVIEW SHALL BE DONE AT THE EXPENSE OF THE
MUNICIPALITY AND THE AUTHORITY SHALL BE EXEMPT THE FOLLOWING
FISCAL YEAR FROM CONDUCTING AN AUDIT. IF THE REVIEW BY THE
MUNICIPALITY IS BEING DONE DUE TO THE FAILURE OF THE
AUTHORITY TO MAKE AN ANNUAL AUDIT, THE REVIEW SHALL BE AT THE
EXPENSE OF THE AUTHORITY.
(B) REPORT.--A REQUIRED ANNUAL REPORT SHALL BE PUBLISHED IN
ACCORDANCE WITH THE FOLLOWING:
(1) EVERY AUTHORITY SHALL FILE, ON OR BEFORE 180 DAYS
FOLLOWING THE END OF ITS FISCAL YEAR, AN ANNUAL REPORT OF ITS
FISCAL AFFAIRS COVERING THE PRECEDING FISCAL YEAR WITH THE
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT AND WITH THE
MUNICIPALITY OR MUNICIPALITIES CREATING THE AUTHORITY ON
FORMS PREPARED AND DISTRIBUTED BY THE DEPARTMENT OF COMMUNITY
AND ECONOMIC DEVELOPMENT. THE REPORTS SHALL ALSO BE PROVIDED,
AND MAY BE PROVIDED ELECTRONICALLY, TO ANY OTHER MUNICIPALITY
THAT HAS RESIDENTS SERVED BY THE AUTHORITY.
(2) EVERY AUTHORITY SHALL HAVE ITS BOOKS, ACCOUNTS AND
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RECORDS AUDITED ANNUALLY BY A CERTIFIED PUBLIC ACCOUNTANT,
AND A COPY OF [HIS] THE AUDIT REPORT SHALL BE FILED IN THE
SAME MANNER AND WITHIN THE SAME TIME PERIOD AS THE ANNUAL
REPORT. THE AUDIT SHALL COMPLY WITH THE FOLLOWING , IF
APPLICABLE :
(I) THE GENERALLY ACCEPTED GOVERNMENT AUDITING
STANDARDS, INCLUDING THE STANDARDS PUBLISHED BY THE
GOVERNMENT ACCOUNTABILITY OFFICE.
(II) THE SINGLE AUDIT ACT OF 1984 (31 U.S.C. § 7501
ET SEQ.).
(III) 2 CFR PT. 200 (RELATING TO THE UNIFORM
ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES AND AUDIT
REQUIREMENTS FOR FEDERAL AWARDS).
(IV) ANY OTHER FEDERAL OR STATE REQUIREMENTS FOR AN
AUDIT RELATING TO THE FINANCES OF AN AUTHORITY .
(3) A CONCISE FINANCIAL STATEMENT SHALL BE PUBLISHED
ANNUALLY AT LEAST ONCE IN A NEWSPAPER OF GENERAL CIRCULATION
IN THE MUNICIPALITY WHERE THE PRINCIPAL OFFICE OF THE
AUTHORITY IS LOCATED. IF THE PUBLICATION IS NOT MADE BY THE
AUTHORITY, THE MUNICIPALITY SHALL PUBLISH SUCH STATEMENT AT
THE EXPENSE OF THE AUTHORITY.
(4) IF THE AUTHORITY FAILS TO MAKE SUCH AN AUDIT OR IF
THE MUNICIPALITY DETERMINES THAT THERE IS A NEED FOR A
REVIEW, THEN THE CONTROLLER, AUDITOR OR ACCOUNTANT DESIGNATED
BY THE MUNICIPALITY IS HEREBY AUTHORIZED AND EMPOWERED FROM
TIME TO TIME TO EXAMINE [AT THE EXPENSE OF THE AUTHORITY] THE
ACCOUNTS AND BOOKS OF IT, INCLUDING ITS RECEIPTS, BILLING
SYSTEMS, DISBURSEMENTS, [CONTRACTS] TRANSPARENCY OF CONTRACTS
AND HOW THE CONTRACTS ARE AWARDED, LEASES, SINKING FUNDS,
INVESTMENTS, COMPLIANCE WITH RELEVANT FEDERAL AND STATE
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STATUTES, CONFLICTS OF INTEREST BY THE AUTHORITY AND ITS
BOARD MEMBERS, STAFF AND CONTRACTORS AND ANY OTHER MATTERS
RELATING TO ITS FINANCES, OPERATION AND AFFAIRS. THE REVIEW
BY THE MUNICIPALITY SHALL BE CONDUCTED WITHIN A YEAR OF AN
AUTHORITY'S ANNUAL AUDIT REQUIRED UNDER PARAGRAPH (2), THE
REVIEW SHALL BE DONE AT THE EXPENSE OF THE MUNICIPALITY AND
THE AUTHORITY SHALL BE EXEMPT THE FOLLOWING FISCAL YEAR FROM
CONDUCTING AN AUDIT. IF THE REVIEW BY THE MUNICIPALITY IS
BEING DONE DUE TO THE FAILURE OF THE AUTHORITY TO MAKE AN
ANNUAL AUDIT, THE REVIEW SHALL BE AT THE EXPENSE OF THE
AUTHORITY.
* * *
Section 2. This act shall take effect in 60 days.
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