By Mr. Fennell of Lynn, petition (accompanied by bill, House, No. 3192) of Robert F. Fennell relative to certain requests of the Auditor of the Commonwealth for local audits.  State Administration and Regulatory Oversight.

The Commonwealth of Massachusetts

——————

PETITION OF:

Robert F. Fennell

——————

In the Year Two Thousand and Seven.

——————

An Act relative to local audits.

    Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 12 of Chapter 11 of the General Laws, as appearing in 2004 Official Edition,  is hereby amended in line 32 by inserting, after the word “examine,” the following words:-

except, however, that in a town following a majority vote by the board of selectmen or school committee, ratified by a special or annual town meeting; in a city following a vote of the city council and approved by the mayor; and in a regional school district by a two thirds vote of the regional school district committee members, the state auditor is authorized to conduct any such audit, to the extent determined necessary by the state auditor.

The expenses incurred for any such audit shall be borne by the city, town or regional school district, and the state auditor is hereby authorized to charge for the cost of said audit.

SECTION 2. Chapter 44 of the General Laws is hereby amended by adding the following section:

Section 73. All unaccounted for variances, losses, shortages or thefts of funds or property identified by a city, town or regional school district shall be immediately reported to the director, who shall review the matter with the appropriate management officials to determine the amount involved. The director shall notify the state auditor of each report received by a city, town or regional school district upon receipt of said report, and notify law enforcement officials when appropriate.

The state auditor shall be authorized to investigate to determine the internal control weaknesses that contributed to or caused the condition. Said auditor shall then make recommendations to the official overseeing the internal control system and other appropriate management officials. The recommendations of said auditor shall address the correction of the conditions found and the necessary internal control policies and procedures that must be modified. The oversight official and the appropriate management officials shall immediately implement policies and procedures necessary to prevent a recurrence of the problems identified.