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Bill Number: 2264 Ratification Number: 384 Act Number 365 Introducing Body: House Subject: Annual financial report
(A365, R384, H2264)
AN ACT TO AMEND CHAPTER 1 OF TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROVISIONS APPLICABLE TO POLITICAL SUBDIVISIONS, SO AS TO ADD SECTION 6-1-50 TO REQUIRE A COUNTY OR MUNICIPALITY WHICH RECEIVES REVENUE FROM STATE AID TO SUBMIT TO THE COMPTROLLER GENERAL ON AN ANNUAL BASIS A FINANCIAL REPORT CONTAINING THE SOURCES OF REVENUE, EXPENDITURES BY CATEGORY, INDEBTEDNESS, AND SUCH OTHER INFORMATION AS THE COMPTROLLER GENERAL REQUIRES. TO PROVIDE THAT THE COMPTROLLER GENERAL, IN CONJUNCTION WITH THE BUDGET AND CONTROL BOARD, THE DIVISION OF RESEARCH AND STATISTICAL SERVICES, SHALL DETERMINE THE CONTENTS OF THE REPORT AND THE DATE OF SUBMISSION, TO REQUIRE A PENALTY FOR FAILURE TO SUBMIT THE REPORT, AND REQUIRE THAT A COMPREHENSIVE REPORT BY THE BUDGET AND CONTROL BOARD, DIVISION OF RESEARCH AND STATISTICAL SERVICES, IN CONJUNCTION WITH THE COMPTROLLER GENERAL, ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS, AND THE BUREAU OF GOVERNMENTAL RESEARCH AND SERVICES OF THE UNIVERSITY OF SOUTH CAROLINA BE SUBMITTED TO THE GENERAL ASSEMBLY NO LATER THAN JUNE FIRST OF EACH YEAR; TO AMEND ARTICLE 1 OF CHAPTER 15 OF TITLE 11, RELATING TO THE GENERAL PROVISION DEALING WITH BONDS OF POLITICAL SUBDIVISIONS BY ADDING SECTION 11-15-100 SO AS TO REQUIRE COUNTIES, MUNICIPALITIES, SCHOOL DISTRICTS, AND SPECIAL PURPOSE DISTRICTS TO FILE CERTAIN INFORMATION IN THE OFFICE OF THE STATE TREASURER PRIOR TO INCURRING ANY GENERAL OBLIGATION OR REVENUE OBLIGATION INDEBTEDNESS UNLESS THEY FILE CERTAIN INFORMATION WITH THE STATE TREASURER, TO REQUIRE THE STATE TREASURER TO ANNUALLY SURVEY THE COUNTIES, MUNICIPALITIES, SCHOOL DISTRICTS, AND SPECIAL PURPOSE DISTRICTS TO MAINTAIN A CURRENT RECORD OF THEIR OBLIGATIONS, AND REQUIRE THE STATE TREASURER TO PROVIDE THE COMPTROLLER GENERAL A STATEMENT OF OBLIGATIONS OF ALL POLITICAL SUBDIVISIONS; TO AMEND SECTION 4-9-150, RELATING TO THE REQUIREMENT THAT A COUNTY COUNCIL CONDUCT AN ANNUAL INDEPENDENT AUDIT OF THE FINANCIAL RECORDS AND TRANSACTIONS OF THE COUNTY, SO AS TO REQUIRE THAT A COPY OF THE AUDIT BE SUBMITTED TO THE COMPTROLLER GENERAL NO LATER THAN JANUARY FIRST EACH YEAR FOLLOWING THE CLOSE OF THE BOOKS OF THE PREVIOUS YEAR; TO AMEND SECTION 11-3-190, RELATING TO THE REQUIREMENT THAT ABSTRACTS FOR SETTLEMENT WITH COUNTY TREASURERS BE ENTERED IN A BOOK TO BE KEPT BY HIM, SO AS TO REQUIRE THE ABSTRACTS IN A FILE INSTEAD OF A BOOK; TO AMEND SECTION 12-45-260, RELATING TO THE REQUIREMENT THAT THE COUNTY TREASURER REPORT TO THE COUNTY SUPERVISOR THE AMOUNT OF FUNDS COLLECTED FOR AND ON ACCOUNT OF THE COUNTY AND THE CHARACTER OF THE FUNDS, SO AS TO CHANGE THE DATE THE REPORT IS REQUIRED AND THAT IT MUST BE MADE TO THE CHIEF ADMINISTRATIVE OFFICER OF THE COUNTY INSTEAD OF THE COUNTY SUPERVISOR AND REQUIRE THE REPORT TO CONTAIN THE AMOUNT OF FUNDS RECEIVED INSTEAD OF COLLECTED; TO AMEND SECTION 12-45-280, RELATING TO THE REQUIREMENT THAT THE COUNTY TREASURER'S REPORT TO THE COUNTY SUPERINTENDENT OF EDUCATION AN ITEMIZED STATEMENT OF THE AMOUNTS OF COLLECTION AND DISBURSEMENT BY SCHOOL DISTRICTS MADE BY HIM FOR THE PREVIOUS CALENDAR YEAR ON VARIOUS TAXES, SO AS TO REQUIRE THE REPORT TO BE MADE TO THE CHIEF EXECUTIVE OFFICER OF EACH SCHOOL DISTRICT INSTEAD OF THE COUNTY SUPERINTENDENT OF EDUCATION, PROVIDE FOR COLLECTION INSTEAD OF RECEIPT OF THE AMOUNTS TO BE INCLUDED IN THE REPORT, DELETE REFERENCES TO THE SPECIFIC TAXES REQUIRED TO BE INCLUDED IN THE REPORT AND DELETE THE REQUIREMENT THAT THE COUNTY TREASURER REPORT THE TOTAL AMOUNTS RECEIVED FOR THE PERIOD FROM ANY OTHER TAXES NOT COLLECTED FOR ANY SPECIAL SCHOOL DISTRICT; TO AMEND SECTION 12-45-340, RELATING TO THE REQUIREMENT THAT A SETTLEMENT SHEET BE SIGNED BY THE COUNTY SUPERVISOR, COUNTY TREASURER, AND COUNTY SUPERINTENDENT OF EDUCATION, SO AS TO REQUIRE ONLY THE COUNTY TREASURER TO SIGN THE SETTLEMENT SHEET; AND TO REPEAL SECTIONS 12-45-270 RELATING TO THE COUNTY TREASURER'S MONTHLY REPORT, 12-45-310 RELATING TO THE REQUIREMENT THAT COUNTY SUPERVISORS AND SUPERINTENDENTS OF EDUCATION BE NOTIFIED OF THE DAY OF SETTLEMENT, 12-45-320 RELATING TO THE REQUIREMENT THAT THE AUDITOR OF EACH COUNTY SHALL NOTIFY THE FOREMAN OF THE GRAND JURY AND THE COMPTROLLER GENERAL OF THE DAY UPON WHICH THE SETTLEMENT IS TO BE MADE, AND 12-45-360 RELATING TO THE REQUIREMENT THAT THE COMPTROLLER GENERAL AND THE FOREMAN OF THE GRAND JURY SHALL REPORT ANY IRREGULARITY OR VIOLATION OF LAW TO THE COURT OF GENERAL SESSIONS OF THE COUNTIES WHERE THE IRREGULARITIES OR VIOLATIONS OF LAW HAVE BEEN DISCOVERED
Be it enacted by the General Assembly of the State of South Carolina:
Financial Report Required
SECTION 1. The General Assembly finds that one of the state's primary sources of local financial information is derived from a report presently submitted by the various local governments for the purpose of securing Federal Revenue Sharing Funds. Because Federal Revenue Sharing Funds are in jeopardy, this source of vital data is threatened as well. In order to preserve this source of financial data for the use of the General Assembly, other state agencies, the various local governments as well as other users who find this information valuable, the General Assembly proposes this part.
Financial report required
SECTION 2. Chapter 1, Title 6 of the 1976 Code is amended by adding:
"Section 6-1-50. Counties and municipalities receiving revenues from state aid, currently known as Aid to Subdivisions, shall submit annually to the Comptroller General a financial report detailing sources of revenue, expenditures by category, indebtedness, and other information as the Comptroller General requires. The federal revenue sharing document may be substituted for the financial report as long as it is required by the Federal Office of Revenue Sharing. The Comptroller General, in conjunction with the Budget and Control Board, Division of Research and Statistical Services, shall determine the contents and format of the report and the date of submission. Failure to submit the report shall result in the withholding of ten percent of the current year's state aid. The Budget and Control Board, Division of Research and Statistical Services, is responsible for maintaining existing financial data bases as exists with the Federal Office of Revenue Sharing. In conjunction with the Comptroller General, Advisory Commission on Intergovernmental Relations, and the University of South Carolina Bureau of Governmental Research and Service, the Division of Research and Statistical Services of the Budget and Control Board shall produce a comprehensive report of this data and submit it to the General Assembly no later than June first of each year."
Reporting Requirements for Local Governments - Archaic, Irrelevant, Reporting Procedures Modified and Repealed
SECTION 1. The General Assembly finds that numerous changes have been made at the local levels of government in South Carolina since the early part of this century. New laws have been enacted, technological progress has been made, and the art of accounting has changed, all of which have impacted upon the reporting requirements of the local governments as well as the State. Many of the laws pertaining to property tax and local financial reportings procedures existing prior to Home Rule have become archaic, irrelevant, and cumbersome since their enactment early in this century. Many of these laws now foster inefficiency, duplication of effort, and a waste of resources. The purpose of this part is to amend and repeal those statutes as necessary in order to eliminate unnecessary procedures and reports, to eliminate waste associated with the duplication of effort, and to provide for more pertinent data from those reports found to be necessary.
Requirements for incurring general obligation debt
SECTION 2. Article 1, Chapter 15, Title 11 of the 1976-Code is amended by adding:
"Section 11-15-100. (A) Counties, municipalities, school districts, and special purpose districts shall not incur any general obligation or revenue obligation indebtedness unless there has been filed in the office of the State Treasurer the following information:
(1) date and title issue;
(2) type of indebtedness;
(3) the purpose of issuance;
(4) the original principal to be borrowed;
(5) interest rate;
(6) annual payments of principal;
(7) annual payments of interest.
(B) The State Treasurer shall prepare and make available to counties, municipalities, school districts, and special purpose districts blank forms upon which the information required in subsection (A) of this section must be reported.
(C) The State Treasurer shall annually survey the counties, municipalities, school districts, and special purpose districts concerning their general obligation and revenue obligation indebtedness so as to maintain a current record of these obligations. The survey must be conducted in such manner and on such forms as the State Treasurer shall prescribe. The survey for counties, school districts, and special purpose districts must be compiled by their respective county treasurers.
(D) On or before December thirty-first of each year following the close of the fiscal year, the State Treasurer shall provide to the Comptroller General a statement of obligations of all political subdivisions showing each municipality, county, special purpose district, and school district ln a county-by-county listing. The Comptroller General shall publish the statement as a part of his annual report."
Independent annual audit
SECTION 3. Section 4-9-150 of the 1976 Code is amended to read-
"Section 4-9-150. The council shall provide for an independent annual audit of all financial records and transactions of the county and any agency funded in whole by county funds and may provide for more frequent audits as it considers necessary. Special audits may be provided for any agency receiving county funds as the county governing body considers necessary. The audits must be made by a certified public accountant or public accountant or firm of these accountants who have no personal interest, direct or indirect, in the fiscal affairs of the county government or any of its officers. The council may, without requiring competitive bids, designate the accountant or firm annually or for a period not exceeding one year. The designation for any particular fiscal year must be made no later than thirty days after the beginning of the fiscal year. The report of the audit must be made available for public inspection. A copy of the report of audit must be submitted to the Comptroller General no later than January first each year following the close of the books of the previous fiscal year."
SECTION 4. Section 11-3-190 of the 1976 Code is amended to read:
"Section 11-3-190. The Comptroller General shall place the abstracts for settlement with the several county treasurers of the State in a file to be kept by him for these purposes and shall enter in it all settlements made by the treasurers as to all taxes, state, school, county and special and the file must be a part of the records of his office."
Treasurer to report amount of funds
SECTION 5. Section 12-45-260 of the 1976 Code is amended to read:
"Section 12-45-260. The county treasurer shall, on the fifteenth day of each month, report to the chief administrative officer of the county the amount of funds received for and on account of the county and the character of the funds."
Treasurer to report amount of receipts
SECTION 6. Section 12-45-280 of the 1976 Code is amended to read:
"Section 12-45-280. The county treasurer shall on the fifteenth day of each month report to the chief executive officer of each school district an itemized statement of the amount of receipts and disbursements, by school districts, made by him for the previous calendar month and the balance remaining in his hands to the credit of each school district from each fund. His books must at all times be open to public inspection at all reasonable hours. Any county treasurer failing or refusing to comply with these provisions is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not less than five hundred dollars, to be used for general school purposes in the county."
SECTION 7. Section 12-45-340 of the 1976 Code is amended to read:
"Section 12-45-340. When these settlements have been completed, the settlement sheets must be signed by the county treasurer in duplicate and certified by the county auditor. One copy must be filed in the county auditor's office and the other mailed to the Comptroller General, which he must report to the General Assembly."
SECTION 8. Sections 12-45-270, 12-45-310, 12-45-320, and 12-45-360 of the 1976 Code are repealed .
This act takes effect July 1, 1988.