HB378 Summary

• Creates the Municipal Audit Accountability Act authorizing the Department of Examiners of Public Accounts to audit municipalities when fraud or mismanagement of funds is suspected.

• Allows a majority of a municipality's governing body to request a department audit by resolution if the mayor fails to provide an audit or when fraud is suspected; the department must complete any warranted audit within 6 months.

• Requires municipalities conducting independent audits to submit copies to the department within 60 days; the department must establish a repository of reports and provide public notice weekly.

• Permits the department to conduct and bill municipalities for audits if they fail to have required audits conducted or fail to submit independent audit reports within 30 days of notice.

• Imposes penalties of up to $250 per week on municipal officials who fail or refuse to conduct audits, unless they can demonstrate good faith effort to comply; collected penalties go to the State General Fund.