H. B. 4620

(By Delegate Martin (By Request))

[Introduced February 22, 2000; Referred to the

Committee on Political Subdivisions then Finance.]






A BILL to amend and reenact section eight, article nine, chapter six of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to further amend said article by adding thereto a new section, designated section twelve, all relating to payment to recover costs for services provided by the chief inspector to any county or district office, county commission or to any municipal corporation; increasing the amount the chief inspector may charge in certain instances; providing that certain limitations on maximum costs do not apply where the entity being audited receives federal funds and is subject to federal single audit requirements; and specifying that interest earned on the chief inspector revolving fund be used to offset audit deficits.

Be it enacted by the Legislature of West Virginia:
That section eight, article nine, chapter six of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that said article be further amended by adding thereto a new section, designated section twelve, all to read as follows:
ARTICLE 9. SUPERVISION OF LOCAL GOVERNMENT OFFICES.
§6-9-8. Payment of cost of services of chief inspector; revolving fund.
The cost of any service or act performed by the chief inspector under the provisions of this article as to any county or district office, officer or institution shall be paid by the county commission of the county; the cost thereof as to any board of education shall be paid by such board; the cost thereof as to any municipal corporation shall be paid by the authorities thereof: Provided, That in municipalities in which the total revenue from all taxes does not exceed the sum of two thousand dollars annually, such cost including the per diem and all actual costs and expenses of such services shall not exceed the sum of sixty three hundred dollars. The cost of this service shall be the actual cost and expense of the service performed, including transportation, hotel, meals, materials, per diem compensation of deputies, assistants, clerical help and such other costs as may be necessary to enable them to perform the services required, but such costs shall not exceed the sum of two four thousand dollars for services rendered to a Class III or two thousand five hundred dollars for services rendered to a Class IV municipality: Provided, however, That the chief inspector may charge up to an additional one two thousand dollars for costs incurred for each service or act performed for a utility or park system owned by a Class III or Class IV municipality: Provided further, That if a Class III or a Class IV municipality is required to undergo a single audit by the federal agency or agencies making a grant, the foregoing cost limitations do not apply. The chief inspector shall render to the agency liable for such cost a statement thereof as soon after the same was incurred as practicable and it shall be the duty of such agency to allow the same and cause it to be paid promptly in the manner that other claims and accounts are allowed and paid and such total amount shall constitute a debt against the local agency due the state. Whenever there is in the state treasury a sum of money due any such county commission, board of education or municipality from any source, upon the application of the chief inspector, the same shall be at once applied on the debt aforesaid against the county commission, board of education or municipality and the fact of such application of such fund shall be reported by the auditor to the said county commission, board of education or municipality, which report shall be a receipt for the amount therein named. All money received by the chief inspector from this source shall be paid into the state treasury, shall be deposited to the credit of an account to be known as chief inspector's fund and shall be expended only for the purpose of covering the cost of such services, unless otherwise directed by the Legislature. The cost of any such examination, service or act by the chief inspector made necessary, or such part thereof as was made necessary, by the willful fault of any officer or employee, may be recovered by the chief inspector from such person, on motion, on ten days' notice in any court having jurisdiction.
For the purpose of permitting payments to be made at definite periods to deputy inspectors and assistants for per diem compensation and expenses, there is hereby created a revolving fund for the chief inspector's office. The fund shall be accumulated and administered as follows:
(1) There shall be appropriated from the state fund general revenue the sum of twenty-five thousand dollars to be transferred to this fund to create a revolving fund which, together with other payments into this fund as provided in this article, shall constitute a fund to defray the cost of this service.
(2) Payments received for the cost of services of the chief inspector's office and interest earned on the invested balance of the chief inspector revolving fund shall be deposited into this revolving fund, which shall be known as the chief inspector's fund. Interest credited to this fund shall be used first to reduce any deficits for any service required by this article. Any excess interest remaining shall be applied by the chief inspector to the operating expenses of the office.
(3) Any appropriations made to this fund shall not be deemed to have expired at the end of any fiscal period.
§6-9-12. Business intern program.
Beginning the first day of July, two thousand, the chief inspector shall develop in conjunction the graduate business programs at West Virginia University and Marshall University an intern program which utilizes students pursuing a graduate degree in business, economics or accounting to assist in the auditing function of the office of chief inspector. This program shall provide that those students who satisfactorily participate in the program for the required amount of time shall receive up to two hours credit toward their degree.


NOTE: The purpose of this bill is to allow the chief inspector to recover the costs of auditing Class III and Class IV municipalities. The allowance for the chief inspector to audit utilities is increased to $2000. The limitation on costs does not apply for federal audits where the audit costs are built into the grant. The bill also provides that interest earned on the special revenue fund will be used to offset costs for services and any remaining would be applied to defray the operating costs of the chief inspector. The bill also increases the maximum amount that may be charged to Class IV municipalities from $60 to $300.





Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

Section 6-9-12 is new; therefore strike-throughs and underscoring have been omitted.