Sec. 7-393. Working papers of accountant; preservation for inspection.
Sec. 7-393. Working papers of accountant; preservation for inspection. Upon
the completion of an audit, the independent auditor shall file certified copies of the audit
report with (1) the appointing authority, (2) in the case of a town, city or borough, with
the clerk of such town, city or borough, (3) in the case of a regional school district, with
the clerks of the towns, cities or boroughs in which such regional school district is located
and with the board of education, (4) in the case of an audited agency, with the clerks of
the towns, cities or boroughs in which such audited agency is located, and (5) in each
case, with the Secretary of the Office of Policy and Management. Such copies shall be
filed within six months from the end of the fiscal year of the municipality, regional
school district or audited agency, but the secretary may grant an extension of not more
than thirty days, provided the auditor making the audit and the chief executive officer
of the municipality, regional school district or audited agency shall jointly submit a
request in writing to the secretary stating the reasons for such extension at least thirty
days prior to the end of such six-month period. If the reason for the extension relates to
deficiencies in the accounting system of the municipality, regional school district or
audited agency the request must be accompanied by a corrective action plan. The secretary may, after a hearing with the auditor and officials of the municipality, regional
school district or audited agency, grant an additional extension if conditions warrant.
Said auditor shall preserve all of his working papers employed in the preparation of any
such audit until the expiration of three years from the date of filing a certified copy of
the audit with the secretary and such working papers shall be available, upon written
request and upon reasonable notice from the secretary, during such time for inspection
by the secretary or his authorized representative, at the office or place of business of
the auditor, during usual business hours. Any municipality, regional school district,
audited agency or auditor who fails to have the audit report filed on its behalf within
six months from the end of the fiscal year or within the time granted by the secretary
shall be assessed a civil penalty of not less than one thousand dollars but not more than
ten thousand dollars. The secretary may waive such penalty if, in his opinion, there
appears to be reasonable cause for not having completed or provided the required audit
report, provided an official of the municipality, regional school district or audited agency
or the auditor submits a written request for such waiver.
(1949 Rev., S. 823; 1959, P.A. 152, S. 87; P.A. 76-68, S. 3, 7; P.A. 77-611, S. 4, 6; 77-614, S. 19, 610; P.A. 87-573,
S. 4, 11; P.A. 89-370, S. 13, 15; P.A. 93-422, S. 3.)
History: 1959 act deleted provision re counties; P.A. 76-68 substituted "appointing authority" for "budget-making
authority" and provided that where appointing authority is town meeting, report is to be filed with chief executive officer
and, additionally, in reports for school, fire or sewer districts, with auditors of public accounts as well as with others as
previously provided and included references to audited agencies in accordance with revised definitions in Sec. 7-391; P.A.
77-611 deleted filing requirements with regard to chief executive officer and auditors of public accounts; P.A. 77-614
substituted secretary of the office of policy and management for tax commissioner; P.A. 87-573 inserted provisions concerning school districts, effective July 1, 1987, and applicable to audits for fiscal years beginning on or after that date; P.A.
89-370 expanded reporting requirements by deleting provision which required additional copy of report to be filed with
clerk of town, city or borough or with board of education only where the appointing authority is the town meeting, deleted
reference to sewer or fire district, added Subdiv. (4) re audited agency and added $500 fine for failure by audited agency
to have reports filed on its behalf; P.A. 93-422 changed "independent public accountant" to "independent auditor", changed
"school district" to "regional school district", limited extensions to 30 days, required joint request for extension, added
provisions regarding corrective action plan and additional extension, changed required preservation of working papers
from two to three years, deleted provision regarding penalties for accountants, increased civil penalty from $500 per report
to $1,000 to $10,000, expanded civil penalty to apply to municipalities, regional school districts and auditors and allowed
waiver of penalty.