§ 45-10-5.2 - Failure to file audit report.
SECTION 45-10-5.2
§ 45-10-5.2 Failure to file audit report.– (a) If the municipality fails to comply with the provisions of this chapter byfiling the audit report as required under this chapter, the auditor general, inhis or her discretion, is authorized to provide for the completion of theaudit. In that event, the auditors and/or the municipality shall transmit theaudit workpapers to the auditor general within ten (10) days of his or herrequest. The workpapers shall include, but not be limited to, the work productcustomarily generated in the course of an audit under generally acceptedauditing standards and practices, as well as any papers, schedules, ordocuments created or provided by or to the auditors in the conduct of auditfield work. The municipality shall bear the cost of the audit to be completedby the auditor general or an independent audit firm engaged by the auditorgeneral to complete the audit. The payment of this cost shall be deducted fromstate aid funds otherwise due to the municipality.
(b) If the auditor and/or the municipality refuses totransmit the workpapers as provided in this section, the auditor general shallhave standing to petition the presiding justice of the Rhode Island superiorcourt for an order compelling the immediate transmission of the workpapers tothe auditor general. Upon the filing of that petition, the court shall schedulea hearing on an expedited basis, no more than ten (10) days after the filing ofthe petition. The court shall order the transmission of the workpapers and thedraft of the audit report, if any, to the auditor general upon the auditorgeneral's certification to the court that:
(1) The audit report was not completed and filed as requiredunder the law;
(2) Requests for extension to file were denied by the auditorgeneral; and
(3) The auditors and/or the municipality have failed orrefused to transmit the workpapers and/or preliminary draft of the report.
(c) Failure to transmit the workpapers and/or draft auditreport after the issuance of a court order will constitute criminal contempt ofcourt, and will empower the court to impose any and all criminal sanctionsincluding imprisonment and/or monetary penalties consistent with the existingpower and authority of the superior court to impose those sanctions under law.Any monetary penalty imposed shall be paid into the restricted receipts accountestablished pursuant to § 45-10-5.3 for the payment of late penalties.