House Bill No. 319
Introduced By gillan
A Bill for an Act entitled: "An Act changing the date by which a local government using the local government alternative accounting method must have adopted a budget; amending section
7-6-604, MCA; and providing an immediate effective date."
WHEREAS, current law requires a local government that has adopted the local government alternative accounting method to complete the budget by July 1; and
WHEREAS, taxable valuation and beginning fiscal year cash balances, major components of a local government budget, are not usually determined by July 1; and
WHEREAS, taxable valuation is needed to determine mill levies, and the Department of Revenue does not usually provide this information until mid-July.
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 7-6-604, MCA, is amended to read:
"7-6-604. Alternative accounting method -- requirements. A local government entity that adopts the alternative accounting method shall:
(1) prepare its accounting records and financial reports in accordance with generally accepted accounting principles established by the governmental accounting standards board or its generally recognized successor;
(2) adopt a fiscal year that commences on July 1 of each year;
(3) (a) compile an annual financial report covering the preceding fiscal year and submit a copy of the annual financial report or an annual audit, pursuant to subsection (3)(b), to the department of commerce within 6 months of the end of that reported fiscal year; or
(b) if the local government entity submits an audit report in lieu of an annual financial report, ensure that the audit report contains, at a minimum, the entity's general purpose financial statements and combining and individual fund and account group statements as defined under the principles described in subsection (1);
(4) cause an annual audit in accordance with the provisions of Title 2, chapter 7, part 5; and
(5) ensure that a budget is made each year that:
(a) shows the complete expenditure program for the local government entity for the coming fiscal year and the sources by which it will be funded;
(b) must be completed
by July 1 on or before the second Monday in August of the current fiscal year;
(c) must be approved or amended by the governing body in a regularly scheduled meeting;
(d) must be the subject of one or more advertised public hearings, pursuant to the provisions of 7-1-2121 or 7-1-4127, prior to approval or amendment; and
(e) must be submitted to the department of commerce by September 15."
NEW SECTION. Section 2. Effective date. [This act] is effective on passage and approval.