2009 Rhode Island Code
Title 35 - Public Finance
CHAPTER 35-20 - Public Corporation Financial Integrity and Accountability
§ 35-20-2 - Policy.

SECTION 35-20-2

   § 35-20-2  Policy. – (a) The legislature hereby finds that:

   (1) Fraud and errors in public and quasi-public programs are more likely to occur from a lack of effective systems of internal accounting and administrative control in the state authorized public corporations.

   (2) Effective systems of internal accounting and administrative control provide the basic foundation upon which a structure of public accountability must be built.

   (3) Effective systems of internal accounting and administrative control are necessary to assure that public and quasi-public state assets and funds are adequately safeguarded, as well as to produce reliable financial information for the state.

   (4) Systems of internal accounting and administrative control are necessarily dynamic and must be continuously evaluated and, where necessary, improved.

   (5) Reports regarding the adequacy of the system of internal accounting and administrative control of each public corporation are necessary to enable the executive branch, the legislature, and the public to evaluate the corporation's performance of its public and quasi-public responsibilities and accountability.

   (b) The legislature declares that:

   (1) Each public corporation must maintain effective systems of internal accounting and administrative control as an integral part of its management practices.

   (2) The systems of internal accounting and administrative control of each state agency shall be evaluated on an ongoing basis and, when detected, weaknesses must be promptly corrected.

   (3) All levels of management of the public corporation must be involved in assessing and strengthening the systems of internal accounting and administrative control to minimize fraud, errors, abuse, and waste of public and quasi-public funds.