2009 Rhode Island Code
Title 45 - Towns and cities
CHAPTER 45-12 - Indebtedness of Towns and Cities
§ 45-12-22.2 - Monitoring of financial operations – Corrective action.

SECTION 45-12-22.2

   § 45-12-22.2  Monitoring of financial operations – Corrective action. – (a) The chief financial officer of each municipality and each school district within the state shall continuously monitor their financial operations by tracking actual versus budgeted revenue and expense.

   (b) The chief financial officer of the municipality shall submit a report on a monthly basis to the municipality's chief executive officer, each member of the city or town council, and school district committee certifying the status of the municipal budget including the school department budget or regional school district. The chief financial officer of the municipality shall also submit a report on a quarterly basis to the division of property valuation certifying the status of the municipal budget. The chief financial officer of the school department or school district shall certify the status of the school district's budget and shall assist in the preparation of these reports. The monthly and quarterly reports shall be in a format prescribed by the division of property valuation and the state auditor general. The reports shall contain a statement as to whether any actual or projected shortfalls in budget line items are expected to result in a year-end deficit, the projected impact on year-end financial results including all accruals and encumbrances, and how the municipality and school district plans to address any such shortfalls.

   (c) If any reports required under this section project a year-end deficit, the chief financial officer of the municipality shall submit to the state office of municipal affairs a corrective action plan no later than thirty (30) days after completion of the monthly budget analysis referred to in subsection (b) above, which provides for the avoidance of a year-end deficit. The plan may include recommendations as to whether an increase in property taxes and/or spending cuts should be adopted to eliminate the deficit. The plan shall include a legal opinion by municipal counsel that the proposed actions under the plan are permissible under federal, state, and local law. The state office of municipal affairs may rely on the written representations made by the municipality in the plan and will not be required to perform an audit.

   (d) If the division of property valuation concludes the plan required hereunder is insufficient and/or fails to adequately address the financial condition of the municipality, the division of property valuation can elect to pursue the remedies identified in § 45-12-22.7.

   (e) The reports required shall include the financial operations of any departments or funds of municipal government including the school department or the regional school district, notwithstanding the status of the entity as a separate legal body. This provision does not eliminate the additional requirements placed on local and regional school districts by §§ 16-2-9(f) and 16-3-11(e)(3).