Code of Alabama
Chapter 5A - Examiners of Public Accounts.
Section 41-5A-12.1 - Audit of Municipality Under Certain Circumstances.

(a) This section shall be known and may be cited as the Municipal Audit Accountability Act.
(b) Any provision of law to the contrary notwithstanding, if the Department of Examiners of Public Accounts suspects fraud or mismanagement of funds by a municipality, the department may examine the books, records, vouchers, and accounts of the municipality.
(c) If the mayor of a municipality does not provide for an audit or examination to be conducted on the municipality as required by law, or when fraud or mismanagement of funds by the municipality is suspected, a majority of the members of the governing body of the municipality, by resolution, may submit a written request to the department for an examination by the department of the books, records, vouchers, and accounts of the municipality. The department, pursuant to a cursory review, shall determine whether an in-depth audit by the department is necessary as required by law or by evidence of fraud or mismanagement, and, if warranted by the department, shall conduct a formal audit or examination during the six month period following that determination.
(d) If a municipality has an independent audit or examination of the books, records, vouchers, and accounts of the municipality conducted, the governing body of the municipality, upon receipt of the final report of the independent audit or examination, shall provide a copy of the report to the department within 60 days after completion. The department shall establish a repository of independent audit reports received; provide, on a weekly basis, notice to the public of reports received; and, upon request, provide copies of reports received to the public.
(e) Any municipality in which the municipal officer or municipal governing body fails or willfully refuses to have a financial audit conducted, or to comply with subsection (d), shall be subject to an audit by the department. The department shall assess the costs of the audit against the municipality. Before performing an audit under this subsection, the department shall notify the municipality of its intent to perform an audit. The municipality shall have 30 days from the date of the notice to file a completed audit report or, if an audit is currently pending, provide the department with the name and address of the independent public accountant retained to perform the audit and an estimated time for completion.
(f) If the department determines that a municipal officer or municipal governing body has failed or willfully refused to have a financial audit conducted or to comply with subsection (e), unless the municipal officer or municipal governing body can demonstrate to the department that it has made a good faith effort to perform as required by this section, the department shall levy a penalty of up to two hundred fifty dollars ($250) per week for each week the failure or refusal continues. Any penalties imposed and collected pursuant to this subsection shall be paid into the State General Fund.

Structure Code of Alabama