BP BHEAD INT H

AN ACT Relating to internal matters for the operations of counties; amending RCW 36.40.200 and 36.40.250; adding a new section to chapter 36.01 RCW; and adding a new section to chapter 36.40 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 36.01 RCW to read as follows:

Counties may establish an audit committee to develop and maintain an internal and external audit system. Audit systems include use of an internal auditor or internal auditors with a system of internal controls that will safeguard assets, check the accuracy and reliability of accounting data, and encourage adherence to prescribed managerial policies for accounting and financial controls.

The audit committee consists of the county auditor, a member of the county legislative authority, and an at-large member. The at-large member must be appointed by the county auditor. The term of the at-large member must be set by resolution by the board of county commissioners. The at-large member cannot be a member of the auditor's staff or member of staff of the board of county commissioners. The county auditor is chair of the committee.

Sec. 2. RCW 36.40.200 and 1963 c 4 s 36.40.200 are each amended to read as follows:

All appropriations shall lapse at the end of the fiscal year((~~: PROVIDED, That~~)). However, the appropriation accounts ((~~shall~~)) may remain open for a period of ((~~thirty~~)) up to sixty days thereafter for the payment of claims incurred against such appropriations prior to the close of the fiscal year.

After ((~~such~~)) the period has expired all appropriations ((~~shall become~~)) are null and void and any claim presented thereafter against any such appropriation shall be provided for in the next ensuing budget((~~: PROVIDED, That~~)). However, this shall not prevent payments upon uncompleted improvements in progress at the close of the fiscal year.

Sec. 3. RCW 36.40.250 and 1995 c 193 s 1 are each amended to read as follows:

In lieu of adopting an annual budget, the county legislative authority of any county may adopt an ordinance or a resolution providing for biennial budgets with a mid-biennium review and modification for the second year of the biennium. The county legislative authority may repeal such an ordinance or a resolution and revert to adopting annual budgets for a period commencing after the end of a biennial budget cycle. The county legislative authority of a county with a biennial budget cycle may adopt supplemental and emergency budgets in the same manner and subject to the same conditions as the county legislative authority in a county with an annual budget cycle.

The procedure and steps for adopting a biennial budget shall conform with the procedure and steps for adopting an annual budget and with requirements established by the state auditor. The state auditor shall establish requirements for preparing and adopting the mid-biennium review and modification for the second year of the biennium.

Expenditures included in the biennial budget, mid-term modification budget, supplemental budget, or emergency budget shall constitute the appropriations for the county during the applicable period of the budget and every county official shall be limited in making expenditures or incurring liabilities to the amount of the detailed appropriation item or classes in the budget.

In lieu of adopting an annual budget or a biennial budget with a mid-biennium review for all funds, the legislative authority of a county may adopt an ordinance or a resolution providing for a biennial budget or budgets for any one or more funds of the county, with a mid-biennium review and modification for the second year of the biennium, with the other funds remaining on an annual budget. The county legislative authority may repeal such an ordinance or resolution and revert to adopting annual budgets for a period commencing after the end of the biennial budget or biennial budgets for the specific agency fund or funds. The county legislative authority of a county with a biennial budget cycle may adopt supplemental and emergency budgets in the same manner and subject to the same conditions as the county legislative authority in a county with an annual budget cycle.

The county legislative authority shall hold a public hearing on the proposed county property taxes and proposed road district property taxes prior to imposing the property tax levies.

NEW SECTION. Sec. 4. A new section is added to chapter 36.40 RCW to read as follows:

In addition to the supplemental appropriations provided in RCW 36.40.100 and 36.40.140, the board of county commissioners may provide by resolution a policy for supplemental appropriations as a result of unanticipated funds from local revenue sources.