Attorney General's Opinion 1983-84 #113
COUNTIES, CITIES AND TOWNS. PUBLIC FINANCE ACT. AUDIT. BOND ISSUES. CITY REQUIRED TO HAVE ANNUAL AUDIT, WHICH ACCOUNTS FOR EXPENDITURES ON PROJECTS APPROVED IN BOND REFERENDUM.
November 21, 1983
The Honorable William T. Parker
Member, Senate of Virginia
83-84 113
You have inquired as to the legal requirements the City of Chesapeake must meet regarding accounting to citizens on the use of funds in projects approved by the voters in a bond referendum.
There is no provision of law of which I am aware that imposes a specific requirement upon a city to separately account to its citizens for the funding and expenditures associated with projects approved in a bond referendum.1 Section 11.06 of the Charter of the City of Chesapeake2 provides as follows:
"The council shall cause to be made an independent audit of the city's finances at the end of each fiscal year by the Auditor of Public Accounts of the Commonwealth or by a firm of independent certified public accountants to be selected by the council."One copy of the report of such audit shall be made availabe for public inspection in the office of the county clerk during regular business hours."3 (Emphasis added.)
I am advised that the city contracts with an independent accounting firm to conduct its annual audit, the report of which regularly includes an accounting of all utility projects.4 The audit report is available for public inspection, in accordance with § 11.06 of the charter, and the contract and associated documents concerning any individual project are available for public inspection pursuant to the Virginia Freedom of Information Act.5
______________________
FOOTNOTES
1. Article VII, § 10(a) of the Constitution of Virginia (1971) sets forth certain limitations on indebtedness of cities and towns. See, generally, the Public Finance Act, § 15.1-170 to § 15.1-227 of the Code, for statutory provisions governing local government bond issues for public improvements. See, also, Ch. 6 of Chesapeake's charter, which governs borrowing by the city.
2. The charter was enacted in Ch. 717, Acts of Assembly of 1980.
3. See § 15.1-167 of the Code for a similar provision in general law, which also directs that the audit shall be in accordance with specifications furnished by the Auditor of Public Accounts and establishes audit contract and report dates.
4. See, also, Ch. 5 of the city's charter, relating preparation of the city's operating budget and capital improvement program, with required public notice and hearings on the information and expenditure plans contained therein.
