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8 LONG TITLE
9 General Description:
10 This bill enacts provisions relating to governmental nonprofit corporations.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms; and
14 ▸ provides that the Open and Public Meetings Act, the Government Records Access
15 and Management Act, and the Accounting Reports from Political Subdivisions,
16 Interlocal Organizations, and Other Local Entities apply to a governmental
17 nonprofit corporation.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 51-2a-102, as last amended by Laws of Utah 2015, Chapters 138 and 407
25 51-2a-403, as enacted by Laws of Utah 2004, Chapter 206
26 ENACTS:
27 16-6a-1801, Utah Code Annotated 1953
28 16-6a-1802, Utah Code Annotated 1953
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30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 16-6a-1801 is enacted to read:
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33 16-6a-1801. Definitions.
34 As used in this part:
35 (1) "Controlling interest" means a majority of the voting power on the board of
36 directors of the nonprofit corporation.
37 (2) "Governmental nonprofit corporation" means a nonprofit corporation in which one
38 or more governmental entities have a controlling interest.
39 (3) "Government entity" means the state, a county, municipality, local district, special
40 service district, school district, state institution of higher education, or any other political
41 subdivision or administrative unit of the state.
42 (4) "Municipality" means a city, town, or metro township.
43 Section 2. Section 16-6a-1802 is enacted to read:
44 16-6a-1802. Applicability of certain acts -- State auditor authority.
45 A governmental nonprofit corporation shall comply with:
46 (1) Title 52, Chapter 4, Open and Public Meetings Act;
47 (2) Title 63G, Chapter 2, Government Records Access and Management Act; and
48 (3) Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
49 Organizations, and Other Local Entities Act.
50 Section 3. Section 51-2a-102 is amended to read:
51 51-2a-102. Definitions.
52 As used in this chapter:
53 (1) "Accounting reports" means an audit, a review, a compilation, or a fiscal report.
54 (2) "Audit" means an examination that:
55 (a) is performed in accordance with generally accepted government auditing standards,
56 or for a nonprofit [
57 nonprofit corporation, in accordance with generally accepted auditing standards; and
58 (b) conforms to the uniform classification of accounts established or approved by the
59 state auditor or any other classification of accounts established by any federal government
60 agency.
61 (3) "Audit report" means:
62 (a) the financial statements presented in conformity with generally accepted accounting
63 principles;
64 (b) the auditor's opinion on the financial statements;
65 (c) a statement by the auditor expressing positive assurance of compliance with state
66 fiscal laws identified by the state auditor;
67 (d) a copy of the auditor's letter to management that identifies any material weakness in
68 internal controls discovered by the auditor and other financial issues related to the expenditure
69 of funds received from federal, state, or local governments to be considered by management;
70 and
71 (e) management's response to the specific recommendations.
72 (4) "Compilation" means information presented in the form of financial statements
73 presented in conformity with generally accepted accounting principles that are the
74 representation of management without the accountant undertaking to express any assurances on
75 the statements.
76 (5) "Fiscal report" means providing information detailing revenues and expenditures of
77 all funds in a format prescribed by the state auditor.
78 (6) "Governing board" means:
79 (a) the governing board of each political subdivision;
80 (b) the governing board of each interlocal organization having the power to tax or to
81 expend public funds;
82 (c) the governing board of any local mental health authority established under the
83 authority of Title 62A, Chapter 15, Substance Abuse and Mental Health Act;
84 (d) the governing board of any substance abuse authority established under the
85 authority of Title 62A, Chapter 15, Substance Abuse and Mental Health Act;
86 (e) the governing board of any area agency established under the authority of Title
87 62A, Chapter 3, Aging and Adult Services;
88 (f) the [
89 amount of money requiring an accounting report under Section 51-2a-201.5;
90 (g) the board of directors of a governmental nonprofit corporation;
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92 unit that receives tax exempt status for bonding or taxing purposes; and
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94 the municipal legislative body.
95 (7) "Governmental nonprofit corporation" means the same as that term is defined in
96 Section 16-6a-1801.
97 (8) "Nonprofit corporation" does not include a governmental nonprofit corporation.
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99 accountant with a reasonable basis for expressing limited assurance that there are no material
100 modifications that should be made to the financial statements for them to be in conformity with
101 generally accepted accounting principles.
102 Section 4. Section 51-2a-403 is amended to read:
103 51-2a-403. General Fund reimbursed for accounting report of nonappropriated
104 activities -- Amount of reimbursement.
105 (1) The General Fund shall be reimbursed by the entity for which an audit, review, or
106 compilation are in whole or in part performed, whenever the state auditor or legislative auditor
107 general is required by law or constitutional provision to perform that audit, review, or
108 compilation or cause that audit, review, or compilation to be made for any office, department,
109 division, board, agency, commission, council, authority, institution, hospital, school, college,
110 university, or other instrumentality of the state or any of its political subdivisions for
111 nonappropriated activities including associated students' accounts, auxiliary enterprise funds,
112 nonprofit corporations, governmental nonprofit corporations, contracts with the federal
113 government, federal grants-in-aid, and federal assistance programs.
114 (2) (a) The reimbursement amount shall be a pro rata share of that auditor's total cost,
115 based upon a time-spent factor.
116 (b) An audit includes an audit of state-appropriated funds.
117 (i) If state-appropriated funds are not involved in the accounting report, the
118 reimbursement may not be less than the average hourly cost of the operations of that auditor's
119 office nor more than the average rate attainable from certified public accounting firms
120 performing similar services for this state.
121 (ii) Reimbursement charges may be negotiated with that auditor's office within these
122 limitations.