‘An Act To Modify the Auditing Requirements for Certain Small Water Utilities’
| HP0579 LD 772 |
First Regular Session - 125th Maine Legislature C "A", Filing Number H-93, Sponsored by
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LR 1106 Item 2 |
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| Bill Tracking, Additional Documents | Chamber Status | ||
Amend the bill by striking out the title and substituting the following:
‘An Act To Modify the Auditing Requirements for Certain Small Water Utilities’
Amend the bill by striking out everything after the enacting clause and before the summary and inserting the following:
‘Sec. 1. 35-A MRSA §505, as enacted by PL 1987, c. 141, Pt. A, §6, is amended to read:
§ 505. Audit of accounts
The commission shall provide for the examination and audit of all accounts and all items shall must be allocated to the accounts in the manner prescribed by the commission.
(1) Shall cause to be conducted, in accordance with generally accepted auditing standards, an annual review of its accounts by an independent certified public accountant licensed to practice in the State; and
(2) Not less than once every 5 years and for any year used as a test year for rate-making purposes, shall cause to be conducted, in accordance with generally accepted auditing standards, an audit of its accounts by an independent certified public accountant licensed to practice in the State.
Nothing in this subsection limits or affects any other reporting, review, auditing or other requirement imposed by a creditor of the qualified small water utility or by any other applicable law or government authority.’
summary
This amendment replaces the bill. Under current rules and decisions of the Public Utilities Commission, water utilities with revenues under $50,000 are exempt from annual auditing requirements otherwise required by the commission pursuant to the Maine Revised Statutes, Title 35-A, section 505. This amendment codifies this existing exemption. The amendment also provides that consumer-owned water utilities with revenues greater than $50,000 but not exceeding $250,000 are exempt from commission's annual auditing requirements, but that such water utilities must cause to be conducted, in accordance with generally accepted auditing standards, an annual review of their accounts. Also, not less than once every 5 years and for any year used as a test year for rate-making purposes, such water utilities must cause to be conducted an audit of their accounts. The amendment does not limit or affect any other reporting, review, auditing or other requirement imposed by a creditor of the water utility or by any other applicable law or government authority.