(a) After the effective date of the act adding this amendatory language, beginning after the close of the then current fiscal year, any nonprofit corporation organized under the laws of this state as a nonprofit corporation that is not incorporated pursuant to Title 11, which provides water service to its members or the public, may be audited or examined one time by the Department of Examiners of Public Accounts in the same manner as provided in Chapter 5A of Title 41. The department may charge a reasonable fee for the audits.
Terms Used In Alabama Code 41-5A-12.2
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Fraud: Intentional deception resulting in injury to another.
state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
year: means a calendar year; but, whenever the word "year" is used in reference to any appropriations for the payment of money out of the treasury, it shall mean fiscal year. See Alabama Code 1-1-1
(b) After the effective date of the act adding this amendatory language, beginning after the close of the then current fiscal year, any nonprofit corporation that is not incorporated pursuant to Title 11, which provides water service to its members or the public, may be audited or examined one time in addition to the audit provided in subsection (a) by the Department of Examiners of Public Accounts in the same manner as provided in Chapter 5A of Title 41, if the department suspects fraud or mismanagement of funds by the nonprofit corporation. The department may charge a reasonable fee for the audits or examinations.(c) This section does not apply to or affect any public water supply system, waterworks plant, or water distribution system owned or operated by a municipality or county, or by a public corporation, board, or other entity organized, created, or incorporated pursuant to Title 11.
