(a) Treasurer.--The treasurer of an authority, or other designated recipient, shall receive the money due the authority and deposit the money in an account with a designated depository. The money shall be remitted in the name of the authority or designated recipient and may not include the name of an individual.
(a.1) Prohibition.--
(1) Money of the authority may not be used for any grant, loan or other expenditure for any purpose other than a service or project directly related to the mission or purpose of the authority as set forth in the articles of incorporation or in the resolution or ordinance establishing the authority under section 5603 (relating to method of incorporation).
(2) A ratepayer to an authority shall have a cause of action in the court of common pleas where the authority is located to seek the return of money expended in violation of paragraph (1) from the recipient.
(3) Paragraph (1) shall not apply to the following:
(i) A monetary contribution to a nonprofit community organization or activity that does not exceed $1,000.
(ii) An in-kind service, including the provision of water or other resources to a nonprofit community organization or activity, the value of which does not exceed $1,000.
(iii) An agreement for the joint purchase and use of equipment.
(iv) An agreement for the sharing of equipment during emergency situations.
(a.2) Fiscal procedures.--
(1) An authority shall establish, according to generally accepted accounting principles, procedures to bill customers, collect payments, issue receipts, handle funds received and deposit money in an account or accounts managed by a designated depository. All bill payments shall be made in the name of the authority or designated public or contracted entity collecting revenue and shall not include the name of an individual.
(2) The required annual audit and financial report of the authority shall be presented at a meeting of the authority board, discussed publicly and require an official vote of acceptance.
(3) Nothing in this subsection shall be construed to preclude an authority from adopting rules and regulations regarding fiscal controls that are more stringent than required by this section.
(b) Report.--A required annual report shall be published in accordance with the following:
(1) Every authority shall file, on or before 180 days following the end of its fiscal year, an annual report of its fiscal affairs covering the preceding fiscal year with the Department of Community and Economic Development and with the municipality or municipalities creating the authority on forms prepared and distributed by the Department of Community and Economic Development. The reports shall also be provided, and may be provided electronically, to any other municipality that has residents served by the authority.
(2) Every authority shall have its books, accounts and records audited annually by a certified public accountant, and a copy of the audit report shall be filed in the same manner and within the same time period as the annual report. The audit shall comply with the following, if applicable:
(i) The generally accepted government auditing standards, including the standards published by the Government Accountability Office.
(ii) The Single Audit Act of 1984 (31 U.S.C. § 7501 et seq.).
(iii) 2 CFR Pt. 200 (relating to uniform administrative requirements, cost principles, and audit requirements for Federal awards).
(iv) Any other Federal or State requirements for an audit relating to the finances of an authority.
(3) A concise financial statement shall be published annually at least once in a newspaper of general circulation in the municipality where the principal office of the authority is located. If the publication is not made by the authority, the municipality shall publish such statement at the expense of the authority.
(4) If the authority fails to make such an audit or if the municipality determines that there is a need for a review, then the controller, auditor or accountant designated by the municipality is hereby authorized and empowered from time to time to examine the accounts and books of it, including its receipts, billing systems, disbursements, transparency of contracts and how the contracts are awarded, leases, sinking funds, investments, compliance with relevant Federal and State statutes, conflicts of interest by the authority and its board members, staff and contractors and any other matters relating to its finances, operation and affairs. The review by the municipality shall be conducted within one year of an authority's annual audit required under paragraph (2), the review shall be done at the expense of the municipality and the authority shall be exempt the following fiscal year from conducting an audit. If the review by the municipality is being done due to the failure of the authority to make an annual audit, the review shall be at the expense of the authority.
(c) Attorney General.--The Attorney General of the Commonwealth shall have the right to examine the books, accounts and records of any authority.
(Dec. 30, 2002, P.L.2001, No.230, eff. imd.; June 27, 2012, P.L.653, No.73, eff. 60 days; May 1, 2019, P.L.25, No.4; Nov. 27, 2019, P.L.689, No.99, eff. 60 days)
2019 Amendments. Act 4 amended subsecs. (a) and (b) and added subsec. (a.2), effective in 180 days as to the amendment of (b)(1) and 90 days as to the remainder of the section, and Act 99 amended subsec. (b).
2013 Effectuation of Declaration of Unconstitutionality. The Legislative Reference Bureau effectuated the 2004 unconstitutionality.
2012 Amendment. Act 73 added subsec. (a.1).
2004 Unconstitutionality. Act 230 of 2002 was declared unconstitutional. City of Philadelphia v. Commonwealth, 838 A.2d 566 (Pa. 2003).