To amend chapter 29, RSMo, by adding one new section relating to compliance with audits, with penalty provisions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI,

AS FOLLOWS:

Section A. Chapter 29, RSMo, is amended by adding thereto one new section to be known as section 29.351, to read as follows:

29.351. 1. Whenever sums of money in excess of five hundred dollars are determined by the auditor to be unaccounted for, the auditor shall determine if any lack of prudent internal accounting and management controls allowed the shortage to occur or remain undetected.

2. Any state, county or municipal official who is aware of any shortage of funds or other discrepancy which results in sums of money in excess of five hundred dollars being unaccounted for shall promptly report such matter to the state auditor. The state auditor shall investigate all such matters coming to the state auditor's attention. Following said investigation, the state auditor will report on any lack of prudent internal accounting or management controls which allowed the shortage to occur or remain undetected.

3. Any official who shall fail to address and correct the lack of internal accounting or management controls, as reported by the state auditor in these instances, within six months of the date of issuance of the report shall be deemed guilty of a class A misdemeanor. Notwithstanding subsection 1 of section 560.016, RSMo, any fine imposed as a result of this section shall be satisfied through proceeds from the bond required by law for that official. However, if such fine is imposed pursuant to the provisions in subsection 2 of section 560.016, RSMo, the fine shall be paid by the official.