French General Code of Local Authorities
In forceWhen the accounts of a territorial authority show a deficit in the implementation of the budget, after verification of the accuracy of the revenue and expenditure entries, equal to or greater than 10% of the revenue of the operating section in the case of a municipality with fewer than 20,000 inhabitants and 5% in other cases, the regional audit chamber, to which the State representative refers the matter, proposes to the territorial authority the measures necessary to restore a balanced budget, within a period of one month from the date of referral.
When the budget of a territorial authority has been the subject of the recovery measures provided for in the previous paragraph, the State representative in the department forwards the initial budget for the following financial year to the regional audit chamber.
If, when examining this initial budget, the regional audit chamber finds that the local authority has not taken sufficient measures to absorb this deficit, it proposes the necessary measures to the representative of the State in the department within a period of one month from the transmission provided for in the previous paragraph. The State representative settles the budget and makes it enforceable after any application, as far as the municipalities are concerned, of the provisions of article
L. 2335-2.If it departs from the proposals made by the regional audit chamber, it shall give explicit reasons for its decision.
In the event that the provisions of the preceding paragraphs are implemented, the procedure provided for in article
L. 1612-5is not applicable.
