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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 6379 August 15, 1986 HEALTH AND SANITATION: District health board--audit of claims for payment PUBLIC HEALTH CODE: District health department--audit of bills for payment A district health board, which meets at least once a month, must audit the bills of the department prior to their allowance and payment and may not delegate such responsibility to the administrator of the department. Honorable John D. Pridnia State Representative The Capitol Lansing, Michigan 48913 You have requested my opinion on the following question: "Does Section 2417 of the Public Health Code require that the audit function of a four-county board be conducted by the Board (which does meet once per month) prior to payment of bills, or is it acceptable procedure that the administrator authorize payment of the bills and the district board subsequently review and approve such payments." The Public Health Code, MCL 333.2415; MSA 14.15(2415), authorizes the creation of district health departments consisting of two or more counties or of one or more counties and a city having a population of 750,000 or more persons. The procedures to be followed by the district health department in respect to the review and payment of claims against it are prescribed in MCL 333.2417; MSA 14.15(2417), which states: "A claim against a district health department shall be audited by the district board of health which has the same power to allow the claim that a local governing entity has as to claims against a county or city. If the district board of health meets less often than once a month, a claim may be allowed by the local health officer and 1 member of the district board of health who shall report the action to the board at its next regular meeting. The same right of appeal from the decision of the district board of health as to a claim exists as from a similar decision of a local governing entity...." Thus, the Legislature has directed that a claim against the district health department shall be audited by the district board of health in order to be allowed, if the board meets at least once a month. If, however, the board meets less often than once a month, then a claim may be allowed by the local health officer and 1 member of the district board of health. When this procedure is followed, the local health officer and the board member have the responsibility to "report the action to the board at the next meeting. MCL 333.2417; MSA 14.15(2417) is clear in its requirement that the district board of health audit a claim before it determines whether the claim should be allowed. The district board of health is permitted, however, to initiate an alternate procedure of authorizing the local health officer and one member of the district board to allow claims, provided that the district board of health meets less often than once a month. When the statute creates an entity, grants it powers and prescribes the mode of their exercise, that mode must be followed and none other. Sebewaing Industries Inc v Village of Sebewaing, 337 Mich 530, 545; 60 NW2d 444 (1953). It is my opinion, therefore, that where a district board of health meets at least once a month, it is required by the Public Health Code, MCL 333.2417; MSA 14.15(2417), to audit claims prior to their allowance and payment, and it is without power to authorize a system that enables allowance and payment in any other manner. Frank J. Kelley Attorney General
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