(1) As provided by 2-7-517, MCA, if a local government entity is unable to file its reports with the department as required by 2-7-503, MCA, the department may grant an extension of time in which to file the reports or may waive the fines, fees, and other penalties if the local government entity demonstrates that it has good cause for not submitting the reports within the prescribed time or that the failure to comply was the result of circumstances beyond the entity's control.

(a) Good cause will be deemed to exist if the local government entity has exercised ordinary business care and prudence and was nevertheless unable to prepare and properly submit the annual financial report within the prescribed time.

(b) The department will determine what constitutes the exercise of ordinary business care and prudence based on the facts of each case.

(c) The department shall determine, based on the facts of each case, what constitutes circumstances beyond the entity's control. Examples of circumstances beyond an entity's control may include, but are not limited to, unexpected loss of key accounting staff, loss or inaccessibility of accounting records due to computer malfunction, or natural disaster.

(2) If a local government entity has not filed the reports within 180 days of the required dates and the department has not granted an extension for filing the reports, the department shall notify the entity of the fine due and shall provide public notice of the delinquent reports.

(a) Public notice means publishing in the local newspaper, if available, and posting on the department's web site.

(b) Based on the cost of providing public notice, the department shall charge a delinquent filing fee of $50 for reports not filed within 180 days of the required due dates.