SENATE BILL REPORT

                   SB 5900

               As Passed Senate, March 15, 1995

Title:  An act relating to the internal organization and administration of the office of the state auditor.

Brief Description:  Administering the office of the state auditor.

Sponsors:  Senators Haugen, Prentice, Long and Heavey; by request of State Auditor.

Brief History:

Committee Activity:  Government Operations:  2/23/95, 3/1/95 [DP].

Passed Senate, 3/15/95, 48-0.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass.

  Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Drew, Hale, Heavey, McCaslin and Winsley.

Staff:  Eugene Green (786-7405)

Background:  The organizational structure and titles for persons carrying out the duties of the State Auditor's office was institutionalized at the time of statehood.  The State Auditor suggests that this structure is antiquated and that the office needs to have the flexibility to be organized and administered in the most efficient and effective manner as times change.

The requirement for public officials to notify the State Auditor of actual or suspected loss of funds is currently a regulation rather than in statute.

Currently, the municipal revolving account, which pays for local government auditing services, is appropriated.  The State Auditor feels that the appropriation serves little purpose in terms of accountability and adds excessive, unnecessary administrative costs, which are passed on to local governments. 

There is no requirement that the Governor call for an audit of the State Auditor's office.

Summary of Bill:  The authorizing law for the State Auditor's office is comprehensively updated as follows: 

!Mandated organizational structure and titles are eliminated;

!A public officials' (state or local) responsibility to immediately report to the State Auditor known or suspected loss of public funds or assets and other illegal activity is put into statute;

!The municipal revolving account appropriation requirement is removed;

!The Governor must provide for an audit of the State Auditor's office at least every two years; and

!Cross-references of the State Auditor's office with other areas of the RCW are updated.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This is a cleanup bill that is long overdue.  Many of these statutes go back to statehood.

Testimony Against:  None.

Testified:  Linda Sheler, State Auditor's Office (pro); Jim Justin, AWC.