FINAL BILL REPORT

                 EHB 1889

                         C 301 L 95

                     Synopsis as Enacted

Brief Description:  Administering the office of the state auditor.

Sponsors:  Representatives L. Thomas, Backlund, Huff and Chappell; by request of State Auditor.

House Committee on Government Operations

Senate Committee on Government Operations

Background:  Current statutes require the State Auditor's Office to establish a Division of Municipal Corporations and a Division of Departmental Audits.  The Auditor is also authorized to appoint one assistant state auditor and such deputies and assistants as deemed necessary.  The State Auditor has suggested that more flexibility is needed to organize and administer the office in order to keep it operating efficiently.

The Municipal Revolving Fund is created in the custody of the State Treasurer for the purposes of centralized funding, accounting, and distribution of the costs of audits performed by the State Auditor.  Moneys in the fund may only be spent after appropriation by the Legislature.

There is no statutory requirement for public officials to report the actual or suspected loss of public funds to the State Auditor.

The Governor may from time to time provide for a post-audit of the accounts and records of the State Auditor's Office, as well as any funds under the auditor's control.  The audit must be performed by independent qualified public accountants or the director of the Office of Financial Management.   There is no requirement that the State Auditor's Office be audited on a regular basis.

Many statutes requiring audits of local governments refer to taxing districts.  A number of units of local governments do not have taxing authority.

Each applicant for a marriage license must file an affidavit stating that they are not afflicted with any contagious venereal disease.

Summary:  References to the Division of Municipal Corporations and the Division of Departmental Audits are deleted.  The State Auditor may appoint such deputies and assistant directors as deemed necessary.  Deputies and assistant directors appointed by the auditor are exempt from civil service laws.  The auditor may also employ other assistants and personnel necessary to carry out the work of the office.   The Municipal Revolving Fund is reconstituted as an account and is no longer subject to appropriation.

State agencies and local governments must immediately report any known or suspected loss of public funds or assets, or other illegal activity, to the State Auditor's office.

The Governor must provide for an audit of the State Auditor's Office at least once every two years.  References to local governments are standardized and other technical amendments are made.

Applicants for a marriage license must file an affidavit form with the county auditor which states that if an applicant is afflicted with a sexually-transmitted disease, the condition is known to both applicants.

Votes on Final Passage:

House     97 1

Senate    47 1 (Senate amended)

House     96 0 (House concurred)

Effective:  July 23, 1995