Z-0395.1  _______________________________________________

 

                         SENATE BILL 5172

          _______________________________________________

 

State of Washington      54th Legislature     1995 Regular Session

 

By Senators Snyder, Winsley, Haugen, Heavey, Bauer, Roach and Gaspard; by request of State Treasurer

 

Read first time 01/13/95.  Referred to Committee on Ways & Means.

 

Auditing the state investment board.



    AN ACT Relating to performance audits of the state investment board; and adding a new chapter to Title 43 RCW.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    NEW SECTION.  Sec. 1.  Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

    (1) "Board" means the state investment board.

    (2) "Auditor" means the state auditor.

    (3) "Performance audit" means:  (a) Identifying the appropriate statutory mandates and limitations that apply to the board; (b) determining whether the board is complying with its statutory mandates; (c) recommending corrective action, if necessary; (d) identifying appropriate standards for management practices and operations; (e) determining the extent to which the board is complying with such standards; and (f) recommending ways for the board to improve its level of compliance.

 

    NEW SECTION.  Sec. 2.  The auditor, in consultation with the legislative budget committee, is responsible for the conduct of performance audits of the board as often as he or she deems advisable, but no less frequently than every four years.  The auditor shall establish and publish a schedule of regular performance audits and solicit public comment relative to the performance of the board at least three months prior to the conduct of a regularly scheduled performance audit.

 

    NEW SECTION.  Sec. 3.  The cost of performance audits conducted under section 2 of this act are at the expense of the board.

 

    NEW SECTION.  Sec. 4.  The auditor, to the greatest extent possible, shall coordinate with the legislative budget committee, the office of financial management, and other state agencies as appropriate, when developing performance audit goals, objectives, and standards for the board.

 

    NEW SECTION.  Sec. 5.  The auditor shall, under chapter 39.29 RCW, obtain and utilize the services of private firms with sufficient professional staff possessing the education, training, and practical experience auditing private and governmental entities necessary to conduct the performance audits required by this chapter.

 

    NEW SECTION.  Sec. 6.  Sections 1 through 5 of this act shall constitute a new chapter in Title 43 RCW.

 


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