AN ACT Relating to the
performance assessment of state government; amending RCW 43.88.090 and
43.88.160; reenacting and amending RCW 43.88.030; adding a new chapter to Title
44 RCW; creating a new section; and repealing RCW 43.88B.005, 43.88B.007,
43.88B.010,43.88B.020, 43.88B.030, 43.88B.031, 43.88B.040, 43.88B.050, 43.88B.900,
and 43.88B.901.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. Public officials, public
employees, legislators, and citizens recognize the need to review the value and
relative priority of many programs throughout state government in the context
of constantly changing conditions, limitations, and requirements for state
government. They also share the objective of improving the performance of
state agencies and programs, thereby increasing effectiveness and efficiency.
The legislature must
become more effective in its role of directing public policy and ensuring the
public accountability of state programs, managers, and employees. With the
support of the legislature, the executive branch must implement practices and
processes that will improve performance, accountability, and public confidence
in state government. The governor and the legislature shall use results from
the performance assessment processes established by this chapter in
establishing state budget policy and priorities. The budget process must
become an effective means of ensuring compliance with performance improvement
requirements.
The purpose of this
chapter is to ensure that all state agencies and programs have a valid and
necessary mission and that the agencies have clearly defined performance
objectives, quality objectives, and cost objectives that are appropriately
balanced. Each agency and program should operate within a strategic plan that
includes the mission of the agency or program, measurable goals, strategies,
and performance measurement systems that are vital tools used for agency management,
legislative budget and policy deliberations, and public accountability. State
agencies should engage customers, taxpayers, employees, and the legislature in
the development and redevelopment of these plans. The strategic plans should
be the framework within which agencies continuously assess the value and
relative priority of their various functions. In order to streamline state
government and redirect resources more effectively, the legislature intends to
begin a systematic, fundamental review of the functions of state programs.
In developing future
legislation to create new programs and activities in state government, or
redirect existing programs and activities, the legislature shall include in
such legislation the specific purpose and measurable goals of the program or
activity.
NEW SECTION. Sec.
2. The legislative committee
on performance review is established.
(1) The thirteen-member
committee consists of:
(a) The majority leader
of the senate;
(b) The majority leader
of the house of representatives;
(c) The minority leader
of the senate;
(d) The minority leader
of the house of representatives;
(e) The chair and
ranking minority member of the senate ways and means committee;
(f) The chair and
ranking minority member of the house of representatives appropriations
committee;
(g) Four additional
members, one each from the majority and minority caucuses of the senate and the
house of representatives; and
(h) The lieutenant
governor, who shall serve as a nonvoting member and chair of the committee.
(2) Members of the
committee shall serve without additional compensation but shall be reimbursed
for travel expenses in accordance with RCW 44.04.120 while attending meetings
of the committee or any subcommittee or on other business authorized by the
committee.
(3) An executive
committee is established, consisting of the majority leader and minority leader
of the senate and the majority leader and minority leader of the house of
representatives. The function of the executive committee is to appoint the
director of the legislative office of performance review. Approval by an
affirmative vote of at least three members of the committee is required for
decisions regarding employment of the director. Employment of the director
terminates after each term of three years. At the end of the first year of
each three-year term, the committee shall consider extension of the term by one
year. However, at any time during the term of office, the employment of the
director may be terminated by a unanimous vote of the executive committee. The
executive committee shall set the salary of the director.
NEW SECTION. Sec.
3. (1) The director shall
establish and manage a legislative office of performance review to carry out
the functions described in this chapter.
(2) In consultation
with the executive committee, the director may select and employ personnel
necessary to carry out the purposes of this chapter. Salaries for employees of
the legislative office of performance review, other than the director, shall be
set with the approval of the executive committee, the secretary of the senate,
and the chief clerk of the house of representatives.
(3) The director has
primary responsibility for performance reviews of state agencies, programs, and
activities. The director shall consult with the state auditor, the legislative
auditor of the legislative budget committee, and the director of financial
management in the conduct of performance reviews. The director shall also
consult with the chairs and staff of the appropriate legislative standing
committees.
NEW SECTION. Sec.
4. (1) Performance reviews
under this chapter shall include a rethinking of the programs and functions of
state agencies to assess whether or not they have a vital purpose or valid
mission. The director shall work to involve frontline employees, agency and
program managers, customers of the program or service, other taxpayers,
legislators, legislative staff, office of financial management staff, and other
external public and private sector experts as deemed appropriate in conducting
performance reviews. The director shall, as necessary, contract with experts
from either the private or public sector to assist in performance reviews.
(2) In preparation for
a performance review, a state agency shall identify each of its discrete
functions or activities, along with associated costs and full-time equivalent
staff, as requested by the director. In reviewing the agency or program, the
director shall identify those activities and programs that should be
strengthened, those that should be abandoned, and those that need to be
redirected or other alternatives explored. The review should consider: (a)
Whether or not the purpose for which the agency or program was created is still
valid based on the circumstances under which the program was created versus
those that exist at the time of the review; (b) the relative priority of the
program among the agency's functions; (c) costs or implications of not
performing the function; (d) citizen's individual responsibilities and
freedoms; (e) whether or not the mission of the agency or program is attainable
considering the effect of factors and circumstances beyond the control of the
agency; and (f) in the event of inadequate performance by the program, the
potential for a workable, affordable plan to improve performance.
(3) Performance reviews
must also determine the existence and utility of an agency or program strategic
plan that includes a concise statement of the agency's or program's mission, a
vision for future direction, measurable goals and objectives, and clear strategies
and specific timelines to achieve them. The director shall determine the
extent to which the plan: (a) Forms the basis of agency management practices
and continuous process reevaluation and improvement; (b) can be used to clearly
identify and prioritize agency functions; (c) provides a valuable basis for
legislative policy and budget deliberations; (d) is used to ensure
accountability of employees, particularly managers, for achieving program
goals, and is a primary consideration in retention and promotion of staff; (e)
is used to assess the quality and effectiveness of the agency's programs and
activities; (f) appropriately balances cost objectives, quality objectives, and
performance objectives; and (g) is useful in demonstrating public accountability.
The agency strategic plan shall provide for periodic self-assessment by the
agency to determine whether the agency is achieving the goals and objectives of
its programs. Where self-assessments have been completed by an agency, the
assessments must be incorporated into a performance review conducted under this
chapter.
(4) If the state agency
or program being reviewed has not identified acceptable organizations or
programs in the public or private sector to be used as benchmarks against which
to measure its performance, the director shall conduct a review sufficient to
recommend such benchmarks to the agency, the governor, and the legislature.
(5) As a part of each
performance review and in consultation with the director of the agency being
reviewed and the director of financial management, the director of the
legislative office of performance review shall develop recommendations
regarding statutes that inhibit or do not contribute to the agency's ability to
perform its functions effectively and efficiently.
(6) Based on the
information and conclusions compiled from the work required in subsections (1)
through (5) of this section, the director shall develop an advisory
recommendation for the governor and the legislature regarding whether an
agency, programs of an agency, or activities within an agency should be
continued, abandoned, or restructured.
NEW SECTION. Sec.
5. Before the completion of
each legislative session and in conjunction with development of the final
omnibus appropriations act, the legislative committee on performance review
shall approve a performance review plan for the next twelve to fifteen months.
The performance review plan must include a schedule of agencies, programs, or
activities for which performance reviews will be initiated during that period.
The plan must also include anticipated performance review revolving fund
charges to each individual agency scheduled for review. Appropriations for
scheduled agencies shall be adjusted in the omnibus appropriations act to
reflect the anticipated charges. For each performance review included, the
plan must identify the role of the legislative office of performance review and
the state auditor, as well as the need to contract for additional public or private
sector expertise. In preparing a draft plan for consideration by the
committee, the director shall consult with the state auditor, the chair and
staff of the legislative budget committee, the director of financial
management, and the chairs and staff of appropriate legislative standing
committees. The committee shall meet quarterly to review progress on the plan
and, if necessary, revise the plan.
NEW SECTION. Sec.
6. When the director has
completed a performance review and before public release of the findings, the
affected agency and the office of financial management may respond to the
review. The director shall incorporate the agency's and the office of financial
management's response into the final report. The legislative committee on
performance review may also review and comment on the director's findings. The
director shall include the comments of the committee in the final report as a
separate addendum. Final reports of findings of the director from agency and
program performance reviews must be transmitted to the agency, the director of
financial management, and appropriate legislative committees and must be made
available for public review.
NEW SECTION. Sec.
7. The performance review
revolving fund is established in the state treasury. Expenditures from the
fund may be spent only by appropriation. The fund is established to assist in
recovering the costs of performance reviews from the audited agency or
program. Subject to appropriation, the director shall assess agencies all or a
portion of the cost of performance reviews.
The cost of performance
reviews includes all direct and indirect costs and other expenses incurred by
the director in fulfilling his or her statutory responsibilities.
Costs of the reviews
may also be paid from other funds appropriated to the legislative office of
performance review.
NEW SECTION. Sec.
8. To ensure the accuracy
and timeliness of information used as the basis for performance reviews and
other responsibilities of the legislature, the director shall be provided
direct and unrestricted access to information held by any state agency.
Agencies shall submit directly to the legislative office of performance review,
on a confidential basis, all data and other information requested, including
tax records and client data.
Sec. 9. RCW 43.88.030 and 1994 c
247 s 7 and 1994 c 219 s 2 are each reenacted and amended to read as follows:
(1) The director of
financial management shall provide all agencies with a complete set of
instructions for submitting biennial budget requests to the director at least
three months before agency budget documents are due into the office of
financial management. The director shall provide agencies that are required
under RCW 44.40.070 to develop comprehensive six-year program and financial
plans with a complete set of instructions for submitting these program and financial
plans at the same time that instructions for submitting other budget requests
are provided. The budget document or documents shall consist of the governor's
budget message which shall be explanatory of the budget and shall contain an
outline of the proposed financial policies of the state for the ensuing fiscal
period, as well as an outline of the proposed six-year financial policies where
applicable, and shall describe in connection therewith the important features
of the budget. The message shall set forth the reasons for salient changes
from the previous fiscal period in expenditure and revenue items and shall
explain any major changes in financial policy. Attached to the budget message
shall be such supporting schedules, exhibits and other explanatory material in
respect to both current operations and capital improvements as the governor
shall deem to be useful to the legislature. The budget document or documents
shall set forth a proposal for expenditures in the ensuing fiscal period, or six-year
period where applicable, based upon the estimated revenues as approved by the
economic and revenue forecast council or upon the estimated revenues of the
office of financial management for those funds, accounts, and sources for which
the office of the economic and revenue forecast council does not prepare an
official forecast, including those revenues anticipated to support the six-year
programs and financial plans under RCW 44.40.070. In estimating revenues to
support financial plans under RCW 44.40.070, the office of financial management
shall rely on information and advice from the interagency revenue task force.
Revenues shall be estimated for such fiscal period from the source and at the
rates existing by law at the time of submission of the budget document,
including the supplemental budgets submitted in the even-numbered years of a
biennium. However, the estimated revenues for use in the governor's budget
document may be adjusted to reflect budgetary revenue transfers and revenue
estimates dependent upon budgetary assumptions of enrollments, workloads, and
caseloads. All adjustments to the approved estimated revenues must be set
forth in the budget document. The governor may additionally submit, as an
appendix to each supplemental, biennial, or six-year agency budget or to the
budget document or documents, a proposal for expenditures in the ensuing fiscal
period from revenue sources derived from proposed changes in existing statutes.
Supplemental and
biennial documents shall reflect a six-year expenditure plan consistent with
estimated revenues from existing sources and at existing rates for those
agencies required to submit six-year program and financial plans under RCW
44.40.070. Any additional revenue resulting from proposed changes to existing
statutes shall be separately identified within the document as well as related
expenditures for the six-year period.
The budget document or
documents shall also contain:
(a) Revenues classified
by fund and source for the immediately past fiscal period, those received or
anticipated for the current fiscal period, those anticipated for the ensuing
biennium, and those anticipated for the ensuing six-year period to support the
six-year programs and financial plans required under RCW 44.40.070;
(b) The undesignated
fund balance or deficit, by fund;
(c) Such additional
information dealing with expenditures, revenues, workload, performance, and
personnel as the legislature may direct by law or concurrent resolution;
(d) Such additional
information dealing with revenues and expenditures as the governor shall deem
pertinent and useful to the legislature;
(e) Tabulations showing
expenditures classified by fund, function, activity and object;
(f) A delineation of
each agency's activities, including those activities funded from nonbudgeted,
nonappropriated sources, including funds maintained outside the state treasury;
(g) Identification of
all proposed direct expenditures to implement the Puget Sound water quality
plan under chapter 90.70 RCW, shown by agency and in total; and
(h) Tabulations showing
each postretirement adjustment by retirement system established after fiscal
year 1991, to include, but not be limited to, estimated total payments made to
the end of the previous biennial period, estimated payments for the present
biennium, and estimated payments for the ensuing biennium.
(2) The budget document
or documents shall include detailed estimates of all anticipated revenues
applicable to proposed operating or capital expenditures and shall also include
all proposed operating or capital expenditures. The total of beginning
undesignated fund balance and estimated revenues less working capital and other
reserves shall equal or exceed the total of proposed applicable expenditures.
The budget document or documents shall further include:
(a) Interest,
amortization and redemption charges on the state debt;
(b) Payments of all
reliefs, judgments and claims;
(c) Other statutory
expenditures;
(d) Expenditures
incident to the operation for each agency;
(e) Revenues derived
from agency operations;
(f) Expenditures and
revenues shall be given in comparative form showing those incurred or received
for the immediately past fiscal period and those anticipated for the current
biennium and next ensuing biennium, as well as those required to support the
six-year programs and financial plans required under RCW 44.40.070;
(g) A showing and
explanation of amounts of general fund and other funds obligations for debt
service and any transfers of moneys that otherwise would have been available
for appropriation;
(h) Common school
expenditures on a fiscal-year basis;
(i) A showing, by
agency, of the value and purpose of financing contracts for the lease/purchase
or acquisition of personal or real property for the current and ensuing fiscal
periods; ((and))
(j) A showing and
explanation of anticipated amounts of general fund and other funds required to
amortize the unfunded actuarial accrued liability of the retirement system
specified under chapter 41.45 RCW, and the contributions to meet such
amortization, stated in total dollars and as a level percentage of total
compensation; and
(k) For each agency,
a description of the findings and recommendations of any applicable review by
the legislative office of performance review conducted during the prior fiscal
period. The budget document must describe the potential costs and savings
associated with implementing the findings and recommendations, including any
recommendations for program eliminations.
(3) A separate capital
budget document or schedule shall be submitted that will contain the following:
(a) A statement setting
forth a long-range facilities plan for the state that identifies and includes
the highest priority needs within affordable spending levels;
(b) A capital program
consisting of proposed capital projects for the next biennium and the two
biennia succeeding the next biennium consistent with the long-range facilities
plan. Insomuch as is practical, and recognizing emergent needs, the capital
program shall reflect the priorities, projects, and spending levels proposed in
previously submitted capital budget documents in order to provide a reliable
long-range planning tool for the legislature and state agencies;
(c) A capital plan
consisting of proposed capital spending for at least four biennia succeeding
the next biennium;
(d) A statement of the
reason or purpose for a project;
(e) Verification that a
project is consistent with the provisions set forth in chapter 36.70A RCW;
(f) A statement about
the proposed site, size, and estimated life of the project, if applicable;
(g) Estimated total
project cost;
(h) For major projects
valued over five million dollars, estimated costs for the following project
components: Acquisition, consultant services, construction, equipment, project
management, and other costs included as part of the project. Project component
costs shall be displayed in a standard format defined by the office of
financial management to allow comparisons between projects;
(i) Estimated total
project cost for each phase of the project as defined by the office of
financial management;
(j) Estimated ensuing
biennium costs;
(k) Estimated costs
beyond the ensuing biennium;
(l) Estimated
construction start and completion dates;
(m) Source and type of
funds proposed;
(n) Estimated ongoing
operating budget costs or savings resulting from the project, including
staffing and maintenance costs;
(o) For any capital
appropriation requested for a state agency for the acquisition of land or the
capital improvement of land in which the primary purpose of the acquisition or
improvement is recreation or wildlife habitat conservation, the capital budget
document, or an omnibus list of recreation and habitat acquisitions provided
with the governor's budget document, shall identify the projected costs of
operation and maintenance for at least the two biennia succeeding the next
biennium. Omnibus lists of habitat and recreation land acquisitions shall
include individual project cost estimates for operation and maintenance as well
as a total for all state projects included in the list. The document shall
identify the source of funds from which the operation and maintenance costs are
proposed to be funded;
(p) Such other
information bearing upon capital projects as the governor deems to be useful;
(q) Standard terms,
including a standard and uniform definition of maintenance for all capital
projects;
(r) Such other
information as the legislature may direct by law or concurrent resolution.
For purposes of this
subsection (3), the term "capital project" shall be defined
subsequent to the analysis, findings, and recommendations of a joint committee
comprised of representatives from the house capital appropriations committee,
senate ways and means committee, legislative transportation committee,
legislative evaluation and accountability program committee, and office of
financial management.
(4) No change affecting
the comparability of agency or program information relating to expenditures,
revenues, workload, performance and personnel shall be made in the format of
any budget document or report presented to the legislature under this section
or RCW 43.88.160(1) relative to the format of the budget document or report
which was presented to the previous regular session of the legislature during
an odd-numbered year without prior legislative concurrence. Prior legislative
concurrence shall consist of (a) a favorable majority vote on the proposal by
the standing committees on ways and means of both houses if the legislature is
in session or (b) a favorable majority vote on the proposal by members of the
legislative evaluation and accountability program committee if the legislature
is not in session.
Sec. 10. RCW 43.88.090 and 1994 c
184 s 10 are each amended to read as follows:
(1) For purposes of
developing budget proposals to the legislature, the governor shall have the
power, and it shall be the governor's duty, to require from proper agency
officials such detailed estimates and other information in such form and at
such times as the governor shall direct. The estimates for the legislature and
the judiciary shall be transmitted to the governor and shall be included in the
budget without revision. The estimates for state pension contributions shall
be based on the rates provided in chapter 41.45 RCW. Copies of all such
estimates shall be transmitted to the standing committees on ways and means of
the house and senate at the same time as they are filed with the governor and
the office of financial management.
The estimates shall
include statements or tables which indicate, by agency, the state funds which
are required for the receipt of federal matching revenues. The estimates shall
be revised as necessary to reflect legislative enactments and adopted
appropriations and shall be included with the initial biennial allotment
submitted under RCW 43.88.110.
(2) Each state
agency shall define its mission and establish measurable goals for achieving
desirable results for those who receive its services and the taxpayers who pay
for those services. Each agency shall also develop clear strategies and
timelines to achieve its goals. This section does not require an agency to develop
a new mission or goals in place of identifiable missions or goals that meet the
intent of this section. The mission and goals of each agency must conform to
statutory direction and limitations.
(3) For the purpose
of assessing program performance, each state agency shall establish program
objectives for each major program in its budget. The objectives must be
consistent with the missions and goals developed under this section. The
objectives must be expressed to the extent practicable in outcome-based,
objective, and measurable form unless an exception to adopt a different
standard is granted by the office of financial management and approved by the
legislative committee on performance review. The office of financial
management shall provide necessary professional and technical assistance to
assist state agencies in the development of strategic plans that include the
mission of the agency and its programs, measurable goals, strategies, and
performance measurement systems.
(4) Each state
agency shall adopt procedures for continuous self-assessment of each program
and activity, using the mission, goals, objectives, and measurements required
under subsections (2) and (3) of this section.
(5) It is the policy
of the legislature that each agency's budget proposals must be directly linked
to the agency's stated mission and program goals and objectives. Consistent
with this policy, agency budget proposals must include integration of
performance measures that allow objective determination of a program's success
in achieving its goals. The office of financial management shall develop a
plan to merge the budget development process with agency performance assessment
procedures. The plan must include a schedule to integrate agency strategic
plans and performance measures into agency budget requests and the governor's
budget proposal over three fiscal biennia. The plan must identify those
agencies that will implement the revised budget process in the 1997-1999
biennium, the 1999-2001 biennium, and the 2001-2003 biennium. In consultation
with the legislative fiscal committees, the office of financial management
shall recommend statutory and procedural modifications to the state's budget,
accounting, and reporting systems to facilitate the performance assessment
procedures and the merger of those procedures with the state budget process.
The plan and recommended statutory and procedural modifications must be
submitted to the legislative fiscal committees by September 30, 1996.
(6) In the year
of the gubernatorial election, the governor shall invite the governor-elect or
the governor-elect's designee to attend all hearings provided in RCW 43.88.100;
and the governor shall furnish the governor-elect or the governor-elect's
designee with such information as will enable the governor-elect or the
governor-elect's designee to gain an understanding of the state's budget
requirements. The governor-elect or the governor-elect's designee may ask such
questions during the hearings and require such information as the governor-elect
or the governor-elect's designee deems necessary and may make recommendations
in connection with any item of the budget which, with the governor-elect's
reasons therefor, shall be presented to the legislature in writing with the
budget document. Copies of all such estimates and other required information
shall also be submitted to the standing committees on ways and means of the
house and senate.
Sec. 11. RCW 43.88.160 and 1994 c
184 s 11 are each amended to read as follows:
This section sets forth
the major fiscal duties and responsibilities of officers and agencies of the
executive branch. The regulations issued by the governor pursuant to this
chapter shall provide for a comprehensive, orderly basis for fiscal management
and control, including efficient accounting and reporting therefor, for the
executive branch of the state government and may include, in addition, such
requirements as will generally promote more efficient public management in the
state.
(1) Governor; director
of financial management. The governor, through the director of financial
management, shall devise and supervise a modern and complete accounting system
for each agency to the end that all revenues, expenditures, receipts,
disbursements, resources, and obligations of the state shall be properly and
systematically accounted for. The accounting system shall include the
development of accurate, timely records and reports of all financial affairs of
the state. The system shall also provide for central accounts in the office of
financial management at the level of detail deemed necessary by the director to
perform central financial management. The director of financial management
shall adopt and periodically update an accounting procedures manual. Any
agency maintaining its own accounting and reporting system shall comply with
the updated accounting procedures manual and the rules of the director adopted
under this chapter. An agency may receive a waiver from complying with this
requirement if the waiver is approved by the director. Waivers expire at the
end of the fiscal biennium for which they are granted. The director shall
forward notice of waivers granted to the appropriate legislative fiscal
committees. The director of financial management may require such financial,
statistical, and other reports as the director deems necessary from all
agencies covering any period.
(2) The director of
financial management is responsible for quarterly reporting of primary
operating budget drivers such as applicable workloads, caseload estimates, and
appropriate unit cost data. These reports shall be transmitted to the
legislative fiscal committees or by electronic means to the legislative
evaluation and accountability program committee. Quarterly reports shall
include actual monthly data and the variance between actual and estimated data
to date. The reports shall also include estimates of these items for the
remainder of the budget period.
(3) The director of
financial management shall report at least annually to the appropriate
legislative committees regarding the status of all appropriated capital
projects, including transportation projects, showing significant cost overruns
or underruns. If funds are shifted from one project to another, the office of
financial management shall also reflect this in the annual variance report.
Once a project is complete, the report shall provide a final summary showing
estimated start and completion dates of each project phase compared to actual
dates, estimated costs of each project phase compared to actual costs, and
whether or not there are any outstanding liabilities or unsettled claims at the
time of completion.
(4) In addition, the
director of financial management, as agent of the governor, shall:
(a) Develop and
maintain a system of internal controls and internal audits comprising methods
and procedures to be adopted by each agency that will safeguard its assets,
check the accuracy and reliability of its accounting data, promote operational
efficiency, and encourage adherence to prescribed managerial policies for
accounting and financial controls. The system developed by the director shall
include criteria for determining the scope and comprehensiveness of internal
controls required by classes of agencies, depending on the level of resources
at risk.
Each agency head or
authorized designee shall be assigned the responsibility and authority for
establishing and maintaining internal audits following the standards of
internal auditing of the institute of internal auditors;
(b) Make surveys and
analyses of agencies with the object of determining better methods and
increased effectiveness in the use of manpower and materials; and the director
shall authorize expenditures for employee training to the end that the state
may benefit from training facilities made available to state employees;
(c) Establish policies
for allowing the contracting of child care services;
(d) Report to the
governor with regard to duplication of effort or lack of coordination among
agencies;
(e) Review any pay and
classification plans, and changes thereunder, developed by any agency for their
fiscal impact: PROVIDED, That none of the provisions of this subsection shall
affect merit systems of personnel management now existing or hereafter
established by statute relating to the fixing of qualifications requirements
for recruitment, appointment, or promotion of employees of any agency. The
director shall advise and confer with agencies including appropriate standing
committees of the legislature as may be designated by the speaker of the house
and the president of the senate regarding the fiscal impact of such plans and may
amend or alter said plans, except that for the following agencies no amendment
or alteration of said plans may be made without the approval of the agency
concerned: Agencies headed by elective officials;
(f) Fix the number and
classes of positions or authorized man years of employment for each agency and
during the fiscal period amend the determinations previously fixed by the
director except that the director shall not be empowered to fix said number or
said classes for the following: Agencies headed by elective officials;
(g) ((Provide for
transfers and repayments between the budget stabilization account and the
general fund as directed by appropriation and RCW 43.88.525 through 43.88.540;
(h))) Adopt rules to effectuate provisions contained
in (a) through (((g))) (f) of this subsection.
(5) The treasurer
shall:
(a) Receive, keep, and
disburse all public funds of the state not expressly required by law to be
received, kept, and disbursed by some other persons: PROVIDED, That this
subsection shall not apply to those public funds of the institutions of higher
learning which are not subject to appropriation;
(b) Receive, disburse,
or transfer public funds under the treasurer's supervision or custody;
(c) Keep a correct and
current account of all moneys received and disbursed by the treasurer,
classified by fund or account;
(d) Coordinate
agencies' acceptance and use of credit cards and other payment methods, if the
agencies have received authorization under RCW 43.41.180;
(e) Perform such other
duties as may be required by law or by regulations issued pursuant to this law.
It shall be unlawful
for the treasurer to disburse public funds in the treasury except upon forms or
by alternative means duly prescribed by the director of financial management.
These forms or alternative means shall provide for authentication and
certification by the agency head or the agency head's designee that the
services have been rendered or the materials have been furnished; or, in the
case of loans or grants, that the loans or grants are authorized by law; or, in
the case of payments for periodic maintenance services to be performed on state
owned equipment, that a written contract for such periodic maintenance services
is currently in effect and copies thereof are on file with the office of
financial management; and the treasurer shall not be liable under the
treasurer's surety bond for erroneous or improper payments so made. When
services are lawfully paid for in advance of full performance by any private
individual or business entity other than as provided for by RCW 42.24.035, such
individual or entity other than central stores rendering such services shall
make a cash deposit or furnish surety bond coverage to the state as shall be
fixed in an amount by law, or if not fixed by law, then in such amounts as
shall be fixed by the director of the department of general administration but
in no case shall such required cash deposit or surety bond be less than an
amount which will fully indemnify the state against any and all losses on
account of breach of promise to fully perform such services. No payments shall
be made in advance for any equipment maintenance services to be performed more
than three months after such payment. Any such bond so furnished shall be
conditioned that the person, firm or corporation receiving the advance payment
will apply it toward performance of the contract. The responsibility for
recovery of erroneous or improper payments made under this section shall lie
with the agency head or the agency head's designee in accordance with
regulations issued pursuant to this chapter. Nothing in this section shall be
construed to permit a public body to advance funds to a private service
provider pursuant to a grant or loan before services have been rendered or
material furnished.
(6) The state auditor
shall:
(a) Report to the
legislature the results of current post audits that have been made of the
financial transactions of each agency; to this end the auditor may, in the
auditor's discretion, examine the books and accounts of any agency, official,
or employee charged with the receipt, custody, or safekeeping of public
funds. Where feasible in conducting examinations, the auditor shall utilize
data and findings from the internal control system prescribed by the office of
financial management. The current post audit of each agency may include a
section on recommendations to the legislature as provided in (c) of this
subsection.
(b) Give information to
the legislature, whenever required, upon any subject relating to the financial
affairs of the state.
(c) Make the auditor's
official report on or before the thirty-first of December which precedes the
meeting of the legislature. The report shall be for the last complete fiscal
period and shall include determinations as to whether agencies, in making
expenditures, complied with the laws of this state. The state auditor ((is
authorized to)) may perform or participate in performance
verifications ((only as)) and performance reviews under chapter
44.--- RCW (sections 1 through 8 of this act) if expressly authorized by the
performance review plan adopted by the legislative committee on performance
review or if expressly authorized by the legislature in the omnibus
biennial appropriations acts. The state auditor, upon completing an audit for
legal and financial compliance under chapter 43.09 RCW or a performance
verification or performance review, may report to the legislative budget
committee, legislative committee on performance review, or other
appropriate committees of the legislature, in a manner prescribed by the
legislative budget committee or the director of the legislative office of
performance review, on facts relating to the management or performance of
governmental programs where such facts are discovered incidental to the legal
and financial audit ((or)), performance verification, or
performance review. The auditor may make such a report to a legislative
committee only if the auditor has determined that the agency has been given an
opportunity and has failed to resolve the management or performance issues
raised by the auditor. If the auditor makes a report to a legislative
committee, the agency may submit to the committee a response to the report.
This subsection (6) shall not be construed to authorize the auditor to allocate
other than de minimis resources to performance audits except as expressly
authorized in the appropriations acts or the performance review plan.
(d) Be empowered to
take exception to specific expenditures that have been incurred by any agency
or to take exception to other practices related in any way to the agency's
financial transactions and to cause such exceptions to be made a matter of
public record, including disclosure to the agency concerned and to the director
of financial management. It shall be the duty of the director of financial
management to cause corrective action to be taken promptly, such action to
include, as appropriate, the withholding of funds as provided in RCW 43.88.110.
(e) Promptly report any
irregularities to the attorney general.
(f) Investigate
improper governmental activity under chapter 42.40 RCW.
(7) The legislative
budget committee may:
(a) Make post audits of
the financial transactions of any agency and management surveys and program
reviews as provided for in RCW 44.28.085 as well as performance audits and
program evaluations. To this end the committee may in its discretion examine
the books, accounts, and other records of any agency, official, or employee.
(b) Give information to
the legislature or any legislative committee whenever required upon any subject
relating to the performance and management of state agencies.
(c) Make a report to
the legislature which shall include at least the following:
(i) Determinations as
to the extent to which agencies in making expenditures have complied with the
will of the legislature and in this connection, may take exception to specific
expenditures or financial practices of any agencies; and
(ii) Such plans as it
deems expedient for the support of the state's credit, for lessening
expenditures, for promoting frugality and economy in agency affairs and
generally for an improved level of fiscal management.
NEW SECTION. Sec.
12. The following acts or
parts of acts are each repealed:
(1) RCW 43.88B.005 and 1994 c 184 s 1;
(2) RCW 43.88B.007 and 1994 c 184 s 2;
(3) RCW 43.88B.010 and 1994 c 184 s 3;
(4) RCW 43.88B.020 and 1994 c 184 s 4;
(5) RCW 43.88B.030 and 1994 c 184 s 5;
(6) RCW 43.88B.031 and 1994 c 184 s 6;
(7) RCW 43.88B.040 and 1994 c 184 s 7;
(8) RCW 43.88B.050 and 1994 c 184 s 8;
(9) RCW 43.88B.900 and 1994 c 184 s 13; and
(10) RCW 43.88B.901 and 1994 c 184 s 15.
NEW SECTION. Sec.
13. Sections 1 through 8 of
this act constitute a new chapter in Title 44 RCW.
NEW SECTION. Sec.
14. If specific funding for
purposes of this act, referencing this act by bill or chapter number, is not
provided by June 30, 1996, in the supplemental omnibus appropriations act, this
act is null and void.
