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.
*Sec. 1
was vetoed. See message at end of chapter.
*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.
*Sec. 2
was vetoed. See message at end of chapter.
*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.
*Sec. 3
was vetoed. See message at end of chapter.
*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.
*Sec. 4
was vetoed. See message at end of chapter.
*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.
*Sec. 5
was vetoed. See message at end of chapter.
*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.
*Sec. 6
was vetoed. See message at end of chapter.
*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.
*Sec. 7
was vetoed. See message at end of chapter.
*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. 8
was vetoed. See message at end of chapter.
*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. 9
was vetoed. See message at end of chapter.
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.
*Sec.
11 was vetoed. See message at end of chapter.
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.
*Sec.
13 was vetoed. See message at end of chapter.
*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.
*Sec.
14 was vetoed. See message at end of chapter.
