HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No. HB 1835

Requiring audit resolution reports                   Public Hrg: 3/5/97

Brief Title

Reps. Skinner/Clements                                    Staff Contact: B. Mauldin

Sponsor                                          Comm. on Govt. Admin.

                                           Phone: 786-7093

BACKGROUND:

The major fiscal duties of the Governor, director of Financial Management, state treasurer, state auditor, and the Joint Legislative Audit and Review Committee (JLARC) are outlined in statute. 

The state auditor must complete agency audits for legal and financial compliance with state law and report to the Legislature annually on these audits, among other duties.  The auditor may also conduct performance audits, if expressly authorized by the Legislature. 

The state auditor has the authority to take exception to specific expenditures or practices related to an agency=s financial transactions.  When this occurs, the director of Financial Management must cause corrective action to be taken promptly.  Such action may include withholding appropriated funds.

SUMMARY:

If the state auditor takes exception to specific expenditures or practices, the director of Financial Management must cause corrective action to be taken within six months.  The director must report annually to the appropriate committees of the Legislature on the status of audit resolution.  The report must include any actions taken as a result of an audit, including types of personnel actions, costs and types of litigation, and the value of any recouped goods or services.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.