HOUSE BILL REPORT

SB 6211

BYSenators McCaslin, Garrett, Zimmerman, Hayner and Nelson; by request of Office of State Auditor

Authorizing the state auditor to contract with certified public accountants for departmental audits.

House Committe on State Government

Majority Report:  Do pass.  (8)

      Signed by Representatives H. Sommers, Chair; Anderson, Vice Chair; Baugher, Chandler, Hankins, O'Brien, Peery and Walk.

House Staff:Ken Conte (786-7135)

AS PASSED HOUSE MARCH 1, 1988

BACKGROUND:

The authority to audit public accounts is provided to the State Auditor in both statutory law and in the Constitution.  The Auditor's responsibilities extend both to state agencies, where audit work is overseen by the Division of Departmental Audits, and to local governments, where work is done by the Division of Municipal Corporations.

Through the Division of Departmental Audits, the Auditor annually evaluates the state-wide combined financial statements prepared by the Office of Financial Management and conducts fiscal audits of all state agencies.  The largest state agencies are audited on an annual basis and those receiving federal funds must have completed audits within a year of the fiscal year-end.  Other agencies are audited every two or three years.  On occasions when staff resources are fully utilized, the State Auditor hires additional personnel to complete agency audits.

Audits of state agencies are paid for through an auditing services revolving fund.  The Auditor provides each agency with a cost estimate for its audit, and that amount is built into the agency budget.

SUMMARY:

The State Auditor is allowed to contract with private certified public accountants to carry out duties under the Division of Departmental Audits.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Linda Sheler, Office of State Auditor.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The bill allows flexibility for the State Auditor to complete audits of state agencies.

House Committee - Testimony Against:      None Presented.