Z-780                 _______________________________________________

                                                    HOUSE BILL NO. 732

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives H. Sommers, B. Williams and Belcher; by request of Office of State Auditor

Read first time 2/6/87 and referred to Committee on State Government.

AN ACT Relating to the audit services revolving fund; amending RCW 43.09.412 and 43.09.416; and repealing RCW 43.09.320.

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

        Sec. 1.  Section 2, chapter 336, Laws of 1981 and RCW 43.09.412 are each amended to read as follows:

          The amounts to be disbursed from the auditing services revolving fund ((from time to time)) shall be transferred thereto by the state treasurer from funds appropriated to any and all state departments for auditing services or administrative expenses on a ((quarterly)) monthly basis.  State departments operating in whole or in part from nonappropriated funds shall pay into the auditing services revolving fund such funds as will fully reimburse funds appropriated to the state auditor for any auditing services provided activities financed by nonappropriated funds.

          The director of financial management shall allot all such funds to the state auditor for the operation of his office, pursuant to appropriation, in the same manner as appropriated funds are allocated to other state departments headed by elected officers under chapter 43.88 RCW.

        Sec. 2.  Section 4, chapter 336, Laws of 1981 and RCW 43.09.416 are each amended to read as follows:

          The state auditor shall keep such records as are necessary to facilitate proper allocation of costs to funds and state departments served and the director of financial management shall prescribe appropriate accounting procedures to accurately allocate costs to funds and state departments served.  ((Billings shall be adjusted in line with actual costs incurred at intervals not to exceed six months)) The billing rate shall be adjusted in line with actual costs incurred in the prior biennium:  PROVIDED, That those expenses related to training, maintenance of working capital including reserves for late and uncollectible accounts, and necessary adjustments to billings, shall be considered as expenses of auditing public accounts:  PROVIDED FURTHER, That the director of the office of financial management shall establish a committee of at least three certified public accountants with private sector audit experience to prepare general guidelines governing procedures to be used in determining audit costs and standards for measuring auditor productivity.  These proposed procedures and productivity standards shall be presented for review by the house and senate committees on ways and means prior to the 1982 regular session of the legislature.

NEW SECTION. Sec. 3.  Section 43.09.320, chapter 8, Laws of 1965 and RCW 43.09.320 are each repealed.