SENATE BILL REPORT

 

                            SB 5606

 

    AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 8, 1993

 

 

Brief Description:  Directing the state auditor to scrutinize funds and accounts under the control of state agencies.

 

SPONSORS: Senators Prince, Vognild, Cantu, Fraser, Newhouse, Prentice, McAuliffe, Sutherland, Moore and Winsley

 

SENATE COMMITTEE ON WAYS & MEANS

 

Majority Report:  That Substitute Senate Bill No. 5606 be substituted therefor, and the substitute bill do pass. 

     Signed by Senators Rinehart, Chairman; Spanel, Vice Chairman; Anderson, Bluechel, Cantu, Gaspard, Hargrove, Hochstatter, Jesernig, McDonald, Moyer, Niemi, Pelz, Quigley, Roach, L. Smith, Snyder, Sutherland, Talmadge, West, Williams, and Wojahn.

 

Staff:  Steve Jones (786‑7440)

 

Hearing Dates:  March 8, 1993

 

 

BACKGROUND:

 

A revolving fund is a type of dedicated account established to pay the cost of goods or services furnished by a state agency.  The fund is typically replenished by charges made for the goods or services.

 

Most state funds and accounts are managed by the State Treasurer.  Funds and accounts that are located outside of the State Treasurer's Office are known as local accounts; these accounts are managed directly by the state agency or political subdivision that established the account.

 

The State Auditor conducts annual financial audits of all units of state and local government.

 

SUMMARY:

 

The State Auditor is directed to inventory all revolving funds, local funds, and other funds outside the State Treasury and managed by state agencies and political subdivisions.  The Auditor shall examine accounting methods and record keeping practices, and report biennially to the Legislature on the status of these accounts and recommendations for management improvements.

 

EFFECT OF PROPOSED SUBSTITUTE:

 

The examination of funds and accounts located outside the state treasury, and the report to the Legislature, shall include agency expenditures from these accounts.

 

Appropriation:  none

 

Revenue:  none

 

Fiscal Note:  available

 

TESTIMONY FOR:  None

 

TESTIMONY AGAINST:  None

 

TESTIFIED:  No one