_______________________________________________
SUBSTITUTE
HOUSE BILL 1190
_______________________________________________
Passed
Legislature - 1997 Regular Session
AS
AMENDED BY THE SENATE
State
of Washington 55th Legislature 1997 Regular Session
By
Read
first time 02/24/97.
Requiring preliminary compliance reviews of performance
audits and consideration of performance audit recommendations in budget
preparation.
AN
ACT Relating to performance audits; and amending RCW 43.88.090 and 44.28.091.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
43.88.090 and 1996 c 317 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. The estimates must reflect that
the agency considered any alternatives to reduce costs or improve service
delivery identified in the findings of a performance audit of the agency by the
joint legislative audit and review committee. Nothing in this subsection
requires performance audit findings to be published as part of the budget.
(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.
2.
RCW 44.28.091 and 1996 c 288 s 14 are each amended to read as follows:
(1)
No later than nine months after the final performance audit has been
transmitted by the joint committee to the appropriate standing committees of
the house of representatives and the senate, the ((joint committee in
consultation with the standing committees may)) agency or local
government shall produce a preliminary compliance report on ((the
agency's or local government's)) its compliance with the final
performance audit recommendations and submit it to the joint committee.
((The agency or local government may attach its comments to the joint
committee's preliminary compliance report as a separate addendum.)) At
the request of the joint committee, the agency or local government shall
periodically provide updates to the preliminary compliance report until the
joint committee determines that the agency or local government has complied
with the final performance audit recommendations to the joint committee's
satisfaction.
(2)
((Within three months after the issuance of the preliminary compliance
report,)) The joint committee may hold ((at least one))
public hearings and receive public testimony ((regarding the findings
and recommendations contained in the preliminary compliance report. The joint
committee may waive the public hearing requirement if the preliminary
compliance report demonstrates that the agency or local government is in
compliance with the audit recommendations)) if the agency or local
government is not making satisfactory progress in achieving compliance.
The joint committee shall issue any final compliance report ((within four
weeks after the public hearing or hearings)) after an agency or local
government has satisfactorily complied with the final audit recommendations.
The legislative auditor shall transmit the final compliance report in the same
manner as a final performance audit is transmitted under RCW 44.28.088.
*Sec. 2 was vetoed. See message at end of chapter.
Passed the House April 19, 1997.
Passed the Senate April 17, 1997.
Approved by the Governor May
15, 1997, with the exception of certain items that were vetoed.
Filed in Office of Secretary of State May 15, 1997.
Note:
Governor's explanation of partial veto is as follows:
"I
am returning herewith, without my approval as to section 2, Substitute House
Bill No. 1190 entitled:
"AN ACT Relating to performance audits;"
Section 1 of this bill
requires state agencies to provide in their biennial budget submittals
information about the disposition of performance audit findings. This
information is valuable to the budgeting process; including it with the budget
documentation provided by agencies will help strengthen the linkage between
performance auditing and budgeting.
Section 2, however, would
place an open-ended obligation on all state agencies and local governments to
provide periodic reports on their compliance with performance audit findings.
Current law and practices of the Joint Legislative Audit and Review Committee
already provide adequately for tracking and reporting on state agency and local
government responses to significant audit recommendations. I, therefore, see
no need to place additional reporting requirements on agencies and local
governments.
For this reason, I have
vetoed section 2 of Substitute House Bill No. 1190.
With
the exception of section 2, Substitute House Bill No. 1190 is approved."
