H-1738.1  _______________________________________________

                          HOUSE BILL 2070

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Schoesler, Doumit, Cox, Stensen and McMorris

Read first time 02/15/1999.  Referred to Committee on State Government.

Allowing private accountant audits of school districts, cities, and towns.

    AN ACT Relating to contracts with certified public accountants to conduct financial audits of public school districts, cities, and towns; and amending RCW 43.09.045.

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

    Sec. 1.  RCW 43.09.045 and 1995 c 301 s 4 are each amended to read as follows:

(1) Except as provided under subsection (2) of this section, the state auditor may contract with public accountants certified in Washington to carry out those portions of the duties of auditing state agencies and local governments as the state auditor may determine.

(2) The state auditor shall establish a program by which school districts, cities, and towns may, at their option, contract with private public accountants certified in Washington to conduct their periodic fiscal audits, subject to the following:

(a) Prior to having its fiscal audit conducted by a private certified public accountant, a school district must contact the state auditor and indicate this choice.  However, no more than twenty percent of the school districts may have their fiscal audits conducted by private certified public accountants in any calendar year.  If more than twenty percent of the school districts indicate that they want to have private certified public accountants conduct their fiscal audits in any year, only the first twenty percent of the school districts that indicate that to the state auditor may actually have their fiscal audits conducted by private certified public accountants.

(b) Prior to having its fiscal audit conducted by a private certified public accountant, a city or town must contact the state auditor and indicate this choice.  However, no more than twenty percent of the cities and towns may have their fiscal audits conducted by private certified public accountants in any calendar year.  If more than twenty percent of the cities and towns indicate that they want to have private certified public accountants conduct their fiscal audits in any year, only the first twenty percent of the cities and towns that indicate that to the state auditor may actually have their fiscal audits conducted by private certified public accountants.

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