FINAL BILL REPORT

SHB 732

                                  C 165 L 87

BYHouse Committee on State Government (originally sponsored by Representatives H. Sommers, B. Williams and Belcher; by request of Office of State Auditor)

Revising provisions of the audit services revolving fund.

House Committe on State Government

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

A 1965 statute requires post-audits of state agencies performed by the state auditor to be paid for from the General Fund.  In 1981, the legislature centralized the funding of audits performed by the state auditor in an Auditing Services Revolving Fund.  The conflicting 1965 statute was never repealed.

The state treasurer is directed to transfer funds on a quarterly basis to the Auditing Services Revolving Fund.

The state treasurer is required to adjust audit billing rates to reflect audit costs incurred during the previous six-month (or less) period.

SUMMARY:

A conflicting provision of state law requiring the use of General Fund appropriations to pay for post-audits of state agencies performed by the state auditor is repealed.

The interval at which the state treasurer must transfer funds to the Audit Services Revolving Fund is changed from quarterly to monthly.  The time period of audit costs on which the state auditor's billing rate is based is expanded from the previous six-month (or less) period to the previous and present biennia.  The following are specified as expenses of auditing public accounts:  expenses related to training; maintenance of working capital including reserves for late and uncollectible accounts; and necessary billing adjustments.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    41     0

EFFECTIVE:July 26, 1987