2015 -- H 5277

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LC000417

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO THE GENERAL ASSEMBLY -- AUDITOR GENERAL

     

     Introduced By: Representatives Morgan, Chippendale, Filippi, Nardolillo, and Reilly

     Date Introduced: February 04, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 22-13-4 of the General Laws in Chapter 22-13 entitled "Auditor

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General" is hereby amended to read as follows:

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     22-13-4. Definitions -- Duties of auditor general -- Investigations by committee. -- (a)

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The following words and phrases have the following meanings unless a different meaning is

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required by the context:

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      (1) "Performance audit" means an examination of the effectiveness of administration and

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its efficiency and adequacy in terms of the program of the state agency authorized by law to be

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performed. The "performance audit" may also include a review of the agency in terms of

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compliance with federal and state laws and executive orders relating to equal employment

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opportunities and the set aside for minority businesses.

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      (2) "Political subdivision" means a separate agency or unit of local government created

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or established by law and includes, but is not limited to, the following and the officers of the

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following: authority, board, branch, bureau, city, commission, council, consolidated government,

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county, department, district, institution, metropolitan government, municipality, office, officer,

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public corporation, town, or village.

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      (3) "Post-audit" means an audit made at some point after the completion of a transaction

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or a group of transactions.

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      (4) "State agency" means a separate agency or unit of state government created or

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established by law and includes, but is not limited to, the following and the officers of the

 

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following: authority, board, branch, bureau, commission, council, department, division,

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institution, office, officer, or public corporation, as the case may be, except any agency or unit

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within the legislative branch of state government.

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      (b) The auditor general shall make post-audits and performance audits of public records

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and perform related duties as prescribed by the committee. He or she shall perform his or her

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duties independently but under the general policies established by the committee.

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      (c) (1) The auditor general shall have the power and duty to make post-audits and

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performance audits of the accounts and records of all state agencies, including the board of

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governors for higher education and the board of regents for elementary and secondary education,

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as defined in this section.

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      (2) The auditor general shall have the power, when requested by a majority of the

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committee, to make post-audits and performance audits of accounts and records of any other

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public body or political subdivision, or any association or corporation created or established by

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any general or special law of the general assembly, or any person, association, or corporation to

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which monies of the state have been appropriated by the general assembly. Nothing in the

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subdivision shall be construed to apply to public utilities.

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      (3) The auditor general shall perform or have performed annually a complete post-audit

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of the financial transactions and accounts of the state when approved by the chairperson of the

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joint committee on legislative services.

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      (d) The committee and/or the auditor general may at any time, without regard to whether

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the legislature is then in session or out of session, take under investigation any matter within the

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scope of an audit either completed or then being conducted by the auditor general, and in

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connection with that investigation may exercise the powers of subpoena vested by law in a

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standing committee of the legislature.

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      (e)(1) The auditor general may, when directed by the committee, designate and direct

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any auditor employed by him or her to audit any accounts or records within the power of the

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auditor general to audit. The auditor shall report his or her findings for review by the auditor

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general, who shall prepare the audit report.

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      (2) The audit report shall make special mention of:

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      (i) Any violation of the laws within the scope of the audit; and

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      (ii) Any illegal or improper expenditure, any improper accounting procedures, all

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failures to properly record financial transactions, and all other inaccuracies, irregularities,

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shortages, and defalcations.

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      (3) At the conclusion of the audit, the auditor general or his or her designated

 

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representative will conduct an exit conference with the official whose office or department is

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subject to audit and submit to him or her a draft report which includes a list of findings and

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recommendations. If an official is not available for the exit conference, delivery of the draft

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report is presumed to be sufficient notice. The official must submit to the auditor general within

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sixty (60) days after the receipt of the draft report his or her written reply as to:

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      (i) Acceptance and plan of implementation of each recommendation;

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      (ii) Reason(s) for non-acceptance of a recommendation.

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      (4) Should the auditor general determine that the written explanation or rebuttal of the

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official whose office is subject to audit is unsatisfactory, he or she shall, as soon as practicable,

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report his or her findings to the joint committee on legislative services.

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      (f) A copy of the audit report shall be submitted to each member of the committee.

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      (g) If the auditor general discovers any errors, unusual practices, or any other

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discrepancies in connection with his or her audit or post-audit of a state agency or state officers,

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the auditor general shall, as soon as practicable, notify in writing the president of the senate and

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the speaker of the house of representatives, respectively.

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      (h) The auditor general shall annually review the capital development program to

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determine: (1) the status of all projects included in the program; (2) whether the funds are being

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properly expended for their intended purposes; (3) the completion date or projected completion

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date of the projects; (4) which projects require professional services and to determine the identity

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of individuals or firms appointed; and (5) the expended and unexpended funds. This report shall

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be annually submitted to the general assembly on the first Wednesday in February.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO THE GENERAL ASSEMBLY -- AUDITOR GENERAL

***

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     This act would empower the auditor general to conduct investigations within the purview

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of his/her rights, duties, and responsibilities to conduct investigations, whether the general

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assembly is in session or not and would grant the auditor general subpoena powers.

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     This act would take effect upon passage.

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