2013 -- S 0265

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO THE GENERAL ASSEMBLY - PERFORMANCE AUDITS OF

GOVERNMENTAL ENTITIES

     Introduced By: Senators Walaska, Bates, and Lombardo

     Date Introduced: February 12, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 22 of the General Laws entitled "GENERAL ASSEMBLY" is hereby

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amended by adding thereto the following chapter:

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     CHAPTER 13.1

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THE INDEPENDENT PERFORMANCE AUDITS ACT

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     22-13.1-1. Purpose and intent. -- The general assembly finds that it is essential that the

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state government establish credibility with the taxpayers by implementing independent

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performance audits to ensure accountability and guarantee that tax dollars are spent as cost-

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effectively as possible. This measure requires the state auditor general to conduct independent,

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comprehensive performance audits on state government, agencies, programs, and accounts.

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     22-13.1-2. Short title. -- This act may be known and cited as the "Independent

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Performance Audits Act."

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     22-13.1-3. Definitions. -- As used in this section, the following words shall have the

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following meanings, unless the context clearly indicates otherwise:

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     (1) "Government" means an agency, department, office, officer, board, commission,

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bureau, division, institution, or institution of higher education. This includes individual agencies

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and programs, as well as those programs and activities that cross agency lines “Government”

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includes all elective and non-elective offices in the executive branch and includes the judicial and

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legislative branches.

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     22-13.1-4. Audit standards. -- (a) The state auditor general shall conduct independent,

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comprehensive performance audits of state government and each of its agencies, accounts, and

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programs; state education governmental entities and each of their agencies, accounts, and

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programs, state transportation governmental entities and each of their agencies, accounts, and

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programs, and other governmental entities, agencies, accounts, and programs. The state auditor

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general shall review and analyze the economy, efficiency, and effectiveness of the policies,

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management, fiscal affairs, and operations of state government, agencies, programs, and

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accounts. These performance audits shall be conducted in accordance with the United States

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general accounting office government auditing standards.

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     (b) The scope for each performance audit shall not be limited and shall include nine (9)

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specific elements:

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     (1) Identification of cost savings;

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     (2) Identification of services that can be reduced or eliminated;

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     (3) Identification of programs or services that can be transferred to the private sector;

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     (4) Analysis of gaps or overlaps in programs or services and recommendations to correct

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gaps or overlaps;

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     (5) Feasibility of pooling information technology systems within the department;

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     (6) Analysis of the roles and functions of the department, and recommendations to

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change or eliminate departmental roles or functions;

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     (7) Recommendations for statutory or regulatory changes that may be necessary for the

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department to properly carry out its functions;

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     (8) Analysis of departmental performance data, performance measures, and self-

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assessment systems; and

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     (9) Identification of best practices.

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     (c) The state auditor general may contract out any performance audits.

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     (d) Each audit report shall be submitted to the corresponding legislative body or

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legislative bodies and made available to the public on or before thirty (30) days after the

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completion of each audit or each follow-up audit. On or before thirty (30) days after the

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performance audit is made public, the corresponding legislative body or legislative bodies shall

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hold at least one public hearing to consider the findings of the audit and shall receive comments

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from the public. The state auditor general is authorized to issue subpoenas to governmental

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entities for required documents, memos, and budgets to conduct the performance audits. The state

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auditor general may, at any time, conduct a performance audit to determine not only the

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efficiency, but also the effectiveness, of any government agency, account, or program. No

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legislative body, officeholder, or employee may impede or restrict the authority or the actions of

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the state auditor general to conduct independent, comprehensive performance audits. To the

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greatest extent possible, the state auditor general shall instruct and advise the appropriate

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governmental body on a step-by-step remedy to whatever ineffectiveness and inefficiency is

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discovered in the audited entity. For performance audits of state government and its agencies,

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programs, and accounts, the legislature shall consider the state auditor general reports in

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connection with the legislative appropriations process.

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     (e) An annual report shall be submitted by the house and senate finance committees by

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July 1st of each year detailing the status of the legislative implementation of the state auditor

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general’s recommendations. Justification must be provided for recommendations not

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implemented. Details of other corrective action must be provided as well.

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     (f) Follow-up performance audits on any state government, agency, account, and program

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may be conducted when determined necessary by the state auditor general.

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     22-13.1-5. Severability. -- If any provision of this chapter or the application of a

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provision shall for any reason be judged invalid, that judgment shall not affect, impair, or

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invalidate the remainder of the chapter, but shall be confined in this effect to the provisions or

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application directly involved in the controversy giving rise to the judgment.

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      SECTION 2. This act shall take effect upon passage.

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LC00901

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO THE GENERAL ASSEMBLY - PERFORMANCE AUDITS OF

GOVERNMENTAL ENTITIES

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     This act would require independent performance audits to be conducted periodically by

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the state auditor general.

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     This act would take effect upon passage.

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LC00901

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