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ARIZONA HOUSE OF REPRESENTATIVESFifty-sixth Legislature First Regular Session |
Senate: GOV DPA 5-3-0-0 | 3rd Read 16-14-0-0 |
SB 1650: auditor general; duties; access
Sponsor: Senator Borrelli, LD 30
Committee on Government
Overview
Modifies the Office of the Auditor General (OAG) audit processes and powers and duties. Changes Committee of References (COR) consideration criteria for continuation or termination of governmental agencies and information in sunset review reports.
History
The OAG is appointed to a five-year term by the Joint Legislative Audit Committee (JLAC) and approved by a concurrent resolution of the legislature. The OAG must be a certified public accountant licensed in Arizona (A.R.S. § 41-1279.01).
The OAG must:
1) prepare an audit plan for approval by JLAC and report the results of each audit;
2) conduct biennial financial and compliance audits of all state agencies;
3) perform procedural reviews for all state agencies;
4) perform special research requests, special audits and related assignments for JLAC;
5) prepare a report for the Governor and JLAC that summarizes the prior year activities;
6) conduct an audit in a county with a transportation excise tax in prescribed timelines;
7) at request, conduct audits of counties and incorporated cities and towns receiving Arizona highway user revenue fund monies;
8) conduct performance audits and monitor school districts; and
9) review the processes and statutory requirements for maintaining the statewide voter registration database, county early voting lists and the county voter registration databases for counties with a population of more than 1,000,000 persons (A.R.S. § 41-1279.03).
The OAG must provide to JLAC a list of agencies scheduled for termination in the next sunset termination schedule, plus an estimate of the audit hours necessary to conduct the sunset review. JLAC must meet to review the information and select which agencies are subject to sunset review by the OAG and which are subject to the CORs. Agencies not selected for sunset review will terminate (A.R.S. § 41-2953).
Provisions
Auditor General Powers and Duties
1. Stipulates criminal history obtained by OAG must not be disclosed except to members of OAG staff in accordance with Department of Public Safety requirements. (Sec. 2)
2.
Repeals, replaces and modifies current
statute. (Sec. 3,4)
3. Changes the OAG's financial and compliance audits from biennial to annual. (Sec. 4)
4. Changes that the first audit will start at the fifth year after a county transportation excise tax is adopted. (Sec. 4)
5. States JLAC staff must notify all members of the Legislature as soon as practicable for a measure that requires the OAG to perform a special audit. (Sec. 4)
6. Removes the requirement that performance audits of school districts determine if monies received from the Arizona English Language Learner Fund and Statewide Compensatory Fund comply with statute regulations. (Sec. 4)
7. Changes that the school district written status reports on recommendations made by the OAG are at the request of the OAG, for a two-year period after the audit. (Sec. 4)
8. States that the OAG must provide status reports to JLAC based on the school's status reports, for a two-year period after the audit. (Sec. 4)
9. Adds that the County Treasurer and county transportation excise tax recipients must cooperate with the OAG and provide necessary information. (Sec. 4)
10. Adds that county transportation excise tax recipients must reimburse the OAG for the cost of conducting studies relating to transportation excise tax monies. (Sec. 4)
11. Gives the OAG and their authorized representatives access to employees of specified entities. (Sec. 5)
12. Mandates all officers of any state agency, board, commission, department, institution, program, advisory council or committee or political subdivision of Arizona provide reasonable and needed facilities to the OAG staff and make the records available. (Sec. 5)
13. Adds that if one of the listed officers knowingly obstructs or misleads the OAG, then they are guilty of a class 2 misdemeanor. (Sec. 5)
14. States the AG will supervise the prosecution of all offenders that obstruct or mislead the OAG. (Sec. 5)
15. Adds the following to the Audit Services Revolving Fund sources:
a) audits of federal funds under federal laws, rules and regulations;
b) counties where the OAG conducts a performance audit of the transportation excise tax; and
c) any other source authorized by law. (Sec. 6)
16. Removes that the community college district annual budgeted expenditure limitation reports are broken down by fund. (Sec. 7)
17. States that for counties and community college districts that are required to comply with single audit requirements, audits must include:
a) compliance audits of financial transactions; and
b) applicable accounts. (Sec 9.)
18. States that audits for counties and community college districts must be conducted in accordance with generally accepted governmental auditing standards and include tests of the accounting records and other procedures considered necessary. (Sec. 9)
Committee of Reference Sunset Reviews
19. Changes COR's consideration factors for continuation or termination of agencies:
a) removes:
i. objective, purpose and the extent they are met by private enterprises in Arizona;
ii. the extent that the agency has met its statutory objectives and purposes and the operational efficiency;
iii. the extent the agency serves the entire state rather than specific interests;
iv. the extent the agency encouraged public input before adopting rules and to how it informed the public of its actions and the impact on the public;
v. its ability to investigate and resolve complaints;
vi. the extent the AG or other applicable agencies of Arizona have the authority to prosecute actions;
vii. the extent agencies have addressed deficiencies in their statues preventing from fulfilling their duties; and
viii. the extent to comply with listed factors.
b) adds:
i. the key statutory objectives and purposes in establishing the agency;
ii. the extent of the agency's effectiveness and efficiency in fulfilling statutory objectives and purposes;
iii. the extent the agency are duplicated by other governmental agencies or private enterprises;
iv. the extent that the agency provided public access to records, meetings and rulemakings, including public input;
v. the extent the level of regulation exercised by the agency is appropriate, compared to other states;
vi. the extent in which the agency has established safeguards to protect against conflicts of interests; and
vii. the extent in which changes are necessary to more efficiently and effectively fulfill its statutory objectives and purposes or to eliminate statutory responsibilities that are unnecessary. (Sec. 11)
20. Removes the following COR consideration factors:
a) the extent that the level of regulation by the agency, compared to other states, is appropriate;
b) the extent that the agency has used private contractors in the performance of its duties; and
c) the extent that the agency created unexpected negative consequences that might need additional review by the COR. (Sec. 11)
21. Changes the final sunset review report by each COR to:
a) remove:
i. an identification of the problem or what the agency is intended to address;
ii. a statement of the agency's objectives and anticipated accomplishments; and
iii. identification of agencies with similar, conflicting or duplicate objectives and how the how the agencies avoid duplication or conflicts with other agencies.
b) add:
i. the extent that the agency created unexpected negative consequences that might need additional review by the COR;
ii. the extent the agency has addressed deficiencies in its statutes;
iii. the extent the agency has determined whether the AG or another agency in Arizona has the authority to prosecute or initiate actions. (Sec. 11)
22. Modifies the definitions for less restrictive regulation, occupational or professional license and personal qualifications. (sec. 11)
23. Makes conforming and technical changes. (Sec. 1, 2, 4, 5, 6, 8, 9, 10 and 11)
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