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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
auditor general; county treasurer; review
Purpose
Outlines the requirements for procedural reviews of county treasurer offices conducted by the Office of the Auditor General (OAG).
Background
The OAG is responsible for auditing state agencies, counties, universities, community college districts and school districts, serves as an independent source of impartial information concerning state and local governmental entities and provides specific recommendations to improve the operations of those entities. The Joint Legislative Audit Committee (JLAC) oversees all audit functions of the Legislature, including: 1) sunset, performance, special and financial audits; 2) special research requests; 3) the preparation and introduction of legislation resulting from audit report findings; and 4) providing direction for the OAG regarding special audits (A.R.S. §§ 41-1279 and 41-1279.04).
The OAG must: 1)
conduct or cause to be conducted annual financial statement audits of financial
transactions and accounts kept by or for all counties and community college
districts;
2) perform procedural reviews for school districts that are not required to
comply with the federal single audit requirements at times determined by the
OAG; 3) approve contracts for financial and compliance auditing services except
if specific statutory authority is otherwise provided; 4) order and enforce a
correct and uniform system of accounting by county, community college district
and school district officers and instruct them in the proper mode of keeping
accounts of their offices; 5) request a verified account statement from county
treasurers and custodians of county, community college district or school
district funds, as often as deemed necessary; 6) report to JLAC and the OAG the
refusal or neglect of any county, community college district or school district
officer to conform to rules and regulations of the OAG; and 7) report to JLAC and
the Governor the result of the examinations of county, community college
district and school district offices as often as required by public interest (A.R.S.
§ 41-1279.21).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the OAG to perform procedural reviews of county treasurer offices, which may include:
a) evaluating compliance with the uniform system of accounting for county treasurers prescribed by the OAG; and
b) administrative and accounting internal controls.
2. Requires the OAG to provide written results of the procedural review, including any recommendations to the county treasurer, the county board of supervisors and JLAC.
3. Requires a county treasurer's office that is subject to a review to notify the OAG in writing:
a) whether the county treasurer's office agrees or disagrees with the findings of the review; and
b) whether the county treasurer's office will implement the recommendations, implement modifications to the recommendations or refuse to implement the recommendations.
4. Requires the county treasurer, at the OAG's request, to submit a written status report on correcting the deficiencies and implementing the recommendations of the procedural review within a one-year period after receiving the results of the procedural review.
5. Requires the OAG to follow up and review the county treasurer's progress toward correcting the deficiencies and implementing the recommendations of the procedural review and provide a status report to the county board of supervisors and JLAC during the one-year period.
6. Allows the OAG to review a county treasurer's progress after the one-year period if there are deficiencies or recommendations that the county treasurer has not corrected or implemented.
7. Requires the county treasurer to participate in any hearing scheduled during this review period by JLAC or by any other legislative committee designated by JLAC.
8. Becomes effective on the general effective date.
House Action
GOV 2/5/25 DPA 6-0-0-1
3rd Read 2/18/25 60-0-0
Prepared by Senate Research
March 3, 2025
JT/JRM/ci