Financial examinations and the state board of accounts.

Authors: Representative Matthew Lehman

Co-authors: Representative Sheila Klinker, Representative Gail Riecken, Representative Kevin Mahan

Sponsors: Senator Randall Head, Senator Ed Charbonneau

Co-Sponsors: Senator Lonnie Randolph

Advisors: Representative Kevin Mahan, Representative Timothy Harman, Representative John Bartlett, Representative Sue Errington


Permits the state board of accounts to determine the frequency with which the state board of accounts conducts financial examinations based on risk based criteria approved by the audit and financial reporting subcommittee of the legislative council. Eliminates the requirement that the state examiner must annually furnish forms and instructions to reporting officers. Specifies that certain examinations by the state board of accounts may (rather than must, under current law) be made without notice. Provides that the state board of accounts may only release examination workpapers and investigation records to certain persons. Provides a procedure for a public entity (other than a school corporation, a university, or a consolidated city) that has an internal control officer and an internal control department to have examinations performed by a certified public accountant instead of the state board of accounts. Adds provisions for allowing a public entity to have an examination: (1) conducted outside the time frame provided for by statute or state board of accounts guidelines, due to federal requirements, continuing disclosure requirements, or as a condition of a public bond issuance; or (2) conducted in accordance with generally accepted accounting principles. Provides that the results of an examination of the state board of accounts are confidential until approved and released for publication by the state examiner. Permits disclosure under certain circumstances. Provides that an executive or a fiscal officer of a unit may establish a fraud hotline telephone number that the public may use to report suspected fraudulent activity concerning officers or employees of the unit. Provides that: (1) the identity of a caller to a fraud hotline; and (2) a report, transcript, audio recording, or other information obtained from a fraud hotline; are exempt from public disclosure. Provides that an audit of an enhanced prepaid wireless seller regarding collection and remittance of enhanced prepaid wireless charges must be conducted either: (1) jointly by the department of state revenue and the statewide 911 board; or (2) by an independent auditor engaged by the statewide 911 board. (Under current law, the audit must be conducted jointly by the department and the statewide 911 board.) Resolves a conflict with HEA 1475 and HEA 1270.