Friday, September 5, 2008
The General Assembly is not in session.
Tracking Virginia’s General Assembly
since 2007.
HB1907: State Auditor, Office of; created, report.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Subtitle I of Title 2.2 a part numbered B1 containing a chapter numbered 5.1, consisting of sections numbered 2.2-518.1 through 2.2-518.15, as follows:
§ 2.2-518.1. Office of State Auditor.
There is hereby created the Office of State Auditor. The Office shall be independent of the executive branch and legislative control. The Office shall start operations on January 1, 2009. On and after January 1, 2009, references in the Code of Virginia to the Auditor of Public Accounts and to Chapter 14 (§§ 30-130 through 30-142) of Title 30 shall be construed to refer to the State Auditor and to this chapter.
§ 2.2-518.2. State Auditor; election, term, and compensation.
The qualified voters of the Commonwealth shall elect the State Auditor at the general election in November 2008 for a term of eight years to begin on January 1, 2009, who shall receive the compensation appropriated by law. The State Auditor shall be the head of the Office of State Auditor.
§ 2.2-518.3. Chief Deputy State Auditor.
The Chief Deputy State Auditor shall be appointed by the State Auditor. The Chief Deputy State Auditor shall carry out those duties prescribed by the State Auditor and shall act for the State Auditor when the State Auditor is absent or unable to serve or when the position of the State Auditor is vacant. The tenure of any incumbent Chief Deputy State Auditor shall expire on any date that an individual commences his term as State Auditor, but any incumbent Chief Deputy State Auditor may be reappointed pursuant to this section.
§ 2.2-518.4. Removal of State Auditor.
The State Auditor may be removed for cause at any time by a joint resolution of the General Assembly agreed to by a vote of two-thirds of the members elected to each house.
§ 2.2-518.5. Employment of assistants; location of offices.
A. The State Auditor may employ the necessary assistants to enable him to carry out the provisions of this chapter.
B. The Office of the State Auditor shall be located in the City of Richmond, and he shall be provided with suitable offices for the conduct of the business of his department.
§ 2.2-518.6. Duties and powers generally.
A. The State Auditor shall audit all the accounts of every state department, officer, board, commission, institution, or other agency handling any state funds. He may employ the services of certified public accountants, provided the cost shall not exceed the appropriation provided by law for the conduct of his office.
B. The State Auditor shall review the information required in § 2.2-1501 to determine that state agencies are providing and reporting appropriate information on financial and performance measures, and he shall review the accuracy of the management systems used to accumulate and report the results. The State Auditor shall report annually to the General Assembly the results of such audits and make recommendations, if indicated, for new or revised accountability or performance measures to be implemented for the agencies audited.
C. The State Auditor shall prepare, by November 1, a summary of the results of all of the audits and other oversight responsibilities performed for the most recently ended fiscal year. He shall make this summary immediately available to the Governor and General Assembly.
D. As part of his normal oversight responsibilities, the State Auditor shall incorporate into his audit procedures and processes a review process to ensure that the Commonwealth's payments to counties, cities, and towns under Chapter 35.1 (§ 58.1-3523 et seq.) of Title 58.1 are consistent with the provisions of § 58.1-3524. The State Auditor shall report to the Governor and the General Assembly annually any material failure by a locality or the Commonwealth to comply with the provisions of Chapter 35.1 of Title 58.1.
E. The State Auditor when called upon by the Governor shall examine the accounts of any institution maintained in whole or in part by the Commonwealth and, upon the direction of the Comptroller, shall examine the accounts of any officer required to settle his accounts with him; and upon the direction of any other state officer at the seat of government, he shall examine the accounts of any person required to settle his accounts with such officer.
F. Upon the written request of any member of the General Assembly, the State Auditor shall furnish the requested information and provide technical assistance upon any matter requested by such member.
G. In compliance with the provisions of the federal Single Audit Act Amendments of 1996, Public Law 104-156, the State Auditor shall be authorized to audit biennially the accounts pertaining to federal funds received by state departments, officers, boards, commissions, institutions or other agencies.
H. 1. The State Auditor shall compile and maintain on the website for his office a searchable database providing certain state expenditure, revenue, and demographic information as described in this subsection. The database shall be updated each year by October 15 to provide the information required in this subsection for the 10 most recently ended fiscal years of the Commonwealth.
The online database shall be made available to citizens of the Commonwealth to allow public access to historical revenue collections and appropriations with related demographic information, to the extent that the information is available and provided to the State Auditor. All state departments, courts officers, boards, commissions, institutions, or other agencies of the Commonwealth shall furnish all information requested by the State Auditor and shall cooperate with him to the fullest extent.
2. The database shall contain the following for each of the 10 most recently ended fiscal years of the Commonwealth:
a. Major categories of spending by each secretariat and for major agencies;
b. The number of full-time state employees;
c. Total fiscal year revenues from state taxes, fees, and other charges, and total fiscal year revenues from state taxes, fees, and other charges computed on a per capita basis and as a percentage of personal income in the Commonwealth;
d. With regard to state taxes, fees, and other charges computed on a per capita basis and as a percentage of personal income, a comparison of such statistics for Virginia with the same statistics for other states;
e. Total fiscal year revenues from federal sources, including the major categories of spending for such revenues;
f. Total population and total population by various age groups including, but not limited to, school-age population and the population of persons 65 years of age and older;
g. Student enrollment in grades K through 12;
h. Enrollment in public institutions of higher education of the Commonwealth;
i. Enrollment in private institutions of higher education in the Commonwealth;
j. The annual prison population;
k. Virginia adjusted gross income and Virginia taxable income by various age groups;
l. The number of citizens in the Commonwealth receiving food stamps;
m. The number of driver's licenses issued;
n. The number of registered motor vehicles;
o. The number of full-time private sector employees;
p. The number of households;
q. The number of prepaid tuition contracts outstanding pursuant to Chapter 4.9 (§ 23-38.75 et seq.) of Title 23 and the estimated total liability under such contracts; and
r. Other data as the Auditor deems appropriate relating to the Commonwealth of Virginia.
3. By October 15 of each year, the Auditor shall also produce a paper copy or a computer file containing the information described in this subsection and shall distribute the copy or file to newspapers of general circulation in the Commonwealth. The distribution shall include the address of the website for the searchable database.
§ 2.2-518.7. Additional certifications for public institutions of higher education.
In addition to all other responsibilities and duties required under law, the State Auditor shall, promptly upon completion of the annual audit for each public institution of higher education, certify in writing to the Chairman of the Board of Visitors or other governing body of the institution, the Secretaries of Education, Finance, and Administration, and the Chairmen of the House Committee on Appropriations, the House Committee on Finance, and the Senate Committee on Finance whether or not the institution meets all of the financial and administrative management standards currently in effect for public institutions of higher education pursuant to § 2.2-5004 and as may be included in the appropriation act currently in effect. In addition, for any public institution of higher education required to develop and implement a plan of corrective action under § 2.2-5004, the Auditor shall at the time of making the certification provide a written evaluation of the institution's progress in implementation of the plan and in meeting all of the financial and administrative management standards currently in effect.
For purposes of this section "public institution of higher education" means the same as that term is defined in § 23-38.89.
§ 2.2-518.8. Audit of accounts of city and county officers handling state funds; audit report; reimbursement of expenses.
A. At least once in every two years, and at other times as the Governor directs, the State Auditor, either in person or through his assistants, shall audit all accounts and records of every city and county official and agency in the Commonwealth handling state funds, making a detailed written report to the Governor, the Joint Legislative Audit and Review Commission, and appropriate local officials within 30 days after each audit. These reports shall be public records.
B. Every city and county, the accounts and records of whose officials or agencies are audited in accordance with subsection A, shall reimburse the Commonwealth to the extent of one-half of the expense connected with the audit, to be paid into the state treasury by the State Auditor. All such sums so repaid shall be placed by the Comptroller to the credit of the current appropriation made to the State Auditor and may be used by him for the purpose of carrying out the provisions of subsection A.
§ 2.2-518.9. Inspection of accounts and vouchers.
A. The State Auditor or his deputy shall, from time to time, inspect and scrutinize the accounts and vouchers of all state officers referred to in § 2.2-803.
B. The State Auditor shall have access to records of all state institutions, departments, and agencies and they shall furnish all information requested by the Auditor and shall cooperate with him to the fullest extent.
C. Every inspection authorized by this section may be made without notice to the official whose accounts are to be inspected, and it shall be the duty of the official whose books and accounts and vouchers are being inspected to produce such books, vouchers and accounts and give the State Auditor or his deputy all necessary help in making the inspection. If any official fails to comply with the requirements of this subsection, he shall be guilty of a Class 1 misdemeanor.
§ 2.2-518.10. Power as to witnesses; perjury.
The State Auditor, or his deputy, while conducting any examination authorized by this chapter, shall have power to (i) administer an oath to any person whose testimony may be required in the examination, (ii) compel the appearance and attendance of such person for the purpose of any such examination and investigation, and (iii) call for any books and papers necessary to such examination. If any person willfully swears falsely in such examination he shall be guilty of perjury.
§ 2.2-518.11. Devising system of bookkeeping and accounting for local offices; costs.
A. The State Auditor shall devise a modern, effective, and uniform system of bookkeeping and accounting for the use of all county, city, and town officials and agencies handling the revenues of the Commonwealth or of any political subdivision. The State Auditor may approve any existing system.
B. The State Auditor, when requested by the governing body of any unit of local government, may make and establish a system of bookkeeping and accounting for such unit that shall conform to generally accepted accounting principles. He shall make and establish a uniform system of fiscal reporting for the treasurers or other chief financial officers, clerks of the courts and school divisions of all counties and cities, and all towns having a population of 3,500 or more and all towns constituting a separate school division regardless of population.
C. The cost of such service shall be borne by the county or city receiving the service of the State Auditor and shall not exceed an amount sufficient to reimburse the Commonwealth for the actual cost to the Commonwealth of the service. The fees charged, upon an account rendered by the State Auditor, shall be remitted by the treasurer of the county or city out of any funds within his control, within 30 days to the State Treasurer, together with the account rendered by the State Auditor. The State Auditor shall pay into the state treasury the amount received to the credit of the funds of the State Auditor so that it may be available for carrying out the provisions of subsection B.
§ 2.2-518.12. State agencies, courts, and local constitutional officers to report certain fraudulent transactions; penalty.
A. Upon the discovery of circumstances suggesting a reasonable possibility that a fraudulent transaction has occurred involving funds or property under the control of any state department, court, officer, board, commission, institution, or other agency of the Commonwealth, including local constitutional officers and appointed officials exercising the powers of elected constitutional officers, as to which one or more officers or employees of state or local government may be party, the state agency head, court clerk, or local official in charge of such entity shall promptly report such information to the State Auditor (Auditor) and the Superintendent of State Police (Superintendent).
B. The Auditor or the Superintendent shall review the information reported pursuant to subsection A and individually determine the most appropriate method to investigate the information. In the event that the Auditor or the Superintendent determines to conduct an investigation, he shall notify the other of the start of the investigation as soon as practicable, unless the information involves the Auditor or the Superintendent.
C. No state department, court, officer, board, commission, institution, or other agency of the Commonwealth, including local constitutional officers and appointed officials exercising the powers of elected constitutional officers, shall employ or contract with any person, firm, corporation, or other legal entity to conduct an investigation or audit of information reported pursuant to subsection A without obtaining the prior written approval from the Auditor and the Superintendent. Pending acknowledgement of the report and receipt of the written approval from the Auditor and the Superintendent, the state department, court, officer, board, commission, institution, or other agency of the Commonwealth, including local constitutional officers and appointed officials exercising the powers of elected constitutional officers, may use their employees to audit the circumstances reported in subsection A to prevent the loss of assets.
D. All state departments, courts, officers, boards, commissions, institutions, or other agencies of the Commonwealth, including local constitutional officers and appointed officials exercising the powers of elected constitutional officers and their employees, shall cooperate to the fullest extent in any investigation or audit that may occur at the direction of the Auditor or the Superintendent or both as a result of information reported pursuant to subsection A.
E. The willful failure to make the report as required by this section shall constitute a Class 3 misdemeanor.
F. Nothing herein shall affect the requirements of § 52-8.2.
§ 2.2-518.13. To whom State Auditor to report defaults or irregularities.
If, at any time, the State Auditor discovers any unauthorized, illegal, irregular, or unsafe handling or expenditure of state funds, or if it comes to his attention that any unauthorized, illegal, or unsafe handling or expenditure of state funds is contemplated but not consummated, he shall promptly report the facts to the Governor, the Joint Legislative Audit and Review Commission, and the Comptroller.
In case there is any irregularity in the accounts of the Comptroller, the Auditor shall report it to the Governor and the General Assembly.
§ 2.2-518.14. Certain political subdivisions to file report of audit; period in which report kept as public record; when audit not required; sworn statement of exempted entities; publication of summary of financial condition; repeal of conflicting provisions.
A. Each authority, commission, district, or other political subdivision the members of whose governing body are not elected by popular vote shall annually, within three months after the end of its fiscal year, have an audit performed covering its financial transactions for the fiscal year according to the specifications of the State Auditor and file with the State Auditor a copy of the report, unless exempted in accordance with subsection B. The State Auditor shall receive the reports and keep the same as public records for a period of 10 years from their receipt.
B. No audit, however, shall be required for any fiscal year during which such entity's financial transactions did not exceed the sum of $5,000.
As used in this section, "financial transactions" shall not include financial transactions involving notes, bonds, or other evidences of indebtedness of such entity the proceeds of which are held or advanced by a corporate trustee or other financial institution and not received or disbursed directly by such entity.
In the event an audit is not required, the entity shall file a statement under oath certifying that the transactions did not exceed such sum and, as to all transactions involving notes, bonds or other evidences of indebtedness that are exempted, the statement shall be accompanied by an affidavit from the trustee or financial institution certifying that it has performed the duties required under the agreement governing such transactions. Notwithstanding the foregoing, the State Auditor may require an audit if he deems it to be necessary to determine the propriety of the entity's financial transactions.
In the case of a water and sewer authority required by a governing body to have an audit conducted as specified in § 15.2-5145, the authority shall file the certified audit with the State Auditor.
At the time the report required by this section is filed with the State Auditor every such authority, commission, district or other political subdivision, except those exempted from the audit report requirement, shall publish, in a newspaper of general circulation in the county, city, or town where the authority, commission, district or other political subdivision is located, a summary statement reflecting the financial condition of the authority, commission, district, or other political subdivision, which shall include a reference to where the detailed statement may be found.
Any provision of law, general or special, which by its terms requires an audit that is not required by this section shall be repealed to the extent of any conflict.
§ 2.2-518.15. Annual report.
The State Auditor shall make an annual report of the activities of his office to the Governor and the General Assembly.
2. That Chapter 14 (§§ 30-130 through 30-142) of Title 30 of the Code of Virginia is repealed effective January 1, 2009.
Additional Data
Explanation
This is the actual text of the bill — the legislation itself. Generally this is amending existing law, proposing the addition or removal of words from laws that are already on the books.
Words that are highlighted in yellow are
proposed additions, and words that are crossed out in
red are proposed removals.
The numbers with the § symbol before them are references to existing laws, and if you click on them they’ll take you to that part of the law on the state's website.