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To enact sections 117.46, 117.461, 117.462, 117.463, | 1 |
117.47, 117.471, and 117.472 of the Revised Code | 2 |
to require performance audits of most state | 3 |
agencies, to loan funds to state agencies and | 4 |
local public offices to pay for performance | 5 |
audits, and to make an appropriation. | 6 |
Section 1. That sections 117.46, 117.461, 117.462, 117.463, | 7 |
117.47, 117.471, and 117.472 of the Revised Code be enacted to | 8 |
read as follows: | 9 |
Sec. 117.46. Each biennium the auditor of state shall conduct | 10 |
a performance audit of a minimum of four state agencies. At least | 11 |
two of the audits shall be of agencies selected from a list | 12 |
comprised of the administrative departments listed in section | 13 |
121.02 of the Revised Code and the department of education and at | 14 |
least two of the audits shall be of other state agencies. The | 15 |
offices of the attorney general, auditor of state, governor, | 16 |
secretary of state, and treasurer of state and agencies of the | 17 |
legislative and judicial branches shall not be subject to an audit | 18 |
under this section. | 19 |
The auditor shall select each agency to be audited and shall | 20 |
determine whether to audit the entire agency or a portion of the | 21 |
agency by auditing one or more programs, offices, boards, | 22 |
councils, or other entities within that agency. The auditor shall | 23 |
make the selection and determination in consultation with the | 24 |
governor and the speaker and minority leader of the house of | 25 |
representatives and president and minority leader of the senate. | 26 |
An audit of a portion of an agency shall be considered an | 27 |
audit of one agency. The authority to audit a portion of an agency | 28 |
in no way limits the auditor's ability to audit an entire agency | 29 |
if it is in the best interest of the state. | 30 |
The performance audits under this section shall be conducted | 31 |
pursuant to sections 117.01 and 117.13 of the Revised Code. In | 32 |
conducting a performance audit, the auditor of state shall | 33 |
determine the scope of the audit, but shall consider, if | 34 |
appropriate, supervisory and subordinate level operations in the | 35 |
agency. | 36 |
Sec. 117.461. Every state agency audited pursuant to section | 37 |
117.46 of the Revised Code shall accept comments regarding the | 38 |
performance audit from interested parties. The comment period | 39 |
shall begin on the day following the release date of the audit and | 40 |
shall conclude at the end of the fourteenth day following the | 41 |
release date. The agency shall make all comments available to the | 42 |
public on the twenty-first day following the release date of the | 43 |
audit. The agency shall determine how to accept comments under | 44 |
this section. | 45 |
Sec. 117.462. (A) A state agency shall implement the | 46 |
recommendations of a performance audit conducted pursuant to | 47 |
section 117.46 of the Revised Code. If an agency does not commence | 48 |
implementation of such recommendations within three months after | 49 |
the end of the comment period for the audit, the agency shall do | 50 |
both of the following: | 51 |
(1) File a report explaining why the agency has not commenced | 52 |
implementation of the recommendations with the governor, auditor | 53 |
of state, speaker and minority leader of the house of | 54 |
representatives, and president and minority leader of the senate; | 55 |
(2) Provide testimony explaining why the agency has not | 56 |
commenced implementation of the recommendations to the house of | 57 |
representatives and senate committees dealing primarily with the | 58 |
programs and activities of the agency. | 59 |
(B) Comments submitted to the agency under section 117.461 of | 60 |
the Revised Code shall be attached to the report required by | 61 |
division (A)(1) of this section. | 62 |
(C) If an agency does not fully implement an audit | 63 |
recommendation within one year after the end of the comment period | 64 |
for the audit, the agency shall file a report with the governor, | 65 |
auditor, speaker and minority leader of the house of | 66 |
representatives, and president and minority leader of the senate | 67 |
justifying why the recommendation has not or will not be | 68 |
implemented. | 69 |
Sec. 117.463. (A) The auditor of state shall annually submit | 70 |
a report in writing to the governor, the speaker and minority | 71 |
leader of the house of representatives, and the president and | 72 |
minority leader of the senate describing both of the following: | 73 |
(1) Whether state agencies that received performance audits | 74 |
in the immediately preceding year implemented the audit | 75 |
recommendations; | 76 |
(2) The amount of money saved as a result of the | 77 |
implementation. | 78 |
(B) The auditor of state shall establish a process for | 79 |
obtaining the information required for the report. | 80 |
(C) The report shall be submitted no later than the thirtieth | 81 |
day of March of each year. | 82 |
Sec. 117.47. There is hereby created in the state treasury | 83 |
the leverage for efficiency, accountability, and performance fund. | 84 |
The auditor of state shall use the fund to make loans to state | 85 |
agencies and local public offices that have applied to and been | 86 |
approved by the auditor of state to receive the loans and to pay | 87 |
the costs of conducting performance audits incurred by the auditor | 88 |
of state. The fund shall consist of money appropriated to it plus | 89 |
the repayments of principal and interest on loans made from the | 90 |
fund. Interest earned on money in the fund shall be credited to | 91 |
the fund. | 92 |
Sec. 117.471. (A) A state agency or local public office may | 93 |
request from the auditor of state a loan from the fund created in | 94 |
section 117.47 of the Revised Code to pay the auditor of state for | 95 |
a performance audit. The amount loaned shall be the amount charged | 96 |
by the auditor of state for a performance audit under division (B) | 97 |
of this section. | 98 |
(B) The amount charged for a performance audit of a state | 99 |
agency shall be the same as the amount charged for an audit under | 100 |
division (A)(2) of section 117.13 of the Revised Code. The amount | 101 |
charged for a performance audit of a local public office shall be | 102 |
the same as the amount charged for an audit under division (C)(1) | 103 |
of section 117.13 of the Revised Code. | 104 |
The amount charged for a performance audit shall include | 105 |
interest on the amount loaned, accrued from the date the audit is | 106 |
completed until the date payment is received by the auditor of | 107 |
state. The interest rate shall be equivalent to the average of the | 108 |
monthly yields for the state treasury asset reserve fund for the | 109 |
time period during which the interest is accruing. | 110 |
(C) The auditor of state shall provide each state agency or | 111 |
local public office that receives a loan under this section with a | 112 |
statement of the amount due from the agency or office for services | 113 |
performed by the auditor of state, as well as the date on which | 114 |
payment is due to the auditor of state. A local public office's | 115 |
statement shall include the percentage of the total cost | 116 |
chargeable to each fund subject to the performance audit. Payment | 117 |
for a performance audit shall be due one year after the audit is | 118 |
completed. | 119 |
(D) If the local public office seeking a loan under this | 120 |
section is the office of a county elected official, the local | 121 |
public office applying for the loan must obtain prior approval | 122 |
from the board of county commissioners of the county in which the | 123 |
local public office is located. This approval is required to | 124 |
ensure that the county office being audited and the board of | 125 |
county commissioners are notified that the costs of the loan must | 126 |
be repaid. | 127 |
(E) All moneys received for repayment of loans and interest | 128 |
under this section shall be paid to the credit of the leverage for | 129 |
efficiency, accountability, and performance fund created in | 130 |
section 117.47 of the Revised Code. | 131 |
Sec. 117.472. (A) If the state agency has not repaid the | 132 |
auditor of state by the payment deadline established under section | 133 |
117.471 of the Revised Code, the auditor of state shall certify to | 134 |
the director of budget and management the amount of the loan plus | 135 |
interest due. The director shall withhold from the state agency | 136 |
the amount certified from funds under the director's control that | 137 |
belong to or are lawfully payable or due to the state agency and | 138 |
that may be used to repay the loan. The director shall promptly | 139 |
pay the amount withheld to the auditor of state. | 140 |
If the director determines that no funds payable and due to | 141 |
the state agency are available or that insufficient amounts of | 142 |
such funds are available, the director shall withhold and pay to | 143 |
the auditor of state the amounts available and shall continue to | 144 |
withhold funds and pay the auditor of state until the full amount | 145 |
due to the auditor of state is paid. | 146 |
(B) If a local public office has not repaid the auditor of | 147 |
state by the payment deadline established under section 117.471 of | 148 |
the Revised Code, the auditor of state shall certify to the county | 149 |
auditor the amount of the loan plus interest due. The county | 150 |
auditor shall withhold from the local public office the amount | 151 |
certified from funds under the county auditor's control that | 152 |
belong to or are lawfully payable or due to the local public | 153 |
office and that may be used to repay the loan. The county auditor | 154 |
shall promptly pay the amount withheld to the auditor of state. | 155 |
If the county auditor determines that no funds payable and | 156 |
due to the local public office are available or that insufficient | 157 |
amounts of such funds are available, the county auditor shall | 158 |
withhold and pay to the auditor of state the amounts available and | 159 |
shall continue to withhold funds and pay the auditor of state | 160 |
until the full amount due to the auditor of state is paid. | 161 |
(C) All moneys received from the director of budget and | 162 |
management or a county auditor for repayment of loans and interest | 163 |
under this section shall be paid to the state treasury to the | 164 |
credit of the leverage for efficiency, accountability, and | 165 |
performance fund created in section 117.47 of the Revised Code. | 166 |
Section 2. (A) Notwithstanding the requirement regarding the | 167 |
selection of the specific agencies to be audited, the initial | 168 |
performance audits conducted by the Auditor of State pursuant to | 169 |
section 117.46 of the Revised Code shall be of the following state | 170 |
agencies: | 171 |
(1) The Department of Education; | 172 |
(2) The Department of Job and Family Services; | 173 |
(3) The Department of Transportation; | 174 |
(4)(a) One other state agency not listed in section 121.02 of | 175 |
the Revised Code; | 176 |
(b) Any state agency may request an audit under division | 177 |
(A)(4)(a) of this section. The Governor shall select an agency not | 178 |
listed in section 121.02 of the Revised Code if no such agency | 179 |
requests an audit. The Auditor shall conduct an audit of every | 180 |
agency that requests an audit and the agency the Governor selects. | 181 |
(B)(1) The Auditor shall commence the audits of the | 182 |
Department of Education, the Department of Job and Family | 183 |
Services, the Department of Transportation, and one other agency | 184 |
not listed in section 121.02 of the Revised Code within 90 days of | 185 |
the effective date of this act. | 186 |
(2) Audits of any additional agencies that request an audit | 187 |
under this section shall commence as soon as practicable as | 188 |
determined by the Auditor. | 189 |
(C)(1) In conducting the audit of the Department of | 190 |
Transportation, the Auditor shall analyze and comment on the | 191 |
realignment of all transportation districts. | 192 |
(2) The Director of Transportation shall pay for the audit | 193 |
with money that is available to the Department and that may be | 194 |
used for that purpose, excluding money appropriated from the | 195 |
General Revenue Fund. | 196 |
Section 3. Notwithstanding section 117.101 of the Revised | 197 |
Code, on the effective date of this act or as soon as possible | 198 |
thereafter, the Director of Budget and Management shall transfer | 199 |
$1,500,000 cash from the Uniform Accounting Network Fund (Fund | 200 |
6750) to the Leverage for Efficiency, Accountability, and | 201 |
Performance Fund (Fund 5JZ0) established under section 117.47 of | 202 |
the Revised Code. Moneys within Fund 5JZ0 shall be used in | 203 |
accordance with sections 117.47 and 117.471 of the Revised Code. | 204 |
When cash balances in Fund 5JZ0 exceed the amount originally | 205 |
transferred pursuant to this section, the Director of Budget and | 206 |
Management shall transfer the excess amounts to Fund 6750 until | 207 |
the $1,500,000 originally transferred has been repaid. | 208 |
Section 4. All items in this section are hereby appropriated | 209 |
as designated out of any moneys in the state treasury to the | 210 |
credit of the Leverage for Efficiency, Accountability, and | 211 |
Performance Fund (Fund 5JZ0). For all appropriations made in this | 212 |
act, those in the first column are for fiscal year 2010 and those | 213 |
in the second column are for fiscal year 2011. The appropriations | 214 |
made in this act are in addition to any other appropriations made | 215 |
for the FY 2010-2011 biennium. | 216 |
Appropriations |
217 | |
Auditor of State Fund Group | 218 |
5JZ0 | 070606 | LEAP Revolving Loans | $ | 0 | $ | 1,500,000 | 219 | ||||
TOTAL AUD Auditor of State Fund Group | $ | 0 | $ | 1,500,000 | 220 | ||||||
TOTAL ALL BUDGET FUND GROUPS | $ | 0 | $ | 1,500,000 | 221 |
LEAP REVOLVING LOANS | 222 |
The foregoing appropriation item 070606, LEAP Revolving | 223 |
Loans, shall be used to advance the costs of performance audits to | 224 |
state agencies and local public offices who have applied to and | 225 |
been approved by the Auditor of State for receipt of these funds | 226 |
pursuant to sections 117.47 and 117.471 of the Revised Code. | 227 |
Within the limits set forth in this act, the Director of | 228 |
Budget and Management shall establish accounts indicating the | 229 |
source and amount of funds for each appropriation made in this | 230 |
act, and shall determine the form and manner in which | 231 |
appropriation accounts shall be maintained. Expenditures from | 232 |
appropriations contained in this act shall be accounted for as | 233 |
though made in Am. Sub. H.B. 1 of the 128th General Assembly. | 234 |
The appropriations made in this act are subject to all | 235 |
provisions of Am. Sub. H.B. 1 of the 128th General Assembly that | 236 |
are generally applicable to such appropriations. | 237 |
Section 5. Sections 1, 2, 3, 4, and 5 of this act are not | 238 |
subject to the referendum because they are or they relate to an | 239 |
appropriation for current expenses within the meaning of Ohio | 240 |
Constitution, Article II, Section 1d, and section 1.471 of the | 241 |
Revised Code, and therefore those sections take effect immediately | 242 |
when this act becomes law. | 243 |