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As Reported by the House State Government Committee
123rd General Assembly
Regular Session
1999-2000 | Sub. H. B. No. 769 |
REPRESENTATIVES METTLER-NETZLEY-JERSE-GRENDELL-JACOBSON-
VAN VYVEN-PETERSON-ROBINSON-CATES
A BILL
To amend sections 117.01, 117.11, and 117.12 of the Revised
Code to make changes in the law governing the Auditor of State's audits of
public offices.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 117.01, 117.11, and 117.12 of the
Revised Code be amended to read as follows:
Sec. 117.01. As used in this chapter:
(A) "Color of office" means actually, purportedly, or
allegedly done under any law, ordinance, resolution, order, or
other pretension to official right, power, or authority.
(B) "Public accountant" means any person who is authorized
by Chapter 4701. of the Revised Code to use the designation of
certified public accountant or who was registered prior to
January 1, 1971, as a public accountant.
(C) "Public money" means any money received, collected by,
or due a public official under color of office, as well as any
money collected by any individual on behalf of a public office or
as a purported representative or agent of the public office.
(D) "Public office" means any state agency, public
institution, political subdivision, other organized body, office,
agency, institution, or entity established by the laws of this
state for the exercise of any function of government.
(E) "Public official" means any officer, employee, or duly
authorized representative or agent of a public office.
(F) "State agency" means every organized body, office,
agency, institution, or other entity established by the laws of
the state for the exercise of any function of state government.
(G) "AUDIT" MEANS ANY OF THE FOLLOWING:
(1) ANY EXAMINATION, ANALYSIS, OR INSPECTION OF THE STATE'S OR A PUBLIC
OFFICE'S
FINANCIAL STATEMENTS OR REPORTS;
(2) ANY EXAMINATION, ANALYSIS, OR INSPECTION OF RECORDS, DOCUMENTS, BOOKS,
OR ANY OTHER
EVIDENCE RELATING TO EITHER OF THE FOLLOWING:
(a) THE COLLECTION, RECEIPT, ACCOUNTING, USE, OR EXPENDITURE OF
PUBLIC MONEY BY A PUBLIC OFFICE OR BY A PRIVATE INSTITUTION, ASSOCIATION,
BOARD, OR CORPORATION;
(b) THE DETERMINATION BY THE AUDITOR OF STATE, AS REQUIRED BY
SECTION 117.11 of the Revised Code, OF WHETHER A PUBLIC OFFICE HAS COMPLIED WITH ALL THE
LAWS, RULES, ORDINANCES, OR ORDERS PERTAINING TO THE PUBLIC OFFICE.
(3) ANY OTHER TYPE OF EXAMINATION, ANALYSIS, OR INSPECTION OF A PUBLIC
OFFICE OR OF A
PRIVATE INSTITUTION, ASSOCIATION, BOARD, OR CORPORATION RECEIVING PUBLIC MONEY
THAT IS CONDUCTED ACCORDING TO GENERALLY
ACCEPTED OR GOVERNMENTAL AUDITING STANDARDS ESTABLISHED BY RULE PURSUANT TO
SECTION 117.19 of the Revised Code.
Sec. 117.11. (A) Except as OTHERWISE provided in THIS division
(D) of
this section, the auditor of state shall commence an audit
of
each public office not more than AT LEAST ONCE EVERY two
FISCAL years from the release date
of the last audit report of such public office. THE AUDITOR OF STATE
SHALL AUDIT A PUBLIC OFFICE EACH FISCAL YEAR IF THAT PUBLIC OFFICE IS REQUIRED
TO BE AUDITED ON AN ANNUAL BASIS PURSUANT TO "THE SINGLE
AUDIT ACT OF 1984," 98 STAT. 2327, 31 U.S.C.A. 7501
ET SEQ., AS AMENDED. In the ANNUAL OR BIENNIAL audit,
inquiry shall be made into the methods, accuracy, and legality of
the accounts, financial reports, records, files, and reports of
the office, whether the laws, RULES, ordinances, and orders
pertaining
to the office have been observed, and whether the requirements
and rules of the auditor of state have been complied with.
Except AS OTHERWISE PROVIDED IN THIS DIVISION OR where auditing
standards or procedures dictate otherwise,
each audit shall cover at least one fiscal year. IF A PUBLIC OFFICE IS
AUDITED ONLY ONCE EVERY TWO FISCAL YEARS, THE AUDIT SHALL COVER BOTH FISCAL
YEARS.
(B) IN ADDITION TO THE ANNUAL OR BIENNIAL AUDIT PROVIDED FOR IN
DIVISION (A) OF THIS SECTION, THE AUDITOR OF STATE MAY CONDUCT AN
AUDIT OF A PUBLIC OFFICE
AT ANY TIME
WHEN SO REQUESTED BY THE PUBLIC OFFICE OR UPON THE AUDITOR OF STATE'S OWN
INITIATIVE IF THE AUDITOR OF STATE HAS REASONABLE CAUSE TO BELIEVE THAT AN
ADDITIONAL AUDIT IS IN THE PUBLIC INTEREST.
(B)(C)(1) The auditor of state shall identify any public
office in which the auditor of state will be unable to conduct an
audit AT LEAST once every two FISCAL years as required by
division (A) of this section and shall provide immediate written notice to the
clerk
of the legislative authority or governing board of the public
office so identified. Within six months of the receipt of such
notice, the legislative authority or governing board may engage
an independent certified public accountant to conduct an audit
pursuant to section 117.12 of the Revised Code.
(2) When the chief fiscal officer of a public office
notifies the auditor of state that an audit is required at a time
prior to the next regularly scheduled audit by the auditor of
state, the auditor of state shall either cause an earlier audit
to be made by the auditor of state or authorize the legislative
authority or governing board of the public office to engage an
independent certified public accountant to conduct the required
audit. The scope of the audit shall be as authorized by the
auditor of state.
(3) The auditor of state shall approve the scope of an
audit under division (B)(C)(1) or (2) of this section as set
forth in the contract for the proposed audit before the contract is
executed on behalf of the public office that is to be audited.
The independent accountant conducting an audit under division
(B)(C)(1) or (2) of this section shall be paid by the public
office.
(C)(D) If a uniform accounting network is established under
section 117.101 of the Revised Code, the auditor of state or a
certified public accountant employed pursuant to this section or
section 115.56 of the Revised Code shall, to the extent
practicable, utilize services offered by the network in order to
conduct efficient and economical audits of public offices.
(D) The auditor of state may, by rule, provide for waiver
of the two-year requirement of division (A) of this section with
respect to:
(1) Public offices participating in a uniform accounting
network established under section 117.101 of the Revised Code;
(2) Public offices that are not required by federal law to
be audited in accordance with federal auditing standards.
The rules may provide for the application of specified
audit procedures to such public offices in lieu of an audit in
accordance with generally accepted government auditing standards.
(E) The auditor of state shall, in accordance with
division (A)(3) of section 9.65 of the Revised Code and this
section, audit an annuity program for volunteer fire fighters
established by a political subdivision under section 9.65 of the
Revised Code. As used in this section, "volunteer fire fighters"
and "political subdivision" have the same meanings as in division
(C) of section 9.65 of the Revised Code.
Sec. 117.12. Any public accountant engaged to perform an
audit pursuant to division (B)(C) of section 117.11 of the
Revised
Code shall conduct the audit pursuant to the standards,
procedures, and guidelines of the auditor of state for such
audits. The auditor of state shall establish these standards,
procedures, and guidelines by rule. The audit shall cover the
period beginning with the termination date of the most recent
audit conducted under this section or section 117.11 of the
Revised Code and ending on the date specified by the auditor of
state. The accountant shall inquire into the methods, accuracy,
and legality of the accounts, records, files, and reports of the
public office and shall note whether, in his THE ACCOUNTANT'S
opinion, the laws, RULES,
ordinances, and orders pertaining to the public office have been
complied with. The accountant shall have no authority to make
formal findings of illegality, malfeasance, or gross neglect
under this division or section 117.23 of the Revised Code.
Section 2. That existing sections 117.01, 117.11, and 117.12
of the Revised Code are hereby repealed.
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