The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
Sub. S. B. No. 4 As Reported by the House State Government and Elections CommitteeAs Reported by the House State Government and Elections Committee
129th General Assembly | Regular Session | 2011-2012 |
| |
Cosponsors:
Senators Daniels, Hughes, LaRose, Brown, Turner, Bacon, Beagle, Cates, Faber, Gillmor, Grendell, Hite, Jones, Jordan, Lehner, Manning, Niehaus, Obhof, Patton, Seitz, Stewart, Tavares, Wagoner, Widener, Wilson
A BILL
To enact sections 117.46, 117.461, 117.462, 117.463,
117.47, 117.471, and 117.472 of the Revised Code
to require performance audits of most state
agencies, to loan funds to state agencies and
local public offices to pay for performance
audits, and to make an appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 117.46, 117.461, 117.462, 117.463,
117.47, 117.471, and 117.472 of the Revised Code be enacted to
read as follows:
Sec. 117.46. Each biennium the auditor of state shall conduct
a performance audit of a minimum of four state agencies. At least
two of the audits shall be of agencies selected from a list
comprised of the administrative departments listed in section
121.02 of the Revised Code and the department of education and at
least two of the audits shall be of other state agencies. The
offices of the attorney general, auditor of state, governor,
secretary of state, and treasurer of state and agencies of the
legislative and judicial branches shall not be subject to an audit
under this section.
The auditor shall select each agency to be audited and shall
determine whether to audit the entire agency or a portion of the
agency by auditing one or more programs, offices, boards,
councils, or other entities within that agency. The auditor shall
make the selection and determination in consultation with the
governor and the speaker and minority leader of the house of
representatives and president and minority leader of the senate.
An audit of a portion of an agency shall be considered an
audit of one agency. The authority to audit a portion of an agency
in no way limits the auditor's ability to audit an entire agency
if it is in the best interest of the state.
The performance audits under this section shall be conducted
pursuant to sections 117.01 and 117.13 of the Revised Code. In
conducting a performance audit, the auditor of state shall
determine the scope of the audit, but shall consider, if
appropriate, supervisory and subordinate level operations in the
agency.
Sec. 117.461. Every state agency audited pursuant to section
117.46 of the Revised Code shall accept comments regarding the
performance audit from interested parties. The comment period
shall begin on the day following the release date of the audit and
shall conclude at the end of the fourteenth day following the
release date. The agency shall make all comments available to the
public on the twenty-first day following the release date of the
audit. The agency shall determine how to accept comments under
this section.
Sec. 117.462. (A) A state agency shall implement the
recommendations of a performance audit conducted pursuant to
section 117.46 of the Revised Code. If an agency does not commence
implementation of such recommendations within three months after
the end of the comment period for the audit, the agency shall do
both of the following:
(1) File a report explaining why the agency has not commenced
implementation of the recommendations with the governor, auditor
of state, speaker and minority leader of the house of
representatives, and president and minority leader of the senate;
(2) Provide testimony explaining why the agency has not
commenced implementation of the recommendations to the house of
representatives and senate committees dealing primarily with the
programs and activities of the agency.
(B) Comments submitted to the agency under section 117.461 of
the Revised Code shall be attached to the report required by
division (A)(1) of this section.
(C) If an agency does not fully implement an audit
recommendation within one year after the end of the comment period
for the audit, the agency shall file a report with the governor,
auditor, speaker and minority leader of the house of
representatives, and president and minority leader of the senate
justifying why the recommendation has not or will not be
implemented.
Sec. 117.463. (A) The auditor of state shall annually submit
a report in writing to the governor, the speaker and minority
leader of the house of representatives, and the president and
minority leader of the senate describing both of the following:
(1) Whether state agencies that received performance audits
in the immediately preceding year implemented the audit
recommendations;
(2) The amount of money saved as a result of the
implementation.
(B) The auditor of state shall establish a process for
obtaining the information required for the report.
(C) The report shall be submitted no later than the thirtieth
day of March of each year.
Sec. 117.47. There is hereby created in the state treasury
the leverage for efficiency, accountability, and performance fund.
The auditor of state shall use the fund to make loans to state
agencies and local public offices that have applied to and been
approved by the auditor of state to receive the loans and to pay
the costs of conducting performance audits incurred by the auditor
of state. The fund shall consist of money appropriated to it plus
the repayments of principal and interest on loans made from the
fund. Interest earned on money in the fund shall be credited to
the fund.
Sec. 117.471. (A) A state agency or local public office may
request from the auditor of state a loan from the fund created in
section 117.47 of the Revised Code to pay the auditor of state for
a performance audit. The amount loaned shall be the amount charged
by the auditor of state for a performance audit under division (B)
of this section.
(B) The amount charged for a performance audit of a state
agency shall be the same as the amount charged for an audit under
division (A)(2) of section 117.13 of the Revised Code. The amount
charged for a performance audit of a local public office shall be
the same as the amount charged for an audit under division (C)(1)
of section 117.13 of the Revised Code.
The amount charged for a performance audit shall include
interest on the amount loaned, accrued from the date the audit is
completed until the date payment is received by the auditor of
state. The interest rate shall be equivalent to the average of the
monthly yields for the state treasury asset reserve fund for the
time period during which the interest is accruing.
(C) The auditor of state shall provide each state agency or
local public office that receives a loan under this section with a
statement of the amount due from the agency or office for services
performed by the auditor of state, as well as the date on which
payment is due to the auditor of state. A local public office's
statement shall include the percentage of the total cost
chargeable to each fund subject to the performance audit. Payment
for a performance audit shall be due one year after the audit is
completed.
(D) If the local public office seeking a loan under this
section is the office of a county elected official, the local
public office applying for the loan must obtain prior approval
from the board of county commissioners of the county in which the
local public office is located. This approval is required to
ensure that the county office being audited and the board of
county commissioners are notified that the costs of the loan must
be repaid.
(E) All moneys received for repayment of loans and interest
under this section shall be paid to the credit of the leverage for
efficiency, accountability, and performance fund created in
section 117.47 of the Revised Code.
Sec. 117.472. (A) If the state agency has not repaid the
auditor of state by the payment deadline established under section
117.471 of the Revised Code, the auditor of state shall certify to
the director of budget and management the amount of the loan plus
interest due. The director shall withhold from the state agency
the amount certified from funds under the director's control that
belong to or are lawfully payable or due to the state agency and
that may be used to repay the loan. The director shall promptly
pay the amount withheld to the auditor of state.
If the director determines that no funds payable and due to
the state agency are available or that insufficient amounts of
such funds are available, the director shall withhold and pay to
the auditor of state the amounts available and shall continue to
withhold funds and pay the auditor of state until the full amount
due to the auditor of state is paid.
(B) If a local public office has not repaid the auditor of
state by the payment deadline established under section 117.471 of
the Revised Code, the auditor of state shall certify to the county
auditor the amount of the loan plus interest due. The county
auditor shall withhold from the local public office the amount
certified from funds under the county auditor's control that
belong to or are lawfully payable or due to the local public
office and that may be used to repay the loan. The county auditor
shall promptly pay the amount withheld to the auditor of state.
If the county auditor determines that no funds payable and
due to the local public office are available or that insufficient
amounts of such funds are available, the county auditor shall
withhold and pay to the auditor of state the amounts available and
shall continue to withhold funds and pay the auditor of state
until the full amount due to the auditor of state is paid.
(C) All moneys received from the director of budget and
management or a county auditor for repayment of loans and interest
under this section shall be paid to the state treasury to the
credit of the leverage for efficiency, accountability, and
performance fund created in section 117.47 of the Revised Code.
Section 2. (A) Notwithstanding the requirement regarding the
selection of the specific agencies to be audited, the initial
performance audits conducted by the Auditor of State pursuant to
section 117.46 of the Revised Code shall be of the following state
agencies:
(1) The Department of Education;
(2) The Department of Job and Family Services;
(3) The Department of Transportation;
(4)(a) One other state agency not listed in section 121.02 of
the Revised Code;
(b) Any state agency may request an audit under division
(A)(4)(a) of this section. The Governor shall select an agency not
listed in section 121.02 of the Revised Code if no such agency
requests an audit. The Auditor shall conduct an audit of every
agency that requests an audit and the agency the Governor selects.
(B)(1) The Auditor shall commence the audits of the
Department of Education, the Department of Job and Family
Services, the Department of Transportation, and one other agency
not listed in section 121.02 of the Revised Code within 90 days of
the effective date of this act.
(2) Audits of any additional agencies that request an audit
under this section shall commence as soon as practicable as
determined by the Auditor.
(C)(1) In conducting the audit of the Department of
Transportation, the Auditor shall analyze and comment on the
realignment of all transportation districts.
(2) The Director of Transportation shall pay for the audit
with money that is available to the Department and that may be
used for that purpose, excluding money appropriated from the
General Revenue Fund.
Section 3. Notwithstanding section 117.101 of the Revised
Code, on the effective date of this act or as soon as possible
thereafter, the Director of Budget and Management shall transfer
$1,500,000 cash from the Uniform Accounting Network Fund (Fund
6750) to the Leverage for Efficiency, Accountability, and
Performance Fund (Fund 5JZ0) established under section 117.47 of
the Revised Code. Moneys within Fund 5JZ0 shall be used in
accordance with sections 117.47 and 117.471 of the Revised Code.
When cash balances in Fund 5JZ0 exceed the amount originally
transferred pursuant to this section, the Director of Budget and
Management shall transfer the excess amounts to Fund 6750 until
the $1,500,000 originally transferred has been repaid.
Section 4. All items in this section are hereby appropriated
as designated out of any moneys in the state treasury to the
credit of the Leverage for Efficiency, Accountability, and
Performance Fund (Fund 5JZ0). For all appropriations made in this
act, those in the first column are for fiscal year 2010 and those
in the second column are for fiscal year 2011. The appropriations
made in this act are in addition to any other appropriations made
for the FY 2010-2011 biennium.
AUD Auditor of State
Auditor of State Fund Group
5JZ0 |
070606 |
|
LEAP Revolving Loans |
|
$ |
0 |
|
$ |
1,500,000 |
TOTAL AUD Auditor of State Fund Group |
|
$ |
0 |
|
$ |
1,500,000 |
TOTAL ALL BUDGET FUND GROUPS |
|
$ |
0 |
|
$ |
1,500,000 |
The foregoing appropriation item 070606, LEAP Revolving
Loans, shall be used to advance the costs of performance audits to
state agencies and local public offices who have applied to and
been approved by the Auditor of State for receipt of these funds
pursuant to sections 117.47 and 117.471 of the Revised Code.
Within the limits set forth in this act, the Director of
Budget and Management shall establish accounts indicating the
source and amount of funds for each appropriation made in this
act, and shall determine the form and manner in which
appropriation accounts shall be maintained. Expenditures from
appropriations contained in this act shall be accounted for as
though made in Am. Sub. H.B. 1 of the 128th General Assembly.
The appropriations made in this act are subject to all
provisions of Am. Sub. H.B. 1 of the 128th General Assembly that
are generally applicable to such appropriations.
Section 5. Sections 1, 2, 3, 4, and 5 of this act are not
subject to the referendum because they are or they relate to an
appropriation for current expenses within the meaning of Ohio
Constitution, Article II, Section 1d, and section 1.471 of the
Revised Code, and therefore those sections take effect immediately
when this act becomes law.
|