Connecticut Senate Bill SB00214

Connecticut 2019 Regular Session

• Introduced: 1/23/19
• Refer: 1/23/19

Caption

An Act Requiring The Auditors Of Public Accounts To Conduct Financial And Performance Audits Of Municipal Electric Energy Cooperatives.

Impact

The introduction of SB00214 is expected to significantly influence the operations of municipal electric energy cooperatives in the state. With mandatory audits, these cooperatives will need to adhere to stricter financial management practices and transparency measures. This requirement may lead to increased costs associated with audit compliance but is intended to bolster public confidence in their operations. Furthermore, it may help identify inefficiencies or mismanagement in these entities, fostering a culture of continuous improvement and accountability which is crucial for utility providers.

Summary

SB00214 aims to enhance financial oversight of municipal electric energy cooperatives by requiring the Auditors of Public Accounts to conduct regular financial and performance audits. This legislation recognizes the importance of accountability in public utilities, particularly those that operate locally, and seeks to ensure that these entities manage their resources effectively and transparently. By instituting regular audits, the bill aims to provide assurance to consumers and local governments about the financial health and operational efficacy of these cooperatives.

Contention

While the bill appears beneficial in promoting transparency, there may be concerns about the potential administrative burden it places on municipal electric energy cooperatives. Some may argue that additional audit requirements could detract from resources that could be better utilized for service delivery or infrastructure improvements. Furthermore, there may be discussions around the scope of the audits—debates on whether financial and performance audits should encompass all operational areas or focus on specific metrics. Addressing these concerns will be vital in ensuring broad support for the bill while achieving its objectives.