Connecticut 2025 Regular Session

Connecticut House Bill HB07090 Compare Versions

Version 1 (Old)

Version 2 (New)

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5		-	General Assembly ~~Substitute~~ Bill No. 7090
	5	+	General Assembly Raised Bill No. 7090
6	6		January Session, 2025
	7	+	LCO No. 5052
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	10	+	Referred to Committee on GOVERNMENT OVERSIGHT
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	12	+
	13	+	Introduced by:
	14	+	(GOS)
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12	19		AN ACT CONCERNING THE TIMING AND SCOPE OF AUDITS BY THE
13	20		AUDITORS OF PUBLIC ACCOUNTS.
14	21		Be it enacted by the Senate and House of Representatives in General
15	22		Assembly convened:
16	23
17	24		Section 1. Section 2-90 of the general statutes is repealed and the 1
18	25		following is substituted in lieu thereof (Effective October 1, 2025): 2
19	26		(a) The Auditors of Public Accounts shall organize the work of their 3
20	27		office in such manner as they deem most economical and efficient and, 4
21	28		except as provided in subsection (d) of this section, shall determine the 5
22	29		scope and frequency of any audit they conduct. 6
23	30		(b) Said auditors, with the Comptroller, shall, at least annually and as 7
24	31		frequently as they deem necessary, audit the books and accounts of the 8
25	32		Treasurer, including, but not limited to, trust funds, as defined in section 9
26	33		3-13c, and certify the results to the Governor. The auditors shall, at least 10
27	34		annually and as frequently as they deem necessary, audit the books and 11
28	35		accounts of the Comptroller and certify the results to the Governor. 12
29	36		They shall examine and prepare certificates of audit with respect to the 13
30	37		financial statements contained in the annual reports of the Treasurer 14
31	38		and Comptroller, which certificates shall be made part of such annual 15
32		-	reports. In carrying out their responsibilities under this section, said 16
33		-	auditors may retain independent auditors to assist them. 17 Substitute Bill No. 7090
	39	+	Raised Bill No. 7090
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38		-	(c) (1) Said auditors shall audit, on a biennial basis if deemed most 18
	43	+	LCO No. 5052 2 of 5
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	45	+	reports. In carrying out their responsibilities under this section, said 16
	46	+	auditors may retain independent auditors to assist them. 17
	47	+	(c) Said auditors shall audit, on a biennial basis if deemed most 18
39	48		economical and efficient, or as frequently as they deem necessary, the 19
40	49		books and accounts, records of operations and activities, systems and 20
41	50		data of each officer, department, commission, board and court of the 21
42	51		state government, all institutions supported by the state and all public 22
43	52		and quasi-public bodies, politic and corporate, created by public or 23
44	53		special act of the General Assembly and not required to be audited or 24
45	54		subject to reporting requirements, under the provisions of chapter 111, 25
46		-	except as provided in subsection (d) of this section. 26
47		-	(2) Each such audit may include an examination of any relevant 27
48		-	information concerning the department, commission, board or court of 28
49		-	state government being audited that is in the possession or control of a 29
50		-	private entity that has a contract with such department, commission, 30
51		-	board or court, and such information shall be provided upon demand 31
52		-	in a format prescribed by the auditors at no cost to the auditors or the 32
53		-	department, commission, board or court. 33
54		-	(3) Each such audit may include an examination of performance in 34
55		-	order to determine effectiveness in achieving expressed legislative 35
56		-	purposes. The joint standing committee of the General Assembly having 36
57		-	cognizance of matters relating to government oversight or the legislative 37
58		-	committee having cognizance of the department, commission, board or 38
59		-	court being audited may request the auditors to perform a limited 39
60		-	performance audit. As used in this subdivision, a "limited performance 40
61		-	audit" means (A) an audit of a specific program or entity pursuant to an 41
62		-	engagement agreement between the applicable committee and the 42
63		-	auditors that includes specific procedures for reviewing transactions, 43
64		-	testing controls, analyzing data and any other tasks specified in the 44
65		-	engagement agreement, and (B) the report of the auditors is limited to 45
66		-	the results of the procedures performed and does not include a formal 46
67		-	opinion as to whether the audited entity's financial statements have 47
68		-	been prepared in accordance with accounting standards. 48
69		-	(4) The auditors shall report their findings and recommendations to 49
70		-	the Governor, the State Comptroller and the joint standing [committee] 50 Substitute Bill No. 7090
	55	+	except as provided in subsection (d) of this section. Each such audit may 26
	56	+	include an examination of any relevant information concerning the 27
	57	+	department, commission, board or court of state government being 28
	58	+	audited that is in the possession or control of a private entity that has a 29
	59	+	contract with such department, commission, board or court, and such 30
	60	+	information shall be provided upon demand in a format prescribed by 31
	61	+	the auditors at no cost to the auditors or the department, commission, 32
	62	+	board or court. Each such audit may include an examination of 33
	63	+	performance in order to determine effectiveness in achieving expressed 34
	64	+	legislative purposes and shall include an examination of such 35
	65	+	performance if requested by the joint standing committee of the General 36
	66	+	Assembly having cognizance of matters relating to government 37
	67	+	oversight or the legislative committee having cognizance of the 38
	68	+	department, commission, board or court being audited. The auditors 39
	69	+	shall report their findings and recommendations to the Governor, the 40
	70	+	State Comptroller and the joint standing [committee] committees of the 41
	71	+	General Assembly having cognizance of matters relating to 42
	72	+	appropriations and the budgets of state agencies and government 43
	73	+	oversight. 44
	74	+	(d) Not later than December 1, 2025, and annually thereafter, the 45
	75	+	auditors shall submit a proposed schedule for the audits they plan to 46
	76	+	conduct during the following calendar year to the joint standing 47
	77	+	committee of the General Assembly having cognizance of matters 48
	78	+	Raised Bill No. 7090
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75		-	committees of the General Assembly having cognizance of matters 51
76		-	relating to appropriations and the budgets of state agencies and 52
77		-	government oversight. 53
78		-	(d) Not later than July 1, 2026, and annually thereafter, the auditors 54
79		-	shall submit a proposed schedule for the audits they plan to conduct 55
80		-	during the following calendar year to the joint standing committee of 56
81		-	the General Assembly having cognizance of matters relating to 57
82		-	government oversight. The auditors shall audit any state agency more 58
83		-	frequently than biennially, upon the request of such committee. Not 59
84		-	later than July first of each year, such committee may request the 60
85		-	auditors to prioritize certain audits or to conduct more frequent follow-61
86		-	up audits in cases where the findings of the most recent audit indicated 62
87		-	material violations of state statute or regulations by the audited state 63
88		-	agency during the following fiscal year. 64
89		-	[(d)] (e) The Auditors of Public Accounts may enter into such 65
90		-	contractual agreements as may be necessary for the discharge of their 66
91		-	duties. Any audit or report which is prepared by a person, firm or 67
92		-	corporation pursuant to any contract with the Auditors of Public 68
93		-	Accounts shall bear the signature of the person primarily responsible for 69
94		-	the preparation of such audit or report. As used in this subsection, the 70
95		-	term "person" means a natural person. 71
96		-	[(e)] (f) (1) If the Auditors of Public Accounts discover, or if it should 72
97		-	come to their knowledge, that any unauthorized, illegal, irregular or 73
98		-	unsafe handling or expenditure of state funds or quasi-public agency 74
99		-	funds or any breakdown in the safekeeping of any resources of the state 75
100		-	or a quasi-public agency has occurred or is contemplated, they shall 76
101		-	forthwith report the facts to the Governor, the State Comptroller, the 77
102		-	clerk of each house of the General Assembly, the joint standing 78
103		-	committee of the General Assembly having cognizance of matters 79
104		-	relating to government oversight and the Attorney General, except that 80
105		-	if a matter reported to the Auditors of Public Accounts pursuant to 81
106		-	section 4-33a is still under investigation by a state or quasi-public 82
107		-	agency, the Auditors of Public Accounts may give the agency a 83 Substitute Bill No. 7090
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	84	+	relating to government oversight. The auditors shall audit any state 49
	85	+	agency more frequently than biennially, upon the request of such 50
	86	+	committee. Such committee may request the auditors to prioritize 51
	87	+	certain audits or to conduct more frequent follow-up audits in cases 52
	88	+	where the findings of the most recent audit indicated material violations 53
	89	+	of state statute or regulations by the audited state agency. 54
	90	+	[(d)] (e) The Auditors of Public Accounts may enter into such 55
	91	+	contractual agreements as may be necessary for the discharge of their 56
	92	+	duties. Any audit or report which is prepared by a person, firm or 57
	93	+	corporation pursuant to any contract with the Auditors of Public 58
	94	+	Accounts shall bear the signature of the person primarily responsible for 59
	95	+	the preparation of such audit or report. As used in this subsection, the 60
	96	+	term "person" means a natural person. 61
	97	+	[(e)] (f) (1) If the Auditors of Public Accounts discover, or if it should 62
	98	+	come to their knowledge, that any unauthorized, illegal, irregular or 63
	99	+	unsafe handling or expenditure of state funds or quasi-public agency 64
	100	+	funds or any breakdown in the safekeeping of any resources of the state 65
	101	+	or a quasi-public agency has occurred or is contemplated, they shall 66
	102	+	forthwith report the facts to the Governor, the State Comptroller, the 67
	103	+	clerk of each house of the General Assembly, the joint standing 68
	104	+	committee of the General Assembly having cognizance of matters 69
	105	+	relating to government oversight and the Attorney General, except that 70
	106	+	if a matter reported to the Auditors of Public Accounts pursuant to 71
	107	+	section 4-33a is still under investigation by a state or quasi-public 72
	108	+	agency, the Auditors of Public Accounts may give the agency a 73
	109	+	reasonable amount of time to conduct such investigation prior to the 74
	110	+	auditors reporting the matter to said officials. (2) If the Auditors of 75
	111	+	Public Accounts decide to delay reporting such matter in accordance 76
	112	+	with subdivision (1) of this subsection, the auditors shall immediately 77
	113	+	notify the Attorney General of such decision. (3) Any Auditor of Public 78
	114	+	Accounts neglecting to make the report required under subdivision (1) 79
	115	+	of this subsection, or any agent of the auditors neglecting to report to 80
	116	+	the Auditors of Public Accounts any such matter discovered by such 81
	117	+	Raised Bill No. 7090
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112		-	reasonable amount of time to conduct such investigation prior to the 84
113		-	auditors reporting the matter to said officials and committee. 85
114		-	(2) If the Auditors of Public Accounts decide to delay reporting such 86
115		-	matter in accordance with subdivision (1) of this subsection, the auditors 87
116		-	shall immediately notify the Attorney General of such decision. 88
117		-	(3) Any Auditor of Public Accounts neglecting to make the report 89
118		-	required under subdivision (1) of this subsection, or any agent of the 90
119		-	auditors neglecting to report to the Auditors of Public Accounts any 91
120		-	such matter discovered by such agent or coming to such agent's 92
121		-	knowledge, shall be fined not more than one hundred dollars or 93
122		-	imprisoned not more than six months, or both. 94
123		-	(4) Any state agency or quasi-public agency that is the subject of a 95
124		-	report of the Auditors of Public Accounts that contains violations of 96
125		-	state statute or regulation, other than only minor or technical 97
126		-	recommendations, not later than six months after the issuance of the 98
127		-	auditors' report, shall report on the status of any corrective action 99
128		-	undertaken by such state agency or quasi-public agency to address such 100
129		-	violations, to the auditors, the Governor and the General Assembly, in 101
130		-	accordance with the provisions of section 11-4a. 102
131		-	[(f)] (g) All reports issued or made pursuant to this section shall be 103
132		-	retained in the offices of the Auditors of Public Accounts for a period of 104
133		-	not less than five years. The auditors shall file one copy of each such 105
134		-	report with the State Librarian. 106
135		-	[(g)] (h) Each state agency shall keep its accounts in such form and by 107
136		-	such methods as to exhibit the facts required by said auditors and, the 108
137		-	provisions of any other general statute notwithstanding, shall make all 109
138		-	records and accounts available to them or their agents, upon demand. 110
139		-	Notwithstanding any provision of the general statutes, no state agency 111
140		-	may deny the auditors access to their records or accounts. 112
141		-	[(h)] (i) Where there are statutory requirements of confidentiality 113
142		-	with regard to such records and accounts or examinations of 114 Substitute Bill No. 7090
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	123	+	agent or coming to such agent's knowledge, shall be fined not more than 82
	124	+	one hundred dollars or imprisoned not more than six months, or both. 83
	125	+	[(f)] (g) All reports issued or made pursuant to this section shall be 84
	126	+	retained in the offices of the Auditors of Public Accounts for a period of 85
	127	+	not less than five years. The auditors shall file one copy of each such 86
	128	+	report with the State Librarian. 87
	129	+	[(g)] (h) Each state agency shall keep its accounts in such form and by 88
	130	+	such methods as to exhibit the facts required by said auditors and, the 89
	131	+	provisions of any other general statute notwithstanding, shall make all 90
	132	+	records and accounts available to them or their agents, upon demand. 91
	133	+	Notwithstanding any provision of the general statutes, no state agency 92
	134	+	may deny the auditors access to their records or accounts. 93
	135	+	[(h)] (i) Where there are statutory requirements of confidentiality 94
	136	+	with regard to such records and accounts or examinations of 95
	137	+	nongovernmental entities which are maintained by a state agency, such 96
	138	+	requirements of confidentiality and the penalties for the violation 97
	139	+	thereof shall apply to the auditors and to their authorized 98
	140	+	representatives in the same manner and to the same extent as such 99
	141	+	requirements of confidentiality and penalties apply to such state agency. 100
	142	+	In addition, the portion of (1) any audit or report prepared by the 101
	143	+	Auditors of Public Accounts that concerns the internal control structure 102
	144	+	of a state information system or the identity of an employee who 103
	145	+	provides information regarding alleged fraud or weaknesses in the 104
	146	+	control structure of a state agency that may lead to fraud, or (2) any 105
	147	+	document that may reveal the identity of such employee, shall not be 106
	148	+	subject to disclosure under the Freedom of Information Act, as defined 107
	149	+	in section 1-200. 108
	150	+	[(i)] (j) Said auditors shall audit, in accordance with the provisions of 109
	151	+	section 10-91g, the records and accounts of any private provider of 110
	152	+	special education services, as defined in said section. Any private 111
	153	+	provider of special education services being audited by said auditors 112
	154	+	Raised Bill No. 7090
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147		-	nongovernmental entities which are maintained by a state agency, such 115
148		-	requirements of confidentiality and the penalties for the violation 116
149		-	thereof shall apply to the auditors and to their authorized 117
150		-	representatives in the same manner and to the same extent as such 118
151		-	requirements of confidentiality and penalties apply to such state agency. 119
152		-	In addition, the portion of (1) any audit or report prepared by the 120
153		-	Auditors of Public Accounts that concerns the internal control structure 121
154		-	of a state information system or the identity of an employee who 122
155		-	provides information regarding alleged fraud or weaknesses in the 123
156		-	control structure of a state agency that may lead to fraud, or (2) any 124
157		-	document that may reveal the identity of such employee, shall not be 125
158		-	subject to disclosure under the Freedom of Information Act, as defined 126
159		-	in section 1-200. 127
160		-	[(i)] (j) Said auditors shall audit, in accordance with the provisions of 128
161		-	section 10-91g, the records and accounts of any private provider of 129
162		-	special education services, as defined in said section. Any private 130
163		-	provider of special education services being audited by said auditors 131
164		-	shall provide any information said auditors deem necessary to conduct 132
165		-	such audit. 133
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	160	+	shall provide any information said auditors deem necessary to conduct 113
	161	+	such audit. 114
166	162		This act shall take effect as follows and shall amend the following
167	163		sections:
168	164
169	165		Section 1 October 1, 2025 2-90
170	166
171		-	Statement of Legislative Commissioners:
172		-	In Subsec. (f)(1), "and committee" was added for consistency.
	167	+	Statement of Purpose:
	168	+	To require the Auditors of Public Accounts to provide a proposed
	169	+	schedule of audits to the joint standing committee of the General
	170	+	Assembly having cognizance of matters relating to government
	171	+	oversight, and to authorize such committee to request the auditors to
	172	+	conduct more frequent audits or performance audits of state agencies.
173	173
174		-	GOS Joint Favorable Subst.
	174	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	175	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	176	+	underlined.]
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