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 Section 2-90 of the general statutes is repealed and the 1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