| 5 | 8 | | A BILL TO BE ENTITLED |
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| 6 | 9 | | AN ACT |
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| 7 | 10 | | To amend an Act to reconstitute the Board of Education of Catoosa County, Georgia, |
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| 8 | 11 | | 1 |
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| 9 | 12 | | approved March 30, 1993 (Ga. L. 1993, p. 4258), as amended, so as to require an internal2 |
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| 10 | 13 | | audit function of the board and to establish the position of internal auditor; to provide for the3 |
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| 11 | 14 | | selection, powers, and duties of the internal auditor; to provide for internal cooperation; to4 |
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| 12 | 15 | | provide a sunset date on the provisions governing such internal auditor; to provide for related5 |
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| 13 | 16 | | matters; to repeal conflicting laws; and for other purposes.6 |
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| 14 | 17 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 |
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| 15 | 18 | | SECTION 1.8 |
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| 16 | 19 | | An Act to reconstitute the Board of Education of Catoosa County, Georgia, approved9 |
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| 17 | 20 | | March 30, 1993 (Ga. L. 1993, p. 4258), as amended, is amended by adding a new section to10 |
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| 18 | 21 | | read as follows:11 |
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| 19 | 22 | | "SECTION 7.1.12 |
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| 20 | 23 | | (a) There shall be an internal audit function of the board that falls under the supervision13 |
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| 21 | 24 | | of an internal auditor. The internal auditor may be either an individual employed by the14 |
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| 22 | 25 | | board or the account manager of a firm hired as provided for in this section. The internal15 |
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| 23 | 26 | | H. B. 754 |
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| 25 | 28 | | auditor shall be appointed by the board from a list of nominations provided by the members |
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| 26 | 29 | | 16 |
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| 27 | 30 | | of the General Assembly that represent all or a part of the school district. All costs17 |
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| 28 | 31 | | associated with the internal auditor shall be paid from the local funds of the board.18 |
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| 29 | 32 | | (b) The internal auditor shall be a certified internal auditor or a certified public accountant,19 |
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| 30 | 33 | | demonstrating at least five years' experience.20 |
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| 31 | 34 | | (c) The internal auditor need not be a resident of the school district at the time of his or her21 |
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| 32 | 35 | | appointment or during the period of service as the internal auditor.22 |
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| 33 | 36 | | (d) The internal auditor shall not be involved in partisan political activities or the political23 |
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| 34 | 37 | | affairs of the school system.24 |
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| 35 | 38 | | (e) Within the budget approval process and established personnel policies for all25 |
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| 36 | 39 | | departments, the internal auditor shall, with board approval, have the power to appoint,26 |
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| 37 | 40 | | employ, and remove such assistants, employees, and personnel as he or she may deem27 |
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| 38 | 41 | | necessary for the efficient and effective administration of the office.28 |
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| 39 | 42 | | (f) The internal auditor shall be charged with, but not be limited to, the following duties29 |
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| 40 | 43 | | and responsibilities:30 |
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| 41 | 44 | | (1) To conduct one- and five-year performance and financial audits of the school system31 |
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| 42 | 45 | | and its departments, offices, and activities in order to independently determine whether:32 |
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| 43 | 46 | | (A) Implemented activities and programs have been authorized by the board, the33 |
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| 44 | 47 | | superintendent, state law, or applicable federal law or regulations and that the activities34 |
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| 45 | 48 | | and programs are being conducted and funds expended in compliance with applicable35 |
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| 46 | 49 | | laws;36 |
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| 47 | 50 | | (B) The department, office, or agency is acquiring, managing, protecting, and utilizing37 |
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| 48 | 51 | | its personnel, property, equipment, space, and other resources, including public funds,38 |
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| 49 | 52 | | economically, efficiently, and effectively and in a manner consistent with the objectives39 |
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| 50 | 53 | | of the authorizing entity or enabling legislation;40 |
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| 51 | 54 | | (C) The organizations, programs, activities, functions, or policies are effective,41 |
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| 52 | 55 | | including the identification of any causes of inefficiencies or uneconomical practices,42 |
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| 53 | 56 | | H. B. 754 |
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| 55 | 58 | | such as inadequacies in management information systems, internal and administrative |
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| 56 | 59 | | 43 |
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| 57 | 60 | | procedures, organization structure, use of resources, allocation of personnel, purchasing44 |
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| 58 | 61 | | policies, and equipment;45 |
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| 59 | 62 | | (D) The desired results or benefits are being achieved;46 |
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| 60 | 63 | | (E) Financial and other reports are being provided that fairly, accurately, and fully47 |
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| 61 | 64 | | disclose all information that is required by law, necessary to ascertain the nature and48 |
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| 62 | 65 | | scope of programs and activities, and necessary to establish a proper basis for49 |
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| 63 | 66 | | evaluating the results of programs and activities, including the collection of, accounting50 |
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| 64 | 67 | | for, and depositing of revenues and other resources;51 |
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| 65 | 68 | | (F) Management has established adequate operating and administrative procedures and52 |
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| 66 | 69 | | practices, systems, or internal control accounting systems and internal management53 |
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| 67 | 70 | | controls; and54 |
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| 68 | 71 | | (G) Indications of fraud or abuse or illegal acts are present;55 |
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| 69 | 72 | | (2) To submit an annual report to the board and each member of the General Assembly56 |
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| 70 | 73 | | representing all or a part of the school district, indicating audits completed, major57 |
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| 71 | 74 | | findings, corrective actions taken by administrative managers, and significant findings58 |
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| 72 | 75 | | which have not been fully addressed by management; and59 |
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| 73 | 76 | | (3) To perform such other duties and responsibilities as provided for by this Act or60 |
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| 74 | 77 | | directed by the board.61 |
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| 75 | 78 | | (g) All officers and employees shall allow the internal auditor immediate access to any and62 |
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| 76 | 79 | | all books, records, documents, and other requested information, including automated data,63 |
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| 77 | 80 | | pertaining to the business of the school system and within their custody regarding powers,64 |
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| 78 | 81 | | duties, activities, organization, property, financial transactions, contracts, and methods of65 |
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| 79 | 82 | | business required to conduct an audit or other official duties. In addition, such officers and66 |
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| 80 | 83 | | employees shall provide access for the auditor to inspect all property, equipment, and67 |
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| 81 | 84 | | facilities within their custody. Further, all contracts with outside contractors and68 |
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| 82 | 85 | | subcontractors shall provide for the auditor's access to all financial and performance related69 |
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| 83 | 86 | | H. B. 754 |
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| 85 | 88 | | records, property, and equipment purchased in whole or in part with system funds and |
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| 86 | 89 | | 70 |
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| 87 | 90 | | facilities.71 |
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| 88 | 91 | | (h)(1) The internal auditor shall present any confidential information to the board during72 |
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| 89 | 92 | | regularly scheduled closed executive sessions.73 |
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| 90 | 93 | | (2) The internal auditor shall have the opportunity to address the board at any meeting74 |
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| 91 | 94 | | of the board following the superintendent giving any reports to the board at such meeting.75 |
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| 92 | 95 | | (i) The internal auditor shall not publicly disclose any information received during an audit76 |
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| 93 | 96 | | that is confidential in accordance with any local, state, or federal law or regulation.77 |
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| 94 | 97 | | (j) Any reports issued by the internal auditor shall be made available for public inspection78 |
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| 95 | 98 | | or copying at a reasonable cost.79 |
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| 96 | 99 | | (k) The provisions of this subsection shall stand repealed on July 1, 2030."80 |
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| 97 | 100 | | SECTION 2.81 |
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| 98 | 101 | | All laws and parts of laws in conflict with this Act are repealed.82 |
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| 99 | 102 | | H. B. 754 |
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| 100 | 103 | | - 4 - |
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