HB2111--POWERSOFTHESTATEAUDITOR
SPONSOR: Christofanelli
COMMITTEEACTION:Voted"DoPass"bytheStandingCommitteeon
GovernmentEfficiencyandDownsizingbyavoteof8to0.
Thisbilldefines"impropergovernmentalactivity,"asofficial
misconduct,fraud,misappropriation, mismanagement, wasteof
resources,oraviolationofstateorfederallaw,rule,or
regulation.
ThebillprovidesthattheAuditorortheirauthorized
representative mayauditallorpartofanypoliticalsubdivision
orgovernmententityif,afteraninvestigation, theAuditor
believesimpropergovernmentalactivityhasoccurred,orwhen
requestedtobyaprosecutingattorney,circuitattorney,orlaw
enforcementagencyaspartofaninvestigation.
Thisbillprovidesthattestimonyandrecordsobtainedthrough
subpoenasissuedbytheAuditorshallbesubjecttothesame
confidentiality anddisclosurerequirementsforauditworkpapers
andrelatedsupportivematerial.
Currently,eachfiscalyear,theStateAuditormustaudit,adjust
andsettleallreceiptsanddisbursementsintheinsurance
dedicatedfundandtheinsuranceexaminers'fund,andtaxes
certifiedandcollectedonforeignanddomesticinsurancepremiums,
surpluslinepremiums,andcountytaxesonpropertyownedby
insurancecompanies. Thisbillrepealstherequirementtoaudit
taxescertifiedandcollectedonforeignanddomesticinsurance
premiums,surpluslinepremiums,andcountytaxesonpropertyowned
byinsurancecompaniesandrequiresthattheresultsofauditsof
theinsurancededicatedfundandtheinsuranceexaminers'fund
shallbereportedaspartoftheannualauditofthestate's
financialstatements.
Thebilladdsrecordsrelatingtoreportsofallegationsof
impropergovernmentalactivitiestothelistofrecordsexemptfrom
publicdisclosure.
ThisbillissimilartoHB1175(2023).
PROPONENTS: Supporterssaythatthisbillchangestheprocess
throughwhichtheAuditorcanconductanauditofapolitical
subdivision. Itishighlyunlikelythatapoliticalsubdivision
willinvitetheAuditortoauditit,whichisoneofthewaysitis
abletoinitiateanaudit.Alternatively, citizenshaveawayto
invitetheAuditorbutitisverycumbersome. Thisbillallows differentwaysfortheAuditortoinitiateanaudit.Thisbill
wouldgranttheAuditorthesamepowerheorshehastoinitiatean
auditwithaschooldistrict. Thisisamuchmoresensible
approachtoallowourAuditortousegovernmentresourcesto
investigatewherenecessary. Thecomplaintswouldnotbesubject
toopenrecordsstatutessoitwouldallowcomplainantstomake
allegationswithouthavingtheirnamesoutthere.Thescopeofan
auditisdeterminedbytheAuditorwhentheofficegoesinand
startsaninvestigation. Sometimeslawenforcementrequeststhat
theAuditorconductanauditbuthedoesnothavetheauthorityto
doso.Therearesomeauditsrequiredbylawtobeconductedand
theymightnotbeasusefulastheonestheofficeisrequestedto
conduct. Currently,thecomplaintsubmittedbyawhistlebloweris
anopenrecord,buttheidentityofthecomplainantisredacted.
Thiswouldallowthecomplainttobeclosed,too.Theissuewith
leavingthecomplaintportionopenisthatsometimestheidentity
ofthewhistleblowercanbededucedfromthecontentofthe
complaint. Theword“audit”isalittlemisleadingfromacitizen
standpointbecauseitendsupbeingawasteoftimeandresources
anditdidn’tansweranyquestions. Auditsarenotnecessarilya
badthing.Financialauditscanassurecitizensthattheirtax
dollarsarebeingusedproperly. Theyaresoimportanttothe
politicalsubdivisionandtothecitizenbecauseitprovesthat
theyaredoingtheirjobscorrectly.
TestifyinginpersonforthebillwereRepresentative
Christofanelli; AprilCederburg;ScottFitzpatrick,MissouriState
Auditor'sOffice;andKerriVanMeveren.
OPPONENTS: Therewasnooppositionvoicedtothecommittee.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.