Pennsylvania House Bill HB1254

Pennsylvania 2023-2024 Regular Session

• Introduced: 5/24/23
• Refer: 5/24/23

Caption

Providing for internal auditing; and imposing duties on the Auditor General.

Impact

The legislation is likely to significantly impact state laws by mandating that Commonwealth agencies conduct internal audits as a routine measure. This means agencies will be required to establish annual audit plans, conduct periodic audits, and assess risks related to their operations. The result is expected to improve financial oversight and ensure compliance with existing laws, potentially leading to the identification of inefficiencies and better resource allocation across various departments. Additionally, the requirement for transparency in audit reporting is designed to provide crucial information to the public and lawmakers regarding the management of public resources.

Summary

House Bill 1254 proposes to amend The Administrative Code of 1929 by introducing a new article focused on internal auditing for Commonwealth agencies in Pennsylvania. The bill aims to establish standardized guidelines that would assist these agencies in providing independent analyses, appraisals, and recommendations concerning their internal control policies and procedures. The ultimate goal is to enhance the effectiveness and accountability of state agencies in managing public funds and resources, thereby promoting better governance practices.

Sentiment

The general sentiment surrounding HB 1254 is largely positive, as supporters argue that enhancing internal auditing practices is a crucial step towards greater government accountability and transparency. Advocates believe that these measures will help prevent financial mismanagement and build public trust in state institutions. However, some skepticism exists regarding the additional workload and resources that may be required from state agencies to comply with these new mandates, reflecting concerns about the practical implications of implementing such extensive auditing measures.

Contention

Notable points of contention include discussions about the balance between necessary oversight and the potential bureaucratic burden on government agencies. Critics may raise concerns about the feasibility of new auditing requirements, especially for smaller agencies with limited resources. Additionally, there may be debates regarding the degree of independence allowed for internal auditors and what measures can be put in place to ensure that audits are conducted objectively, without influence from agency administrators.