Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0433 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- S 0433
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7	7	LC002134
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO GENERAL ASSEMBLY -- AUDITOR GENERAL
16	16	Introduced By: Senators Paolino, E Morgan, Rogers, Raptakis, and Pearson
17	17	Date Introduced: February 26, 2025
18	18	Referred To: Senate Finance
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21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 22-13-4 of the General Laws in Chapter 22-13 entitled "Auditor 1
23	23	General" is hereby amended to read as follows: 2
24	24	22-13-4. Definitions — Duties of auditor general — Investigations by committee. 3
25	25	(a) The following words and phrases have the following meanings unless a different 4
26	26	meaning is required by the context: 5
27	27	(1) “Performance audit” means an examination of the effectiveness of administration and 6
28	28	its efficiency and adequacy in terms of the program of the state agency authorized by law to be 7
29	29	performed. The “performance audit” may also include a review of the agency in terms of 8
30	30	compliance with federal and state laws and executive orders relating to equal employment 9
31	31	opportunities and the set aside for minority businesses. 10
32	32	(2) “Political subdivision” means a separate agency or unit of local government created or 11
33	33	established by law and includes, but is not limited to, the following and the officers of the following: 12
34	34	authority, board, branch, bureau, city, commission, council, consolidated government, county, 13
35	35	department, district, institution, metropolitan government, municipality, office, officer, public 14
36	36	corporation, town, or village. 15
37	37	(3) “Post-audit” means an audit made at some point after the completion of a transaction 16
38	38	or a group of transactions. 17
39	39	(4) “State agency” means a separate agency or unit of state government created or 18
40	40	established by law and includes, but is not limited to, the following and the officers of the following: 19
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44	44	authority, board, branch, bureau, commission, council, department, division, institution, office, 1
45	45	officer, or public corporation, as the case may be, except any agency or unit within the legislative 2
46	46	branch of state government. 3
47	47	(b) The auditor general shall make post-audits and performance audits of public records 4
48	48	and perform related duties as prescribed by the committee. He or she shall perform his or her duties 5
49	49	independently but under the general policies established by the committee. 6
50	50	(c)(1) The auditor general shall have the power and duty to make post-audits and 7
51	51	performance audits of the accounts and records of all state agencies, including the board of 8
52	52	governors for higher education and the board of regents for elementary and secondary education, 9
53	53	as defined in this section. 10
54	54	(2) The auditor general shall have the power, when requested by a majority of the 11
55	55	committee, to make post-audits and performance audits of accounts and records of any other public 12
56	56	body or political subdivision, or any association or corporation created or established by any 13
57	57	general or special law of the general assembly, or any person, association, or corporation to which 14
58	58	monies of the state have been appropriated by the general assembly. Nothing in the subdivision 15
59	59	shall be construed to apply to public utilities. 16
60	60	(3) The auditor general shall perform or have performed annually a complete post-audit of 17
61	61	the financial transactions and accounts of the state when approved by the chairperson of the joint 18
62	62	committee on legislative services. 19
63	63	(d) The committee may at any time, without regard to whether the legislature is then in 20
64	64	session or out of session, take under investigation any matter within the scope of an audit either 21
65	65	completed or then being conducted by the auditor general, and in connection with that investigation 22
66	66	may exercise the powers of subpoena vested by law in a standing committee of the legislature. 23
67	67	(e)(1) The auditor general may, when directed by the committee, designate and direct any 24
68	68	auditor employed by him or her to audit any accounts or records within the power of the auditor 25
69	69	general to audit. The auditor shall report his or her findings for review by the auditor general, who 26
70	70	shall prepare the audit report. 27
71	71	(2) The audit report shall make special mention of: 28
72	72	(i) Any violation of the laws within the scope of the audit; and 29
73	73	(ii) Any illegal or improper expenditure, any improper accounting procedures, all failures 30
74	74	to properly record financial transactions, and all other inaccuracies, irregularities, shortages, and 31
75	75	defalcations. 32
76	76	(3) At the conclusion of the audit, the auditor general or his or her designated representative 33
77	77	will conduct an exit conference with the official whose office or department is subject to audit and 34
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81	81	submit to him or her a draft report which includes a list of findings and recommendations. If an 1
82	82	official is not available for the exit conference, delivery of the draft report is presumed to be 2
83	83	sufficient notice. The official must submit to the auditor general within sixty (60) days after the 3
84	84	receipt of the draft report his or her written reply as to: 4
85	85	(i) Acceptance and plan of implementation of each recommendation; 5
86	86	(ii) Reason(s) for non-acceptance of a recommendation. 6
87	87	(4) Should the auditor general determine that the written explanation or rebuttal of the 7
88	88	official whose office is subject to audit is unsatisfactory, he or she shall, as soon as practicable, 8
89	89	report his or her findings to the joint committee on legislative services. 9
90	90	(f) A copy of the audit report shall be submitted to each member of the committee. 10
91	91	(g) If the auditor general discovers any errors, unusual practices, or any other discrepancies 11
92	92	in connection with his or her audit or post-audit of a state agency or state officers, the auditor 12
93	93	general shall, as soon as practicable, notify in writing the president of the senate and the speaker of 13
94	94	the house of representatives, respectively. 14
95	95	(h) The auditor general shall annually review the capital development program to 15
96	96	determine: (1) the status of all projects included in the program; (2) whether the funds are being 16
97	97	properly expended for their intended purposes; (3) the completion date or projected completion 17
98	98	date of the projects; (4) which projects require professional services and to determine the identity 18
99	99	of individuals or firms appointed; and (5) the expended and unexpended funds. This report shall be 19
100	100	annually submitted to the general assembly on the first Wednesday in February. 20
101	101	(i) The auditor general shall supervise, coordinate, and/or conduct investigations and 21
102	102	inspections or oversight reviews with the purpose of preventing and detecting fraud, waste, abuse 22
103	103	and mismanagement in the expenditure of public funds. 23
104	104	(j) Effective January 1, 2026, the auditor general shall establish a performance audit 24
105	105	schedule of all state agencies and quasi-public governmental agencies and shall conduct 25
106	106	performance audits on the agencies in compliance with such schedule. The auditor general shall 26
107	107	report any agency that fails to satisfy the audits performance standards pursuant to this section to 27
108	108	the governor, the speaker of the house, and president of the senate, by January 1, of each year. 28
109	109	SECTION 2. This act shall take effect upon passage. 29
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116	116	EXPLANATION
117	117	BY THE LEGISLATIVE COUNCIL
118	118	OF
119	119	A N A C T
120	120	RELATING TO GENERAL ASSEMBLY -- AUDITOR GENERAL
121	121	***
122	122	This act would require the auditor general to conduct performance audits of all state 1
123	123	agencies. 2
124	124	This act would take effect upon passage. 3
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