2004 Special Session I

Budget Amendments - HB5001 (Conference Report)

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APA Study of Financial Accounting and Control Operations (language only)

Item 2 #1c

Item 2 #1c

Legislative Department
Auditor of Public Accounts

Page 8, after line 13, insert:
"The Auditor of Public Accounts shall review the operations of the State Comptroller as they relate to the Commonwealth’s financial accounting and control operations. The Secretary of Finance, State Comptroller, State Treasurer, Director of Planning and Budget and the Chief Information Officer shall provide any assistance and cooperation necessary for the Auditor to conduct this review.  In conducting the review, the Auditor shall determine the factors that have led to the current structure of the Commonwealth’s financial accounting and control operations, the Comptroller’s responsibility for financial and internal controls, the impact of decentralization on the financial structure and internal controls, and whether the Commonwealth has a modern financial system and structure.  Additionally, the Auditor of Public Accounts shall provide the Chairmen of the Senate Finance Committee, the House Appropriations Committee and the House Finance Committee with an assessment of the information available to them, how any changes in the Commonwealth’s financial accounting and control operations could enhance their oversight, and what resources would be necessary to accomplish this function.  The Auditor shall submit a planning document to the Chairmen of the Senate Finance and House Appropriations and Finance Committees outlining the scope of this review by July 15, 2004.  A preliminary report of initial findings, recommendations and issues shall be available to the Governor and the General Assembly by December 1, 2004, and a final report by November 15, 2005, with recommendations for proposed budgetary and statutory changes."

(This amendment directs the Auditor of Public Accounts to conduct a review of the Commonwealth's financial controls. Over the past several years, budget reductions to the Department of Accounts have significantly reduced the resources available for operation and modernization of the Commonwealth's financial systems. This review will allow for the identification of areas where additional resources and improvements are warranted.)