Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington and Camden)
SYNOPSIS
Requires State Comptroller to establish schedule for each county to undergo performance review by State Comptroller's staff every five years.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the duties of the State Comptroller and amending P.L.2007, c.52.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 8 of P.L.2007, c.52 (C.52:15C-8) is amended to read as follows:
8. a. The State Comptroller shall have all the powers necessary to carry out the duties and functions and to fulfill the responsibilities described in this act, including the power to conduct audits and reviews and propose and enforce remediation plans for the Executive branch of State government, including all entities exercising executive branch authority, public institutions of higher education, independent State authorities, units of local government and boards of education that are found by the State Comptroller to have deficient practices or procedures. The State Comptroller shall, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations necessary to effectuate the purposes of this act.
b. The State Comptroller and the Office of the State Comptroller shall conduct audits and reviews in accordance with prevailing national and professional standards, rules, and practices relating to such audits and reviews in government environments, including the standards for performance reviews utilized by the United States Government Accountability Office or its successor, and the State Comptroller shall ensure that the office remains in compliance with such standards, rules, and practices.
c. (1) As to entities that are not required by law to undergo periodic certified financial audits, the State Comptroller shall determine the frequency with which financial audits shall be conducted of such entities by the State Comptroller by establishing objective criteria, which criteria shall weigh relevant risk factors, including, but not limited to, the size of the entity's budget and the entity's past performance.
(2) As to entities that are
required by law to undergo periodic certified financial audits, the State
Comptroller shall undertake analysis and review of the certified financial
audits of such entities and of the procedures used to conduct those audits.
When the State Comptroller's analysis and review identifies weaknesses,
inadequacies or failures in the entity's financial controls or concerns about
the quality or independence of the audits, the State Comptroller shall be
authorized to undertake a financial audit or such other steps as the State
Comptroller deems appropriate. In
determining when to proceed with a financial audit, the State Comptroller may
also take into account information obtained pursuant to section 10 of this act;
referrals or recommendations from Executive branch departments or agencies; or
assessments or evaluations of the entity's management, performance or financial
condition from federal or State government agencies, such as those undertaken
as part of the New Jersey Quality Single Accountability Continuum for school
districts.
(3) The State Comptroller shall establish objective criteria for undertaking performance and other reviews authorized by this act, which criteria shall weigh relevant risk factors, including, but not limited to: (a) the size of the entity's budget, (b) the entity's past performance, (c) the frequency, scope, and quality of any audits or reviews that have been performed regarding the entity's financial condition or performance, (d) assessments or evaluations of the entity's management, performance or financial condition such as those undertaken as part of the New Jersey Quality Single Accountability Continuum for school districts, and (e) other credible information which suggests the necessity of a review.
At a minimum, the State Comptroller shall establish a schedule for each county to undergo a performance review by the State Comptroller's staff every five years.
(4) For purposes of this subsection, "entity" means any unit in the Executive branch of State government, including all entities exercising executive branch authority, public institutions of higher education, independent State authorities, units of local government and boards of education or their vendors. For purposes of this subsection, "certified financial audits" does not include audits conducted by the State Auditor.
d. The State Comptroller shall provide guidance to units in the Executive branch of State government, independent State authorities, units of local government and boards of education units that are required to engage outside auditors regarding procurement of their services, the rotation of the providers of such services, and the avoidance of possible conflicts of interest in the hiring of outside auditors.
e. In carrying out the duties, functions and responsibilities of the Office of the State Comptroller under this act, the State Comptroller shall not charge any costs incurred by the office against a unit of local government or board of education.
(cf: P.L.2007, c.52, s.8)
2. This act shall take effect immediately.
STATEMENT
This bill requires the State Comptroller to establish a schedule for each county to undergo a performance review by the State Comptroller's staff at least every five years. As the State Comptroller is charged with identifying and eliminating waste in the budgets of all State entities exercising executive branch authority, including local units of government, and counties are large local units with significant potential for eliminating fiscal waste and raising performance standards, these reviews will provide important benchmarks for efficient performance and fiscal responsibility at all levels of State and local government, and ensure that taxpayers are only paying for lean and efficient county government.