New Jersey-2022-S932-Introduced

An Act concerning the powers and duties of the State Auditor, amending R.S.52:24-4, and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. R.S.52:24-4 is amended to read as follows:

52:24-4. a. It shall be the duty of the State Auditor to conduct post-audits of all transactions and accounts kept by or for all departments, offices and agencies of the State Government, to report to the Legislature or to any committee thereof and to the Governor, and to the Executive Director of the Office of Legislative Services, as provided by this chapter and as shall be required by law, and to perform such other similar or related duties as shall, from time to time, be required by law.

b. The State Auditor shall personally or by any duly authorized assistants, or by contract with independent public accountant firms, examine and post-audit all the accounts, reports and statements and make independent verifications of all assets, liabilities, revenues and expenditures of the State, its departments, institutions, boards, commissions, officers, and any and all other State agencies, now in existence or hereafter created, hereinafter in this chapter called "accounting agencies."

c. The State Auditor shall conduct, at the direction of the Legislative Services Commission or of the presiding officer of either house of the Legislature or on the State Auditor's own initiative, a performance review audit of any program of any accounting agency, any independent authority, or any public entity or grantee that receives State funds or funds from a political subdivision of the State, in a manner that is consistent with the Government Auditing Standards for performance audits utilized by the United States Government Accountability Office or its successor.

d. When the State Auditor conducts any audit or performance review audit, the accounting agency, or authority, entity or grantee, shall respond in writing to each item in the State Auditor's report and the State Auditor, at an appropriate time determined by the State Auditor, shall conduct a post-audit review of the accounting agency's, [or] authority's, entity's, or grantee's [,] compliance with the State Auditor's recommendations.

e. The officers and employees of each accounting agency, [or] authority, entity, or grantee [,] shall assist the State Auditor, when and as required by the State Auditor, and provide the State Auditor with prompt access to all records necessary for the State Auditor to perform the duties of the State Auditor, notwithstanding any statutory or regulatory requirements of confidentiality with regard to the records, for the purpose of carrying out the provisions of this chapter. The State Auditor shall report the failure of any accounting agency, or authority, entity, or grantee [,] to provide prompt access to any relevant record to the presiding officer of each house of the Legislature. The State Auditor shall not disclose a confidential record provided by an accounting agency, [or] authority, entity, or grantee, except as may be necessary for the State Auditor to fulfill any constitutional or statutory responsibilities. Working papers prepared by the State Auditor shall be confidential and shall not be considered government records under P.L.1963, c.73 (C.47:1A-1 et seq.).

f. The State Auditor shall conduct audits of the New Jersey Transit Corporation in accordance with the requirements of subsection a. of section 6 of P.L.2018, c.162 (C.27:25-5.24).

g. Notwithstanding any law to the contrary, post-audits and performance review audits shall be conducted within the limits of the resources and personnel available to the State Auditor. If resources and personnel are insufficient to conduct all such required post-audits and performance review audits, the State Auditor may prioritize certain audits and forgo others upon notice to the Governor and the presiding officer of each house of the Legislature.

h. The State Auditor shall prominently publish on the homepage of the Legislature's Internet website, for a period of at least 14 calendar days immediately following public release, each report and the results of each audit and performance review audit prepared by the State Auditor. The State Auditor shall also publish each report and the results of each audit and performance review audit prepared by the State Auditor on an Internet webpage maintained by the State Auditor.

(cf: P.L.2018, c.162, s.11)

2. (New section) a. In addition to the powers and duties of the State Auditor described in R.S.52:24-4, at least once every two years, the State Auditor shall, in a manner that is consistent with the Government Auditing Standards for performance audits utilized by the United States Government Accountability Office or its successor, conduct a performance review audit encompassing a review of each business assistance or incentive program administered or provided by the New Jersey Economic Development Authority, established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4), that provides monetary or financial assistance in any form including, but not limited to, a grant, loan, loan guarantee, tax credit, tax exemption, or other monetary or financial benefit awarded to a person or entity to assist the person or entity in the conduct or operation of any trade, occupation, profession, or business, including, but not limited to, film and digital media production businesses, in the State.

b. Within six months of completing a performance review audit required pursuant to subsection a. of this section, the State Auditor shall prepare a report on the findings of the performance review audit. The State Auditor shall, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), transmit a copy of the report to the Legislature.

3. This act shall take effect immediately.

STATEMENT

This bill relates to the powers and duties of the State Auditor. Under the bill, the State Auditor is granted the authority to audit certain entities that receive funds from political subdivisions of the State and is required to conduct certain performance review audits.

The bill requires the State Auditor to prominently publish on the Legislature's Internet homepage, for a period of at least 14 calendar days, each report and the results of each audit and performance review audit prepared by the State Auditor. The State Auditor is also required to publish these documents on an Internet webpage maintained by the State Auditor.

The bill requires the State Auditor to conduct a performance review audit of New Jersey Economic Development Authority (EDA) business assistance or incentive programs, at least once every two years. The bill requires the State Auditor to transmit a copy of the report to the Legislature. The bill specifies that performance review audits are required to be conducted for any program or incentive administered or provided by the EDA that provides monetary or financial assistance in any form including, but not limited to, a grant, loan, loan guarantee, tax credit, tax exemption, or other monetary or financial benefit awarded to a person or entity to assist the person or entity in the conduct or operation of any trade, occupation, profession, or business, including, but not limited to, film and digital media production businesses, in the State.