Bill Text: OR HB2895 | 2011 | Regular Session | Introduced

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Bill Title: Relating to performance audits.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2895 Detail]

Download: Oregon-2011-HB2895-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 2423

                         House Bill 2895

Sponsored by Representative KENNEMER (Presession filed.)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Requires performance audits of state agencies to be conducted
by independent auditors.

                        A BILL FOR AN ACT
Relating to performance audits; amending ORS 297.070.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 297.070 is amended to read:
  297.070. (1) Performance and program audits of all state
departments, boards, commissions, institutions and state-aided
institutions and agencies shall be conducted on the basis of risk
assessment and on standards established by national recognized
entities including, but not limited to, the United States
Government Accountability Office and the National Association of
State Auditors. The Secretary of State shall adopt and the Joint
Legislative Audit Committee shall approve rules specifying all
criteria to be considered for conducting a performance or program
audit under this section.  { + The Secretary of State shall adopt
rules for performance audits that will produce verifiable cost
savings and efficiency outcomes. + } The Secretary of State shall
schedule the performance and program audits as directed by the
Joint Legislative Audit Committee. { +  The Secretary of State
shall provide audits completed under this section to the
Legislative Assembly at least once per calendar year. + }
  (2) The Secretary of State may subpoena witnesses, may require
the production of books and papers and rendering of reports in
the manner and form that the Secretary of State requires and may
do all things necessary to secure a full and thorough audit. The
Secretary of State shall report, in writing, to the Legislative
Assembly as provided in ORS 192.245 and to the Committee on
Performance Excellence established in ORS 182.562.  The report
shall include a copy of the report on each performance and
program audit.
  (3) The Secretary of State, as State Auditor, shall contract
with qualified private sector auditors to conduct audits required
by this section  { - , unless the Secretary of State determines
that it is not practical or in the public interest to do so. If
the Secretary of State determines that it is not practical or in
the public interest to contract with qualified private sector
auditors, after notifying the Joint Legislative Audit Committee,
the Secretary of State shall employ auditors for that purpose and
shall include in the written audit report the circumstances that
rendered it impractical or not in the public interest to contract
with qualified private sector auditors - } . All contracts for
conducting performance and program audits under this section
shall be in a form prescribed or approved by the Secretary of
State. A copy of each completed contract shall be furnished to
the Secretary of State and the Joint Legislative Audit Committee.
The Secretary of State shall employ or contract with auditors
upon terms and for compensation as the Secretary of State
determines are advantageous and advisable.
  (4) An audit conducted under contract as provided in subsection
(3) of this section shall be considered to be conducted by the
Division of Audits for purposes of ORS 297.020, 297.050 and
297.535.
  (5) If a person fails to comply with any subpoena issued under
subsection (2) of this section, a judge of the circuit court of
any county, on application of the Secretary of State, shall
compel obedience by proceedings for contempt as in the case of
disobedience of the requirements of a subpoena issued from the
circuit court.
  (6) The Secretary of State may enter into an agreement with the
department, board, commission, institution, state-aided
institution or agency that is the subject of a performance or
program audit for payment of the expenses incurred by the
Secretary of State in conducting the audit. The Emergency Board
may also make funds available to the Division of Audits to
reimburse it for expenses incurred under this section.
  (7) As used in this section:
  (a) 'Performance audit' includes determining:
  (A) Whether an entity described in subsection (1) of this
section that is the subject of the audit is acquiring, protecting
and using its resources economically and efficiently;
  (B) The causes of inefficiencies or uneconomical practices; and
  (C) Whether the entity has complied with laws and regulations
concerning matters of economy and efficiency.
  (b) 'Program audit' includes determining:
  (A) The extent to which the desired results or benefits of a
program established by the Legislative Assembly or other
authorizing body are being achieved;
  (B) The extent to which the need for or objectives of an
ongoing program are necessary or relevant;
  (C) Whether the program complements, duplicates, overlaps or
conflicts with other related programs;
  (D) The effectiveness of organizations, programs, activities or
functions; and
  (E) Whether the entity described in subsection (1) of this
section that is the subject of the audit has complied with laws
and regulations applicable to the program.
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