Bill Text - SB393 (2018)

(New Title) relative to county financial audits, performance audits, and forensic audits.

Revision: Feb. 1, 2018, 2:54 p.m.



02/01/2018   0317s







AN ACT relative to county audits and performance audits.


SPONSORS: Sen. Kahn, Dist 10; Sen. Giuda, Dist 2; Rep. Sterling, Ches. 14; Rep. Bordenet, Ches. 5


COMMITTEE: Public and Municipal Affairs






This bill modifies a county's authority for conducting county audits and performance audits.


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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/01/2018   0317s 18-2718





In the Year of Our Lord Two Thousand Eighteen


AN ACT relative to county audits and performance audits.


Be it Enacted by the Senate and House of Representatives in General Court convened:


1  County Audits.  Amend RSA 28:3-a to read as follows:

28:3-a  County Audits.  In the event that an audit is required or requested by resolution by either the board of commissioners or the county convention, the county commissioners[, with the approval of the executive committee of the county convention,] shall engage the services of a certified public accountant qualified in municipal and county finances for the purpose of conducting an audit of the county books of [account] records.  The performance and scope of the audit shall be in accordance with generally-accepted auditing [practice] standards.  The audit shall include an examination for conformance with state and federal laws and regulations relating to county finances, including rules adopted by the commissioner of revenue administration pursuant to RSA 541-A, and shall also include an examination of any subject of county finances that may be requested either by the commissioners, by the county convention, or by the treasurer.  The audit shall be completed within [90] 120 days following the close of the county fiscal year.  The commissioners shall cause the report of the auditor, together with the customary management representation letter and [auditee] management responses, to be published with or supplementary to the annual reports of the county officers, with a copy forwarded to the department of revenue administration.

2  New Section; Counties; Performance Audits.  Amend RSA 28 by inserting after section 3-a the following new section:

28:3-b  Performance Audits.

I.  The county convention of any county shall have the power to engage the services of a suitable qualified entity to conduct performance audits of any county department, institution, or office as the county convention shall specifically direct.  Such performance audits shall include, but not be limited to, examinations of and any determinations based upon the examinations as to achievement of goals, objectives, and specific outcome measures provided for in each department, institution, or office's budget submission.  Such performance audit shall indicate the degree of achievement, and any reasons for non-achievements of objectives and outcome measures.  Such audit shall also include findings regarding the appropriateness of stated objectives and outcome measures and may suggest alternative or additional measures for use in subsequent budget periods.

II.  The detailed reports of every audit conducted pursuant to this section shall become a public record upon approval by the county convention.  Audit work papers and notes are not public records.  However, those materials necessary to support the compilations in the final audit report may be made available by majority vote of the county convention after a public hearing showing proper cause.  For the purposes of this section, work papers shall include, but are not limited to, all preliminary drafts and notes used in preparing the audit report.

III.  The cost of a performance audit shall be paid from a contingency fund appropriated by the county convention under RSA 24:13, II.

3  County Convention; Powers.  Amend RSA 24:13, II to read as follows:

II.  Notwithstanding any other laws to the contrary, the county convention of any county shall have the power to appropriate a contingency fund to meet the cost of unanticipated expenses that may arise during the year or to provide payment for a performance audit under RSA [24:26] 28:3-b, to be expended only upon approval by the executive committee of the county delegation, who shall make a detailed report of all expenditures from said fund to be published annually in the county annual report.  The amount in said fund shall not exceed one percent of the amount appropriated by the county for county purposes exclusive of capital budget and debt retirement during the preceding year.

4  Repeal.  RSA 24:26, relative to county performance audits, is repealed.

5  Effective Date.  This act shall take effect 60 days after its passage.