HB 26-1254

House Bill 26-1254, known as the Audit Enforcement bill, aims to ensure that state agencies comply with audit recommendations. If a state agency fails to meet an implementation deadline for an audit recommendation and is deemed not to have made a good faith effort by the Legislative Audit Committee, the State Controller will restrict 3% of the agency's funding for the next fiscal year. This restriction can only be lifted if the General Assembly passes a bill or the committee directs it to be removed. The bill has been signed into law and is now in effect, meaning state agencies must adhere to its provisions regarding audit compliance and financial consequences for noncompliance.

Official Summary

The bill defines "noncompliant state agency" with respect to the implementation date for an audit recommendation and requires the legislative audit committee (committee) to determine, by majority vote, whether or not a noncompliant state agency has made a good faith effort to comply with an audit recommendation by the implementation date. If the committee determines that the noncompliant state agency has made a good faith effort, the committee may accept an extended implementation date provided by the noncompliant state agency. If the committee determines there has not been a good faith effort, the committee may direct the state auditor to notify the state controller of the noncompliant state agency. The bill also requires the state controller to, upon receipt of notice from the state auditor, restrict, in an amount equal to 3% of the total amount of the noncompliant state agency's general fund appropriations, the noncompliant state agency's appropriations for the fiscal year following the fiscal year in which the state controller receives the notice from the state auditor. This restriction may only be released if the general assembly enacts a bill to do so, or if the committee directs the state auditor to notify the state controller to rescind the restriction. (Note: This summary applies to this bill as introduced.)

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