S.B. 20 Enrolled

OFFICE OF LEGISLATIVE AUDITOR -
ACCESS TO INFORMATION
2005 GENERAL SESSION
STATE OF UTAH
Sponsor: Michael G. Waddoups

LONG TITLE
General Description:
This bill modifies the powers and duties of the Office of Legislative Auditor General.
Highlighted Provisions:
This bill:
. clarifies that the Legislative Auditor General may access the records, documents,
and reports of any entity that receives public funds; and
. allows the Legislative Auditor General to use the legislative subpoena powers to
access those records when necessary.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
36-12-15, as last amended by Chapters 82 and 225, Laws of Utah 2000

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 36-12-15 is amended to read:
36-12-15. Office of Legislative Auditor General established -- Qualifications --
Powers, functions, and duties.
(1) There is created an Office of Legislative Auditor General as a permanent staff
office for the Legislature.

(2) The legislative auditor general shall be a licensed certified public accountant or
certified internal auditor with at least five years experience in the auditing or public accounting
profession, or the equivalent, prior to appointment.
(3) The legislative auditor general shall appoint and develop a professional staff within
budget limitations.
(4) (a) The Office of the Legislative Auditor General shall exercise the constitutional
authority provided in Article VI, Sec. 33, Utah Constitution.
(b) Under the direction of the legislative auditor general, the office shall:
(i) conduct comprehensive and special purpose audits, examinations, and reviews of any
entity that receives public funds;
(ii) prepare and submit a written report on each audit, examination, or review to the
Legislative Management Committee, the audit subcommittee, and to all members of the
Legislature within 75 days after the audit or examination is completed; and
(iii) as provided in Section 36-24-101 :
(A) monitor all new programs and agencies created during each Annual General Session
or Special Session of the Legislature;
(B) provide each new program and agency created with a list of best practices in setting
up their program or agency, including:
(I) policies;
(II) performance measures; and
(III) data collection;
(C) send each new program and agency:
(I) within one year after its creation, a survey instrument requesting a self evaluation that
includes policies, performance measures, and data collection; and
(II) within two years after its creation, a survey instrument requesting a self evaluation
that includes policies, performance measures, and data collection; and
(D) (I) using the new program or agency's response to the self evaluation survey
instruments, recommend to the legislative audit subcommittee that the office conduct an audit of

those new programs and agencies created on which questions have arisen as a result of the
response to the survey instrument and provide a limited scope audit report on those new
programs or agencies on which it receives direction to audit to the legislative interim committee
and to the legislative appropriations subcommittee with oversight responsibility for that program
or agency on or before the November interim meeting; and
(II) include within this limited scope audit report a recommendation as to whether the
program or agency is fulfilling its statutory guidelines and directives.
(5) The audit, examination, or review of any entity that receives public funds may
include a determination of any or all of the following:
(a) the honesty and integrity of all its fiscal affairs;
(b) the accuracy and reliability of its financial statements and reports;
(c) whether or not its financial controls are adequate and effective to properly record and
safeguard its acquisition, custody, use, and accounting of public funds;
(d) whether or not its administrators have faithfully adhered to legislative intent;
(e) whether or not its operations have been conducted in an efficient, effective, and cost
efficient manner;
(f) whether or not its programs have been effective in accomplishing intended objectives;
and
(g) whether or not its management control and information systems are adequate and
effective.
(6) The Office of Legislative Auditor General may:
(a) (i) notwithstanding any other provision of law, obtain access to all records,
documents, and reports of any entity that receives public funds that are necessary to the scope of
its duties[, according to]; and
(ii) if necessary, issue a subpoena to obtain access as provided in Subsection (6)(a)(i)
using the procedures contained in Title 36, Chapter 14, Legislative Subpoena Powers;
(b) establish policies, procedures, methods, and standards of audit work for the office
and staff;

(c) prepare and submit each audit report without interference from any source relative to
the content of the report, the conclusions reached in the report, or the manner of disclosing the
results of his findings; and
(d) prepare and submit the annual budget request for the office.
(7) To preserve the professional integrity and independence of the office:
(a) no legislator or public official may urge the appointment of any person to the office;
and
(b) the legislative auditor general may not be appointed to serve on any board, authority,
commission, or other agency of the state during his term as legislative auditor general.
(8) The following records in the custody or control of the legislative auditor general shall
be protected records under Title 63, Chapter 2, Government Records Access and Management
Act:
(a) Records that would disclose information relating to allegations of personal
misconduct, gross mismanagement, or illegal activity of a past or present governmental employee
if the information or allegation cannot be corroborated by the legislative auditor general through
other documents or evidence, and the records relating to the allegation are not relied upon by the
legislative auditor general in preparing a final audit report.
(b) Records and audit workpapers to the extent they would disclose the identity of a
person who during the course of a legislative audit, communicated the existence of any waste of
public funds, property, or manpower, or a violation or suspected violation of a law, rule, or
regulation adopted under the laws of this state, a political subdivision of the state, or any
recognized entity of the United States, if the information was disclosed on the condition that the
identity of the person be protected.
(c) Prior to the time that an audit is completed and the final audit report is released,
records or drafts circulated to a person who is not an employee or head of a governmental entity
for their response or information.
(d) Records that would disclose an outline or part of any audit survey plans or audit
program.

(e) Requests for audits, if disclosure would risk circumvention of an audit.
(f) The provisions of Subsections (8)(a), (b), and (c) do not prohibit the disclosure of
records or information that relate to a violation of the law by a governmental entity or employee
to a government prosecutor or peace officer.
(g) The provisions of this section do not limit the authority otherwise given to the
legislative auditor general to classify a document as public, private, controlled, or protected under
Title 63, Chapter 2, Government Records Access and Management Act.
(9) The legislative auditor general shall:
(a) be available to the Legislature and to its committees for consultation on matters
relevant to areas of his professional competence and shall perform, or otherwise assist in the
performance of, a health insurance provision review as provided in Section 36-12-5 ;
(b) conduct special audits as requested by the Legislative Management Committee;
(c) report immediately in writing to the Legislative Management Committee through its
audit subcommittee any apparent violation of penal statutes disclosed by the audit of a state
agency and furnish to the Legislative Management Committee all information relative to the
apparent violation;
(d) report immediately in writing to the Legislative Management Committee through its
audit subcommittee any apparent instances of malfeasance or nonfeasance by a state officer or
employee disclosed by the audit of a state agency; and
(e) make any recommendations to the Legislative Management Committee through its
audit subcommittee with respect to the alteration or improvement of the accounting system used
by any entity that receives public funds.
(10) (a) Prior to each annual general session, the legislative auditor general shall prepare
a summary of the audits conducted and of actions taken based upon them during the preceding
year.
(b) This report shall also set forth any items and recommendations that are important for
consideration in the forthcoming session, together with a brief statement or rationale for each
item or recommendation.

(c) The legislative auditor general shall deliver the report to the Legislature and to the
appropriate committees of the Legislature.
(11) (a) No person or entity may:
(i) interfere with a legislative audit, examination, or review of any entity conducted by
the office; or
(ii) interfere with the office relative to the content of the report, the conclusions reached
in the report, or the manner of disclosing the results and findings of the office.
(b) Any person or entity that violates the provisions of this Subsection (11) is guilty of a
class B misdemeanor.