H.B. 176 Enrolled

1

AUDIT OF STATE BUDGETS
2 2011 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: LaVar Christensen
5 Senate Sponsor: Wayne L. Niederhauser
6
7 LONG TITLE
8 General Description:
9 This bill requires the Office of Legislative Auditor General to audit certain state
10 executive branch entities' budgets.
11 Highlighted Provisions:
12 This bill:
13 . requires the Office of Legislative Auditor General to audit entities in the executive
14 branch as directed by the Legislative Audit Subcommittee;
15 . directs submission of audit reports;
16 . defines the responsibilities of the Office of Legislative Auditor General in
17 conducting those audits; and
18 . provides a repeal date.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 ENACTS:
25 36-12-15.1, Utah Code Annotated 1953
26 63I-2-236, Utah Code Annotated 1953
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 36-12-15.1 is enacted to read:

30 36-12-15.1. Budget and appropriation audits.
31 (1) As used in this section, "entity" means an entity in the executive branch that
32 receives an ongoing line item appropriation in an appropriations act.
33 (2) The Office of Legislative Auditor General shall:
34 (a) each year perform an audit of at least two entities' appropriations, in addition to
35 other audits performed by the Office of Legislative Auditor General, that evaluates:
36 (i) the extent to which the entity has efficiently and effectively used the appropriation
37 by identifying:
38 (A) the entity's appropriation history;
39 (B) the entity's spending and efficiency history; and
40 (C) historic trends in the entity's operational performance effectiveness;
41 (ii) whether the entity's size and operation are commensurate with the entity's spending
42 history; and
43 (iii) whether the entity is diligent in its stewardship of state resources;
44 (b) if possible, incorporate the audit methodology described in Subsection (2)(a) in
45 other audits performed by the Office of Legislative Auditor General;
46 (c) conduct the audits described in Subsection (2)(a) according to the process
47 established for the Audit Subcommittee created in Section 36-12-8 ;
48 (d) after release of an audit report by the Audit Subcommittee, make the audit report
49 available to:
50 (i) each member of the Senate and the House of Representatives; and
51 (ii) the governor or the governor's designee; and
52 (e) summarize the findings of an audit described in Subsection (2)(a) in:
53 (i) a unique section of the legislative auditor general's annual report; and
54 (ii) a format that the legislative fiscal analyst may use in preparation of the annual
55 appropriations no later than 30 days before the day on which the Legislature convenes.
56 (3) The Office of Legislative Auditor General shall consult with the legislative fiscal
57 analyst in preparing the summary required by Subsection (2)(e).

58 (4) The Legislature, in evaluating an entity's request for an increase in its base budget,
59 shall:
60 (a) review the audit report required by this section and any relevant audits; and
61 (b) consider the entity's request for an increase in its base budget in light of the
62 agency's prior history of savings and efficiencies as evidenced by the audit report required by
63 this section.
64 Section 2. Section 63I-2-236 is enacted to read:
65 63I-2-236. Repeal dates -- Title 36.
66 Section 36-12-15.1 is repealed July 1, 2013.