Representative Jordan D. Teuscher proposes the following substitute bill:


1     
COUNTY AUDITOR AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jordan D. Teuscher

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions relating to a county auditor.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     clarifies and modifies the duties of a county auditor;
14          ▸     establishes that a county auditor in a county of the first class shall conduct services
15     in accordance with generally accepted government auditing standards;
16          ▸     establishes the title of county controller;
17          ▸     clarifies and modifies a county auditor's duties and authority regarding a
18     performance audit; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:

26          17-19a-102, as last amended by Laws of Utah 2022, Chapter 288
27          17-19a-202, as enacted by Laws of Utah 2012, Chapter 17
28          17-19a-206, as enacted by Laws of Utah 2012, Chapter 17
29          17-19a-208, as enacted by Laws of Utah 2012, Chapter 17
30          17-19a-401, as enacted by Laws of Utah 2012, Chapter 17
31     REPEALS:
32          17-19a-101, as last amended by Laws of Utah 2022, Chapter 288
33     

34     Be it enacted by the Legislature of the state of Utah:
35          Section 1. Section 17-19a-102 is amended to read:
36          17-19a-102. Definitions.
37          As used in this chapter:
38          (1) "Account" or "accounting" means:
39          (a) the systematic recording, classification, or summarizing of a financial transaction or
40     event; and
41          (b) the interpretation or presentation of the result of an action described in Subsection
42     (1)(a).
43          (2) (a) "Accounting services" means the creation, modification, or deletion of
44     transactions and records in a financial accounting system, including the preparation of a
45     county's annual financial report.
46          (b) "Accounting services" does not include the creation of a purchase order.
47          (3) "Audit" or "auditing" means an examination that is a formal analysis of a county
48     account or county financial record:
49          (a) to verify accuracy, completeness, or compliance with an internal control;
50          (b) to give a fair presentation of a county's financial status; and
51          (c) that conforms to the uniform classification of accounts established by the state
52     auditor.
53          (4) "Book" means a financial record of the county, regardless of a record's format.
54          (5) (a) "Budget" or "budgeting" means the preparation or presentation of a proposed or
55     tentative budget as provided in Chapter 36, Uniform Fiscal Procedures Act for Counties.
56          (b) "Budget" or "budgeting" includes:

57          (i) a revenue projection;
58          (ii) a budget request compilation; or
59          (iii) the performance of an activity described in Subsection (5)(b)(i) or (ii).
60          (6) (a) "Claim" means under the color of law:
61          (i) a demand presented for money or damages; or
62          (ii) a cause of action presented for money or damages.
63          (b) "Claim" does not mean a routine, uncontested, or regular payment, including a bill,
64     purchase, or payroll.
65          (7) (a) "County auditor" means the county officer elected as the county auditor under
66     Section 17-53-101.
67          (b) "County auditor" includes a person given the title of county controller under
68     Subsection 17-19a-202(6).
69          (8) "County executive" means the elected chief executive officer of a county.
70          [(7)] (9) "Performance audit" means [a review and audit as described in Subsection
71     17-19a-206(3) of a county program, county operation, county management system, or county
72     agency to:] an assessment of whether a county office, officer, department, division, court, or
73     entity, or any related county program is:
74          (a) managing public resources and exercising authority in compliance with law and
75     policy;
76          (b) achieving objectives and desired outcomes; and
77          (c) providing services effectively, efficiently, economically, ethically, and equitably.
78          [(a) review procedures, activities, or policies; and]
79          [(b) determine whether the county is achieving the best levels of economy, efficiency,
80     effectiveness, and compliance.]
81          Section 2. Section 17-19a-202 is amended to read:
82          17-19a-202. Duties and services.
83          A county auditor shall perform:
84          (1) in accordance with Section 17-19a-205, an accounting duty or service described in
85     this chapter or otherwise required by law;
86          (2) an auditing duty or service described in this chapter or otherwise required by law;
87     and

88          (3) other duties as may be required by law.
89          (4) A county auditor may conduct, in relation to any county office, officer, department,
90     division, court, or entity, as the county auditor deems necessary, the following duties and
91     services:
92          (a) financial audits;
93          (b) attestation-level examinations, reviews, and agreed-upon procedures engagements
94     or reviews of financial statements;
95          (c) subject to Section 17-9a-206, performance audits;
96          (d) subject to Section 17-19a-205, accounting services; and
97          (e) other duties as required by law.
98          (5) In a county of the first class, the county auditor shall conduct the services under
99     Subsections (4)(a) through (c) in accordance with generally accepted government auditing
100     standards.
101          (6) A county legislative body may change the title of county auditor to county
102     controller for a county auditor's office that predominantly performs accounting services.
103          (7) The county auditor may not conduct the services described in Subsections (4)(a)
104     through (c) with respect to the auditor's own office, accounts, or financial records.
105          (8) Nothing in this chapter limits a county legislative body's authority under Section
106     17-53-212 or a county executive's authority under Section 17-53-303.
107          Section 3. Section 17-19a-206 is amended to read:
108          17-19a-206. Performance audit services.
109          [(1) (a) A county auditor shall, under the direction and supervision of the county
110     legislative body or county executive and subject to Subsections (1)(b) and (2), provide
111     performance audit services for a county office, department, division, or other county entity.]
112          [(b) A county auditor may not conduct a performance audit of the auditor's own office.]
113          [(2) The county legislative body or county executive shall establish the goals and
114     nature of a performance audit and related services.]
115          (1) In a county of the first class, the county auditor shall conduct a performance audit:
116          (a) as the county auditor deems appropriate, taking into account:
117          (i) the standards of the profession;
118          (ii) the county auditor's professional judgment; and

119          (iii) the county auditor's assessment of risk and materiality; or
120          (b) as requested and engaged by the county legislative body or county executive, in
121     accordance with the following:
122          (i) the county legislative body or county executive shall establish the goals and nature
123     of the performance audit;
124          (ii) the county auditor shall conduct the audit in a manner consistent with the county
125     auditor's professional judgment and statutory duties; and
126          (iii) the county legislative body or county executive and the county auditor shall agree
127     upon the prioritization and timing of the performance audit, with terms that are consistent with
128     the county auditor's statutory duties and available resources.
129          (2) (a) In a county of the second through sixth class, the county auditor shall conduct a
130     performance audit under the direction and supervision of the county legislative body or county
131     executive.
132          (b) The county legislative body or county executive shall establish the goals and nature
133     of a performance audit conducted under Subsection (2)(a).
134          (3) A performance audit conducted [in accordance with] under this section may include
135     [a review and audit] an assessment of the following:
136          (a) the honesty and integrity of financial and other affairs;
137          (b) the accuracy and reliability of financial and management reports;
138          (c) the adequacy of financial controls to safeguard public funds;
139          (d) the management and staff adherence to statute, ordinance, policies, and legislative
140     intent;
141          (e) the economy, efficiency, and effectiveness of operational performance;
142          (f) the accomplishment of intended objectives; and
143          (g) whether management, financial, and information systems are adequate and
144     effective.
145          Section 4. Section 17-19a-208 is amended to read:
146          17-19a-208. Reporting -- State treasurer -- County legislative body.
147          (1) On or before the last day of each month, the [county auditor] county finance officer
148     shall submit a report to the state treasurer regarding the collection, care, and disbursement of
149     state money by the county during the preceding month.

150          (2) The county auditor and the county treasurer shall, as required by the county
151     legislative body, make a joint report to the county executive and the county legislative body
152     accounting for the financial condition of the county.
153          (3) If a county auditor determines that a county office, officer, department, division,
154     court, or entity has not implemented a county auditor's prior recommendation in connection
155     with a previous financial audit, performance audit, examination, or review, the county auditor
156     shall notify the county legislative body that the entity has not implemented the
157     recommendation.
158          Section 5. Section 17-19a-401 is amended to read:
159          17-19a-401. County auditor investigative powers -- Report of findings.
160          (1) (a) A county auditor:
161          (i) may conduct an investigation of an issue or action associated with or related to the
162     auditor's statutory duties, including investigating a book or account of a county [officer, county
163     office, or other county entity] office, officer, department, division, court, or entity; and
164          (ii) may not conduct an investigation of an issue or action that is not associated with or
165     related to the auditor's statutory duties.
166          (b) A county officer, employee, or other county administrative entity shall grant the
167     county auditor complete and free access to a book requested by the county auditor in
168     accordance with Subsection (1)(a)(i).
169          (c) A county auditor, with the assistance of the county or district attorney, may:
170          (i) administer an oath or affirmation; or
171          (ii) issue an administrative subpoena for a witness or document necessary to the
172     performance of the auditor's statutory duties.
173          (2) If the county auditor, after a complete investigation, finds that a book or account of
174     a county [officer, office, or other county administrative entity] office, officer, department,
175     division, court, or entity is not kept in accordance to law, or that an [officer, office, or other
176     county administrative entity] office, officer, department, division, court, or entity has made an
177     incorrect or improper financial report, the county auditor shall prepare a report of the auditor's
178     findings and submit a copy of the report to the county executive.
179          (3) If a county auditor, after a complete investigation, finds that a justice court judge
180     has not kept a book or account according to law, or that the justice court judge has made an

181     incorrect or improper financial report, the auditor shall prepare a report of the auditor's findings
182     and submit a copy of the report to the state court administrator, the county executive, and the
183     county legislative body.
184          Section 6. Repealer.
185          This bill repeals:
186          Section 17-19a-101, Title and scope.