An Act Improving the Internal Controls within State Agencies

Working with Rep. Gregoire & Sen. Pacheco, Auditor Bump has brought forward a bill to give the State Comptroller, in consultation with the State Auditor, the ability to establish regulations related to reporting requirements for state agencies and departments to mitigate the loss of taxpayer assets.

Overview

Working with Rep. Gregoire & Sen. Pacheco, Auditor Bump has brought forward a measure that will give the State Comptroller, in consultation with the State Auditor, the ability to establish regulations related to existing reporting requirements for state agencies and departments regarding their processes and plans to mitigate risks to taxpayer assets. This bill also expands the reporting requirements to independent authorities and creates a training program through the Comptroller’s office.

Additional Resources

Senate version of An Act Improving The Internal Controls Within State Agencies

House version of An Act Improving The Internal Controls Within State Agencies

Strengthens Protection of State Resources

This measure promotes greater government efficiency and strengthens the protection of state resources by establishing a minimum threshold at which agencies must report unaccounted for variances, losses, shortages, or thefts of funds or property to the Office of the State Auditor.

Without a threshold:

• Agencies must report every instance of variance or loss to the Office of the State Auditor, which is then mandated to review, determine the cause, and make a recommendation on every report received
• Administrative burdens are placed on both the agencies that must report losses that are insignificant and also to the Office of the State Auditor which must receive and process these reports
• The Office of the State Auditor often receives reports of a cash drawer being $5 short or an incident of a broken ceiling tile. In following our statutory requirement to process and make recommendations on every report, this is neither a wise use of the office’s time or resources

Increases Government Efficiency

This bill will allow the Office of the State Auditor to increases government efficiency by:

• Promoting good government by extending the requirements of the state’s internal control law to all state authorities, which are currently exempt from reporting instances of variance or loss.
• Directing the Comptroller’s Office to establish a comprehensive training program to assist agencies in developing and implementing the required internal control/reporting policies and procedures.