Session Law

Identifying Information:L. 2003 ch. 004
Other Identifying Information:2003 Senate Bill 8
Tax Type:Other
Brief Description:An Act concerning the legislative post audit act; relating to certain audits of the pooled money investment board; amending K.S.A. 46-1106 and repealing the existing section also repealing K.S.A. 2002 Supp. 75-4264.
Keywords:


Body:

CHAPTER 4

SENATE BILL No. 8


An Act concerning the legislative post audit act; relating to certain audits of the pooled

money investment board; amending K.S.A. 46-1106 and repealing the existing section


also repealing K.S.A. 2002 Supp. 75-4264.


Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 46-1106 is hereby amended to read as follows: 46-

1106. (a) (1) A financial-compliance audit shall be conducted each year

of the general purpose financial statements prepared by the division of

accounts and reports for its annual financial report. This audit shall be

conducted in accordance with generally accepted governmental auditing

standards. The resulting written audit report shall be issued as soon after

the end of the fiscal year as is practicable.

(2) In addition, separate written audit reports on the financial man-

agement practices of the office of the state treasurer and the pooled

money investment board shall be prepared addressing the adequacy of

financial management practices and compliance with applicable state

laws. The separate audit of the pooled money investment board also shall

include a comparative investment performance review and an analysis of

the investment program, including an evaluation of investment policies

and practices and of specific investments in the pooled money investment

portfolio. The analysis of the specific investments in the pooled money

investment portfolio shall review whether such investments meet the in-

vestment priorities of safety, liquidity and performance. The performance

of such investments shall be measured by comparison to an appropriate

market index.

(3) Copies of such the reports of audits conducted pursuant to this

subsection (a) shall be furnished to the governor, director of accounts and

reports, director of the budget, each state agency, the legislative post audit

committee and other persons or agencies as may be required by law or

by the specifications of the audit.

(4) Any additional costs associated with preparing the separate ad-

ditional reports on the office of the state treasurer and the pooled money

investment board shall be borne by the office of the state treasurer and

the pooled money investment board in accordance with K.S.A. 46-1121,

and amendments thereto.

(b) Including financial-compliance audit work conducted as part of

the audit conducted pursuant to subsection (a), financial-compliance au-

dit work shall be conducted at each state agency at least once every three

years as directed by the legislative post audit committee. Written reports

on the results of such auditing shall be furnished to the governor, director

of accounts and reports, director of the budget, the state agency which is

audited, the legislative post audit committee and such other persons or

agencies as may be required by law or by the specifications of the audit.

(c) Books and accounts of the state treasurer and the director of

accounts and reports, including the bond register of the state treasurer,

may be examined monthly if the legislative post audit committee so de-

termines, and such examination may include detailed checking of every

transaction or test checking.

Any person receiving tax information under the provisions of subsec-

tion (a) or (b) shall be subject to the same duty of confidentiality imposed

by law upon the personnel of the department of revenue and shall be

subject to any civil or criminal penalties imposed by law for violations of

such duty of confidentiality.

(d) The post auditor shall report immediately in writing to the leg-

islative post audit committee, governor and attorney general whenever it

appears in the opinion of the post auditor that there may have occurred

any violation of penal statutes or any instances of misfeasance, malfea-

sance or nonfeasance by a public officer or employee disclosed by any

audit or audit work conducted under the legislative post audit act. The

post auditor shall furnish the attorney general all information in the pos-

session of the post auditor relative to any report referred to the attorney

general. The attorney general shall institute and prosecute civil proceed-

ings against any such delinquent officer or employee, or upon such officer

or employee's official bond, or both, as may be needed to recover for the

state any funds or other assets misappropriated. The attorney general shall

also prosecute such ouster and criminal proceedings as the evidence in

the case warrants. Any person receiving tax information under the pro-

visions of this subsection shall be subject to the same duty of confiden-

tiality imposed by law upon the personnel of the department of revenue

and shall be subject to any civil or criminal penalties imposed by law for

violations of such duty of confidentiality.

(e) The post auditor shall immediately report to the committee on

surety bonds and insurance when any audit or audit work conducted un-

der the legislative post audit act discloses a shortage in the accounts of

any state agency, officer or employee.

(f) In the discharge of the duties imposed under the legislative post

audit act, the post auditor may require state agencies to preserve and

make available their accounts, records, documents, vouchers, requisitions,

payrolls, canceled checks or vouchers and coupons, and other evidence

of financial transactions.

(g) In the discharge of the duties imposed under the legislative post

audit act, the post auditor or firm conducting a financial-compliance audit

or conducting other financial-compliance audit work shall have access to

all books, accounts, records, files, documents and correspondence, con-

fidential or otherwise, of any person or state agency subject to the legis-

lative post audit act or in the custody of any such person or state agency.

Except as otherwise provided in this subsection, the post auditor or firm

conducting a financial-compliance audit or other financial-compliance au-

dit work and all employees and former employees of the division of post

audit or firm performing a financial-compliance audit or other financial-

compliance audit work shall be subject to the same duty of confidentiality

imposed by law on any such person or state agency with regard to any

such books, accounts, records, files, documents and correspondence, and

any information contained therein, and shall be subject to any civil or

criminal penalties imposed by law for violations of such duty of confiden-

tiality. The duty of confidentiality imposed on the post auditor and on

firms conducting financial-compliance audits or other financial-compli-

ance audit work and all employees of the division of post audit and all

employees of such firms shall be subject to the provisions of subsection

(d), and the post auditor may furnish all such books, accounts, records,

files, documents and correspondence, and any information contained

therein to the attorney general pursuant to subsection (d). Upon receipt

thereof, the attorney general and all assistant attorneys general and all

other employees and former employees of the office of attorney general

shall be subject to the same duty of confidentiality with the exceptions

that any such information contained therein may be disclosed in civil

proceedings, ouster proceedings and criminal proceedings which may be

instituted and prosecuted by the attorney general in accordance with sub-

section (d), and any such books, accounts, records, files, documents and

correspondence furnished to the attorney general in accordance with sub-

section (d) may be entered into evidence in any such proceedings. Noth-

ing in this subsection shall be construed to supersede any requirement

of federal law.

(h) Any firm or firms which develop information in the course of

conducting a financial-compliance audit or other financial-compliance au-

dit work which the post auditor is required to report under subsection

(d) or (e) shall immediately report such information to the post auditor.

The post auditor shall then make the report required in subsection (d) or

(e).

Sec. 2. K.S.A. 46-1106 and K.S.A. 2002 Supp. 75-4264 are hereby

repealed.

Sec. 3. This act shall take effect and be in force from and after its

publication in the statute book.

Approved March 3, 2002.


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Date Composed: 10/29/2003 Date Modified: 10/29/2003