HB 7090 — AN ACT CONCERNING THE TIMING AND SCOPE OF AUDITS BY THE AUDITORS OF PUBLIC ACCOUNTS.

General Assembly Substitute House Bill No.

7090 JanuaryPublic Session,Act 2025No. AN ACT CONCERNING THE TIMING AND SCOPE OF AUDITS BY THE AUDITORS OF PUBLIC ACCOUNTS.

25-147 AN ACT CONCERNING THE TIMING AND SCOPE OF AUDITS BY THE AUDITORS OF PUBLIC ACCOUNTS.

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The joint standing committee oftheGeneralAssembly having cognizanceofmattersrelatingtogovernmentoversightorthelegislative committee having cognizance of thematters department,relating commission,to boardgovernment oroversight court being audited may request the auditors to perform a limited performance audit.engagement.

AsNot usedlater inthan thissixty subdivision,days aafter "limitedreceipt performance audit" means (A) an audit of asuch specificrequest, program or entity pursuant to an engagement agreement between the applicable committee and the auditors thatshall includesrespond specificregarding procedureswhether forthey reviewingwill transactions,perform testingsuch controls,limited analyzingperformance data and any other tasks specified in the engagement agreement,and, andif (B)so, the reportsuggested ofscope the auditors is limited to the results of the procedures performed and doesschedule notfor includesuch aengagement. formal opinion as to whether the audited entity's financial statements have been prepared in accordance with accounting standards.

(4) The auditors shall reportperform theirany findingssuch andlimited recommendationsperformance toengagement thewithin Governor,available theappropriations. State Comptroller and the joint standing [committee] LCO 2 of 5 Substitute Bill No.

7090As committeesused ofin thethis Generalsubdivision, Assemblya having"limited cognizanceperformance engagement" means a review of mattersa relatingspecific program or entity pursuant to appropriationsan agreement between the chairpersons and ranking members of the budgetsjoint standing committee of statethe agenciesGeneral andAssembly governmenthaving oversight.cognizance of matters relating to governmentoversightandtheauditorsconcerningtheobjectives,scope, Public Act No.

(d)25-147 Not2 later than July 1, 2026, and annually thereafter, the auditors shall submit a proposed schedule for the audits they plan to conduct during the following calendar year to the joint standing committee of the5 GeneralSubstitute AssemblyHouse havingBill cognizanceNo. of matters relating to government oversight.

The7090 auditorsmethodology shalland audittiming any state agency more frequently than biennially, upon the request of such committee.engagement.

Not(4) laterThe thanauditors Julyshall firstreport oftheir eachfindings year,and suchrecommendations committeeto maythe requestGovernor, the auditorsState toComptroller prioritizeand certainthe auditsjoint orstanding to[committee] conductcommittees more frequent follow- up audits in cases where the findings of the mostGeneral recentAssembly audithaving indicatedcognizance material violations of statematters statuterelating orto regulationsappropriations byand the auditedbudgets of state agencyagencies duringand thegovernment followingoversight. fiscal year.

(d) Not later than July 1, 2026, and annually thereafter, the auditors shall submit a proposed schedule for the audits they plan to conduct during the following fiscal year to the joint standing committee of the General Assembly having cognizance of matters relating to government oversight.

[(e)] (f) (1) If the Auditors of Public Accounts discover, or if it should come to their knowledge, that any unauthorized, illegal, irregular or unsafe handling or expenditure of state funds or quasi-public agency funds or any breakdown in the safekeeping of any resources of the state or a quasi-public agency has occurred or is contemplated, they shall forthwith report the facts to the Governor, the State Comptroller, the clerk of each house of the General Assembly, the joint standing committee of the General Assembly having cognizance of matters relating to government oversight and the Attorney General, except that if a matter reported to the Auditors of Public Accounts pursuant to section 4-33a is still under investigation by a state or quasi-public agency, the Auditors of Public Accounts may give the agency a LCOPublic 3Act of 5 Substitute Bill No.

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Upon the receipt of the agency's report, the joint standing committee of the General Assembly having cognizance of matters relating to government oversight may request the auditors to verify any matter in the agency's corrective action report and the auditors shall have not more than sixty days to respond to such request.

[(g)] (h) Each state agency shall keep its accounts in such form and by suchPublic methodsAct asNo. to exhibit the facts required by said auditors and, the provisions of any other general statute notwithstanding, shall make all records and accounts available to them or their agents, upon demand.

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7090 such methods as to exhibit the facts required by said auditors and, the provisions of any other general statute notwithstanding, shall make all records and accounts available to them or their agents, upon demand.

[(h)] (i) Where there are statutory requirements of confidentiality with regard to such records and accounts or examinations of LCOnongovernmental 4entities which are maintained by a state agency, such requirements of 5confidentiality Substituteand Billthe No.penalties for the violation thereof shall apply to the auditors and to their authorized representatives in the same manner and to the same extent as such requirementsofconfidentialityandpenaltiesapplytosuchstateagency.

7090 nongovernmental entities which are maintained by a state agency, such requirements of confidentiality and the penalties for the violation thereof shall apply to the auditors and to their authorized representatives in the same manner and to the same extent as such requirementsofconfidentialityandpenaltiesapplytosuchstateagency.

ThisGovernor's actAction: shall take effect as follows and shall amend the following sections:

SectionApproved 1July October8, 1, 2025 2-90Public GOSAct JointNo. Favorable Subst.

APP25-147 Joint Favorable LCO 5 of 5