SB1473

THE CONTEXT: The Single Audit Act of 1984 establishes requirements for audits of states, local governments and Indian tribal governments that expend over $750,000 in federal awards during one fiscal year. As part of a single audit, states, local governments and Indian tribal governments are required to prepare a SEFA, note disclosures, corrective action plans and a summary schedule of prior audit findings.

WHAT THE BILL DID: The final vetoed version would stipulate a penalty of 1% of the amount of federal monies received annually by a state agency for every 30 days an agency required to comply with federal single audit requirements is late in submitting a SEFA to the Auditor General and mandate that if a state agency submits a SEFA late: a) the Auditor General must notify the State Treasurer of the amount of the penalty; and b) the State Treasurer must withhold the penalty from a state agency's appropriation for the following fiscal year; c) d) e).

WHY IT MATTERED: The practical reason for this bill was to make the stated financial responsibility enforceable and keep public reporting on time. It would stipulate a penalty of 1% of the amount of federal monies received annually by a state agency for every 30 days an agency required to comply with federal single audit requirements is late in submitting a SEFA to the Auditor General, and would also mandate that if a state agency submits a SEFA late: a) the Auditor General must notify the State Treasurer of the amount of the penalty; and b) the State Treasurer must withhold the penalty from a state agency's appropriation for the following fiscal year. c) d) e), rather than leave the current rule unchanged.