2015 -- H 5884

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LC001746

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- CORPORATIONS

ACCOUNTABILITY AND TRANSPARENCY

     Introduced By: Representatives Shekarchi, Casey, Kennedy, Canario, and Williams

     Date Introduced: March 13, 2015

     Referred To: House Finance

     (Administration)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-155-7 of the General Laws in Chapter 42-155 entitled "Quasi-

Public Corporations Accountability and Transparency Act" is hereby amended to read as follows:

     42-155-7. Audit of quasi-public corporations. [Effective January 1, 2015.] -- (a)

Commencing January 1, 2015, and every five (5) years thereafter, each quasi-public corporation

shall be subject to a performance audit, conducted in compliance with the generally acceptable

governmental auditing standards or the standards for the professional practice of internal auditing,

by the chief of the bureau of audits. The chief, in collaboration with the quasi-public corporation,

shall determine the scope of the audit. To assist in the performance of an audit, the chief, in

collaboration with the quasi-public corporation, may procure the services of a certified public

accounting firm, which shall be a subcontractor of the bureau of audits, and shall be under the

direct supervision of the bureau of audits. The chief of the bureau of audits shall establish a

rotating schedule identifying the year in which each quasi-public corporation shall be audited.

The schedule shall be posted on the website of the bureau of audits.

      (b) The audit shall be conducted in conformance with chapter 7 of title 35 ("Post Audit

of Accounting").

      (c) Each quasi-public corporation shall be responsible for costs associated with its own

audit. The chief and each quasi-public corporation shall agree upon reasonable costs for the audit,

not to exceed seventy-five thousand dollars ($75,000), that shall be remitted to the bureau of

audit.

      (d) The results of the audit shall be made public upon completion and posted on the

websites of the bureau of audits and the quasi-public corporation.

      (e) For purposes of this section, a performance audit shall mean an independent

examination of a program, function, operation, or the management systems and procedures of a

governmental or nonprofit entity to assess whether the entity is achieving economy, efficiency,

and effectiveness in the employment of an all available resources.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- CORPORATIONS

ACCOUNTABILITY AND TRANSPARENCY

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     This act would more closely define the standard for the necessary internal audit.

     This act would take effect upon passage.

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