Bill to strengthen audit authority advanced
Lawmakers gave first-round approval May 14 to a bill intended to strengthen the audit authority of the Legislative Audit Office (LAO) and the state Auditor of Public Accounts (APA).
Syracuse Sen. Dan Watermeier, sponsor of LB539, said the bill would better equip the LAO and the APA to carry out their respective tasks by ensuring that the offices are equally empowered to require audited entities to respond quickly and responsibly to requests for audit records and documentation.
The bill would require state agencies to respond to a request for information from the LAO or APA within three business days of the request. For particularly difficult or extensive requests, the agency would have up to three weeks to provide the requested information. Failure to comply with the bill’s deadlines or other willful obstruction of an audit would be a Class II misdemeanor.
A supervisor or manager who takes retaliatory action against a state or political subdivision employee who provides information to the LAO or APA would be guilty of a Class III misdemeanor and dismissed from employment with the state.
Watermeier said the changes are important to adequately shield from retaliation individuals who provide information to either office.
“It is important to have these protections for each audit office,” Watermeier said, “because the current whistleblower act does not cover all of these audits.”
A Government, Military and Veterans Affairs Committee amendment, adopted 34-0, added provisions from three additional bills related to the APA:
LB503, originally introduced by Omaha Sen. Bob Krist, which would authorize the APA to issue subpoenas;
LB552, originally introduced by Omaha Sen. Jeremy Nordquist, which would clarify that it is optional for the auditor to prepare a written review of the public retirement system plan reports that must be submitted if a political subdivision’s defined benefit plan is underfunded; and
LB487, originally introduced by Ogallala Sen. Ken Schilz, which would allow the APA to examine the books, accounts, vouchers, records and expenditures of any service contractor or subrecipient of state or federal funds.
The amendment defines service contractor or subrecipient as any entity that expends state or federal funds to carry out a state or federal program or function.
Bellevue Sen. Sue Crawford offered an amendment, adopted 35-1, which would allow the APA to audit tax increment financing (TIF) projects.
Crawford explained that the use of TIF requires creation of a community redevelopment authority or limited community redevelopment authority, which are separate entities from a municipality.
The amendment adds those authorities to the list of entities that the APA is empowered to audit.
Following adoption of the amendments, lawmakers advanced LB539 to select file 37-0.
