Audit authority strengthened

Lawmakers gave final approval May 21 to a bill intended to strengthen the audit authority of the Legislative Audit Office (LAO) and the state Auditor of Public Accounts (APA).

LB539, sponsored by Syracuse Sen. Dan Watermeier, requires 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 will 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 is 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 will be guilty of a Class III misdemeanor and dismissed from employment with the state.

The bill also adds community redevelopment authorities and limited community redevelopment authorities to the list of entities that the APA is empowered to audit. The change gives the APA the ability to audit tax increment financing projects.

The bill includes provisions from three additional bills related to the APA:
LB503, originally introduced by Omaha Sen. Bob Krist, which authorizes the APA to issue subpoenas;
LB552, originally introduced by Omaha Sen. Jeremy Nordquist, which clarifies 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 allows the APA to examine the books, accounts, vouchers, records and expenditures of any service contractor or subrecipient of state or federal funds.

LB539 passed on a 46-0 vote and takes effect immediately.