Amendment #496 to H3400

Fennell_auditors

[Sponsors] Mr. Fennell of Lynn moves to amend the bill by adding at the end thereof the following outside section:-

Section xxx   Section 12 of chapter 11 of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by striking out the first sentence and inserting in place thereof the following sentences: -

The department of the state auditor shall audit the accounts, programs, activities and functions directly related to the aforementioned accounts of all departments, offices, commissions, institutions, and activities of the commonwealth, including those of districts and authorities created by the general court, and including those of the income tax division of the department of revenue, and for said purpose the authorized officers and employees of said department of the state auditor shall have access to such accounts at reasonable times and said department may require the production of books, documents, vouchers, and other records relating to any matter within the scope of such audit or an audit authorized by section 13, except tax returns.  In determining the audit frequency of a covered entity, the department shall consider the materiality, risk, and complexity of the entity’s activities as well as the nature and extent of prior audit findings.  Each entity may be audited separately, as a part of a larger organizational entity, or as a part of an audit covering multiple entities; however, in no event will an entity be audited less than once every three years and shall be subject to audit as often as the state auditor determines it necessary.