Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Chapter 11 of the General Laws is hereby amended by striking out section 12, as appearing in the 1988 Official Edition, and inserting in place thereof the following section:-

Section 12. The department of the state auditor shall make an audit as often as the state auditor determines it necessary, but in no event less than once in every two years of 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, except tax returns. All such audits shall be conducted in accordance with the standards for audits of governmental organizations, programs, activities, and functions published by the Comptroller General of the United States. In any audit report of the accounts, funds, programs, activities, and functions of any agency, department, office, commission, or institution of the commonwealth, including those of districts and authorities created by the general court, issued by the department of the state auditor, wherein there appears adverse or critical audit results, the state auditor may require a response, in writing, to such audit results. Such response shall be forwarded to the department of the state auditor within fifteen days of notification by the state auditor. A copy of the response shall be filed with the appropriate secretariat, the secretary of administration and finance, the cognizant executive board in the case of an authority, and the house and senate committees on ways and means. The state auditor shall notify the appropriate secretariat, the secretary of administration and finance, the cognizant executive board in the case of an authority, and the house and senate committees on ways and means in the event of an agency's failure to respond or of the filing of unresponsive answers. This section shall not apply to those accounts which the director of accounts of the department of revenue is required by law to examine. The department of the state auditor shall, in any audit of the executive office of human services or any agency thereof, refer to the fraudulent claims commission any case coming to its attention in the course of such audit which appears to involve fraud. The department of the state auditor is hereby authorized to inspect, review or audit, in conformity with generally accepted government auditing standards, the accounts, books, records and activities of vendors contracting, having contracted, or agreeing to provide services or materials of any description, or any other thing of value pursuant to any and all contracts or agreements between the commonwealth, its departments, agencies, bureaus, boards, commissions, institutions, or authorities and said vendors to the extent necessary to determine compliance with the provisions and requirements of such contracts or agreements and the laws of the commonwealth. Any grant or contract entered into between an entity, including vendors, and a state agency shall include a clause providing the state auditor with access as intended by this section. The department of the state auditor is hereby authorized to conduct audits, in accordance with generally accepted governmental auditing standards, of the accounts, funds, programs, activities, and functions, of any program or activity funded in whole or in part by state grants, loans or reimbursements and carried out by cities, towns, counties, districts, or regional school districts, and for said purpose the authorized officers and employees of said department of the state auditor shall have access to such records at reasonable times and said department may require the production of books, documents, vouchers, reports and other records relating to any matter within the scope of such audit.

The department of the state auditor is hereby further authorized to inspect, review, or audit the accounts, funds, books, records, and activities, including audit reports relating to any matter within the scope of the audit, of any vendor contracting, having contracted, or agreeing to provide services or materials of any description, or any other thing of value, with a city, town, county, district, or regional school district pursuant to a contract or agreement funded in whole or in part directly or indirectly with state financial assistance. Said inspection, review, or audit shall be conducted to the extent necessary to determine compliance with the provisions and requirements of the contract or agreement, the grant, and the laws of the commonwealth.

The examination of the accounts of districts and authorities required by this section shall be made in addition to any audit required by the law creating such district or authority.