The act specifies that the types of audits that may be conducted by the State Auditor shall include financial and performance audits. The standards established by the comptroller general of the United States for audits of government entities, organizations, programs, activities, and functions as published in Government Auditing Standards shall determine the type of audit to be conducted and a mixture of audit type and objective may be used. The objectives of financial and performance audits are enumerated.

The Auditor may conduct audits at his or her discretion, as deemed necessary, without advanced notice instead of on a scheduled basis. The treasury shall be audited at least annually.

The Auditor may contract with federal audit agencies or government agencies on a cost reimbursement basis to audit federal grant programs.

The Auditor may examine records of financial institutions relating to transactions with the State Treasurer.

The Auditor may review bookkeeping and accounting systems used in state agencies and the state comprehensive annual financial report.

Any instances of statutory violations and malfeasance, misfeasance or nonfeasance by officers or employees shall be provided in a report to the Governor and Attorney General.

Draft reports of audits shall be delivered to and discussed with the auditee's official and any written response shall be provided within 30 of receipt of the draft.

The General Assembly, Governor, and director of each agency audited shall be notified of the publication of an audit report.

Audit report records shall be retained in accordance with the state record's retention schedule. Related material shall be retained pursuant to an agreement between the Auditor and the state archives.

The Auditor may audit any public employee retirement or health care system.

A method by which the Auditor shall receive reports of allegations of improper governmental activities is established. The Auditor may investigate such reports and refer matters outside of the scope of the Auditor's authority to the proper authorities.

The Auditor shall have access to all documents and files of any agency or institution it is authorized to audit. Review of tax returns shall be limited to matters of official business and remain confidential except that the Auditor may disclose information related to overdue tax debts.

The Auditor shall have access to all documents, files, property and facilities of any organization that pertain to money received or handled from the federal government, the state or any political subdivision.

Banks and financial institutions are not required to produce records until they are reimbursed for reasonable document production costs.

Grants and contracts entered into by state agencies and political subdivisions shall include a clause describing the Auditor's access to records.

The Auditor may contract for professional services to carry out audits.

Willfully making false, misleading or unfounded reports for the purpose of interfering with an audit, review or investigation or obstructing the Auditor constitutes a Class A misdemeanor.

Currently, audits of the Auditor's office are conducted during the regular legislative session in odd numbered years by concurrent resolution. Under the act, the General Assembly may conduct such audit at any time by concurrent resolution.

Currently, the Auditor conducts biennial audits of the Missouri county employees' retirement system. Under the act, the system's board is charged with conducting the audits through a certified public accountant or a firm of certified public accountants.

Currently, at least once every three years, the Auditor examines audits of the prosecuting and circuit attorneys' retirement system, the Missouri local government employees' retirement system, the Missouri consolidated healthcare plan, the Missouri department of transportation and highway patrol employees' retirement system, the Missouri state employees' retirement system, and the public school retirement system. These provision are repealed and the Auditor may audit these systems at any time.

A provision prohibiting examiners from receiving or riding on free transportation while on official business is repealed.

The Auditor may have the power to audit a community action agency.

This act is similar to HB 2106 (2012), and SCS/SB 65 (2013).

CHRIS HOGERTY