Senate subcommittee to consider amendment to create appointed state auditor; bill carried over

Senate Finance Constitutional Subcommittee staff presented a proposed amendment to House Bill 3430 that would create a Department of Governmental Auditing and establish a state auditor appointed by the governor with the advice and consent of the Senate.

Amanda (committee staff) summarized the amendment: the state auditor would serve a six-year term from July 1 of the appointing year to June 30 of the terminal year, be removable by the governor for cause, have salary set by the agency head salary commission, and employ deputy auditors, accountants, investigators and other professional staff. The amendment would require the new auditor to perform annual audits of financial statements prepared by the Treasurer’s Office, examine Treasurer’s Office accounts and banking institutions related to state transactions, and report apparent violations of law or malfeasance to the governor and appropriate officials. The amendment also created a division of local government services to audit county treasurers and required municipal and county audits be submitted to the new department.

Members raised implementation questions, including whether the proposed office currently has needed technical capacity and how much funding it would require. "That type of expertise is not inexpensive," a senator said, and staff acknowledged the department would likely need additional funding and time to hire experts.

Several senators expressed support for creating the office as the appropriate check on the Treasurer and Comptroller General, while others said the question of whether those officers should remain elected or be made appointive merits separate debate. Senator from Williamsburg said the auditor would provide a needed check without changing the constitutionally elected status of the Treasurer and Comptroller General. Members agreed to take additional time to review the amendment and consult with staff.

At the meeting’s close, a motion was made and seconded to carry House Bill 3430 with the discussed amendment to the committee’s next meeting. The motion carried on a voice vote. The subcommittee then voted to adjourn until Thursday.

Ending: The subcommittee set the amendment for further consideration at its next meeting; senators asked staff to prepare cost and implementation details before final action.