State auditor asks to convert contractor dollars into five in‑house auditor positions

State Auditor Lydia York told the Joint Finance Committee the Auditor of Accounts needs to shift some contracted audit work into permanent staff to keep up with mandated engagements and reduce reliance on an unstable contractor pool.

York said AOA stabilized revenue in recent years—largely from school construction administrative fees—and proposed a $390,000 transfer from ASF contractual services to ASF personnel to create five positions (one auditor‑4 manager and four ladder auditors). She said the total annual cost of those positions would be about $700,000, and that the transfer would reduce recurring contractor spending while building institutional capacity in‑house.

She described an emerging market problem: a long‑standing contractor that had performed government audits withdrew from the space during negotiations, leaving fewer external options and lengthening vendor turnaround. York argued in‑house auditors would allow faster, deeper work and better institutional continuity.

AOA also requested a $20,000 one‑time capital appropriation for five workstations and an ongoing $20,000 increase for audit software licenses; other modest 1% requests included travel and communications software increases.

Committee members sought assurances that ASF revenues would cover the shift and asked whether the request could create future general‑fund pressures if ASF receipts fall. York said the office has begun building an ASF reserve (roughly $2.4 million on hand) and can adjust administrative rates if necessary; she also signaled an intention to seek general‑fund support later if the state’s fiscal picture improves.

What’s next: the committee did not vote; members voiced bipartisan support for AOA’s work and said they would consider the staffing proposal during markup.