46-1106. Financial-compliance audits of state agencies; audits of financial management practices of state treasurer and pooled money investment board; examinations of books and accounts of state treas
46-1106
46-1106. Financial-compliance audits of stateagencies; audits of financial management practices of state treasurer andpooled money investment board; examinations of books and accounts of statetreasurer and director of accounts and reports; audit determinations andreports, disposition; prosecution of violations; access to records of stateagencies and certain persons; duty of confidentiality.(a) (1) A financial-compliance auditshall be conducted each year of the general purpose financial statementsprepared by the division of accounts and reports for its annual financialreport. This audit shall be conducted in accordance with generally acceptedgovernmental auditing standards. The resulting written audit report shall beissued as soon after the end of the fiscal year as is practicable.
(2) In addition, separate written audit reports on the financialmanagement practices of the office of the state treasurer and the pooled moneyinvestment board shall be prepared addressing the adequacy of financialmanagement practices and compliance with applicable state laws.The separate audit of the pooled money investment board also shallinclude a comparative investment performance review and an analysis of theinvestment program, including an evaluation of investment policies andpractices and of specific investments in the pooled money investment portfolio.The analysis of the specific investments in the pooled money investmentportfolio shall review whether such investments meet the investment prioritiesof safety, liquidity and performance. The performance of such investments shallbe measured by comparison to an appropriate market index.
(3) Copies of the reports of audits conductedpursuant to this subsection (a) shall be furnished to the governor,director of accounts and reports, director of the budget, each state agency,the legislative post audit committee and other persons or agencies as may berequired by law or by the specifications of the audit.
(4) Any additional costs associated with preparing the separateadditional reports on the office of thestate treasurer and the pooled money investment board shall be borne by theoffice of the state treasurer and the pooled money investment board inaccordance with K.S.A. 46-1121, and amendments thereto.
(b) Including financial-compliance audit work conducted as part of theaudit conducted pursuant to subsection (a),financial-compliance audit work shall be conducted at eachstate agency at least once every three yearsas directed by the legislative postaudit committee.Written reports on the results of such auditing shall be furnished to thegovernor, director of accounts and reports, director of the budget, thestate agency which is audited, the legislative post audit committee andsuch other persons or agencies as may be required by law or by thespecifications of the audit.
(c) Books and accounts of the statetreasurer and the director of accounts and reports, including the bondregister of the state treasurer, may be examined monthly ifthe legislative post audit committee so determines, and suchexamination may include detailedchecking of every transaction or test checking.
Any person receiving tax information under theprovisions of subsection (a) or (b) shall be subject to the same duty ofconfidentiality imposed by law upon the personnel of the department ofrevenue and shall be subject to any civil or criminal penalties imposedby law for violations of such duty of confidentiality.
(d) The post auditor shall report immediately in writing to thelegislative post audit committee, governor and attorney general wheneverit appears in the opinion of the post auditor that there may haveoccurred any violation of penal statutes or any instances ofmisfeasance, malfeasance or nonfeasance by a public officer or employeedisclosed by any audit or audit work conducted under thelegislative post audit act. The post auditor shallfurnish the attorney general all information in the possession of thepost auditor relative to any report referred to the attorney general.The attorney general shall institute and prosecute civil proceedingsagainst any such delinquent officer or employee, or upon such officer oremployee's official bond, or both, as may be needed to recover for thestate any funds or other assets misappropriated. The attorney generalshall also prosecute such ouster and criminal proceedings as theevidence in the case warrants. Any person receiving tax informationunder the provisions of this subsection shall be subject to the sameduty of confidentiality imposed by law upon the personnel of thedepartment of revenue and shall be subject to any civil or criminalpenalties imposed by law for violations of such duty of confidentiality.
(e) The post auditor shall immediately report to the committee onsurety bonds and insurance when any audit or audit work conductedunder the legislative post audit act discloses ashortage in the accounts of any state agency, officer oremployee.
(f) In the discharge of the duties imposed under the legislativepost audit act, the post auditor may require state agencies to preserveand make available their accounts, records, documents, vouchers,requisitions, payrolls, canceled checks or vouchers and coupons, andother evidence of financial transactions.
(g) In the discharge of the duties imposed under the legislativepost audit act, the post auditor or firm conducting afinancial-compliance audit or conducting any otheraudit or auditwork shall have access to all books,accounts, records, files, documents and correspondence, confidential orotherwise, of any person or state agency subject to the legislative postaudit act or in the custody of any such person or state agency. Exceptas otherwise provided in this subsection, the post auditor or firm conductinga financial-compliance audit or otheraudit or audit work under the legislativepost audit act and allemployees and former employees of the division of post audit or firmperforming a financial-compliance audit or otheraudit oraudit work shall besubject to the same duty of confidentiality imposed by law on any suchperson or state agency with regard to any such books, accounts, records,files, documents and correspondence, and any information containedtherein, and shall be subject to any civil or criminal penalties imposedby law for violations of such duty of confidentiality. The duty ofconfidentiality imposed on the post auditor and on firmsconducting financial-compliance audits or any otheraudits oraudit work under the legislative post audit act and all employees of thedivision of post audit and all employees of such firms shall be subjectto the provisions of subsection(d), and the post auditor may furnish all such books,accounts, records, files, documents and correspondence, and anyinformation contained therein to the attorney general pursuant tosubsection (d). Upon receipt thereof, the attorney general and allassistant attorneys general and all other employees and former employeesof the office of attorney general shall be subject to the same duty ofconfidentiality with the exceptions that any such information containedtherein may be disclosed in civil proceedings, ouster proceedings andcriminal proceedings which may be instituted and prosecuted by theattorney general in accordance with subsection (d), andany such books, accounts, records, files, documents and correspondencefurnished to the attorney general in accordance with subsection (d) maybe entered into evidence in any such proceedings.Nothing in this subsection shall be construed to supersede anyrequirement of federal law.
(h) Any firm or firms which develop information in the course of conductinga financial-compliance audit or otheraudit or audit work under the legislativepost audit act which the post auditor isrequired to report under subsection (d) or (e) shall immediately reportsuch information to the post auditor. The post auditor shall then makethe report required in subsection (d) or (e).
History: L. 1971, ch. 185, § 6; L. 1974, ch. 220, § 3;L.1974, ch. 364, § 5; L. 1976, ch. 232, § 2; L. 1977, ch. 186,§ 2; L.1979, ch. 63, § 2; L. 1980, ch. 153, § 9; L. 1981, ch. 210,§ 1; L. 1984,ch. 191, § 4; L. 1984, ch. 192, § 1;L. 1988, ch. 184, § 1;L. 1998, ch. 161, § 2;L. 2003, ch. 4, § 1;L. 2005, ch. 68, § 2; Apr. 14.