HEA 1031 Summary

• Effective July 1, 2017, adds new section requiring audited entities (state agencies, public hospitals, municipalities, educational institutions, and certain other entities) to take action when examination reports find failures to observe compliance guidelines or comply with specific laws.

• Requires public officers to file a corrective action plan as a written response if a subsequent examination report contains the same or substantially similar finding as a previous report.

• State board of accounts must create guidelines for corrective action plans requiring issues be corrected within 6 months of plan filing and must review each plan for implementation.

• Audit committee may request written statements or personal attendance from public officers, request corrective action, notify relevant state or local officials of noncompliance, refer cases for investigation and prosecution, recommend legislative amendments, or recommend follow-up examination within the calendar year following the noncompliance finding.

• Referrals for investigation and prosecution are directed to the inspector general (for state entities) or county prosecuting attorney (for local entities), with notice published on the general assembly's Internet website.