HB754: HB754 Catoosa County; Board of Education; require an internal audit function and establish position of internal auditor

25 LC 47 3576/AP House Bill 754 (AS PASSED HOUSE AND SENATE) By: Representative Horner of the 3rd A BILL TO BE ENTITLED AN ACT To amend an Act to reconstitute the Board of Education of Catoo sa County, Georgia,1 approved March 30, 1993 (Ga. L. 1993, p. 4258), as amended, so as to require an internal2 audit function of the board and to establish the position of internal auditor; to provide for the3 selection, powers, and duties of the internal auditor; to provide for internal cooperation; to4 provide a sunset date on the provisions governing such internal auditor; to provide for related5 matters; to repeal conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 An Act to reconstitute the Board of Education of Catoosa County , Georgia, approved9 March 30, 1993 (Ga. L. 1993, p. 4258), as amended, is amended by adding a new section to10 read as follows:11 "SECTION 7.1.12 (a) There shall be an internal audit function of the board that falls under the supervision13 of an internal auditor. The internal auditor may be either an individual employed by the14 board or the account manager of a firm hired as provided for in this section. The internal15 H. B. 754 - 1 - 25 LC 47 3576/AP auditor shall be appointed by the board from a list of nominations provided by the members16 o f t h e G e n e r a l A s s e m b l y t h a t r e p r e s e n t a l l o r a p a r t o f t h e s c hool district. All costs17 associated with the internal auditor shall be paid from the local funds of the board.18 (b) The internal auditor shall be a certified internal auditor or a certified public accountant,19 demonstrating at least five years' experience.20 (c) The internal auditor need not be a resident of the school district at the time of his or her21 appointment or during the period of service as the internal auditor.22 (d) The internal auditor shall not be involved in partisan political activities or the political23 affairs of the school system.24 (e) Within the budget approval process and established personn el policies for all25 departments, the internal auditor shall, with board approval, h ave the power to appoint,26 employ, and remove such assistants, employees, and personnel as he or she may deem27 necessary for the efficient and effective administration of the office.28 (f) The internal auditor shall be charged with, but not be limited to, the following duties29 and responsibilities:30 (1) To conduct one- and five-year performance and financial audits of the school system31 and its departments, offices, and activities in order to independently determine whether:32 (A) Implemented activities and programs have been authorized b y the board, the33 superintendent, state law, or applicable federal law or regulations and that the activities34 and programs are being conducted and funds expended in compliance with applicable35 laws;36 (B) The department, office, or agency is acquiring, managing, protecting, and utilizing37 its personnel, property, equipment, space, and other resources, including public funds,38 economically, efficiently, and effectively and in a manner consistent with the objectives39 of the authorizing entity or enabling legislation;40 (C) The organizations, programs, activities, functions, or pol icies are effective,41 including the identification of any causes of inefficiencies or uneconomical practices,42 H. B. 754 - 2 - 25 LC 47 3576/AP such as inadequacies in management information systems, internal and administrative43 procedures, organization structure, use of resources, allocation of personnel, purchasing44 policies, and equipment;45 (D) The desired results or benefits are being achieved;46 (E) Financial and other reports are being provided that fairly , accurately, and fully47 disclose all information that is required by law, necessary to ascertain the nature and48 scope of programs and activities, and necessary to establish a proper basis for49 evaluating the results of programs and activities, including the collection of, accounting50 for, and depositing of revenues and other resources;51 (F) Management has established adequate operating and administrative procedures and52 practices, systems, or internal control accounting systems and internal management53 controls; and54 (G) Indications of fraud or abuse or illegal acts are present;55 (2) To submit an annual report to the board and each member of the General Assembly56 representing all or a part of the school district, indicating a udits completed, major57 findings, corrective actions taken by administrative managers, and significant findings58 which have not been fully addressed by management; and59 (3) To perform such other duties and responsibilities as provi ded for by this Act or60 directed by the board.61 (g) All officers and employees shall allow the internal auditor immediate access to any and62 all books, records, documents, and other requested information, including automated data,63 pertaining to the business of the school system and within their custody regarding powers,64 duties, activities, organization, property, financial transactions, contracts, and methods of65 business required to conduct an audit or other official duties. In addition, such officers and66 employees shall provide access for the auditor to inspect all p roperty, equipment, and67 facilities within their custody. Further, all contracts with o utside contractors and68 subcontractors shall provide for the auditor's access to all financial and performance related69 H. B. 754 - 3 - 25 LC 47 3576/AP records, property, and equipment purchased in whole or in part with system funds and70 facilities.71 (h)(1) The internal auditor shall present any confidential information to the board during72 regularly scheduled closed executive sessions.73 (2) The internal auditor shall have the opportunity to address the board at any meeting74 of the board following the superintendent giving any reports to the board at such meeting.75 (i) The internal auditor shall not publicly disclose any information received during an audit76 that is confidential in accordance with any local, state, or federal law or regulation.77 (j) Any reports issued by the internal auditor shall be made available for public inspection78 or copying at a reasonable cost.79 (k) The provisions of this subsection shall stand repealed on July 1, 2030."80 SECTION 2.81 All laws and parts of laws in conflict with this Act are repealed.82 H. B. 754 - 4 -