Audit and Management of Public Funds in Alabama
Issue Overview: The legislation would expand the mission of the Examiners of Public Accounts, giving the agency broad authority to review both fiscal and management efficiency for all agencies that spend public money. It would create an independent Accountability and Professional Standards Board to set the standards for auditing financial and professional management efficiency for all levels of state and local government, and to review compliance with those standards and authorize the use of private CPA firms to audit publicly funded agencies. It also would establish reporting timelines and stipulate that financial audits be conducted annually and that management efficiency reviews be conducted every three years. The legislation would establish the policies for financial intervention and for expanded reporting to the public of the results of management efficiency reviews and accountability audits.
NFIB Position: Sixty-nine percent of NFIB members support the concept of the creating a new auditing standard.
Issue Status: SB 367 by Sen. Steve French (Birmingham) has been introduced in the 2008 legislative session.
What to Do: Talk to legislators and urge them to support the audit legislation. Explain that taxpayer money should be accounted for on an annual basis and the findings should be public record.
