Substitute Senate Bill No. 462
Substitute Senate Bill No. 462
PUBLIC ACT NO. 98-143
AN ACT CONCERNING THE REVIEW AND IMPLEMENTATION OF
RECOMMENDATIONS OF THE AUDITORS OF PUBLIC ACCOUNTS
AND AMENDING SINGLE AUDIT PROVISIONS FOR
RECIPIENTS OF STATE FINANCIAL ASSISTANCE.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 2-92 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Auditors of Public Accounts shall present
a report of the operations of their office to the
General Assembly, not later than [the fourth week
of each regular session] FEBRUARY FIRST, ANNUALLY,
which report shall contain such recommendations as
they deem desirable.
Sec. 2. Section 20-8 of the general statutes
is repealed and the following is substituted in
lieu thereof:
There shall be within the Department of Public
Health a Connecticut Homeopathic Medical Examining
Board, which shall consist of three homeopathic
physicians and two public members appointed by the
Governor subject to the provisions of section
4-9a. The Governor shall fill any vacancy
occurring in said board. Said board shall meet at
least once during each calendar quarter and at
such other times as the chairman deems necessary.
Special meetings shall be held on the request of a
majority of the board after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE MEMBERS OF THE BOARD SHALL CONSTITUTE A
QUORUM. Members shall not be compensated for their
services. Any member who fails to attend three
consecutive meetings or who fails to attend fifty
per cent of all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all meetings shall be recorded by the
board. No member shall participate in the affairs
of the board during the pendency of any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
official of a professional society of homeopathic
physicians or have been such an official during
the year immediately preceding his appointment.
Said board shall (1) hear and decide matters
concerning suspension or revocation of licensure,
(2) adjudicate complaints against practitioners
and (3) impose sanctions where appropriate.
Sec. 3. Subsection (f) of section 20-8a of the
general statutes is repealed and the following is
substituted in lieu thereof:
(f) The Governor shall appoint a chairperson
from among the board members. Said board shall
meet at least once during each calendar quarter
and at such other times as the chairperson deems
necessary. Special meetings shall be held on the
request of a majority of the board after notice in
accordance with the provisions of section 1-21. A
MAJORITY OF THE MEMBERS OF THE BOARD SHALL
CONSTITUTE A QUORUM. Members shall not be
compensated for their services. Any member who
fails to attend three consecutive meetings or who
fails to attend fifty per cent of all meetings
held during any calendar year shall be deemed to
have resigned from office. Minutes of all meetings
shall be recorded by the board. No member shall
participate in the affairs of the board during the
pendency of any disciplinary proceedings by the
board against such member. Said board shall (1)
hear and decide matters concerning suspension or
revocation of licensure, (2) adjudicate complaints
against practitioners and (3) impose sanctions
where appropriate.
Sec. 4. Section 20-15 of the general statutes
is repealed and the following is substituted in
lieu thereof:
The state board of osteopathic registration
and examination shall be known as the Connecticut
Osteopathic Examining Board and shall continue to
consist of five members, appointed by the
Governor, subject to the provisions of section
4-9a, three of whom shall be engaged in the
practice of osteopathy in this state, and two of
whom shall be public members. The Governor shall
appoint a person to fill any vacancy which occurs
upon the examining board. Said board shall meet at
least once during each calendar quarter and at
such other times as the chairman deems necessary.
Special meetings shall be held on the request of a
majority of the board after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE MEMBERS OF THE BOARD SHALL CONSTITUTE A
QUORUM. Members shall not be compensated for their
services. Any member who fails to attend three
consecutive meetings or who fails to attend fifty
per cent of all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all meetings shall be recorded by the
board. No member shall participate in the affairs
of the board during the pendency of any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer of a professional society of
osteopathic physicians or have been such an
officer during the year immediately preceding his
appointment. Said board shall (1) hear and decide
matters concerning suspension or revocation of
licensure, (2) adjudicate complaints against
practitioners and (3) impose sanctions where
appropriate.
Sec. 5. Section 20-25 of the general statutes
is repealed and the following is substituted in
lieu thereof:
The State Board of Chiropractic Examiners
shall consist of seven members, four of whom shall
be practicing chiropractors and residents of this
state and shall have practiced chiropractic
continuously in this state for at least three
years, and three of whom shall be public members.
The Governor shall appoint a chairman from among
the members of the board. Said board shall meet at
least once during each calendar quarter and at
such other times as the chairman deems necessary.
Special meetings shall be held on the request of a
majority of the board after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE MEMBERS OF THE BOARD SHALL CONSTITUTE A
QUORUM. Members shall not be compensated for their
services. Any member who fails to attend three
consecutive meetings or who fails to attend fifty
per cent of all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all meetings shall be recorded by the
board. No member shall participate in the affairs
of the board during the pendency of any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer of a professional society of
chiropractors or have been such an officer during
the year immediately preceding his appointment. No
member shall serve more than two full consecutive
terms which commence after July 1, 1980. Said
board shall (1) hear and decide matters concerning
suspension or revocation of licensure, (2)
adjudicate complaints against practitioners and
(3) impose sanctions where appropriate.
Sec. 6. Section 20-35 of the general statutes
is repealed and the following is substituted in
lieu thereof:
The State Board of Natureopathic Examiners
shall continue to consist of three members, two of
whom shall be practicing natureopathic physicians
of this state and one of whom shall be a public
member. The Governor shall appoint the members of
said board subject to the provisions of section
4-9a. Said board shall meet at least once during
each calendar quarter and at such other times as
the chairman deems necessary. Special meetings
shall be held on the request of a majority of the
board after notice in accordance with the
provisions of section 1-21. A MAJORITY OF THE
MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM.
Members shall not be compensated for their
services. Any member who fails to attend three
consecutive meetings or who fails to attend fifty
per cent of all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all meetings shall be recorded by the
board. No member shall participate in the affairs
of the board during the pendency of any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer of a professional society of
natureopathic physicians or have been such an
officer during the year immediately preceding his
appointment. Said board shall (1) hear and decide
matters concerning suspension or revocation of
licensure, (2) adjudicate complaints against
practitioners and (3) impose sanctions where
appropriate.
Sec. 7. Section 20-51 of the general statutes
is repealed and the following is substituted in
lieu thereof:
The Connecticut Board of Examiners in Podiatry
shall consist of five members. The Governor shall
appoint three members of said board who shall be
resident practicing podiatrists of good standing
in their profession and graduates of approved
colleges or schools of chiropody or podiatry and
two public members. The Governor shall appoint a
chairman from among such members. Said board shall
meet at least once during each calendar quarter
and at such other times as the chairman deems
necessary. Special meetings shall be held on the
request of a majority of the board after notice in
accordance with the provisions of section 1-21. A
MAJORITY OF THE MEMBERS OF THE BOARD SHALL
CONSTITUTE A QUORUM. Members shall not be
compensated for their services. Any member who
fails to attend three consecutive meetings or who
fails to attend fifty per cent of all meetings
held during any calendar year shall be deemed to
have resigned from office. Minutes of all meetings
shall be recorded by the board. No member shall
participate in the affairs of the board during the
pendency of any disciplinary proceedings by the
board against such member. No professional member
shall be an elected or appointed officer of a
professional society of podiatrists or have been
such an officer during the year immediately
preceding his appointment. No member shall serve
more than two full consecutive terms which
commence after July 1, 1980.
Sec. 8. Section 20-88 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) The Connecticut State Board of Examiners
for Nursing shall consist of twelve members who
are residents of the state to be appointed by the
Governor subject to the provisions of section
4-9a. The Governor shall appoint two members who
shall be graduates of an approved school for
licensed practical nursing; five members who shall
be registered nurses, three of whom shall, at the
time of appointment, be connected with an
institution affording opportunities for the
education of nurses, and at least two of whom
shall hold master's degrees in nursing from a
recognized college or university and one of whom
shall be at the time of appointment an instructor
in an approved school for licensed practical
nurses; one member who shall be an advanced
practice registered nurse; and four members who
shall be public members. Members of said board
shall be residents of this state and professional
members shall maintain good professional standing.
No member of said board shall be an elected or
appointed officer of any professional association
of nurses or have been such an officer during the
year immediately preceding his appointment. No
member shall serve more than two full consecutive
terms which commence after July 1, 1980. Any
vacancy shall be filled by the Governor for the
unexpired portion of the term.
(b) The Governor shall appoint a chairperson
from among such members. Said board shall meet at
least once during each calendar quarter and at
such other times as the chairman deems necessary.
Special meetings shall be held on the request of a
majority of the board after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE MEMBERS OF THE BOARD SHALL CONSTITUTE A
QUORUM. Members shall not be compensated for their
services. Any member who fails to attend three
consecutive meetings or who fails to attend fifty
per cent of all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all meetings shall be recorded by the
board. No member shall participate in the affairs
of the board during the pendency of any
disciplinary proceedings by the board against such
member.
Sec. 9. Section 20-103a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The State Dental Commission shall consist
of nine members appointed by the Governor, subject
to the provisions of section 4-9a, six of whom
shall be practitioners in dentistry residing in
this state who are in good standing in their
profession and three of whom shall be public
members. No member of said commission shall be an
elected or appointed officer of a professional
association of members of his profession or have
been such an officer for the year immediately
preceding his appointment. The Commissioner of
Public Health, with advice and assistance from the
Dental Commission, may issue regulations to
implement the provisions of this chapter, and to
insure proper dental care and the protection of
public health, considering the convenience and
welfare of the patient, methods recommended by the
canon of ethics of the Connecticut State Dental
Association and the American Dental Association
and accepted health standards as promulgated by
local health ordinances and state statutes and
regulations.
(b) The Governor shall appoint a chairperson
from among such members. Said commission shall
meet at least once during each calendar quarter
and at such other times as the chairman deems
necessary. Special meetings shall be held on the
request of a majority of the commission after
notice in accordance with the provisions of
section 1-21. A MAJORITY OF THE MEMBERS OF THE
COMMISSION SHALL CONSTITUTE A QUORUM. Members
shall not be compensated for their services. Any
member who fails to attend three consecutive
meetings or who fails to attend fifty per cent of
all meetings held during any calendar year shall
be deemed to have resigned from office. Minutes of
all meetings shall be recorded by the commission.
No member shall participate in the affairs of the
commission during the pendency of any disciplinary
proceedings by the commission against such member.
No member shall serve for more than two full
consecutive terms commencing after July 1, 1980.
Said commission shall (1) hear and decide matters
concerning suspension or revocation of licensure,
(2) adjudicate complaints filed against
practitioners and (3) impose sanctions where
appropriate.
Sec. 10. Section 20-128a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) There shall be within the Department of
Public Health a Connecticut Board of Examiners for
Optometrists. Said board shall consist of seven
members appointed by the Governor, subject to the
provisions of section 4-9a, as follows: Four
practicing licensed optometrists in good
professional standing who reside in this state and
three public members. The optometrists appointed
for terms beginning on and after January 1, 1997,
shall be optometrists authorized under this
chapter to practice at the highest level of their
profession, except that any optometrist serving on
the board on October 1, 1996, shall be eligible
for reappointment on or after January 1, 1997,
whether or not such optometrist is authorized to
practice at the highest level of his profession.
The Governor shall appoint a chairman from among
such members. No member appointed on or after
January 1, 1991, shall serve on the board for more
than eight years.
(b) Said board shall meet at least once during
each calendar quarter and at such other times as
the chairman deems necessary. Special meetings
shall be held on the request of a majority of the
board after notice in accordance with the
provisions of section 1-21. A MAJORITY OF THE
MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM.
Members shall not be compensated for their
services. Any member who fails to attend three
consecutive meetings or who fails to attend fifty
per cent of all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all meetings shall be recorded by the
board. No member shall participate in the affairs
of the board during the pendency of any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer of a professional society of
optometrists or have been such an officer during
the year immediately preceding his appointment.
(c) The Commissioner of Public Health, with
advice and assistance from the board, may make and
enforce such regulations as the commissioner deems
necessary to maintain proper professional and
ethical standards for optometrists. The board may
revoke or suspend licenses for cause.
(d) The Board of Examiners for Optometrists
shall (1) hear and decide matters concerning
suspension or revocation of licensure, (2)
adjudicate complaints filed against practitioners
licensed under this chapter and (3) impose
sanctions where appropriate.
Sec. 11. Section 20-139a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) There shall be within the Department of
Public Health a Connecticut Board of Examiners for
Opticians. Said board shall consist of three
members appointed by the Governor, subject to the
provisions of section 4-9a, as follows: Two
practicing licensed opticians in good professional
standing who reside in this state and one public
member. The Governor shall appoint a chairman from
among such members.
(b) Said board shall meet at least once during
each calendar quarter and at such other times as
the chairman deems necessary. Special meetings
shall be held on the request of a majority of the
board after notice in accordance with the
provisions of section 1-21. A MAJORITY OF THE
MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM.
Members shall not be compensated for their
services. Any member who fails to attend three
consecutive meetings or who fails to attend fifty
per cent of all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all meetings shall be recorded by the
board. No members shall participate in the affairs
of the board during the pendency of any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer of a professional society of
opticians or have been such an officer during the
year immediately preceding his appointment.
(c) The Commissioner of Public Health, with
advice and assistance from the board, may make and
enforce such regulations as the commissioner deems
necessary to maintain proper professional and
ethical standards for opticians. The board may
revoke or suspend licenses for cause.
(d) The Board of Examiners for Opticians shall
(1) hear and decide matters concerning suspension
or revocation of licensure, (2) adjudicate
complaints filed against practitioners licensed
under this chapter and (3) impose sanctions where
appropriate.
Sec. 12. Section 20-186 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The Board of Examiners of Psychologists
shall consist of five members appointed by the
Governor, three of whom shall be practicing
psychologists in good professional standing and
licensed according to the provisions of this
chapter and two of whom shall be public members.
Each such member shall be a resident of this
state. No member of said board shall be an elected
or appointed officer of any professional
association of psychologists or have been such an
officer during the year immediately preceding his
appointment. The Governor shall designate one
member as chairman of said board and shall fill
any vacancy therein by appointment for the
unexpired portion of the term. No member shall
serve for more than two full consecutive terms
commencing after July 1, 1980. Members shall not
be compensated for their services.
(b) Said board shall meet at least once during
each calendar quarter and at such other times as
the chairman deems necessary. Special meetings
shall be held on the request of a majority of the
board after notice in accordance with the
provisions of section 1-21. A MAJORITY OF THE
MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM.
Any member who fails to attend three consecutive
meetings or who fails to attend fifty per cent of
all meetings held during any calendar year shall
be deemed to have resigned from office. Minutes of
all meetings shall be recorded by the board. No
member shall participate in the affairs of the
board during the pendency of any disciplinary
proceedings by the board against such member.
Sec. 13. Section 20-196 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) There shall be a Connecticut Board of
Veterinary Medicine. The board shall consist of
five members appointed by the Governor, subject to
the provisions of section 4-9a, as follows: Three
members of said board shall be practitioners of
veterinary medicine residing in this state in good
professional standing and two shall be public
members. No member of said board shall be an
elected or appointed officer of the Connecticut
Veterinary Medical Association or have been such
an officer during the year immediately preceding
his appointment, or serve for more than two
consecutive terms. The Commissioner of Public
Health with the advice and assistance of said
board may issue regulations to insure proper
veterinary care and the protection of public
health, considering the convenience and welfare of
the animals being treated, methods recommended by
the code of ethics of the national and state
veterinary associations, proper registrations of
veterinarians for prompt identification and
accepted health and veterinary standards as
promulgated by the Department of Public Health,
Department of Agriculture health ordinances and
state statutes and regulations.
(b) The Governor shall appoint a chairman from
among such members. Said board shall meet at least
once during each calendar quarter and at such
other times as the chairman deems necessary.
Special meetings shall be held on the request of a
majority of the board after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE MEMBERS OF THE BOARD SHALL CONSTITUTE A
QUORUM. Members shall not be compensated for their
services. Any member who fails to attend three
consecutive meetings or who fails to attend fifty
per cent of all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all meetings shall be recorded by the
board. No member shall participate in the affairs
of the board during the pendency of any
disciplinary proceedings by the board against such
member.
Sec. 14. Section 20-208 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The board shall consist of five members,
who shall be residents of the state, three of whom
shall be practical arterial embalmers, shall be
actively engaged in the practice of embalming at
the time of their respective appointments and
shall be licensed embalmers as hereinafter
provided; and two of whom shall be public members.
The Governor shall appoint the members of said
board in accordance with the provisions of section
4-9a. Any vacancy in said board shall be filled by
the Governor for the unexpired portion of the
term. No member of said board shall be an elected
or appointed officer of any professional
association of embalmers or funeral directors or
have been such an officer during the year
immediately preceding his appointment. The
Governor shall appoint a chairperson from among
such members. No member shall serve for more than
two full consecutive terms commencing after July
1, 1980. Members shall not be compensated for
their services.
(b) Said board shall meet at least once during
each calendar quarter and at such other times as
the chairman deems necessary. Special meetings
shall be held on the request of a majority of the
board after notice in accordance with the
provisions of section 1-21. A MAJORITY OF THE
MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM.
Any member who fails to attend three consecutive
meetings or who fails to attend fifty per cent of
all meetings held during any calendar year shall
be deemed to have resigned from office. Minutes of
all meetings shall be recorded by the board. No
member shall participate in the affairs of the
board during the pendency of any disciplinary
proceedings by the board against such member.
Sec. 15. Section 20-235a of the general
statutes is repealed and the following is
substituted in lieu thereof:
There shall be within the Department of Public
Health a Connecticut Examining Board for Barbers,
Hairdressers and Cosmeticians. Said board shall
consist of nine members appointed, subject to the
provisions of section 4-9a, by the Governor as
follows: Three master barbers, three persons who
are registered hairdressers and cosmeticians, and
three public members. The Governor shall appoint a
chairperson from among such members. Members shall
be residents of this state. No member shall be an
elected official of a professional association of
barbers, hairdressers or cosmeticians or have been
such an official for one year immediately
preceding his appointment. Said board shall meet
at least once during each calendar quarter and at
such other times as the chairperson deems
necessary. Special meetings shall be held at the
request of a majority of the board after notice in
accordance with the provisions of section 1-21. A
MAJORITY OF THE MEMBERS OF THE BOARD SHALL
CONSTITUTE A QUORUM. Members shall not be
compensated for their services. Any member who
fails to attend three consecutive meetings or who
fails to attend fifty per cent of all meetings
held during any calendar year shall be deemed to
have resigned from office. Minutes of all meetings
shall be recorded by the board. No member shall
participate in the affairs of the board during the
pendency of any disciplinary proceedings by the
board against such member. Said board shall (1)
hear and decide matters concerning suspension or
revocation of licensure, (2) adjudicate complaints
filed against practitioners and (3) impose
sanctions where appropriate.
Sec. 16. Section 20-268 of the general
statutes is repealed and the following is
substituted in lieu thereof:
There shall be in the Department of Public
Health a Board of Examiners of Hypertrichologists,
composed of five members, one of whom shall be a
doctor of medicine licensed to practice medicine
and surgery in the state and a diplomate of the
American Board of Dermatology, two of whom shall
be public members and two of whom shall be
practicing hypertrichologists who are residents of
this state. The Governor shall appoint the members
of said board, subject to the provisions of
section 4-9a. Said board shall meet at least once
during each calendar quarter and at such other
times as the chairman deems necessary. Special
meetings shall be held on the request of a
majority of the board after notice in accordance
with the provisions of section 1-21. A MAJORITY OF
THE MEMBERS OF THE BOARD SHALL CONSTITUTE A
QUORUM. Members shall not be compensated for their
services. Any member who fails to attend three
consecutive meetings or who fails to attend fifty
per cent of all meetings held during any calendar
year shall be deemed to have resigned from office.
Minutes of all meetings shall be recorded by the
board. No member shall participate in the affairs
of the board during the pendency of any
disciplinary proceedings by the board against such
member. No professional member shall be an elected
or appointed officer of a professional society of
hypertrichologists or have been such an officer
during the year immediately preceding his
appointment. Said board shall (1) hear and decide
matters concerning suspension or revocation of
licensure, (2) adjudicate complaints against
practitioners and (3) impose sanctions where
appropriate.
Sec. 17. Section 4-230 of the general
statutes, as amended by section 5 of public act
97-238, is repealed and the following is
substituted in lieu thereof:
As used in sections 4-230 to 4-236, inclusive,
AS AMENDED BY THIS ACT:
(1) "Cognizant agency" means a state agency
which is assigned by the secretary the
responsibility for implementing the requirements
of sections 4-230 to 4-236, inclusive, AS AMENDED
BY THIS ACT;
(2) "Secretary" means the Secretary of the
Office of Policy and Management;
(3) "State financial assistance" means
assistance THAT A NONSTATE ENTITY RECEIVES OR
ADMINISTERS WHICH IS provided by a state agency OR
PASS-THROUGH ENTITY in the form of grants,
contracts, loans, loan guarantees, property,
cooperative agreements, interest subsidies,
insurance or direct appropriations, but does not
include direct state cash assistance to
individuals OR PAYMENTS TO A VENDOR;
(4) "State agency" means any department,
board, commission, institution or other agency of
the state;
(5) "Generally accepted accounting principles"
has the meaning specified in the generally
accepted [government] auditing standards ISSUED BY
THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC
ACCOUNTANTS (AICPA);
(6) "Generally accepted government auditing
standards" (GAGAS) means the GENERALLY ACCEPTED
GOVERNMENT AUDITING standards [for the audit of
governmental organizations, programs, activities,
and functions,] issued by the Comptroller General
of the United States THAT ARE APPLICABLE TO
FINANCIAL AUDITS;
(7) "Independent auditor" means [: (A) An
external state, municipal or audited agency
auditor who meets the independence standards
included in generally accepted government auditing
standards or (B)] a public accountant who IS
LICENSED TO PRACTICE IN THE STATE AND meets [such]
THE independence standards INCLUDED IN GENERALLY
ACCEPTED GOVERNMENT AUDITING STANDARDS;
(8) "Internal controls" means [the plan of
organization and methods and procedures adopted by
management to ensure that: (A) Resource use is
consistent with laws, regulations and policies,
(B) resources are safeguarded against waste, loss
and misuse and (C) reliable data are obtained,
maintained and fairly disclosed in reports] A
PROCESS, EFFECTED BY AN ENTITY'S BOARD OF
DIRECTORS, MANAGEMENT AND OTHER PERSONNEL,
DESIGNED TO PROVIDE REASONABLE ASSURANCE REGARDING
THE ACHIEVEMENT OF OBJECTIVES IN: (A) RELIABILITY
OF FINANCIAL REPORTING, (B) EFFECTIVENESS AND
EFFICIENCY OF OPERATIONS AND (C) COMPLIANCE WITH
APPLICABLE LAWS AND REGULATIONS;
(9) "Municipality" means a town, consolidated
town and city, consolidated town and borough, city
or borough, including a local board of education
as described in subsection (c) of section 7-392;
(10) "Audited agency" means a fire district,
fire and sewer district, sewer district or other
municipal utility, the Metropolitan District of
Hartford County, a regional board of education, a
regional planning agency, any other political
subdivision of similar character which is created
or any other agency created or designated by a
municipality to act for such municipality whose
average annual receipts from all sources exceed
two hundred thousand dollars or any tourism
district established under section 32-302, AS
AMENDED;
(11) "Nonprofit agency" means any organization
that is not a for-profit business and provides
services contracted for by (A) the state [, a
municipality or an audited agency] OR (B) A
NONSTATE ENTITY. [to its citizens.] It also means
private institutions of higher learning which
receive state financial assistance;
(12) "Major state [assistance] program" means
any program, EXCLUDING AN EXEMPT PROGRAM, for
which total expenditures of state financial
assistance by a [municipality, audited agency or
nonprofit agency] NONSTATE ENTITY during the
applicable year exceed the larger of (A) one
hundred thousand dollars or (B) one per cent of
the total amount of state financial assistance
expended, EXCLUDING EXPENDITURES OF AN EXEMPT
PROGRAM by the [municipality, audited agency or
nonprofit agency] NONSTATE ENTITY during the
audited year;
(13) "Public accountant" means an individual
who meets the [qualification] standards included
in generally accepted government auditing
standards for personnel performing government
audits AND THE LICENSING REQUIREMENTS OF THE STATE
BOARD OF ACCOUNTANCY;
(14) "Subrecipient" means [any person or
governmental] A NONSTATE entity that receives
state financial assistance [through a
municipality, audited agency or nonprofit agency]
FROM A PASS-THROUGH ENTITY, but does not include
an individual who receives such assistance;
(15) "TOURISM DISTRICT" MEANS A DISTRICT
ESTABLISHED UNDER SECTION 32-302, AS AMENDED;
(16) "NONSTATE ENTITY" MEANS A MUNICIPALITY,
TOURISM DISTRICT, AUDITED AGENCY OR NONPROFIT
AGENCY;
(17) "PASS-THROUGH ENTITY" MEANS A NONSTATE
ENTITY THAT PROVIDES STATE FINANCIAL ASSISTANCE TO
A SUBRECIPIENT;
(18) "PROGRAM-SPECIFIC AUDIT" MEANS AN AUDIT
OF A SINGLE STATE PROGRAM CONDUCTED IN ACCORDANCE
WITH THE REGULATIONS ADOPTED UNDER SECTION 4-236,
AS AMENDED;
(19) "EXPENDED" AND "EXPENDITURES" HAVE THE
MEANINGS ATTRIBUTED TO THOSE TERMS IN GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES, EXCEPT THAT (A)
STATE FINANCIAL ASSISTANCE RECEIVED WHO DOES NOT
SPECIFY A REQUIRED USE SHALL BE ASSUMED TO BE
FULLY EXPENDED IN THE FISCAL YEAR OF RECEIPT AND
(B) EXEMPT PROGRAMS SHALL BE ASSUMED TO BE
EXPENDED IN THE FISCAL YEAR THAT THE STATE
FINANCIAL ASSISTANCE IS RECEIVED;
(20) "EXEMPT PROGRAM" MEANS ANY OF THE
FOLLOWING PROGRAMS: EDUCATION COST SHARING,
PURSUANT TO SECTIONS 10-262f TO 10-262j,
INCLUSIVE; PUBLIC AND NONPUBLIC SCHOOL PUPIL
TRANSPORTATION, PURSUANT TO SECTIONS 10-54, 10-97,
10-266m, AS AMENDED, 10-273a, 10-277 AND 10-281;
SPECIAL EDUCATION, EXCESS COSTS EQUITY AND EXCESS
COSTS STUDENT-BASED, PURSUANT TO SUBSECTION (e) OF
SECTION 10-76d, SUBSECTIONS (a), (b) AND (c) OF
SECTION 10-76g AND SECTION 10-253; SCHOOL BUILDING
GRANTS -PRINCIPAL AND INTEREST SUBSIDY, PURSUANT
TO CHAPTER 173 AND SECTION 10-264h, AS AMENDED;
AND SCHOOL CONSTRUCTION GRANTS PURSUANT TO PUBLIC
ACT 97-265 AND PUBLIC ACT 97-11 OF THE JUNE 18
SPECIAL SESSION; AND
(21) "VENDOR" MEANS A DEALER, DISTRIBUTOR,
MERCHANT OR OTHER SELLER PROVIDING GOODS OR
SERVICES THAT ARE REQUIRED FOR THE CONDUCT OF A
STATE PROGRAM. SUCH GOODS OR SERVICES MAY BE FOR
AN ORGANIZATION'S OWN USE OR FOR THE USE OF
BENEFICIARIES OF THE STATE PROGRAM.
Sec. 18. Section 4-231 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) (1) [Each municipality and audited agency
which receives a total amount of combined federal
and state financial assistance equal to or in
excess of one hundred thousand dollars in any
fiscal year of such municipality or agency
beginning on or after July 1, 1992, shall have an
audit made for each such fiscal year in accordance
with the requirements of sections 4-230 to 4-236,
inclusive, and the requirements of the regulations
adopted pursuant to section 4-236. Each nonprofit
agency subject to the federal Single Audit Act,
Public Law 98-502, shall have the option of having
an audit made for each such fiscal year in
accordance with the requirements of sections 4-230
to 4-236, inclusive, and the requirements of the
regulations adopted pursuant to section 4-236.
Each nonprofit agency which is not subject to the
federal Single Audit Act, Public Law 98-502, and
which receives such amount of combined federal and
state financial assistance in any fiscal year of
the nonprofit agency beginning on or after July 1,
1994, shall have an audit made for each such year
in accordance with the requirements of sections
4-230 to 4-236, inclusive, and the requirements of
the regulations adopted pursuant to section 4-236.
Each nonprofit agency which is subject to the
federal Single Audit Act, Public Law 98-502, and
which receives such amount of combined federal and
state financial assistance in any fiscal year of
the nonprofit agency beginning on or after July 1,
1994, shall have an audit made for each such year
in accordance with the requirements of sections
4-230 to 4-236, inclusive, and the requirements of
the regulations adopted pursuant to section
4-236.] EACH NONSTATE ENTITY WHICH EXPENDS A TOTAL
AMOUNT OF STATE FINANCIAL ASSISTANCE EQUAL TO OR
IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS IN ANY
FISCAL YEAR OF SUCH NONSTATE ENTITY BEGINNING ON
OR AFTER JULY 1, 1998, SHALL HAVE EITHER A SINGLE
AUDIT OR A PROGRAM-SPECIFIC AUDIT MADE FOR SUCH
FISCAL YEAR, IN ACCORDANCE WITH THE PROVISIONS OF
SUBDIVISION (2) OR (3) OF THIS SUBSECTION AND THE
REQUIREMENTS OF REGULATIONS ADOPTED PURSUANT TO
SECTION 4-236, AS AMENDED BY SECTION 23 OF THIS
ACT. IF A PROVISION OF THE GENERAL STATUTES OR AN
ADMINISTRATIVE RULE, REGULATION, GUIDELINE,
STANDARD OR POLICY, WHICH IS EFFECTIVE ON JULY 1,
1992, REQUIRES A NONSTATE ENTITY TO CONDUCT A
BIENNIAL AUDIT, THE AUDIT REQUIRED UNDER THIS
SECTION SHALL BE CONDUCTED ON THE SAME BIENNIAL
BASIS AND SHALL COVER BOTH YEARS OF THE BIENNIAL
PERIOD.
(2) [Each municipality and audited agency
which receives a total amount of combined federal
and state financial assistance equal to or in
excess of twenty-five thousand dollars but less
than one hundred thousand dollars in any fiscal
year of such municipality or agency beginning on
or after July 1, 1992, shall: (A) Have an audit
made for such fiscal year in accordance with the
requirements of sections 4-230 to 4-236,
inclusive, and the requirements of the regulations
adopted pursuant to section 4-236 or (B) comply
with any applicable requirements concerning
financial or financial and compliance audits
contained in the general statutes and regulations
governing programs under which such state
financial assistance is provided to such
municipality, audited agency or nonprofit agency.
Each nonprofit agency which receives such an
amount of combined federal and state financial
assistance in any fiscal year of the nonprofit
agency beginning on or after July 1, 1994, shall
have such an audit made for such fiscal year or
shall comply with any such applicable requirements
concerning financial or financial and compliance
audits.] IF THE TOTAL AMOUNT OF STATE FINANCIAL
ASSISTANCE EXPENDED IN ANY SUCH FISCAL YEAR IS FOR
A SINGLE PROGRAM, SUCH NONSTATE ENTITY MAY ELECT
TO HAVE A PROGRAM-SPECIFIC AUDIT MADE IN LIEU OF A
SINGLE AUDIT.
(3) [Notwithstanding any provision of the
general statutes, each municipality, audited
agency and nonprofit agency that receives a total
amount of combined federal and state financial
assistance which is less than twenty-five thousand
dollars in any fiscal year of such municipality or
agency shall be exempt for such fiscal year from
compliance with any applicable requirements
concerning financial or financial and compliance
audits contained in the general statutes or
regulations adopted thereunder, governing programs
under which such financial assistance is provided
to such municipality or agency. Nothing herein
shall exempt a municipality, audited agency or
nonprofit agency from compliance with any
provision of the general statutes or regulations
adopted thereunder, that requires the municipality
or agency to maintain records concerning state
financial assistance provided to the municipality
or agency or that permits a state agency or the
Auditors of Public Accounts access to such
records.] IF THE TOTAL AMOUNT OF STATE FINANCIAL
ASSISTANCE EXPENDED IN ANY SUCH FISCAL YEAR IS FOR
MORE THAN ONE PROGRAM, SUCH ENTITY SHALL HAVE A
SINGLE AUDIT MADE FOR SUCH FISCAL YEAR.
(b) [For the purposes of this section, a
municipality, audited agency or nonprofit agency
shall be deemed to receive state financial
assistance whether such assistance is received
directly from a state agency or indirectly through
another municipality, audited agency or nonprofit
agency.] NOTWITHSTANDING ANY PROVISION OF THE
GENERAL STATUTES OR ANY REGULATION ADOPTED UNDER
ANY PROVISION OF THE GENERAL STATUTES, EACH
NONSTATE ENTITY THAT EXPENDS TOTAL STATE FINANCIAL
ASSISTANCE OF LESS THAN ONE HUNDRED THOUSAND
DOLLARS IN ANY FISCAL YEAR OF SUCH NONSTATE ENTITY
BEGINNING ON OR AFTER JULY 1, 1998, SHALL BE
EXEMPT WITH RESPECT TO SUCH YEAR FROM COMPLYING
WITH ANY STATUTORY OR REGULATORY REQUIREMENTS
CONCERNING FINANCIAL OR FINANCIAL AND COMPLIANCE
AUDITS THAT WOULD OTHERWISE BE APPLICABLE.
(c) [The audits required by subsection (a) of
this section shall be conducted annually, unless a
provision of the general statutes or
administrative rules, regulations, guidelines,
standards or policies, in effect on July 1, 1992,
requires the municipality, audited agency or
nonprofit agency to conduct such audits
biennially. Biennial audits shall cover both years
within the biennial period.] NO PROVISION OF THIS
SECTION SHALL BE DEEMED TO EXEMPT A NONSTATE
ENTITY FROM COMPLYING WITH ANY STATUTORY OR
REGULATORY PROVISION REQUIRING THE ENTITY TO (1)
MAINTAIN RECORDS CONCERNING STATE FINANCIAL
ASSISTANCE OR (2) PROVIDE ACCESS TO SUCH RECORDS
TO A STATE AGENCY.
Sec. 19. Section 4-232 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) Each [municipality, audited agency and
nonprofit agency] NONSTATE ENTITY which is
required to be audited pursuant to sections 4-230
to 4-236, inclusive, AS AMENDED BY THIS ACT, shall
designate an independent auditor to conduct such
audit. Not later than thirty days before the end
of the fiscal period for which the audit is
required, the [municipality or agency] NONSTATE
ENTITY shall file the name of such auditor with
the cognizant agency. [for the municipality or
agency, for its approval. No such approval shall
be required if the auditor conducted the audit for
the municipality or agency for the preceding
fiscal year, unless the cognizant agency has
notified the municipality or agency that it would
not approve the auditor.] If a [municipality or
agency] NONSTATE ENTITY fails to make such filing,
the cognizant agency may designate an independent
auditor to conduct the audit.
(b) (1) UPON THE COMPLETION OF THE AUDIT,
PURSUANT TO SECTIONS 4-230 TO 4-236, INCLUSIVE, AS
AMENDED BY THIS ACT, THE NONSTATE ENTITY SHALL
FILE COPIES OF THE AUDIT REPORT WITH STATE GRANTOR
AGENCIES, THE COGNIZANT AGENCY AND IF APPLICABLE,
PASS-THROUGH ENTITIES. ONCE FILED, SUCH REPORT
SHALL BE MADE AVAILABLE BY THE NONSTATE ENTITY FOR
PUBLIC INSPECTION. COPIES OF THE REPORT SHALL BE
FILED NOT LATER THAN THIRTY DAYS AFTER COMPLETION
OF SUCH REPORT, IF POSSIBLE, BUT NOT LATER THAN
SIX MONTHS AFTER THE END OF THE AUDIT PERIOD. THE
COGNIZANT AGENCY MAY GRANT AN EXTENSION OF NOT
MORE THAN THIRTY DAYS, IF THE AUDITOR MAKING THE
AUDIT AND THE CHIEF EXECUTIVE OFFICER OF THE
NONSTATE ENTITY JOINTLY SUBMIT A REQUEST IN
WRITING TO THE COGNIZANT AGENCY STATING THE
REASONS FOR SUCH EXTENSION AT LEAST THIRTY DAYS
PRIOR TO THE END OF SUCH SIX-MONTH PERIOD. IF THE
REASON FOR THE EXTENSION RELATES TO DEFICIENCIES
IN THE ACCOUNTING SYSTEM OF THE NONSTATE ENTITY,
THE REQUEST SHALL BE ACCOMPANIED BY A CORRECTIVE
ACTION PLAN. THE COGNIZANT AGENCY MAY, AFTER A
HEARING WITH THE AUDITOR AND OFFICIALS OF THE
NONSTATE ENTITY, GRANT AN ADDITIONAL EXTENSION IF
CONDITIONS WARRANT.
(2) ANY NONSTATE ENTITY, OR AUDITOR OF SUCH
NONSTATE ENTITY, WHICH FAILS TO HAVE THE AUDIT
REPORT FILED ON ITS BEHALF WITHIN SIX MONTHS AFTER
THE END OF THE FISCAL YEAR OR WITHIN THE TIME
GRANTED BY THE COGNIZANT AGENCY MAY BE ASSESSED,
BY THE SECRETARY OF THE OFFICE OF POLICY AND
MANAGEMENT, A CIVIL PENALTY OF NOT LESS THAN ONE
THOUSAND DOLLARS BUT NOT MORE THAN TEN THOUSAND
DOLLARS. IN ADDITION TO, OR IN LIEU OF SUCH
PENALTY, THE COGNIZANT AGENCY MAY ASSIGN AN
AUDITOR TO PERFORM THE AUDIT OF SUCH NONSTATE
ENTITY. IN SUCH CASE, THE NONSTATE ENTITY SHALL BE
RESPONSIBLE FOR THE COSTS RELATED TO THE AUDIT.
THE SECRETARY MAY, UPON RECEIPT OF A WRITTEN
REQUEST FROM AN OFFICIAL OF THE NONSTATE ENTITY OR
ITS AUDITOR, WAIVE ALL SUCH PENALTIES IF THE
SECRETARY DETERMINES THAT THERE APPEARS TO BE
REASONABLE CAUSE FOR THE ENTITY NOT HAVING
COMPLETED OR PROVIDED THE REQUIRED AUDIT REPORT.
Sec. 20. Section 4-233 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) Each audit required by sections 4-230 to
4-236, inclusive, AS AMENDED BY THIS ACT, shall:
(1) Be conducted in accordance with generally
accepted government auditing standards, except
that, for the purposes of said sections such
standards shall not be construed to require
economy and efficiency audits, program results
audits, or program evaluations; and
(2) [Cover] EXCEPT IN THE CASE OF
PROGRAM-SPECIFIC AUDITS, COVER the entire
operations, including financial operations, of the
[municipality, audited agency or nonprofit agency]
NONSTATE ENTITY, except that such audit may
exclude public hospitals.
(b) Each such audit shall determine and report
whether: (1) The financial statements of the
[municipality or agency present fairly its
financial position and the results of its
financial operations in accordance] NONSTATE
ENTITY ARE PRESENTED FAIRLY IN ALL MATERIAL
RESPECTS IN CONFORMITY with generally accepted
accounting principles; [(2) the municipality or
agency has complied with laws and regulations that
may have a material effect upon the financial
statements; (3) the municipality or agency has
internal control systems to provide reasonable
assurance that it is managing state financial
assistance programs in compliance with applicable
laws and regulations;] (2) THE SCHEDULE OF
EXPENDITURES OF STATE FINANCIAL ASSISTANCE OF THE
NONSTATE ENTITY IS PRESENTED FAIRLY IN ALL
MATERIAL RESPECTS IN RELATION TO THE FINANCIAL
STATEMENTS TAKEN AS A WHOLE; (3) IN ADDITION TO
THE REQUIREMENTS OF GENERALLY ACCEPTED GOVERNMENT
AUDITING STANDARDS, THE AUDITOR HAS PERFORMED
PROCEDURES TO OBTAIN AN UNDERSTANDING OF INTERNAL
CONTROL OVER STATE PROGRAMS SUFFICIENT TO (A) PLAN
THE AUDIT TO SUPPORT A LOW ASSESSED LEVEL OF
CONTROL RISK FOR MAJOR STATE PROGRAMS, (B) PLAN
THE TESTING OF INTERNAL CONTROL OVER MAJOR STATE
PROGRAMS TO SUPPORT A LOW ASSESSED LEVEL OF
CONTROL RISK FOR THE ASSERTIONS RELEVANT TO THE
COMPLIANCE REQUIREMENT FOR EACH MAJOR STATE
PROGRAM, AND (C) PERFORM TESTING OF INTERNAL
CONTROLS; and (4) the [municipality or agency]
NONSTATE ENTITY has complied with laws, [and]
regulations AND GRANT OR CONTRACT PROVISIONS that
may have a material effect upon INDIVIDUAL
COMPLIANCE REQUIREMENTS FOR each major state
[assistance] program. In complying with the
requirements of subdivision (4) of this
subsection, the independent auditor shall select
and test a representative number of transactions
from each major state [assistance] program. Each
audit report shall identify which programs were
tested for compliance.
(c) (1) [Transactions selected from state
assistance programs, other than major state
assistance programs, shall be tested for
compliance with state laws and regulations that
apply to such transactions. Any noncompliance
found in such transactions by the independent
auditor in making determinations required by this
subsection shall be reported in the audit.] WHEN
THE TOTAL EXPENDITURES OF A NONSTATE ENTITY'S
MAJOR STATE PROGRAMS ARE LESS THAN FIFTY PER CENT
OF SUCH NONSTATE ENTITY'S TOTAL EXPENDITURES OF
STATE FINANCIAL ASSISTANCE, EXCLUDING EXEMPT
PROGRAM EXPENDITURES, THE INDEPENDENT AUDITOR
SHALL SELECT AND TEST ADDITIONAL PROGRAMS AS MAJOR
STATE PROGRAMS AS MAY BE NECESSARY TO ACHIEVE
AUDIT COVERAGE OF AT LEAST FIFTY PER CENT OF THE
NONSTATE ENTITY'S TOTAL EXPENDITURES OF STATE
FINANCIAL ASSISTANCE, EXCLUDING EXEMPT PROGRAM
EXPENDITURES. THE PROVISIONS OF THIS SUBSECTION
SHALL BE CARRIED OUT IN ACCORDANCE WITH THE
REGULATIONS ADOPTED PURSUANT TO SECTION 4-236, AS
AMENDED BY SECTION 23 OF THIS ACT, AND SHALL BE
SUBJECT TO THE PROVISIONS OF SUBDIVISION (2) OF
THIS SUBSECTION.
(2) IN ACHIEVING THE AUDIT COVERAGE IN
ACCORDANCE WITH SUBDIVISION (1) OF THIS
SUBSECTION, NO MORE THAN TWO PROGRAMS WHICH EACH
HAVE TOTAL STATE FINANCIAL ASSISTANCE EXPENDITURES
OF TWENTY-FIVE THOUSAND DOLLARS OR MORE BUT NOT
MORE THAN ONE HUNDRED THOUSAND DOLLARS SHALL BE
TESTED, IF SUCH PROGRAMS ARE REQUIRED TO BE TESTED
TO ACHIEVE THE AUDIT COVERAGE OF SUBDIVISION (1)
OF THIS SUBSECTION.
[(d) The number of transactions selected and
tested under subsections (b) and (c) of this
section, the selection and testing of such
transactions, and the determinations required by
said subsections shall be based on the
professional judgment of the independent auditor.
(e) (1) Each municipality, audited agency and
nonprofit agency which is subject to the audit
requirements of sections 4-230 to 4-236,
inclusive, receives state financial assistance and
provides twenty-five thousand dollars or more of
such assistance in any fiscal year to a
subrecipient shall: (A) If the subrecipient
conducts an audit in accordance with the
requirements of said sections, review such audit
and ensure that prompt and appropriate corrective
action is taken on instances of material
noncompliance with applicable laws and regulations
with respect to state financial assistance
provided to the subrecipient by the municipality
or agency; or (B) if the subrecipient does not
conduct an audit in accordance with the
requirements of said sections: (i) Determine
whether the expenditures of state financial
assistance provided to the subrecipient by the
municipality or agency are in accordance with
applicable laws and regulations and (ii) ensure
that prompt and appropriate corrective action is
taken in instances of material noncompliance with
applicable laws and regulations with respect to
such state financial assistance.
(2) Each such municipality, audited agency and
nonprofit agency shall require each subrecipient
of state assistance through such municipality or
agency to permit, as a condition of receiving such
assistance, the independent auditor of the
municipality or agency to have such access to the
subrecipient's records and financial statements as
may be necessary for the municipality or agency to
comply with sections 4-230 to 4-236, inclusive.
(f) The report made on any audit conducted
pursuant to this section shall, within thirty days
after completion of such report but no later than
six months after the end of the audit period,
unless a longer period is agreed to with the
cognizant agency, be transmitted to the
appropriate state officials and made available by
the municipality, audited agency or nonprofit
agency for public inspection.
(g) If an audit conducted pursuant to this
section finds any material noncompliance with
applicable laws and regulations by, or material
weakness in the internal controls of, the
municipality, audited agency or nonprofit agency
with respect to the matters described in
subsection (b) of this section, the municipality
or agency shall submit to appropriate state
officials a plan for corrective action to
eliminate such material noncompliance or weakness
or a statement describing the reasons why
corrective action is not necessary.]
(d) IF AN AUDIT CONDUCTED PURSUANT TO THIS
SECTION FINDS ANY MATERIAL NONCOMPLIANCE BY A
NONSTATE ENTITY WITH APPLICABLE LAWS, REGULATIONS
AND GRANT OR CONTRACT PROVISIONS, OR FINDS ANY
REPORTABLE CONDITION OR MATERIAL WEAKNESS WITH
RESPECT TO THE INTERNAL CONTROLS OF THE NONSTATE
ENTITY CONCERNING THE MATTERS DESCRIBED IN
SUBSECTION (b) OF THIS SECTION, THE NONSTATE
ENTITY SHALL SUBMIT TO APPROPRIATE STATE OFFICIALS
A PLAN FOR CORRECTIVE ACTION TO ELIMINATE SUCH
MATERIAL NONCOMPLIANCE, REPORTABLE CONDITION OR
MATERIAL WEAKNESS.
Sec. 21. Section 4-234 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) An audit conducted in accordance with
sections 4-230 to 4-236, inclusive, AS AMENDED BY
THIS ACT, shall be in lieu of any financial or
financial and compliance audit of [an individual]
state FINANCIAL assistance [program] PROGRAMS
which a [municipality, audited agency or nonprofit
agency] NONSTATE ENTITY is required to conduct
under any other state law or regulation. To the
extent that such audit provides a state agency
with the information it requires to carry out its
responsibilities under state law or regulations, a
state agency shall rely upon and use such
information and plan and conduct its own audits
accordingly in order to avoid a duplication of
effort.
(b) Notwithstanding the provisions of
subsection (a) of this section, a state agency
shall conduct any additional audits which it deems
necessary to carry out its responsibilities, upon
a written determination by the executive authority
of the agency, based on evidence of fiscal
irregularities or noncompliance with applicable
laws and regulations, and after consulting with
the cognizant agency. The provisions of sections
4-230 to 4-236, inclusive, AS AMENDED BY THIS ACT,
do not authorize a cognizant agency or any
[municipality, audited agency or nonprofit agency]
NONSTATE ENTITY, or any subrecipient thereof, to
constrain, in any manner, such state agency from
carrying out such additional audits. As used in
this subsection and subsection (d) of this
section, "executive authority" shall be construed
as defined in section 4-37e.
(c) The provisions of sections 4-230 to 4-236,
inclusive, AS AMENDED BY THIS ACT, do not (1)
limit the authority of state agencies to conduct,
or enter into contracts for the conduct of, audits
and evaluations of state financial assistance
programs or (2) limit the authority of any state
agency auditor or other state audit official.
(d) A state agency that performs or contracts
for audits in addition to the audits conducted for
recipients of state financial assistance pursuant
to sections 4-230 to 4-236, inclusive, AS AMENDED
BY THIS ACT, shall, consistent with other
applicable law, pay for the cost of such
additional audits. Such additional audits may
include, but shall not be limited to, economy and
efficiency audits, program results audits and
program evaluations. The state agency shall use
the results of the single audit as a basis for any
additional requirements, and shall not duplicate
the single audit unless the executive authority of
such agency determines in writing that such
duplication is necessary.
[(e) Audits of recipients of state financial
assistance which are required pursuant to sections
4-230 to 4-236, inclusive, shall be conducted in
conjunction with the federal Single Audit Act,
Public Law 98-502, as from time to time amended.]
Sec. 22. Section 4-235 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) The secretary shall designate cognizant
agencies for audits conducted pursuant to sections
4-230 to 4-236, inclusive, AS AMENDED BY THIS ACT.
(b) A cognizant agency shall: [, in
conjunction with the federal cognizant agency
designated pursuant to the federal Single Audit
Act, Public Law 98-502, as from time to time
amended, if one is involved:] (1) Ensure THROUGH
COORDINATION WITH STATE AGENCIES, that audits are
made in a timely manner and in accordance with the
requirements of sections 4-230 to 4-236,
inclusive, AS AMENDED BY THIS ACT; (2) ensure that
[the audit reports and] corrective action plans
made pursuant to section 4-233 are transmitted to
the appropriate state officials; and (3) (A)
coordinate, to the extent practicable, audits done
by or under contract with state agencies that are
in addition to the audits conducted pursuant to
sections 4-230 to 4-236, inclusive, AS AMENDED BY
THIS ACT; and (B) ensure that such additional
audits build upon the audits conducted pursuant to
said sections.
(c) (1) EACH PASS-THROUGH ENTITY WHICH IS
SUBJECT TO THE AUDIT REQUIREMENTS OF SECTIONS
4-230 TO 4-236, INCLUSIVE, AS AMENDED BY THIS ACT,
SHALL:
(A) ADVISE SUBRECIPIENTS OF REQUIREMENTS
IMPOSED ON THEM BY STATE LAWS, REGULATIONS, AND
THE PROVISIONS OF CONTRACTS OR GRANT AGREEMENTS,
AND ANY SUPPLEMENTAL REQUIREMENTS IMPOSED BY THE
PASS-THROUGH ENTITY;
(B) IF THE SUBRECIPIENT IS SUBJECT TO AN AUDIT
IN ACCORDANCE WITH THE REQUIREMENTS OF SAID
SECTIONS 4-230 TO 4-236, INCLUSIVE, REVIEW SUCH
AUDIT AND ENSURE THAT PROMPT AND APPROPRIATE
CORRECTIVE ACTION IS TAKEN WITH RESPECT TO
MATERIAL FINDINGS OF NONCOMPLIANCE WITH INDIVIDUAL
COMPLIANCE REQUIREMENTS OR REPORTABLE CONDITIONS
OR MATERIAL WEAKNESSES IN INTERNAL CONTROLS
PERTAINING TO STATE FINANCIAL ASSISTANCE PROVIDED
TO THE SUBRECIPIENT BY THE PASS-THROUGH ENTITY; OR
(C) IF THE SUBRECIPIENT IS NOT SUBJECT TO AN
AUDIT IN ACCORDANCE WITH THE REQUIREMENTS OF SAID
SECTIONS 4-230 TO 4-236, INCLUSIVE, MONITOR THE
ACTIVITIES OF SUBRECIPIENTS AS NECESSARY TO ENSURE
THAT STATE FINANCIAL ASSISTANCE IS USED FOR
AUTHORIZED PURPOSES IN COMPLIANCE WITH LAWS,
REGULATIONS, AND THE PROVISIONS OF CONTRACTS OR
GRANT AGREEMENTS.
(2) EACH PASS-THROUGH ENTITY, AS A CONDITION
OF RECEIVING STATE FINANCIAL ASSISTANCE, SHALL
REQUIRE EACH OF ITS SUBRECIPIENTS TO PERMIT THE
INDEPENDENT AUDITOR OF THE PASS-THROUGH ENTITY TO
HAVE SUCH ACCESS TO THE SUBRECIPIENT'S RECORDS AND
FINANCIAL STATEMENTS AS MAY BE NECESSARY FOR THE
PASS-THROUGH ENTITY TO COMPLY WITH SECTIONS 4-230
TO 4-236, INCLUSIVE, AS AMENDED BY THIS ACT.
Sec. 23. Section 4-236 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) The secretary shall, in consultation with
the Auditors of Public Accounts, appropriate state
[, municipal and audited agency] officials and
representatives of [nonprofit agencies] NONSTATE
ENTITIES, adopt regulations pursuant to the
provisions of chapter 54 to implement the
provisions of sections 4-230 to 4-236, inclusive,
AS AMENDED BY THIS ACT. [The regulations shall
include criteria for determining the appropriate
charges to programs of state financial assistance
for the cost of audits. Such criteria shall
prohibit a municipality, audited agency or
nonprofit agency which is required to conduct an
audit pursuant to sections 4-230 to 4-236,
inclusive, from charging to any such program (1)
the cost of any financial or financial and
compliance audit which is not conducted in
accordance with the provisions of said sections
and (2) more than a reasonably proportionate share
of the cost of any such audit that is conducted in
accordance with the provisions of said sections.
Such criteria shall not, in the absence of
documentation demonstrating a higher actual cost,
permit (A) the ratio of (i) the total charges by a
municipality, audited agency or nonprofit agency
to state financial assistance programs for the
cost of audits performed pursuant to said sections
to (ii) the total cost of such audits, to exceed
(B) the ratio of (i) total state financial
assistance expended by such municipality or agency
during the applicable fiscal year or years to (ii)
such municipality's or agency's total expenditures
during such fiscal year or years.]
(b) The secretary shall also adopt
regulations, in accordance with the provisions of
chapter 54, concerning the recovery of grant funds
based on audit findings, as the secretary deems
appropriate for any grantee which is found as a
result of an audit to not be in compliance with
the standards established pursuant to section
4-233.
Sec. 24. This act shall take effect from its
passage and shall be applicable to audits
conducted for fiscal years commencing on and after
July 1, 1998, except that sections 1 to 16,
inclusive, shall take effect July 1, 1998.
Approved June 4, 1998