A. The Legislative Office of Fiscal Transparency shall:
1. Gather information regarding the proposed budgets of executive branch agencies each fiscal year;
2. Analyze the information and evaluate the extent to which the agency budget does or does not fulfill the agency's primary duties and responsibilities under applicable provisions of federal, state or other law;
3. Analyze and forecast all revenues available to the agency from appropriations, fees, dedicated revenue or any other source;
4. Compare the agency budget information to the comparable information contained in that agency's budget requests from prior fiscal years; and
5. Conduct such investigations regarding the operations of the agency as required in order to fulfill the duties imposed upon the Office by law or as otherwise directed by the oversight committee.
The oversight committee, subject to the direction of the President Pro Tempore of the Senate and the Speaker of the House of Representatives, shall ensure that the functions performed by the Office pursuant to the provisions of this subsection do not duplicate those of the Senate Committee on Appropriations and the House Committee on Appropriations and Budget and their respective staffs.
B. The Office shall further conduct performance evaluations and may conduct independent comprehensive performance audits. The oversight committee created in Section 3 of this act may periodically identify specific executive branch agencies, or programs, activities or functions within executive branch agencies, for which the Office shall conduct a performance evaluation or independent comprehensive performance audit.
C. As used in this act, "performance evaluation" means an examination of a program, activity or function of an executive branch agency, conducted in accordance with applicable government auditing standards or auditing and evaluation standards of other appropriate authoritative bodies. The term includes, but is not limited to, an examination of issues related to:
1. Economy, efficiency or effectiveness of the agency or program, including any revenue sources used to fund or support the agency or program;
2. Structure or design of the agency or program to accomplish its goals and objectives;
3. Adequacy of the agency or program to meet the needs or policy goals identified by the Legislature;
4. Alternative methods of providing agency or program services or products;
5. Goals, objectives and performance measures used by the agency to monitor and report agency or program accomplishments;
6. The accuracy or adequacy of public documents, reports or requests prepared by or in relation to the agency or program;
7. Compliance with appropriate policies, rules or laws related to the agency or program; and
8. Any other issues related to such agencies or programs as directed by the oversight committee.
D. As used in this act, "independent comprehensive performance audit (ICPA)" includes, but is not limited to, a review and analysis of the economy, efficiency, effectiveness and compliance of the policies, management, fiscal affairs and operations of state agencies, divisions, programs and accounts. The results of an ICPA may be used by the Legislature to implement the best budgeting and policy-making practices for government services to run in the most cost-effective way. The Office may, at the direction of the oversight committee and subject to the approval of the President Pro Tempore of the Senate and the Speaker of the House of Representatives, contract with a private company, nonprofit organization or academic institution to assist with an independent comprehensive performance audit or for professional consulting and administrative support services. The Office may, but shall not be required to, contract with the Office of the State Auditor and Inspector to conduct any ICPA. The Office shall develop the scope of services for a request for proposals issued, for professional services necessary to complete each ICPA. Prior to entering into any contract, the Office shall obtain no less than three separate bids for the auditing services, unless the Office determines that fewer than three entities meet the qualifications to bid to perform such services as set forth by the Office. The cost of the contract shall be paid by the Legislative Services Bureau.
An independent comprehensive performance audit shall address but not be limited to the following topics:
1. Policies which shall include constitutional mandates, if any, statutory mandates, statutory authorizations, administrative rules or policies of the affected agency reflected in internal agency documents or agency practices;
2. All sources of funding received by the agency, inclusive of federal funds, state appropriations, state-dedicated revenues, fee revenue sources, the use of agency revolving funds or any other fund or revenue source which is used to pay the expenses of the agency;
3. Management of the agency which shall include, but not be limited to, its governance, capacity, divisions, programs, accounts, information technology systems and policies and agency operations which include objective analysis of the roles and functions of the department; and
4. A schedule for implementation of agency-specific recommendations.
Added by Laws 2019, c. 451, § 2, emerg. eff. May 24, 2019.