PRIOR PRINTER'S NO. 85

PRINTER'S NO. 3490

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

117

Session of

2021

INTRODUCED BY RYAN, STAATS, KAUFFMAN, RAPP, JONES, GROVE, ROWE,

B. MILLER, JAMES, MOUL AND KEEFER, JANUARY 11, 2021

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

standards.

The General Assembly finds and declares as follows:

General should attain the proper professional certifications

necessary to conduct the various types of audits that the

position of auditor requires.

General should comply with the standards instituted by the

organizations governing the profession and should protect

taxpayer resources and ensure that audits conducted by the

General Employee Qualification Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Certified fraud examiner." An individual who has satisfied

the requirements of the Association of Certified Fraud Examiners

to become a certified fraud examiner.

"Certified public accountant." The term shall have the same

meaning as defined in the act of May 26, 1947 (P.L.318, No.140),

known as the CPA Law.

information for the purposes of proving or disproving whether

fraudulent activity has occurred.

"Qualified forensic auditor." An individual who is a

certified public accountant and a certified fraud examiner.

"Qualified fraud auditor." A certified fraud examiner.

"State agency." An office, department, authority, board or

commission of the executive branch.

Section 3. Auditor qualifications.

Department employees conducting an audit shall be adequately

qualified to conduct the type of audit involved. Employees shall

fraud auditors.

Section 4. New department employees.

An employee hired by the department after the effective date

of this section may not conduct audits or participate in the

auditing process of audits for which the employee is not

qualified under section 3.

Section 5. Current department employees.

A department employee hired prior to the effective date of

this section shall be permitted to continue conducting the same

type of audits which the employee conducted prior to the

obtain a certification under section 3.

collaborate with an employee to ensure that the employee has

adequate time and resources to complete a certification.

professional education.

Section 7. Forensic audits.

(a) Department forensic audits.--The NOTWITHSTANDING ANY

OTHER PROVISION OF LAW TO THE CONTRARY, THE department may

FEDERAL AND STATE FUNDING SOURCES if any of the following occur:

department may appoint a qualified forensic auditor not

currently employed by the Commonwealth to perform the

forensic audit, and the requesting State agency shall be

responsible for the cost incurred by the performance of the

forensic audit.

performing an audit on an entity, that sufficient records or

information are not available to complete the audit.

forensic audit to the Governor, the chairperson and minority

chairperson of the Appropriations Committee of the Senate and

the chairperson and minority chairperson of the

Appropriations Committee of the House of Representatives. AND

TO EACH MEMBER OF THE GENERAL ASSEMBLY.

criminal activity, the department shall provide the results

to the Office of Attorney General.

Section 8. Fraud audits.

(a) Department fraud audits.--The NOTWITHSTANDING ANY OTHER

requested by a State agency, the department may appoint a

qualified fraud auditor not currently employed by the

Commonwealth to perform the fraud audit, and the requesting

State agency shall be responsible for the cost incurred in

the performance of the fraud audit.

performing an audit on an entity, that fraudulent activity or

other criminal activity may have occurred.

chairperson or minority chairperson of the Appropriations

chairperson of the Appropriations Committee of the Senate and

the chairperson and minority chairperson of the

Appropriations Committee of the House of Representatives. AND

TO EACH MEMBER OF THE GENERAL ASSEMBLY.

criminal activity, the department shall provide the results

to the Office of Attorney General.

Section 9. Committee standards.

When conducting audits, the department may use, as a guide,

the standards and best practices specified by the Committee of

REQUIRING THE ATTENDANCE OF WITNESSES AND THE PRODUCTION OF

BOOKS, ACCOUNTS, PAPERS, RECORDS, DOCUMENTS AND FILES AND MAY

EXAMINE THE WITNESSES AND DOCUMENTS. ISSUANCE OF SUBPOENAS DOES

NOT PREVENT OR REPEAL OTHER POWERS GRANTED UNDER LAW TO THE

AUDITOR GENERAL.

(B) SERVICE OF SUBPOENAS.--A SUBPOENA ISSUED UNDER

SUBSECTION (A) MAY BE SERVED BY THE AUDITOR GENERAL, A

DESIGNATED REPRESENTATIVE FROM THE DEPARTMENT, THE ATTORNEY

GENERAL OR A SHERIFF OF THE COUNTY WHERE THE PERSON OR PERSONS

RESIDE. SUBPOENAS MAY BE SERVED IN PERSON OR BY CERTIFIED MAIL.

(C) ENFORCEMENT.--IF A PERSON OR ENTITY FAILS TO COMPLY WITH

BOOKS, ACCOUNTS, PAPERS, RECORDS, DOCUMENTS AND FILES WITHIN NO

LATER THAN 10 DAYS OF THE ORDER.

(D) CONFIDENTIALITY.--INFORMATION GATHERED THROUGH THE

SUBPOENA POWER UNDER THIS SECTION IS NOT ACCESSIBLE UNDER THE

ACT OF FEBRUARY 14, 2008 (P.L.6, NO.3), KNOWN AS THE RIGHT-TO-

KNOW LAW, FROM THE DEPARTMENT AND MAY NOT BE DISCLOSED BY THE

DEPARTMENT ABSENT AN ORDER FROM THE COMMONWEALTH COURT OR OTHER

COURT OF RECORD.

Section 10 11. Construction.

Nothing in this act may be construed to prohibit the