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Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20170&cosponId=23859
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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted: May 9, 2017 09:59 AM
From: Representative Stephen Kinsey
To: All House members
Subject: Auditor General to Audit County and Municipal Authorities
 
In the near future, I plan to introduce legislation that would authorize the Auditor General to conduct audits of local authorities.

Currently, Pennsylvania has roughly 2,000 authorities – created by local governments – that manage public assets such as water and sewer systems, airports and public parking facilities. Authorities have to pay to operate and maintain these public assets, sometimes generating hundreds of millions of dollars through issuing debt and increasing rates. Despite these entities receiving significant tax dollars from both state and local governments, they do not fall under the oversight of the Auditor General. The Auditor General currently audits public pension funds, local governments, school districts, even entire state departments and commissions, but not municipal authorities.

During state budget hearings in 2016, Auditor General Eugene DePasquale stated that his office must deny the overwhelming majority of requests to audit local authorities’ accounts because his office is not authorized to handle them. As these accounts are only audited by a firm of the board’s choosing, I believe transferring this authority to the Auditor General will ensure the best use of their funds and will serve to deter any potential misuse or misallocation of funds.

My legislation, which mirrors Senator Stefano and Senator Ward’s SB 1223 from the 2015-2016 Legislative Session, would transfer the authority from the Attorney General to the Auditor General to examine and audit the books, accounts, records and performances of any county and municipal authority.

Please join me in co-sponsoring this important legislation.



Introduced as HB1713