Pennsylvania HB 2052: An Act amending the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, providing for internal auditing; and imposing duties on the Auditor General.

Bill Text

PRINTER'S NO. 2630
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2052
Session of
2025
INTRODUCED BY GROVE, NOVEMBER 19, 2025
REFERRED TO COMMITTEE ON APPROPRIATIONS, NOVEMBER 19, 2025
AN ACT
Amending the act of April 9, 1929 (P.L.177, No.175), entitled
"An act providing for and reorganizing the conduct of the
executive and administrative work of the Commonwealth by the
Executive Department thereof and the administrative
departments, boards, commissions, and officers thereof,
including the boards of trustees of State Normal Schools, or
Teachers Colleges; abolishing, creating, reorganizing or
authorizing the reorganization of certain administrative
departments, boards, and commissions; defining the powers and
duties of the Governor and other executive and administrative
officers, and of the several administrative departments,
boards, commissions, and officers; fixing the salaries of the
Governor, Lieutenant Governor, and certain other executive
and administrative officers; providing for the appointment of
certain administrative officers, and of all deputies and
other assistants and employes in certain departments, boards,
and commissions; providing for judicial administration; and
prescribing the manner in which the number and compensation
of the deputies and all other assistants and employes of
certain departments, boards and commissions shall be
determined," providing for internal auditing; and imposing
duties on the Auditor General.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of April 9, 1929 (P.L.177, No.175), known
as The Administrative Code of 1929, is amended by adding an
article to read:
ARTICLE XXVIII-J
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INTERNAL AUDITING
Section 2801-J. Scope of article.
This article relates to internal auditing to assist
Commonwealth agencies.
Section 2802-J. Purpose.
The purpose of this article is to establish guidelines for a
program of internal auditing to assist each Commonwealth agency
by furnishing independent analyses, appraisals and
recommendations about the adequacy and effectiveness of the
Commonwealth agency's system of internal control policies and
procedures and the quality of performance in carrying out
assigned responsibilities.
Section 2803-J. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Administrator." The executive head or governing board or
authority of a Commonwealth agency.
"Assurance services." As follows:
(1) Activities that are designed to help accomplish
objectives by bringing a systematic and disciplined approach
to evaluate and improve risk management, control or
governance processes.
(2) The term includes an audit.
"Audit." Any of the following:
(1) A financial audit.
(2) A compliance audit.
(3) An operational audit.
(4) An effectiveness audit.
(5) An investigation.
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"Commonwealth agency." Any of the following:
(1) A department, agency, office, bureau, commission,
board, division or other entity or officer of the executive
branch of the Commonwealth. The term includes any of the
following:
(i) The Office of the Governor.
(ii) The Office of the Lieutenant Governor.
(iii) The Office of Attorney General.
(iv) The Department of the Auditor General.
(v) The Treasury Department.
(vi) An independent agency, as defined in section
102 of the act of February 14, 2008 (P.L.6, No.3), known
as the Right-to-Know Law.
(vii) An organization established by the
Constitution of Pennsylvania, a statute or an executive
order that performs or is intended to perform an
essential governmental function.
(2) A judicial agency, as defined in section 102 of the
Right-to-Know Law.
(3) A legislative agency, as defined in section 102 of
the Right-to-Know Law.
"Compliance audit." An audit to determine if:
(1) The audited entity has obligated, expended, received
and used State money in accordance with the purpose for which
that money has been appropriated or otherwise authorized by
law.
(2) The audited entity has obligated, expended, received
and used State money in accordance with any limitations,
restrictions, conditions or mandatory directions imposed by
law on those obligations, expenditures, receipts or uses.
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(3) The records, books and accounts of the audited
entity fairly and accurately reflect its financial and fiscal
operations relating to the obligation, receipt, expenditure
and use of State money or money represented as being
collected for a State purpose.
(4) The collections of State revenues and receipts by
the audited entity are in accordance with applicable laws and
regulations.
(5) Money or negotiable securities or similar assets
handl