Pennsylvania SB 942: An Act providing for auditor qualifications for the Department of the Auditor General, for new department employees, for current department employees, for employee certification, for forensic audits, for fraud audits and for committee standards.

Bill Text

PRINTER'S NO. 1061
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 942
Session of
2025
INTRODUCED BY DUSH AND J. WARD, JULY 22, 2025
REFERRED TO FINANCE, JULY 22, 2025
AN ACT
Providing for auditor qualifications for the Department of the
Auditor General, for new department employees, for current
department employees, for employee certification, for
forensic audits, for fraud audits and for committee
standards.
The General Assembly finds and declares as follows:
(1) Auditors employed by the Department of the Auditor
General should attain the proper professional certifications
necessary to conduct the various types of audits that the
position of auditor requires.
(2) Audits conducted by the Department of the Auditor
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
Department of the Auditor General are of the highest quality
and benefit to the entities and programs audited.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Auditor
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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." As defined in the act of May
26, 1947 (P.L.318, No.140), known as the CPA Law.
"Department." The Department of the Auditor General of the
Commonwealth.
"Forensic audit." An examination of an entity's financial
information with the purposes of determining if the entity's
financial information is accurate and lawful.
"Fraud audit." An examination of an entity's financial
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
possess the following qualifications:
(1) Employees conducting forensic audits shall be
qualified forensic auditors.
(2) Employees conducting fraud audits shall be qualified
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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
effective date of this section.
Section 6. Employee certification.
(a) Department policy.--The department shall develop a
policy encouraging an employee to obtain the proper
certification necessary to conduct an audit which the employee's
job requires. The policy shall:
(1) Direct an employee to the resources necessary to
obtain a certification under section 3.
(2) Include provisions that allow the department to
collaborate with an employee to ensure that the employee has
adequate time and resources to complete a certification.
(b) Financial incentives.--The department shall provide
financial incentives for an employee who becomes certified in
order to assist the employee with the cost of continued
professional education.
Section 7. Forensic audits.
(a) Department forensic audits.--The department may perform
a forensic audit on financial information related to Federal and
State funding sources if any of the following occur:
(1) A forensic audit is requested by a State agency. The
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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.
(2) The department receives an indication, when lawfully
performing an audit on an entity, that sufficient records or
information are not available to complete the audit.
(3) A forensic audit is requested by the Governor, the
chairperson or minority chairperson of the Appropriations
Committee of the Senate or the chairperson or minority
chairperson of the Appro