The mode of selecting the state auditor varies among the many states and territories. In 24 states, the state auditor is a constitutional officer elected by the voters or the state legislature for specified terms of office. For example, state auditors in California, Idaho, Illinois, Minnesota, Nebraska, Nevada, Pennsylvania, Texas, Utah, and Washington are elected by the voters. Maine and Tennessee are the only states where the state auditor is elected by the legislature. In the remaining states, the state auditor is appointed by and serves at the pleasure of the governor or the relevant state legislature.[2] In those states where the state auditor is appointed by the governor, the appointment is always subject to either legislative nomination or confirmation.[3]
Quantity
Several states have both an elected auditor serving alongside another auditor that is appointed by and reports exclusively to the legislature. Government auditing arrangements in Minnesota, Utah, and Washington reflect this model. Under such circumstances, the respective jurisdictions of the aforementioned officials is such so that their responsibilities complement one another. In the case of Washington for instance, the state auditor conducts independent audits and investigations of the fiscal condition of local governments and state agencies alike, while the legislative auditor evaluates state agency financial management and performance in support of the legislature's oversight functions.[4][5] This division of government auditing responsibility is in keeping with two core principles of state and local government auditing in the United States:
A state auditor elected by the people is functionally independent from all other public officials and is therefore duly empowered to superintend and verify the condition of public accounts, funds, and resources without fear of reprisal. Barring other constitutional remedies, only the voters can remove and replace an elected state auditor. This institutional independence combats corruption and promotes government accountability directly to the electorate in the spirit of Jacksonian democracy.[6]
A legislative auditor subject to the direction and supervision of the state legislature ensures that the legislature, which appropriates funds and establishes program goals in public policy, will ultimately review program expenditures and results. Thus, state government is accountable to the people through their elected representatives.[7]
Powers and duties
Typologies
Supervising public finances and improving the efficiency and effectiveness of public administration are the primary business of America's state auditors. However, distinctions exist in their functions. Generally speaking, external auditors examine public accounts in order to detect and prevent waste, fraud, and abuse of public funds and resources. These audits may be concerned with rendering an opinion on the basic financial statements of governmental entities, verifying regulatory compliance, assessing the strength and design of internal controls, or evaluating program performance. External auditors operate outside of the statewide accounting and financial reporting framework and do not report to executive branch administrators, meaning they have the relevant independence to objectively verify the condition of public finances. This independence, required by Government Auditing Standards, is guaranteed by either direct election of the voters or by manner of legislative appointment.
While similar, inspectors general are not external auditors. Quite to the contrary, inspectors general operate within the entities that they serve. They cannot independently audit governmental financial statements since they report to the very public administrators that prepare them. Instead, inspectors general serve as an objective assurance and consulting activity to either the duly elected governor or individual state agencies, with a remit specifically tailored to investigating corruption within public office and recommending more efficient business practices in the delivery of public services. For the purpose of brevity, this article focuses only on those inspectors general with a mandate encompassing the whole of state government as opposed to individual state agencies.
Meanwhile, governmental accounting is the province of two different types of accountants – bookkeepers and financial controllers. Once the norm in the United States, bookkeepers are now few in number. Bookkeepers are independently elected constitutional officers whose principal duty is to scrutinize, control, and record the disbursement of public funds paid out of the state treasury. All bookkeepers preaudit claims by and against the state, issue warrants on the treasury in payment of claims approved, administer payroll to state employees, and keep a record of fund balances. Other duties may be assigned to bookkeepers by law, such as the administration of unclaimed property, securities and insurance regulation, or the auditing of local government finances. Meanwhile, financial controllers exist to account for a given state’s financial condition. In these respects, financial controllers are charged with operating the statewide accounting system, approving or processing financial transactions, prescribing and enforcing internal controls, and preparing financial reports, among other related responsibilities. The vast majority of state government accountants are financial controllers; in those states lacking bookkeepers, the responsibilities of that office are instead performed by the pertinent financial controller.
Variations on the conceptual models
Public organizational theory and state law do not always clearly distinguish the functions of America's state auditors based on their official titles.[2] In fact, the elected financial controllers in Arkansas, Indiana, South Dakota, and Wyoming are designated as "state auditor. Meanwhile, New Jersey's inspector general is named the "state comptroller" and Tennessee's external auditor is constitutionally the "comptroller of the treasury". This etymological discrepancy is the result of the government accounting profession evolving over the course of American history and provides, in part, for many variations on the conceptual models. Some state auditors perform functions altogether unrelated to public-sector accounting or auditing. Of note, New York combines the normally disparate functions of government accounting and government auditing into its elected state comptroller, with the incumbent also managing public pensions and investing state funds. No other state or territory consolidates so much financial power into a single state auditor.
On the other hand, some states constrain the authority of their auditors to specific functions. For example, the bulk of the Alabama state auditor's responsibilities entail inventorying state personal property, with only a limited role for financial audits of the state treasurer's and state comptroller's accounts. South Dakota's state auditor is broadly responsible for preauditing state agency claims and vouchers, issuing warrants on the state treasurer to pay funds out of the treasury, and administering payroll. However, no other functional responsibilities within the government machinery applicable to financial controllership have been assigned to the South Dakota state auditor. Rather, a separate state agency under the direction of the governor maintains the state accounting system, develops and maintains internal controls, and preparing financial reports, in addition to preparing and administering the state budget. Montana's state auditor does not even audit public funds or maintain fiscal control over the state treasury in the traditional sense. Rather, the auditorregulates Montana's securities and insurance industries.
Scope of audit authority
For the majority of states where the state auditor audits public accounts, their scope of authority encompasses all state agencies. In a plurality of these same states, the auditor's jurisdiction also extends to local governments.[2] Government auditing arrangements are unique in Illinois, Minnesota, New Jersey, and West Virginia however with respect to the fact that their respective state auditors primarily or exclusively audit local governments. In the case of the Illinois comptroller and West Virginia state auditor, these elected state auditors also serve as financial controllers of state agencies. To the contrary, New Jersey's state comptroller functions as an inspector general for the executive branch of state government and is a member of the governor's cabinet.[8][9] Minnesota is particularly unique. In that state, the state auditor, who is elected, is the only state auditor in the United States to broadly supervise and audit the fiscal concerns of local governments. In fact, nearly 5,000 local governments which altogether spend some $40 billion annually come under the state auditor's purview.[10] With that said, the state auditor's authority over state agencies extends only to the statewide single audit of federal funds spent by state agencies and their subrecipients. A separate legislative auditor appointed by and reporting to the state legislature is responsible for audits and evaluations of state agency financial management and performance.[11]
Miscellaneous responsibilities
As independently chosen external auditors, financial controllers and inspectors general, America's state auditors exist to safeguard public finances from misappropriation and maladministration. In short, their work combats corruption and keeps government accountable for the efficient and effective use of tax dollars. Nevertheless, their accounting and auditing activities are frequently put to use for connected purposes. In Colorado for instance, the state auditor reports on the effectiveness of health exchanges and marijuana legalization. Meanwhile, California's state auditor is involved in the redistricting process.
Professional standards
State financial controllers prepare financial statements and keep accounts in accordance with Generally Accepted Accounting Principles issued by the Governmental Accounting Standards Board.[12] Meanwhile, state external auditors and inspectors general exercise their authority in accordance with Government Auditing Standards (GAGAS) promulgated by the comptroller general of the United States, the head of the U.S. Government Accountability Office.[13] Otherwise known as the "Yellow Book", GAGAS prescribes best practice for auditing state agencies and local governments in the United States. In the case of inspectors general, they are also subject to Quality Standards for Inspections and Evaluations prescribed by the Council of the Inspectors General on Integrity and Efficiency, an independent committee created by an Act of Congress consisting of the U.S. government's many inspectors general.[14]
Professional affiliations
State external auditors and financial controllers in the United States - whether elected or appointed - are organized nationally as the National State Auditors' Association and the National Association of State Comptrollers. Both secretariats are housed within the National Association of State Auditors, Comptrollers and Treasurers.[3] State inspectors general belong to the Association of Inspectors General.[15]
Tables of America's state auditors
Elected state auditors in the United States
Incumbent
State
Party
Assumed office
Title
Mode of election
Type of state auditor
Scope of accounting function
Scope of audit authority, noting primary and secondary jurisdiction
Whole of territorial government, including localities
Administers a government ethics training program and publishes meeting agendas and approved minutes of territorial agencies, boards, commissions, and public corporations
Administers a scholarship program for economically disadvantaged accounting students pursuing courses of study at Kentucky institutions of higher education
Determines if state laws impose unfunded mandates on local governments, monitors municipal budgets, and studies issues pertinent to local government finances
Appointed by Joint Committee on Government and Finance
External auditor
Not applicable
Financial and performance audits of agencies
Directs and supervises all legislative service agencies in ex officio capacity as "Legislative Manager", including the Budget, Legislative Services, Post Audit, and PERD divisions, among others
The United States Government Accountability Office (GAO) is an independent, nonpartisan government agency within the legislative branch that provides auditing, evaluative, and investigative services for the United States Congress. It is the supreme audit institution of the federal government of the United States. It identifies its core "mission values" as: accountability, integrity, and reliability. It is also known as the "congressional watchdog". The agency is headed by the Comptroller General of the United States. The comptroller general is appointed by the president with the advice and consent of the Senate. When a vacancy occurs in the office of the comptroller general, Congress establishes a commission to recommend individuals to the president. The commission consists of the following:
The state controller of California is a constitutional office in the executive branch of the government of the U.S. state of California. Thirty-three individuals have held the office of state controller since statehood. The incumbent is Malia Cohen, a Democrat. The state controller's main office is located at 300 Capitol Mall in Sacramento.
The state auditor of North Carolina is a statewide elected office in the U.S. state of North Carolina. The state auditor is a constitutional officer responsible for overseeing and reviewing the financial accounts of all state government agencies. The auditor also conducts performance audits of state agencies, ensures state agencies' accounting conforms with Generally Accepted Accounting Principles, evaluates the integrity of computer-generated information, and investigates the misuse of state funds or property. The incumbent is Jessica Holmes, who became state auditor on December 16, 2023.
A comptroller is a management-level position responsible for supervising the quality of accounting and financial reporting of an organization. A financial comptroller is a senior-level executive who acts as the head of accounting, and oversees the preparation of financial reports, such as balance sheets and income statements.
Government performance auditing focuses on improving how governments provide programs and services. While there is no one universally agreed upon definition, there are key definitions which capture the scope of government performance auditing. According to the US Government Auditing Standards, "Performance audits are defined as audits that provide findings or conclusions based on an evaluation of sufficient, appropriate evidence against criteria." Additionally, the International Organization of Supreme Audit Institutions defines performance auditing as "an independent examination of the efficiency and effectiveness of government undertakings, programs or organizations, with due regard to economy, and the aim of leading to improvements.
The state auditor of Minnesota is a constitutional officer in the executive branch of the U.S. state of Minnesota. Nineteen individuals have held the office of state auditor since statehood. The incumbent is Julie Blaha, a DFLer.
The Auditor General of Newfoundland and Labrador is appointed by the Lieutenant-Governor in Council and confirmed by a resolution of the House of Assembly
The New York state comptroller is an elected constitutional officer of the U.S. state of New York and head of the New York state government's Department of Audit and Control. Sixty-one individuals have held the office of State Comptroller since statehood. The incumbent is Thomas DiNapoli, a Democrat.
The Oklahoma State Auditor and Inspector is an elected Constitutional officer for the U.S. State of Oklahoma. The State Auditor and Inspector is responsible for auditing and prescribing bookkeeping standards of all government agencies and county treasurers within Oklahoma. The office in its current form is a consolidation of the office of State Auditor with that of the office of State Examiner and Inspector, both of which dated back to statehood in 1907. The two positions were combined in 1979 after passage of State Question 510 in 1975. Tom Daxon was the first person to hold the combined office and the first Republican as all previous occupants of either position were Democrats.
The New Jersey State Auditor is a constitutional officer appointed by the New Jersey Legislature and administratively placed within the Office of Legislative Services. The Auditor conducts financial and performance audits of State agencies, certain school districts, and vicinages of the Judiciary. The State Auditor also conducts studies on the operation, economy and efficiency of State-run or State-supported programs.
The auditor of accounts of Vermont, informally referred to as "the state auditor", is a constitutional officer in the executive branch of government of the U.S. state of Vermont. Twenty-nine individuals have occupied the office of state auditor since statehood. The incumbent is Douglas R. Hoffer, a Democrat/Progressive. He was first elected to office in 2012.
The Office of the Auditor General Manitoba—known as the Audit Office (1876–1916), Office of the Comptroller-General (1916–69), and Office of the Provincial Auditor (1969–2001)—is an independent office of the Legislative Assembly of Manitoba whose stated purpose is to assist Members of the Legislative Assembly with matters such as accountability and the performance of government.
The Arkansas state auditor is a constitutional officer within the executive branch of the U.S. state of Arkansas. Thirty-five individuals have occupied the office of state auditor since statehood. The incumbent is Dennis Milligan, a Republican who took office in 2023.
The state auditor of Washington is an independently elected constitutional officer in the executive branch of the government of the U.S. state of Washington. Eleven individuals have held the office since statehood. The incumbent is Pat McCarthy, a Democrat and the first woman to occupy the office.
The Nevada state controller is a constitutional officer in the executive branch of government of the U.S. state of Nevada. Twenty-two individuals have held the office of State Controller since statehood. The incumbent is Andy Matthews, a Republican.
The Comptroller and Auditor General (C&AG) is the constitutional officer responsible for public audit in Ireland. The Office of the Comptroller and Auditor General is the public audit body for the Republic of Ireland and is headed by the C&AG.
The state auditor of West Virginia is an elected constitutional officer in the executive branch of the U.S. state of West Virginia. The incumbent is JB McCuskey, a Republican.
The comptroller general of South Carolina is a constitutional officer in the executive branch of the U.S. state of South Carolina. Forty individuals have held the office of comptroller general since 1800. The office has been held by Brian J. Gaines since May 12, 2023, who was appointed by Governor Henry McMaster as a recess appointment following the resignation of Richard Eckstrom on April 30, 2023. McMaster appointed Gaines to avoid a constitutional crisis; since the office was vacant, no person could authorize the distribution of funds.
The state auditor of South Dakota is a constitutional officer in the executive branch of the U.S. state of South Dakota. Twenty-seven individuals have held the office of state auditor since statehood. The incumbent is Rich Sattgast, a Republican.
The auditor of public accounts of Kentucky is an elected constitutional officer in the executive branch of the U.S. state of Kentucky. Forty-seven individuals have occupied the auditor's office since statehood. The incumbent is Allison Ball, a Republican.
References
↑ For the purposes of this article, any reference to "state auditor", unless otherwise noted, means the external auditor, financial controller, bookkeeper, or inspector general of a given state.
↑ "FAQs". Association of Inspectors General. Retrieved September 10, 2022.
↑ By law, the post of public auditor is strictly nonpartisan. No candidate for the office may declare a partisan affiliation, and if previously affiliated with a political party a candidate must renounce their membership. Moreover, no candidate for the office of public auditor may seek the endorsement of or receive financial or material support from a political party. Any violation of these requirements invalidates the candidacy of the affected individual for public auditor. See "§ 1903., Guam Code Annotated"(PDF). Guam Compiler of Laws. Retrieved December 6, 2022.
↑ "History". Alabama Legislature. Retrieved September 18, 2023.
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