Table 4.28
State Auditors: Audit of Basic Financial Statements and Single Audit
| Auditing of basic financial statements | Conducting the single audit | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| FIPS | State or other jurisdiction |
State audit agency conducts audit (100%) |
State audit agency is primary auditor - % of total governmental, business type, fiduciary and component unit expenditures contracted to CPA firms |
CPA firm(s) conducts audit (100%) |
Selection of auditor if part/all of financial audit is contracted out |
State audit agency conducts audit (100%) |
State audit agency conducts part/CPA firm conducts part - % conducted by CPA firm |
CPA firm(s) conducts audit (100%) |
Selection of auditor if part/all of single audit is contracted out |
| 01 | Alabama | ✕ | ✓ - N/A | ✕ | Individual departments/agencies | ✕ | ✓- 0.4% | ✕ | Individual departments/agencies |
| 02 | Alaska | ✕ | ✓-We summarize outside audit coverage by percent of assets and percent of revenues. Governmental activities: 88% assets/27% revenues; business type activities: 78% assets/38% of revenues; aggregate discretely presented component units: 91% assets/93% revenues | ✕ | Most of the outside audited entities are governmental corporations and the university. The outside entities select their own auditors. However, there are a few that require the legislative auditor approve the outside auditor. | ✕ | ✓- 16.8% | ✕ | State corporations select their own auditor. |
| 04 | Arizona | ✕ | ✓- governmental (51.41%), business type activities (9.41%), blended component units - fiduciary funds (98.4%), discretely presented component units (54.84%) | ✕ | The audited agency selects the auditor with help from the Auditor General's Office. | ✕ | ✓- 53.72% | ✕ | The audited agency selects the auditor with input from the Auditor General's Office. |
| 05 | Arkansas | ✕ | ✓-7.49% | ✕ | State agency | ✕ | ✓- 3.17% | ✕ | The individual agency receiving a private audit selects the auditor. |
| 06 | California | ✓ | ✕ | ✕ | ✕ | ✕ | ✓ | The state auditor selects the contract auditor. | |
| 08 | Colorado | ✕ | ✓ | ✕ | State auditor | ✕ | ✓- 30% | ✕ | State auditor |
| 09 | Connecticut | ✕ | ✓- governmental (0%), business type activities (<1%), fiduciary (0%), component units (100%) | ✕ | ✓ | ✕ | ✕ | ||
| 10 | Delaware | ✕ | ✓ | ✕ | Office of Auditor of Accounts | ✕ | ✕ | ✓ | Office of Auditor of Accounts |
| 12 | Florida | ✕ | ✓- governmental (0%), business type activities (16.6%), fiduciary (1.7%), component unit (31.7%) | ✕ | The agencies or entities being audited. | ✓ | ✕ | ✕ | |
| 13 | Georgia | ✕ | ✓- governmental activities - CPAs audited 3% of total assets, 6% of net position/fund balance, and 2% of total revenues/additions; business type activities - CPAs audited 2% of total assets and 8% of net position/fund balance, and 0% of total revenues/ additions; aggregate discretely presented component units - CPAs audited 86% of total assets, 81% of net position/fund balance, and 94% of total revenues/additions; governmental fund - general obligation bond fund projects - CPAs audited 100% of total assets, 100% of net position/fund balance, and 100% of total revenues/additions; aggregate remaining fund information - CPAs audited 83% of total assets, 85% of net position/fund balance, and 38% of total revenues/additions. | ✕ | The entity being audited selects the CPA firm through a bid process. The cost of audits performed by CPAs are paid by the audited entity. | ✕ | ✓- approximately 0.14% of the major program work audited by CPA firm | ✕ | The state entities administering the major programs select the CPA firm. |
| 15 | Hawaii | ✕ | ✕ | ✓ | Office of the Auditor | ✕ | ✕ | ✓ | Office of the Auditor |
| 16 | Idaho | ✕ | ✓- We calculate coverage using assets and revenues: governmental (67.1% assets, 6.6% revenues), business type activities (65.6% assets, 54.4% revenues), fiduciary (98.6% assets, 100% revenues), component unit (98.9% assets, 98.9% revenues) | ✕ | The entity going out for contract. | ✓ | ✕ | ✕ | |
| 17 | Illinois | ✓ | ✕ | ✕ | ✕ | ✕ | ✓ | Auditor general | |
| 18 | Indiana | ✕ | ✓- 2% (public employee's retirement system and component units are contracted to CPA firms) | ✕ | The governing body of the component unit. | ✓ | ✕ | ✕ | |
| 19 | Iowa | ✕ | ✓ | ✕ | Office of Auditor of State | ✓ | ✕ | ✕ | |
| 20 | Kansas | ✕ | ✕ | ✓ | Contract Audit Committee | ✕ | ✕ | ✓ | Contract Audit Committee |
| 21 | Kentucky | ✕ | ✓- governmental activities (0.63%), business type activities (21.59%), component units (98.54%) | ✕ | The Office of the Auditor of Public Accounts has the right of first refusal for all agencies and component units of the state. We decline some agencies/component units and allow the agency to contract with a CPA firm. | ✓ | ✕ | ✕ | |
| 22 | Louisiana | ✕ | ✓- governmental (0%), business type (1.57%), fiduciary (59.11%), aggregate discretely presented component units (12.85%) - Note: fiduciary funds are included in aggregate remaining funds | ✕ | Legislative auditor | ✓ | Single audits of some agencies are performed by CPA firms. The SEFA amounts in these stand-alone reports are not included in the SEFA in LA's Single Audit report. | ✕ | |
| 23 | Maine | ✓ | ✕ | ✕ | ✓ | ✕ | ✕ | ||
| 24 | Maryland | ✕ | ✕ | ✓ | State Comptroller's Office | ✕ | ✕ | ✓ | State Comptroller's Office |
| 25 | Massachusetts | ✕ | ✕ | ✓ | Office of the State Comptroller | ✕ | ✕ | ✓ | Office of the State Comptroller |
| 26 | Michigan | ✕ | ✓- governmental (1.5% assets/2.4% revenues), business type (98.6% assets/80.7% revenues), fiduciary (6.9% assets/8.0% additions), component units (95.0% assets/87.3% revenues) | ✕ | 14 component units (10 state universities and four others) and one enterprise fund select their own auditor. All other contract auditors are selected by the auditor general. | ✕ | ✓- 4.5% | ✕ | One component unit selects their own and the auditor general selects the rest. |
| 27 | Minnesota (Legislative Auditor) | ✕ | ✓- business type (23.6%), component units (99.98%) | ✕ | Each business type activity and component unit selects their own auditor. | ✕ | ✓- 5.1% (student financial assistance) | ✕ | Minnesota State (BTA) selects its own auditor. |
| 27 | Minnesota (State Auditor) | ✕ | Not involved in the state's financial audit | ✕ | ✕ | The MN Office of the Legislative Auditor is the primary auditor for the state's single audit, but our office is doing the single audit of the CRF major federeal program. | ✕ | Minnesota Office of Management and Budget selected the Office of State Auditor to do the single audit of the CRF major federal program. | |
| 28 | Mississippi | ✕ | ✓- governmental (6-19%), business type (100%), fiduciary (100%), component units (100%) | ✕ | Proposals are submitted to the Office of the State Auditor and are selected by representatives of the office with comments by the agencies being audited and Department of Finance and Administration (comptroller) considered. | ✕ | ✓- 5% | ✕ | The auditor is selected by the Office of the State Auditor with input from the state agencies and the Department of Finance and Administration. |
| 29 | Missouri | ✕ | ✓- 27.9% | ✕ | Generally, the entity being audited selects the auditor. | ✕ | ✓- Single audits of public universities and other component units are performed by CPA firms. The federal award expenditures of these entities are not included in the state's SEFA. | ✕ | The auditor is selected by the entity being audited. |
| 30 | Montana | ✓ | ✕ | ✕ | ✓ | ✕ | ✕ | ||
| 31 | Nebraska | ✓ | ✕ | ✕ | ✓ | ✕ | ✕ | ||
| 32 | Nevada | ✕ | ✕ | ✓ | Audit Subcommittee of the Legislative Commission | ✕ | ✕ | ✓ | Audit Subcommittee of the Legislative Commission |
| 33 | New Hampshire | ✕ | ✓- 80% | ✕ | Legislative budget assistant | ✕ | ✕ | ✓ | Legislative budget assistant |
| 34 | New Jersey (State Auditor) | ✕ | ✓- governmental (4%), business type (47%), fiduciary (99%), component unit (100%) | ✕ | Department of the Treasury, Judiciary, individual component units. | ✕ | ✕ | ✓ | Department of the Treasury, Office of Management and Budget |
| 34 | New Jersey (State Comptroller) | ✕ | Not involved in the state's financial audit | ✕ | ✕ | Not involved in state's single audit. | |||
| 35 | New Mexico | ✕ | ✓- Less than 1% of full audit engagements are performed by the OSA. All engagements not performed by the OSA are performed by Independent Public Accountants reviewed and approved by the OSA prior to public release. Financial statement audits are prepared at the department level, which are then used to compile the statewide CAFR. | ✕ | The State Auditor's Office administers a competitive process whereby audit firms may submit applications and proposals to perform financial audits of certain agencies. Only audit firms approved by the State Auditor's Office may contract for an audit. Agencies must follow state procurement process to obtain contract services through small purchase or sealed bid request for proposal process and contract on a yearly basis for audit services. | ✕ | ✓- Single audits are conducted at a department level. The Office of the State Auditor has a limited staff of auditors who conduct audits of agencies. Therefore, the majority of these engagements are performed by Independent Public Accountants approved by the OSA. | ✕ | Single audits are performed at the department level, not statewide. The State Auditor's Office administers a competitive process whereby audit firms may submit applications and proposals to perform financial audits of certain agencies. Only audit firms approved by the State Auditor's Office may contract for an audit. Agencies must follow state procurement process to obtain contract services through small purchase bid or sealed request for proposal process and contract on a yearly basis for audit services. |
| 36 | New York | ✕ | ✕ | ✓ | State Comptroller's Office | ✕ | ✕ | ✓ | Office of the State Comptroller and Governor's Division of the Budget |
| 37 | North Carolina | ✕ | ✓- business type (30%), fiduciary (14%), component unit (16%) | ✕ | State audior selects the auditor for the NC State Lottery Fund; individual agencies or component units select their respective auditors. | ✓ | ✕ | ✕ | |
| 38 | North Dakota | ✕ | ✓- governmental (1.72%), business type (32.9%), fiduciary (100%), component unit (100%) | ✕ | The Office of the State Auditor selects the auditor through a request for proposal process. | ✕ | ✓- Four agencies have their federal programs audited by other auditors. These are completed as part of their contracted financial statement audits. | ✕ | The Office of the State Auditor contracts for these audits through a request for proposal process. |
| 39 | Ohio | ✕ | ✓- Percentages are available in Ohio's 2020 CAFR, Independent Auditor's Report | ✕ | Auditor of state makes selection with input from component units and other state officials. | ✓ | ✕ | ✕ | |
| 40 | Oklahoma | ✕ | ✓- governmental (1.82%), business type (36.3%), fiduciary (100%), component unit (100%); | ✕ | It varies depending on statutory requirements. | ✕ | ✓- outside audited major programs to total audited major programs (0.97%). Outside audited major programs to total SEFA expenditures (0.85%) | ✕ | It varies depending on statutory requirements. |
| 41 | Oregon | ✕ | ✓- fiduciary (95%), component unit (100%) | ✕ | Division of Audits, via RFP process | ✓ | ✕ | ✕ | |
| 42 | Pennsylvania | ✕ | ✓- governmental (16%), business type (3%), fiduciary & component unit (100%) | ✕ | Governor's Office of the Budget (audited entity) | ✕ | ✓- 17% major program expenditure coverage | ✕ | Governor's Office of the Budget |
| 44 | Rhode Island | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| 45 | South Carolina (Legislative Audit Council) | ✕ | Our office does not have anything to do with financial audits in our state. The office of the state auditor is responsible for all financial audits, including contracting out. | ✕ | ✕ | ✕ | ✕ | Office of the State Auditor | |
| 45 | South Carolina (State Auditor) | ✕ | ✓- governmental (60%), business type (80%), component units (100%) | ✕ | Office of the State Auditor | ✓ | ✕ | ✕ | |
| 46 | South Dakota | ✕ | ✓- business type (13%), discretely presented component units (58%); remaining fund information (90%) | ✕ | The audited entity with approval of Department of Legislative Audit | ✕ | ✓- it depends on the year. A few grants are audited by CPA firms for agencies that have contracted audit services. Department of Legislative Audit audits the majority of the grants (97%) | ✕ | Auditor is selected by the state agency, but the auditor and the final report must be approved by the Department of Legislative Audit. |
| 47 | Tennessee | ✓ | ✕ | ✕ | ✓ | ✕ | ✕ | ||
| 48 | Texas | ✕ | ✓- 20.6% | ✕ | The state entity receiving the audit | ✕ | ✓- CPA firm is the primary auditor for the federal compliance portion of the single audit providing 70% coverage. Our office covers the remaining. | ✕ | Texas State Auditor's Office |
| 49 | Utah | ✕ | ✓- governmental (0.61%), business type (6.52%), fiduciary (19.09%), component unit (50.19%) | ✕ | State auditor or contract officer | ✕ | ✓- 8.65% | ✕ | State auditor or contract officer |
| 50 | Vermont | ✕ | ✕ | ✓ | State auditor | ✕ | ✕ | ✓ | Auditor of accounts |
| 51 | Virginia | ✕ | ✓- We audit all of the primary government, except one business type entity that is a major fund and represents 64% of BTA total assets and deferred outflows and 60% of BTA net position. And we also do not audit one blended component unit that represents 2.5% of governmental activities assets/deferred outflows and 4.7% of governmental activities net position. We also do not audit some component units representing 29% of assets and deferred outflows, 24% of net position, and 10% of revenues of the aggregated discretely presented component unit opinion unit. | ✕ | Most of the outsourced component units select their own auditor; however, we do handle the bidding process for a few of these entities. We also handle the bidding process for the BTA audit that is outsourced. | ✓ | ✕ | ✕ | |
| 53 | Washington | ✕ | ✓- governmental (7%), business type (26%), aggregate discretly presented component units and remaining funds (23%) | ✕ | We have allowed agencies to select their auditor. | ✓ | ✕ | ✕ | |
| 54 | West Virginia (Post Audit Division) | ✕ | ✓ | The legislative auditor | ✕ | ✕ | ✓ | The legislative auditor | |
| 54 | West Virginia (Performance Evaluation Research Division) | ✕ | ✕ | ✕ | ✕ | ✕ | ✕ | ✕ | ✕ |
| 55 | Wisconsin | ✕ | ✓- 6.7% | ✕ | The auditee | ✓ | ✕ | ✕ | |
| 56 | Wyoming | ✕ | ✕ | ✓ | Department of Audit | ✕ | ✕ | ✓ | Department of Audit |
| 66 | Guam | ✕ | ✕ | ✓ | The public auditor in conjunction with the audited agencies. | ✕ | ✕ | ✓ | The public auditor in conjunction with the audited agencies. |
| 72 | Puerto Rico | ✕ | ✕ | ✓ | The CEO of each agency. | ✕ | ✕ | ✓ | The CEO of each agency |
Source:
Auditing in the States, 2021 Edition, The National Association of State Auditors, Comptrollers and Treasurers.Key:
| ✓ | — | Provision for responsibility. |
| ✕ | — | No provision for responsibility. |
| N/A | — | Did not respond. |