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
01Alabama✓ - N/AIndividual departments/agencies

✓- 0.4%Individual departments/agencies
02Alaska✓-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% revenuesMost 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.
04Arizona✓- 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.
05Arkansas✓-7.49%State agency

✓- 3.17%The individual agency receiving a private audit selects the auditor.
06California

The state auditor selects the contract auditor.
08ColoradoState auditor

✓- 30%State auditor
09Connecticut✓- governmental (0%), business type activities (<1%), fiduciary (0%), component units (100%)

10DelawareOffice of Auditor of Accounts

Office of Auditor of Accounts
12Florida✓- governmental (0%), business type activities (16.6%), fiduciary (1.7%), component unit (31.7%)The agencies or entities being audited.

13Georgia✓- 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 firmThe state entities administering the major programs select the CPA firm.
15HawaiiOffice of the Auditor

Office of the Auditor
16Idaho✓- 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.

17Illinois

Auditor general
18Indiana✓- 2% (public employee's retirement system and component units are contracted to CPA firms)The governing body of the component unit.

19IowaOffice of Auditor of State

20KansasContract Audit Committee

Contract Audit Committee
21Kentucky✓- 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.

22Louisiana✓- governmental (0%), business type (1.57%), fiduciary (59.11%), aggregate discretely presented component units (12.85%) - Note: fiduciary funds are included in aggregate remaining fundsLegislative 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.
23Maine

24MarylandState Comptroller's Office

State Comptroller's Office
25MassachusettsOffice of the State Comptroller

Office of the State Comptroller
26Michigan✓- 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.
27Minnesota (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.
27Minnesota (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.
28Mississippi✓- 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.
29Missouri✓- 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.
30Montana

31Nebraska

32NevadaAudit Subcommittee of the Legislative Commission

Audit Subcommittee of the Legislative Commission
33New Hampshire✓- 80%Legislative budget assistant

Legislative budget assistant
34New 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
34New Jersey (State Comptroller)Not involved in the state's financial audit

Not involved in state's single audit.
35New 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.
36New YorkState Comptroller's Office

Office of the State Comptroller and Governor's Division of the Budget
37North 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.

38North 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.
39Ohio✓- Percentages are available in Ohio's 2020 CAFR, Independent Auditor's ReportAuditor of state makes selection with input from component units and other state officials.

40Oklahoma✓- 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.
41Oregon✓- fiduciary (95%), component unit (100%)Division of Audits, via RFP process

42Pennsylvania✓- governmental (16%), business type (3%), fiduciary & component unit (100%)Governor's Office of the Budget (audited entity)

✓- 17% major program expenditure coverageGovernor's Office of the Budget
44Rhode IslandN/AN/AN/AN/A

N/A

N/AN/AN/A
45South 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
45South Carolina (State Auditor)✓- governmental (60%), business type (80%), component units (100%)Office of the State Auditor

46South 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.
47Tennessee

48Texas✓- 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
49Utah✓- 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
50VermontState auditor

Auditor of accounts
51Virginia✓- 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.

53Washington✓- governmental (7%), business type (26%), aggregate discretly presented component units and remaining funds (23%)We have allowed agencies to select their auditor.

54West Virginia (Post Audit Division)The legislative auditor

The legislative auditor
54West Virginia (Performance Evaluation Research Division)

55Wisconsin✓- 6.7%The auditee

56WyomingDepartment of Audit

Department of Audit
66GuamThe public auditor in conjunction with the audited agencies.

The public auditor in conjunction with the audited agencies.
72Puerto RicoThe 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.