New Jersey § 52:15c-8

§ 52:15c-8.

a. The State Comptroller shall have all the powers necessary to carry out the duties

and functions and to fulfill the responsibilities described in this act, including

the power to conduct audits and reviews and propose and enforce remediation plans

for the Executive branch of State government, including all entities exercising executive

branch authority, public institutions of higher education, independent State authorities,

units of local government and boards of education that are found by the State Comptroller

to have deficient practices or procedures. The State Comptroller shall, pursuant to the provisions of the “Administrative Procedure

Act,” P.L.1968, c. 410 ( C.52:14B-1 et seq. ), adopt rules and regulations necessary to effectuate the purposes of this act. b. The State Comptroller and the Office of the State Comptroller shall conduct audits

and reviews in accordance with prevailing national and professional standards, rules,

and practices relating to such audits and reviews in government environments, including

the standards for performance reviews utilized by the United States Government Accountability

Office or its successor, and the State Comptroller shall ensure that the office remains

in compliance with such standards, rules, and practices. c. (1) As to entities that are not required by law to undergo periodic certified financial

audits, the State Comptroller shall determine the frequency with which financial audits

shall be conducted of such entities by the State Comptroller by establishing objective

criteria, which criteria shall weigh relevant risk factors, including, but not limited

to, the size of the entity's budget and the entity's past performance. (2) As to entities that are required by law to undergo periodic certified financial

audits, the State Comptroller shall undertake analysis and review of the certified

financial audits of such entities and of the procedures used to conduct those audits. When the State Comptroller's analysis and review identifies weaknesses, inadequacies

or failures in the entity's financial controls or concerns about the quality or independence

of the audits, the State Comptroller shall be authorized to undertake a financial

audit or such other steps as the State Comptroller deems appropriate. In determining when to proceed with a financial audit, the State Comptroller may

also take into account information obtained pursuant to section 10 of this act; referrals

or recommendations from Executive branch departments or agencies; or assessments

or evaluations of the entity's management, performance or financial condition from

federal or State government agencies, such as those undertaken as part of the New

Jersey Quality Single Accountability Continuum for school districts. (3) The State Comptroller shall establish objective criteria for undertaking performance

and other reviews authorized by this act, which criteria shall weigh relevant risk

factors, including, but not limited to: (a) the size of the entity's budget, (b)

the entity's past performance, (c) the frequency, scope, and quality of any audits

or reviews that have been performed regarding the entity's financial condition or

performance, (d) assessments or evaluations of the entity's management, performance

or financial condition such as those undertaken as part of the New Jersey Quality

Single Accountability Continuum for school districts, and (e) other credible information

which suggests the necessity of a review. (4) For purposes of this subsection, “ entity ” means any unit in the Executive branch of State government, including all entities

exercising executive branch authority, public institutions of higher education, independent

State authorities, units of local government and boards of education or their vendors. For purposes of this subsection, “ certified financial audits ” does not include audits conducted by the State Auditor. d. The State Comptroller shall provide guidance to units in the Executive branch of

State government, independent State authorities, units of local government and boards

of education units that are required to engage outside auditors regarding procurement

of their services, the rotation of the providers of such services, and the avoidance

of possible conflicts of interest in the hiring of outside auditors. e. In carrying out the duties, functions and responsibilities of the Office of the

State Comptroller under this act, 1 the State Comptroller shall not charge any costs incurred by the office against a

unit of local government or board of education. 1

L.2007, c. 52 [N.J.S.A. § 52:15C-1 et al.].