DRAFT CSC, Title 28.  Finance
 
CHAPTER 3
Office of Fiscal Accountability

1101.  Office of Fiscal Accountability.
1102.  State Auditor; Selection and appointment.
1103.  State Auditor; Removal.
1104.  State Auditor; Staff.
1105.  Powers and Duties of the State Auditor.
1106.  State Auditor; Government contract.
1107.  Job Protection for public servants who disclose misuse of government funds to the State Auditor.

      1101.  Office of Fiscal Accountability.
     There is hereby created the Office of Fiscal Accountability for the State of Truk Chuuk, which shall be headed by a person known as the State Auditor. The position of State Auditor shall be exempt from the provisions of the Executive Organization Act of 1980 (TSL 3-25, as amended by 5-46), and exempt from the provisions of the Truk Chuuk State Public Service System Act (TSL 3-43), as amended, as provided in Section 8(d) 1031(d) of that Title 9 of this Code Act.

Source:  TSL 6-21, 1 (Section 1), modified.

Editor's note:  TSL 6-21 was signed into law by the Governor on August 14, 1987.

Cross-reference:  The constitutional provisions on an independent Public Auditor are found in Sect. 9, Art. VIII (Finance).  Section 9 reads as follows:

          Section 9.
          (a)     There shall be an independent Public Auditor appointed by the Governor and confirmed by the Senate.  The Auditor shall serve for a 6 year term and until a successor is confirmed.  The Auditor shall be a certified public accountant with auditing experience.
          (b)     The Auditor shall conduct audits of all financial transactions of all branches, departments, offices, agencies and instrumentalities of the government, and of all accounts kept by or for them.  The Auditor shall certify the accuracy of all financial statements issued by the State Government.  The Auditor shall annually report findings and recommendations to the Legislature, the Governor, and the municipalities, and shall provide additional reports and information as may be required by law or as the Auditor deems appropriate.
          (c)     If the Auditor discovers that any public monies have been misused or misappropriated, the Auditor shall report such misuse or misappropriation to the appropriate prosecutor's office.
          (d)     The Auditor may be removed for cause by the vote of 2/3 of the members of the Senate.  Upon the removal, resignation, or incapacity of the Auditor, the Chief Justice of the State Supreme court shall appoint within one month an Acting Public Auditor having the qualifications required for a full term. The Acting Public Auditor shall serve until a successor is confirmed.  The Governor shall appoint and the Senate shall confirm a successor Auditor within 6 months.

      1102.  State Auditor; Selection and appointment.
 
     (a) (1)  The State Auditor shall be selected on the basis of merit and qualifications;

     (b) (2)  No person shall be appointed State Auditor unless that person:

     (1) (a)  is a certified public accountant; and

     (2) (b)  has a minimum of five years experience in auditing, and accounting and government finance.

     (c) (3)  The President and the Speaker of the Chuuk State Legislature shall name a committee of three Senators which shall be charged with the responsibility to advertise, recruit and interview applicants for the position of State Auditor.  The committee shall make a report and recommendations to the Legislature of the top three candidates for the position, and their qualifications.  The Legislature shall select the State Auditor by majority vote, and confirm by Resolution.

     (d) (4)  The State Auditor shall serve for a term of four years.  No person may serve as State Auditor for more than two consecutive full four year terms of the balance of an unexpired term plus two full four year terms.

Source:  TSL 6-21, 1 (Section 2), modified.

      1103.  State Auditor; Removal.

     (a) (1)  The State Auditor may, at any time, be removed from office for good cause, shown by a vote of fifteen (15) 22 members of the Legislature.  In that event the Committee appointed by the President and the Speaker pursuant to Section 2(c) 1102(3) shall select an Acting State Public Auditor for ninety (90) days.  If necessary, this appointment may be extended once for an additional ninety (90) days.

     (b) (2)  The State Auditor shall be independent of administrative control except that he shall report at least once a year to the Legislature on the full activities of his office.  His salary shall not be reduced during his term of office.

Source:  TSL 6-21, 1 (Section 3), modified.

      1104.  State Auditor; Staff.
     The State Auditor may hire such employees as are required to assist in performing the duties of the Office of Fiscal Accountability and shall be able to expend money for necessary expenses of the Office, subject to budgetary appropriation and applicable salary acts, including the State Financial Management Act.  The State Auditor may remove employees in the Office subject to the provisions of the State Public Service System, which shall apply to employees and staff of the office.

Source:  TSL 6-21, 1 (Section 4).

      1105.  Powers and duties of the State Auditor.

     (a) (1)  The State Auditor shall be responsible for an annual inspection and audit of:

     (i) (a)  Each department and office in the Executive branch of the State Government;

     (ii) (b)  The Truk Chuuk State Legislature;

     (iii) (c)  The Truk Chuuk State Judiciary;

     (iv) (d)  Each authority, commission, bureau, municipality, or other agency created by Truk Chuuk State Law;

     (v) (e)  Any other recipient of funds otherwise appropriated by the State, including but not limited to, other public legal entities or non-profit organizations receiving public funds from the State.

     (b) (2)  If there is a reasonable suspicion of misuse of government funds or other fiscal improprieties, the Auditor alone or at the President and the Speaker's direction, shall investigate all relevant information and report the findings to the Legislature.

     (c) (3)  Any public or private entity receiving State funds shall submit to an audit of those funds by the State Auditor, at the Auditor's discretion.  Failure to comply with reasonable requests for information from the State Auditor shall be cause for the cancellation of any contracts or agreements with the State and for the withholding of State funds already allocated or appropriated.

     (d) (4)  The State Auditor shall review the system of accounts proposed to be established by any branch, department, office, agency, or instrumentality of the State, including public corporations.

     (e) (5)  The State Auditor shall have access to all books, accounts, financial records, reports, files, papers, things and property belonging to or in use by the entities listed in Subsection 5(1) (a) of this Section, so long as they are within the scope of the financial audit.  The State Auditor shall have the right to subpoena through the Legislature the production of things if they are not provided by the entities listed above.

     (f) (6)  The State Auditor shall make available in a timely fashion copies of all audits conducted to the agency audited, the Governor, the State Legislature, and to the public.

     (g) (7)  The State Auditor shall monitor and investigate all contracts to which the State is a party to ensure compliance with all State bidding laws.

     (h) (8)  The State Auditor shall inform the Attorney General and any other legal entity of all cases of suspected misuse of government funds, including but not limited to bidding violations, violations of budget law, and violations of the State Financial Management Act.  The State Auditor shall, if requested, cooperate in further investigation and prosecution of such cases.

     (i) (9)  The State Auditor shall submit to the Legislature at least thirty (30) days prior to its budget setting session, the annual budgetary requirements of the Office of Fiscal Accountability.

     (j) (10)  The State Auditor shall inform the Truk Chuuk State Legislature of such legislation as is necessary to ensure the proper accountability of government funds.

Source:  TSL 6-21, 1 (Section 5), modified.

      1106.  State Auditor; Government contract.
     The audit duties and responsibilities of the State Auditor shall extend to persons, partnerships, corporations, associations, or other entities having contracts with Truk Chuuk State with respect to all books, accounts and other relevant materials arising from or related to such contracts.  If a Contractor fails to make available to the State Auditor, or to his representative, such information as requested, such contract with the State shall be canceled immediately by the contracting authority or the Attorney General.  No contract may be executed on behalf of the State unless it contains a provision, acceptable to the Attorney General as to form, and the State Auditor as to substance, authorizing the audit of books and accounts of the contractor by the State Auditor or his representative.

Source:  TSL 6-21, 1 (Section 6), modified.

      1107.  Job protection for public servants who disclose misuse of government funds to the State Auditor.
     Any disciplinary, negative or punitive personnel action against a state employee who:

     (a) (1)  Has in good faith disclosed to the State Auditor an actual or attempted misuse of government funds or violation of State budget, contracting, bidding or financial laws; or

     (b) (2)  Has refused to participate in an actual or attempted violation but was unable to report such activity prior to the imposition of disciplinary, negative, or punitive job action, shall be preemptively in retaliation against such employee;
 
     (c) (3)  In any appeal for relief from retaliation, the burden shall be upon the government to show that the job action was in response to a genuine failure of performance of lawful duties.  Such showing must be made by clear and convincing evidence.

     (d) (4)  Any employee who prevails in an appeal for relief from a retaliatory personnel action shall be entitled to reinstatement with back pay and restoration of full benefits, all costs and reasonable attorney fees.

Source:  TSL 6-21, 1 (Section 7), modified.

      1108.  Office of Fiscal Accountability; Rules and Regulations.
     The Office of Fiscal Accountability may adopt rules and regulations not inconsistent with law regarding those matters within its jurisdiction.

Source:  TSL 6-21, 1 (Section 8).