This section sets forth the major fiscal
duties and responsibilities of officers and agencies of the
executive branch. The regulations issued by the governor
pursuant to this chapter shall provide for a comprehensive,
orderly basis for fiscal management and control, including
efficient accounting and reporting therefor, for the executive
branch of the state government and may include, in addition, such
requirements as will generally promote more efficient public
management in the state.
(1) Governor; director of financial management. The
governor, through the director of financial management, shall
devise and supervise a modern and complete accounting system for
each agency to the end that all revenues, expenditures, receipts,
disbursements, resources, and obligations of the state shall be
properly and systematically accounted for. The accounting system
shall include the development of accurate, timely records and
reports of all financial affairs of the state. The system shall
also provide for central accounts in the office of financial
management at the level of detail deemed necessary by the
director to perform central financial management. The director
of financial management shall adopt and periodically update an
accounting procedures manual. Any agency maintaining its own
accounting and reporting system shall comply with the updated
accounting procedures manual and the rules of the director
adopted under this chapter. An agency may receive a waiver from
complying with this requirement if the waiver is approved by the
director. Waivers expire at the end of the fiscal biennium for
which they are granted. The director shall forward notice of
waivers granted to the appropriate legislative fiscal committees.
The director of financial management may require such financial,
statistical, and other reports as the director deems necessary
from all agencies covering any period.
(2) Except as provided in chapter 43.88C RCW, the director
of financial management is responsible for quarterly reporting of
primary operating budget drivers such as applicable workloads,
caseload estimates, and appropriate unit cost data. These
reports shall be transmitted to the legislative fiscal committees
or by electronic means to the legislative evaluation and
accountability program committee. Quarterly reports shall
include actual monthly data and the variance between actual and
estimated data to date. The reports shall also include estimates
of these items for the remainder of the budget period.
(3) The director of financial management shall report at
least annually to the appropriate legislative committees
regarding the status of all appropriated capital projects,
including transportation projects, showing significant cost
overruns or underruns. If funds are shifted from one project to
another, the office of financial management shall also reflect
this in the annual variance report. Once a project is complete,
the report shall provide a final summary showing estimated start
and completion dates of each project phase compared to actual
dates, estimated costs of each project phase compared to actual
costs, and whether or not there are any outstanding liabilities
or unsettled claims at the time of completion.
(4) In addition, the director of financial management, as
agent of the governor, shall:
(a) Develop and maintain a system of internal controls and
internal audits comprising methods and procedures to be adopted
by each agency that will safeguard its assets, check the accuracy
and reliability of its accounting data, promote operational
efficiency, and encourage adherence to prescribed managerial
policies for accounting and financial controls. The system
developed by the director shall include criteria for determining
the scope and comprehensiveness of internal controls required by
classes of agencies, depending on the level of resources at risk.
Each agency head or authorized designee shall be assigned
the responsibility and authority for establishing and maintaining
internal audits following the standards of internal auditing of
the institute of internal auditors;
(b) Make surveys and analyses of agencies with the object of
determining better methods and increased effectiveness in the use
of manpower and materials; and the director shall authorize
expenditures for employee training to the end that the state may
benefit from training facilities made available to state
employees;
(c) Establish policies for allowing the contracting of child
care services;
(d) Report to the governor with regard to duplication of
effort or lack of coordination among agencies;
(e) Review any pay and classification plans, and changes
thereunder, developed by any agency for their fiscal impact:
PROVIDED, That none of the provisions of this subsection shall
affect merit systems of personnel management now existing or
hereafter established by statute relating to the fixing of
qualifications requirements for recruitment, appointment, or
promotion of employees of any agency. The director shall advise
and confer with agencies including appropriate standing
committees of the legislature as may be designated by the speaker
of the house and the president of the senate regarding the fiscal
impact of such plans and may amend or alter the plans, except
that for the following agencies no amendment or alteration of the
plans may be made without the approval of the agency concerned:
Agencies headed by elective officials;
(f) Fix the number and classes of positions or authorized
employee years of employment for each agency and during the
fiscal period amend the determinations previously fixed by the
director except that the director shall not be empowered to fix
the number or the classes for the following: Agencies headed by
elective officials;
(g) Adopt rules to effectuate provisions contained in (a)
through (f) of this subsection.
(5) The treasurer shall:
(a) Receive, keep, and disburse all public funds of the
state not expressly required by law to be received, kept, and
disbursed by some other persons: PROVIDED, That this subsection
shall not apply to those public funds of the institutions of
higher learning which are not subject to appropriation;
(b) Receive, disburse, or transfer public funds under the
treasurer's supervision or custody;
(c) Keep a correct and current account of all moneys
received and disbursed by the treasurer, classified by fund or
account;
(d) Coordinate agencies' acceptance and use of credit cards
and other payment methods, if the agencies have received
authorization under RCW 43.41.180;
(e) Perform such other duties as may be required by law or
by regulations issued pursuant to this law.
It shall be unlawful for the treasurer to disburse public
funds in the treasury except upon forms or by alternative means
duly prescribed by the director of financial management. These
forms or alternative means shall provide for authentication and
certification by the agency head or the agency head's designee
that the services have been rendered or the materials have been
furnished; or, in the case of loans or grants, that the loans or
grants are authorized by law; or, in the case of payments for
periodic maintenance services to be performed on state owned
equipment, that a written contract for such periodic maintenance
services is currently in effect; and the treasurer shall not be
liable under the treasurer's surety bond for erroneous or
improper payments so made. When services are lawfully paid for
in advance of full performance by any private individual or
business entity other than equipment maintenance providers or as
provided for by RCW 42.24.035, such individual or entity other
than central stores rendering such services shall make a cash
deposit or furnish surety bond coverage to the state as shall be
fixed in an amount by law, or if not fixed by law, then in such
amounts as shall be fixed by the director of the department of
general administration but in no case shall such required cash
deposit or surety bond be less than an amount which will fully
indemnify the state against any and all losses on account of
breach of promise to fully perform such services. No payments
shall be made in advance for any equipment maintenance services
to be performed more than twelve months after such payment. Any
such bond so furnished shall be conditioned that the person, firm
or corporation receiving the advance payment will apply it toward
performance of the contract. The responsibility for recovery of
erroneous or improper payments made under this section shall lie
with the agency head or the agency head's designee in accordance
with regulations issued pursuant to this chapter. Nothing in
this section shall be construed to permit a public body to
advance funds to a private service provider pursuant to a grant
or loan before services have been rendered or material furnished.
(6) The state auditor shall:
(a) Report to the legislature the results of current post
audits that have been made of the financial transactions of each
agency; to this end the auditor may, in the auditor's discretion,
examine the books and accounts of any agency, official, or
employee charged with the receipt, custody, or safekeeping of
public funds. Where feasible in conducting examinations, the
auditor shall utilize data and findings from the internal control
system prescribed by the office of financial management. The
current post audit of each agency may include a section on
recommendations to the legislature as provided in (c) of this
subsection.
(b) Give information to the legislature, whenever required,
upon any subject relating to the financial affairs of the state.
(c) Make the auditor's official report on or before the
thirty-first of December which precedes the meeting of the
legislature. The report shall be for the last complete fiscal
period and shall include determinations as to whether agencies,
in making expenditures, complied with the laws of this state.
The state auditor is authorized to perform or participate in
performance verifications and performance audits as expressly
authorized by the legislature in the omnibus biennial
appropriations acts or in the performance audit work plan
approved by the joint legislative audit and review committee.
The state auditor, upon completing an audit for legal and
financial compliance under chapter 43.09 RCW or a performance
verification, may report to the joint legislative audit and
review committee or other appropriate committees of the
legislature, in a manner prescribed by the joint legislative
audit and review committee, on facts relating to the management
or performance of governmental programs where such facts are
discovered incidental to the legal and financial audit or
performance verification. The auditor may make such a report to
a legislative committee only if the auditor has determined that
the agency has been given an opportunity and has failed to
resolve the management or performance issues raised by the
auditor. If the auditor makes a report to a legislative
committee, the agency may submit to the committee a response to
the report. This subsection (6) shall not be construed to
authorize the auditor to allocate other than de minimis resources
to performance audits except as expressly authorized in the
appropriations acts or in the performance audit work plan. The
results of a performance audit conducted by the state auditor
that has been requested by the joint legislative audit and review
committee must only be transmitted to the joint legislative audit
and review committee.
(d) Be empowered to take exception to specific expenditures
that have been incurred by any agency or to take exception to
other practices related in any way to the agency's financial
transactions and to cause such exceptions to be made a matter of
public record, including disclosure to the agency concerned and
to the director of financial management. It shall be the duty of
the director of financial management to cause corrective action
to be taken within six months, such action to include, as
appropriate, the withholding of funds as provided in RCW 43.88.110. The director of financial management shall annually
report by December 31st the status of audit resolution to the
appropriate committees of the legislature, the state auditor, and
the attorney general. The director of financial management shall
include in the audit resolution report actions taken as a result
of an audit including, but not limited to, types of personnel
actions, costs and types of litigation, and value of recouped
goods or services.
(e) Promptly report any irregularities to the attorney
general.
(f) Investigate improper governmental activity under chapter 42.40 RCW.
(g) In addition to the authority given to the state auditor in
this subsection (6), the state auditor is authorized to conduct
performance audits identified in RCW 43.09.470. Nothing in this
subsection (6) shall limit, impede, or restrict the state auditor
from conducting performance audits identified in RCW 43.09.470.
(7) The joint legislative audit and review committee may:
(a) Make post audits of the financial transactions of any
agency and management surveys and program reviews as provided for
in chapter 44.28 RCW as well as performance audits and program
evaluations. To this end the joint committee may in its
discretion examine the books, accounts, and other records of any
agency, official, or employee.
(b) Give information to the legislature or any legislative
committee whenever required upon any subject relating to the
performance and management of state agencies.
(c) Make a report to the legislature which shall include at
least the following:
(i) Determinations as to the extent to which agencies in
making expenditures have complied with the will of the
legislature and in this connection, may take exception to
specific expenditures or financial practices of any agencies; and
(ii) Such plans as it deems expedient for the support of the
state's credit, for lessening expenditures, for promoting
frugality and economy in agency affairs, and generally for an
improved level of fiscal management.
[2006 c 1 § 6 (Initiative Measure No. 900, approved November 8, 2005); 2002 c 260 § 1; 1998 c 135 § 1; 1997 c 168 § 6; 1996 c 288 § 25; 1994 c 184 § 11. Prior: 1993 c 500 § 7; 1993 c 406 § 4; 1993 c 194 § 6; 1992 c 118 § 8; (1992 c 118 § 7 expired April 1, 1992); 1991 c 358 § 4; prior: 1987 c 505 § 36; 1987 c 436 § 1; 1986 c 215 § 5; 1982 c 10 § 11; prior: 1981 c 280 § 7; 1981 c 270 § 11; 1979 c 151 § 139; 1975 1st ex.s. c 293 § 8; 1975 c 40 § 11; 1973 c 104 § 1; 1971 ex.s. c 170 § 4; 1967 ex.s. c 8 § 49; 1965 c 8 § 43.88.160; prior: 1959 c 328 § 16.]
NOTES:
Short title -- Effective date -- 2006 c 1 (Initiative Measure No. 900): See RCW 43.09.471.
Policies and purposes -- Construction -- Severability -- Part headings not law -- 2006 c 1 (Initiative Measure No. 900): See notes following RCW 43.09.470.
Effective date -- 1997 c 168: See RCW 43.88C.900.
Finding -- Severability -- Effective date -- 1993 c 500: See notes following RCW 43.41.180.
Short title -- 1993 c 406: See note following RCW 43.88.020.
Expiration date -- 1992 c 118 § 7: "Section 7 of this act shall expire April 1, 1992." [1992 c 118 § 9.]
Effective date -- 1992 c 118 § 8: "Section 8 of this act shall take effect April 1, 1992." [1992 c 118 § 10.]
Effective date -- 1991 c 358: See note following RCW 43.88.030.
Severability -- 1982 c 10: See note following RCW 6.13.080.
Effective date -- Severability -- 1981 c 270: See notes following RCW 43.88.010.
Severability -- 1971 ex.s. c 170: See note following RCW 43.09.050.
Director of financial management: Chapter 43.41 RCW.
Joint legislative audit and review committee: Chapter 44.28 RCW.
Post-audit: RCW 43.09.290 through 43.09.330.
Powers and duties of director of general administration as to official bonds: RCW 43.41.360.
State auditor, duties: Chapter 43.09 RCW.
State treasurer, duties: Chapter 43.08 RCW.