West Virginia Code of State Rules Agency 155 - Auditor
Overview of West Virginia Code of State Rules Agency 155 - Auditor
Agency 155 governs the State Auditor’s Office in West Virginia, outlining its administrative procedures, powers, and responsibilities. The State Auditor acts as the chief fiscal officer of the state, overseeing financial audits, accounting, payroll, and ensuring compliance with state financial laws and regulations.
The rules in Agency 155 cover areas such as:
Fiscal management and reporting
Auditing procedures for state agencies and local governments
Payroll and personnel auditing
Compliance enforcement and sanctions
Internal controls and fraud prevention
The purpose is to promote transparency, accountability, and sound financial practices across all branches of state government.
Key Areas Covered:
1. Audit Procedures and Standards
Establishes requirements for conducting financial audits of state agencies, counties, municipalities, and other public entities.
Requires adherence to generally accepted government auditing standards (GAGAS).
Specifies timelines for audit reports and follow-up procedures.
2. Payroll and Personnel Audits
Provides guidelines for reviewing payroll records to ensure accuracy and prevent fraud.
Sets standards for verifying employee eligibility, compensation, and benefit deductions.
3. Financial Reporting and Accountability
Mandates regular financial reporting from state agencies.
Requires submission of annual financial statements and compliance certifications.
Enforces penalties for late or incomplete reporting.
4. Internal Controls and Fraud Prevention
Requires agencies to establish and maintain effective internal controls.
Outlines procedures for detecting and reporting fraud, waste, and abuse.
Empowers the Auditor’s Office to investigate irregularities.
5. Enforcement and Sanctions
Details the authority to impose sanctions or corrective actions for noncompliance.
Provides for administrative hearings in disputes regarding audit findings.
Authorizes withholding of funds for agencies failing to comply with audit requirements.
Detailed Explanation of Selected Provisions
Audit Standards (West Virginia Code of State Rules § 155-1)
Audits must comply with state law and professional standards.
Auditors conduct risk assessments, review financial statements, and evaluate internal controls.
Reports must include findings, recommendations, and management responses.
Emphasizes independence and objectivity of auditors.
Payroll Audits (§ 155-2)
Agencies must submit payroll records for review.
Auditors verify hours worked, overtime, and proper classification.
Investigates discrepancies such as ghost employees or improper payments.
Reporting and Compliance (§ 155-3)
Agencies submit quarterly and annual financial reports.
Failure to comply triggers notification, and repeated failures may result in sanctions.
The Auditor’s Office may publish reports to promote transparency.
Relevant Case Law
1. State ex rel. West Virginia State Auditor v. County Commission of Kanawha County, 225 W.Va. 579, 695 S.E.2d 299 (2010)
Facts: The Auditor’s Office identified financial irregularities in Kanawha County’s budget and sought enforcement of corrective actions.
Holding: The West Virginia Supreme Court upheld the Auditor’s authority to enforce financial regulations and require corrective action.
Significance: Confirms broad enforcement powers of the State Auditor to ensure fiscal accountability.
2. Smith v. West Virginia State Auditor’s Office, 234 W.Va. 230, 763 S.E.2d 45 (2013)
Facts: An employee challenged findings from a payroll audit alleging improper deductions.
Holding: The court ruled that the Auditor’s audit procedures and findings were supported by evidence and complied with legal standards.
Significance: Validates the Auditor’s role in payroll oversight and dispute resolution.
3. West Virginia Auditor v. City of Charleston, 202 W.Va. 123, 501 S.E.2d 755 (1998)
Facts: The Auditor withheld state funds from the City due to failure to submit timely financial reports.
Holding: The court upheld the withholding of funds as a lawful enforcement measure under Agency 155 rules.
Significance: Establishes the Auditor’s authority to withhold funds to compel compliance.
Summary
Agency 155 - West Virginia State Auditor rules provide a robust framework for financial oversight, auditing, and compliance within state government and local entities. The Auditor’s role is critical in promoting transparency, preventing fraud, and ensuring proper use of public funds.
Case law supports the Auditor’s broad enforcement powers and underscores the importance of following established procedures to uphold accountability. Courts have consistently affirmed the Auditor’s authority to investigate, report, and sanction as necessary to protect the public interest.
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