A BILL TO BE ENTITLED
AN ACT to enact various statutory changes as requested by the state auditor.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 93B‑4(a) reads as rewritten:
"§ 93B‑4.  Audit of Occupational Licensing Boards; payment of costs.
(a)	The State Auditor shall audit occupational licensing boards from time to time to ensure their proper operation. The books, records, and operations of each occupational licensing board shall be subject to the audit authority of the State Auditor pursuant to Article 5A of Chapter 147 of the General Statutes. In accordance with G.S. 147‑64.7(b), the State Auditor may contract with independent professionals to meet the requirements of this section."
SECTION 2.  G.S. 147‑64.9 reads as rewritten:
"§ 147‑64.9.  Rules and regulations.
The Auditor may make and enforce such reasonable rules and regulations as are necessary for the operation of his office. The  Auditor shall install an adequate accounting system for his office and shall keep or cause to be kept a complete, accurate, and adequate record of all fiscal transactions of his office."
SECTION 3.  G.S. 147‑64.4(1) reads as rewritten:
"§ 147‑64.4.  Definitions.
The words and phrases used in this Article have the following meanings:
(1)	"Audit". – An independent review or examination of government organizations, programs, activities, and functions. The purpose of an audit is to help ensure full accountability and assist government officials and employees in carrying out their responsibilities. An audit may include all four elements listed in this subdivision, only one element, or any combination of the four elements. It is not intended or desirable that every audit include all four elements. Economy and efficiency and program result audits should be selected when their use will meet the needs of expected users of audit results. The elements of an audit are:
a.	Financial and compliance: to determine whether financial operations are properly conducted, whether the financial reports of an audited entity are presented fairly, and whether the entity has complied with applicable laws and regulations; and,
b.	Economy and efficiency: to determine whether the entity is managing or utilizing its resources (such as personnel and property) in an economical and efficient manner and the causes of any inefficiencies or uneconomical practices, including inadequacies in laws and regulations, management information systems, administrative policies and procedures, or organizational structures; and,
c.	Program results: to determine whether the desired results or benefits are being achieved, whether the objectives established by the General Assembly or other authorizing body are being met, and whether the agency has considered alternatives which might yield desired results at lower costs.
	
e.	Information systems: to evaluate risks relevant to information systems assets and assess controls in place to reduce or mitigate these risks; to verify systems and applications are appropriate for agency needs, are efficient, and are adequately controlled."
SECTION 4.  G.S. 143C‑6‑23(d) reads as rewritten:
"(d)	Office of State Budget Rules Must Require Uniform Administration of State Grants. – The Office of State Budget and Management shall adopt rules to ensure the uniform administration of State grants by all grantor State agencies and grantees or subgrantees. The Office of State Budget and Management shall consult with the Office of the State Auditor and the Attorney General in establishing the rules required by this subsection. The rules shall establish policies and procedures for disbursements of State grants and for State agency oversight, monitoring, and evaluation of grantees and subgrantees. The policies and procedures shall:
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(8a)	Require grantees and subgrantees to display the State Auditor's Hotline information in a conspicuous location at their place or places of business.
…."
SECTION 5.  G.S. 147‑64.7(a) reads as rewritten:
"§ 147‑64.7.  Authority.
(a)	Access to Persons and Records. –
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(6)	The production of documents or information required by this section will not constitute waiver or impairment of the attorney client or attorney work product privileges."
SECTION 6.  This act becomes effective October 1, 2015.