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OPEN LETTER

February 3, 2005

TO: Washington Legislators
FROM: Jason Mercier, Budget Analyst
RE: Performance Audits

Dear Legislators:

Some members of the legislature believe the Evergreen Freedom Foundation has been inconsistent about what we believe are the essentials of performance audits and the language necessary to guarantee a comprehensive and independent process. The confusion seems to stem from my January 28th email to you. In that email I said the draft amendment the state auditor was working on with Speaker Chopp was superior to the language offered in EFF's pledge. It was. Unfortunately that amendment was not considered on the House floor, though its provisions were most closely reflected in Rep. Armstrong's striker amendment.

U.S. Government Accountability Office auditing standards require auditors be independent both in fact and appearance from personal, external, and organizational impairments to independence. By granting the unelected citizen board and not the elected state auditor the ability to establish the parameters of any performance audits, the board serves as an organizational impairment to essential audit independence. Ensuring independence has been a lynchpin for us from the beginning.

We are still hopeful your hard work will pay off with the passage of truly independent and comprehensive performance audits this session. We stand ready to assist the legislature if requested. Thank you for you ongoing efforts in this regard.

To help address any remaining concerns, I have included a breakdown of our comments on the various proposals. (The titles link back to original source documents.)

Audit scope State auditor sets scope of audits (not unelected citizen board); audit scope shall not be limited. State auditor sets scope of audits, not unelected citizen board. State auditor sets scope of audits, not unelected citizen board. State auditor sets scope of audits, not unelected citizen board. Citizen board sets scope of audits.
Funding Dedicated funding of two one-hundredths of one percent of GFS each biennium. Dedicated funding of two one-hundredths of one percent of GFS each biennium. Dedicated funding of two one-hundredths of one percent of GFS each biennium. Dedicated funding of two one-hundredths of one percent of GFS each biennium. Dedicated funding of two one-hundredths of one percent of GFS each biennium.
Public reporting Public reporting required and report posted on internet. Public reporting required and report posted on Internet Public reporting required and report posted on Internet Public reporting required and report posted on Internet Public reporting required and report posted on Internet
Local audits Not addressed Auditor has discretion if requested by locals using local funds (added after original draft). Auditor has discretion if requested by locals using local funds. Auditor has discretion if requested by locals using local funds. Auditor has discretion if requested by locals using local funds.
Audit contracting Auditor authorized to contract audits, but is not required to do so. Auditor authorized to contract audits, but is not required to do so. Not addressed Auditor authorized to contract audits, but is not required to do so. Auditor required to contract audits.
Agencies subject to audits Broadly defined to cover all state government. Broadly defined to cover all state government. Not addressed Broadly defined to cover all state government. Broadly defined to cover all state government with additional provisions for DOT and higher ed.
Citizen board Not addressed Seven members with auditor selecting representative. All members can vote and are eligible to serve as chair. Not addressed Seven members with auditor selecting representative. All members can vote and are eligible to serve as chair. Ten members with auditor as a non-voting member. Auditor prohibited from serving as chair.

Sincerely,

Jason Mercier, Budget Analyst
Evergreen Freedom Foundation
Evergreen Freedom Foundation
P.O. Box 552, Olympia, WA 98507
Phone: (360) 956-3482, Fax: (360) 352-1874
Email: effwa@effwa.org


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1 Part Honesty; 2 Parts Arrogance

At a March 23, 2005, House Appropriations hearing on a bill to gut the voter-approved I-601 spending limit, Rep. Jim McIntire (D) asked a supporter of I-601’s two-third supermajority requirement for the legislature to raise taxes the following question:

"Can you name a time when we [legislators] have actually not just set it [supermajority requirement] aside by majority vote? I mean, this is in many respects a procedural motion that has no bearing. It’s a statutory constraint that cannot constrain any legislature that chooses as a majority to set it aside . . . have we ever used a supermajority [to raise taxes]?"

- Rep. Jim McIntire (D - 46)
(360) 786-7886

Despite the arrogance of some state officials, Washington's constitution is clear: "All political power is inherent in the people..."

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