Reps. Thompson, Green Offer Sponsor Testimony On AUP Audits Legislation
Legislation strives to reduce audit costs, promote transparency
February 12, 2013
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State Representatives Andy Thompson (R-Marietta) and Doug Green (R-Mount Orab) today testified before the House State and Local Government Committee in support of House Bill 6, which strives to lower auditing costs for political subdivisions and increase these entities’ participation in audits.

Specifically, House Bill 6 codifies the Ohio Auditor of State’s policy regarding the option for allowing, in certain situations, an Agreed-Upon Procedures (AUP) audit, which is a lower-cost auditing method that permits eligible government agencies to save money and time without sacrificing accountability. These audits provide less-formal presentations of findings and are ultimately more cost-effective and less time-consuming, allowing savings of 25 to 50 percent of full audit costs.

“Our goal is to reward those entities that perform to a high standard,” said Representative Thompson. “House Bill 6 does exactly that.”

“With shrinking budgets in local governments, we need to find ways to reduce expenses without undermining the integrity of the process and the public trust,” said Rep. Green. “This is an opportunity to allow that to happen.”

Currently, the Auditor of State’s Office is responsible for auditing all public offices in Ohio, a total of more than 5,700 entities that include schools, libraries, local governments and state agencies. The costs of the audits are borne by the audited entities.

In 2012, the Auditor of State’s Office expanded its policy on AUP audits to include public offices with annual expenditures of up to $5 million. According to this new policy, as many as 1,400 government entities may quality for an AUP audit, which will reduce audit costs and preserve accountability to the taxpayers.

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