Typologies Supervising
public finances and improving the efficiency and effectiveness of
public administration are the primary business of America's state auditors. However, distinctions exist in their functions. Generally speaking, external auditors examine public accounts in order to detect and prevent waste, fraud, and abuse of public funds and resources. These audits may be concerned with rendering an opinion on the
basic financial statements of governmental entities, verifying
regulatory compliance, assessing the strength and design of
internal controls, or evaluating
program performance. External auditors operate outside of the statewide accounting and financial reporting framework and do not report to executive branch administrators, meaning they have the relevant independence to objectively verify the condition of public finances. This independence, required by
Government Auditing Standards, is guaranteed by either
direct election of the voters or by manner of legislative appointment. While similar, inspectors general are not external auditors. Quite to the contrary, inspectors general operate within the entities that they serve. They cannot independently audit governmental financial statements since they report to the very public administrators that prepare them. Instead, inspectors general serve as an objective assurance and consulting activity to either the duly elected governor or individual state agencies, with a remit specifically tailored to investigating corruption within public office and recommending more efficient business practices in the delivery of public services. For the purpose of brevity, this article focuses only on those inspectors general with a mandate encompassing the whole of state government as opposed to individual state agencies. Meanwhile, governmental accounting is the province of two different types of accountants – bookkeepers and financial controllers. Once the norm in the United States, bookkeepers are now few in number. Bookkeepers are independently elected constitutional officers whose principal duty is to scrutinize, control, and record the disbursement of public funds paid out of the state treasury. All bookkeepers preaudit claims by and against the state, issue warrants on the treasury in payment of claims approved, administer payroll to state employees, and keep a record of fund balances. Other duties may be assigned to bookkeepers by law, such as the administration of unclaimed property, securities and insurance regulation, or the auditing of local government finances. Meanwhile, financial controllers exist to account for a given state’s financial condition. In these respects, financial controllers are charged with operating the statewide accounting system, approving or processing financial transactions, prescribing and enforcing internal controls, and preparing financial reports, among other related responsibilities. The vast majority of state government accountants are financial controllers; in those states lacking bookkeepers, the responsibilities of that office are instead performed by the pertinent financial controller.
Variations on the conceptual models Public organizational theory and state law do not always clearly distinguish the functions of America's state auditors based on their official titles. Minnesota is particularly unique. In that state, the
state auditor, who is elected, is the only state auditor in the United States to broadly supervise and audit the fiscal concerns of local governments. In fact, nearly 5,000 local governments which altogether spend some $40 billion annually come under the state auditor's purview. With that said, the state auditor's authority over state agencies extends only to the statewide
single audit of federal funds spent by state agencies and their subrecipients. A separate legislative auditor appointed by and reporting to the state legislature is responsible for audits and evaluations of state agency financial management and performance.
Miscellaneous responsibilities As independently chosen external auditors, financial controllers and inspectors general, America's state auditors exist to safeguard public finances from misappropriation and maladministration. In short, their work combats corruption and keeps government accountable for the efficient and effective use of tax dollars. Nevertheless, their accounting and auditing activities are frequently put to use for connected purposes. In Colorado for instance, the state auditor reports on the effectiveness of
health exchanges and
marijuana legalization. Meanwhile, California's state auditor is involved in the
redistricting process. ==Professional standards==