Improving the internal audit function of Ohio Executive Branch (Sub. HB 166)

Auditor of State Mary Taylor, CPA joined with sponsor, Rep. Carol-Ann Schindel, CPA in spearheading legislative efforts to revamp the internal auditing mechanism for the state’s Executive Branch (EB). The Society testified in support of Substitute House Bill 166 in both the House and Senate, lauding the mandates that, among other things, require internal auditors to report to the new Office of Internal Auditing as opposed to the department head of the office they are auditing, creating independence which was not present under the prior EB internal audit function. The new Office of Internal Auditing will coordinate internal auditing plans for 26 agencies in Ohio. (See related article)

With the goal of improving operations in the areas of risk management, internal controls and governance, the bill establishes the State Audit Committee, which consists of the Director of Budget and Management, two public members of different political parties, appointed by the House Speaker and two public members of different political parties appointed by the Senate President. The committee would include: