Alabama. Dept. of Examiners of Public Accounts.

Authorities: Code 1975, 41:5:1-24. Singleton, Ben. P. "History and Progress of Work of Examiners of Public Accounts." In Prepared Papers: General Meeting. Wetumpka, Ala.: The Printing Company, 1945.

The Department of Examiners of Public Accounts is in the Legislative Branch under the supervision of the Legislative Committee on Public Accounts. The Chief Examiner of Public Accounts is appointed by the Committee upon confirmation by the Senate for a term of seven years. He is eligible for reappointment and may be removed from office through impeachment.

In 1862 the Governor appointed three Commissioners to Examine the Offices and Accounts of Certain Public Officers. The Commissioners examined the books, accounts, and vouchers of the State Treasurer, Comptroller (Auditor), Superintendent of Education, Quartermaster, and Military Auditor at least annually, as the Governor requested. The Governor reported examination results to the General Assembly. The Act was abolished in 1879. (Acts 1862, No. 21, p. 37; Acts 1878-1879, No. 61, pp. 68-69).

In 1883 the Governor was authorized to employ an expert accountant to audit and examine the books of the Secretary of State, the State Auditor, Treasurer, Superintendent of Education, and the Warden of the Penitentiary at least twice a year. He also participated in counting and certifying the amount of money in the Treasury, when necessary. (Acts 1882-1883, No. 111, p. 184).

The office of Examiner of Public Accounts was created in 1885 when the Governor appointed an expert accountant, who under his direction, would examine and audit records of the Secretary of State, the Auditor, Treasurer, Superintendent of Education, Commissioner of Agriculture (in 1907), and the Warden of the Penitentiary, or whoever had charge of the accounts of state convicts, the University of Alabama, the Alabama Insane Hospital, the Agricultural and Mechanical College, the Alabama Institution for the Deaf, Dumb, and Blind, the state Normal schools, the Girls Industrial School (1907), and the agricultural schools (1907). The Examiner was also asked to examine any public institution which received money from the Treasury in 1907. In addition, the Governor could require him to audit any state or county office which collected or disbursed public revenues and to count and certify with other officers the money in the Treasury. The Examiner could also require officers and clerks to provide information, and he could administer oaths to witnesses. He submitted questions involving the legality of any payment to the Attorney General, and he reported the results of examinations to the Governor, who had them printed. (Acts 1884-1885, No. 59, pp. 122-123).

According to the Code of 1907, amendments provided for the appointment by the Governor of two Assistant Examiners. In addition, clerks or officers who refused to assist the Examiner were referred to a Supreme, Circuit, or City Court Judge. The Examiners would also investigate any county official at the request of the Governor upon the recommendation of ten reputable citizens. They would report their findings to the Circuit Court. (Acts 1897, No. 334, p. 840; Acts 1907, No. 14, p. 10).

In 1909 the Governor was authorized to employ four Assistant Examiners. The law also provided that the accounts of all county officials and chancery registers be examined every two years. (Acts 1909, No. 210, pp. 250-53).

An act in 1911 authorized the Governor to appoint seven expert accountants, called Examiners of Public Accounts, with one Chief Examiner, to serve for four years. They would examine and audit the records of every officer, public institution, or organization receiving or disbursing state funds, and any county. An Examiner could be detailed by the Governor as Disbursing Officer for military encampments, or to the Insurance Department at the request of the Commissioner. Although Examiners could not prescribe how books should be kept, this amendment allowed them to suggest innovations. They continued to report their findings to the Governor and furnish duplicates to circuit or jurisdictional judges in county work. In addition, the Chief Examiner would record all reports and keep a docket of claims, stating whether the judgement was favorable to the state or county. He also had a role in the settlement of claims. Each Examiner was required to notify the Governor daily of his whereabouts. (Acts 1911, No. 481, pp. 490-494).

An amendment in 1915 changed the number of Examiners to five, who would hold office for four years. The general duties were more clearly defined to specify every state and county office, including tax accessors. (Acts 1915, No. 168, pp. 209-10).

The Department of Examiners of Accounts was created in 1919, with six Examiners. Additional duties included to examine records of all county, local school, or other district officers, to examine Confederate pension records, at least annually; and more specifically, to examine insurance companies within and outside of the state. According to an act in 1923 and the Code of 1923, the Chief Examiner and seventeen Assistant Examiners were appointed by the Governor and served at his pleasure. The Assistant Examiners would now report their daily locations to the Chief Examiner. The Chief Examiner would preserve all reports, opinions, correspondence, and other records, and collect and arrange prior records.

The Examiners reported in triplicate to the Department and continued to supply one copy to the Circuit Judge in county work. Assistant Examiners submitted findings concerning the legality of payments or shortages to the Chief, who referred them to the Attorney General. The Chief Examiner compiled all opinions given by the Attorney General in connection with examinations. (Acts 1919, No. 554, pp. 810, 963; Acts 1923, No. 75, p. 54).

In 1931 the Department was required to examine the accounts of all county offices every two years, and sufficient Examiners to perform these examinations were to be appointed by the Governor. (Acts 1931, No. 490, p. 604).

Also in 1931, the Examiners' Manual was drafted, providing a uniform procedure for making and reporting county audits.

In 1932 the Department was absorbed as the Division of Departmental and County Audits in the Office of the State Comptroller (Acts 1932, No. 37, pp. 35-48 [Extra Session]). This change gave the Comptroller more authority.

In 1935, the Uniform Accounting and Reporting System law was passed, requiring the Comptroller, with the approval of the Auditor, to prepare and install accounting forms and systems for all county offices charged with receiving, disbursing, or accounting for any public funds. Also, the Legislature again required the appointment of a sufficient number of Examiners to perform examinations of county offices every two years (Acts 1935, No. 218, pp. 601-602).

From 1935 to 1939, the Examiners installed the uniform accounting system for Boards of Revenue. Since many county and departmental offices were not being audited regularly or at all, steps were taken in 1939 to place all offices on an annual audit basis. A system of field aid and supervision was initiated. Uniform systems were prepared and in operation in 1939, and the Examiners were instructed to report the facts without personal observations.

When the Department of Finance was created in 1939, the Office of State Comptroller was abolished. The Division became the Division of Examiners of Public Accounts, and the Chief Examiner was placed in charge of the Division (Acts 1939-1940, No. 112, pp. 144-164). According to Singleton, when the Division of Local Finance was merged in 1943 (Annual Report, 1943), additional duties included auditing municipal corporations, upon request and if possible, approving the issuance of municipal and county bonds, and holding public hearings. The Department of Finance kept these responsibilities after 1947.

In 1943 City Boards of Education were authorized to request audits (Acts 1943, No. 100, p. 105).

Legislation in 1945 provided that the Division would audit and examine the records of all state offices, departments, institutions, and county offices and prepare forms necessary for the installation of uniform reporting and accounting procedures in all state agencies and county offices, except County Boards of Education (Acts 1945, No. 194, pp. 310-320).

In 1947 the Department of Examiners of Public Accounts was created, abolishing the Division of Examiners of Public Accounts in the Department of Finance and transferring its functions, records, furniture, equipment, supplies, and personnel. The act provided that every state and county office would be audited at least once every two years, except City Boards of Education, who would be audited by request (Acts 1947, No. 351, p. 231).

The Chief Examiner has the following other duties and powers: (1) to supervise and make regulations for the Department; (2) to prescribe uniform rules relating to investigations, examinations, audits, and departmental hearings; (3) to supervise the fiscal affairs of the Department; (4) to appoint or remove officials and employees according to the Merit System; (5) to record, file, or keep in custody departmental proceedings, bonds, reports, papers, and other documents; (6) to make recommendations and an annual report to the Governor and the Legislative Committee; (7) to invoke any legal, equitable, or special remedy for the enforcement of orders; (8) to expedite thorough and accurate audits; and (9) to report any violation in expenditure or contract to the Governor and the Legislative Committee.

In 1951 the Department provided for and began continuous supervision of a uniform system of reporting and accounting for County Boards of Education. It also furnished Chairmen of the County Commissions a fiscal statement showing receipts, disbursements, outstanding indebtedness, and securities owned (Acts 1951, No. 353, p. 640). In 1953 the position of Assistant Chief Examiner was created (Acts 1953, No. 791, p. 1085).

The Chief Examiner is authorized to request legal services from the Attorney General or District Attorneys. He also may continue to refer questions of legality to the Attorney General for an opinion. The Attorney Genral furnishes copies of opinions affecting any state or county office to the officer affected, the Chief Examiner, and the Governor. Acts in 1950 and 1951 allowed the Chief Examiner to appoint a Legal Counsel, with the approval of the Attorney General and subject to the Merit System. This position has the authority and duties of an Assistant Attorney General (Acts 1950, No. 62, p. 124; Acts 1951, No. 917, p. 1568). In 1969 the Chief Examiner could appoint two Assistant Legal Counsels for the Department (Acts 1969, No. 778, p. 1394).

The Chief Examiner continues to have authority to administer oaths, issue subpoenas, take depositions, and certify official acts. He also compiles and prints the rules and regulations of the Department and other relevant material.

The Examiners make sworn reports of their findings when an audit is completed. The Chief Examiner certifies one copy to the county Circuit Judge in county work; they are entered in the minutes of the Court, and are considered public records. The Governor certifies one copy of each report.

The Chief Examiner still maintains a docket of cases against persons who have not properly or lawfully accounted for funds. If an account is not settled, the Examiner may certify the fact to the Attorney General or District Attorney, who shall institute a civil action.

The Department is divided into the following divisions:

Alabama. Department of Examiners of Public Accounts. Division of State Audits.

Authority: Alabama Government Manual, 1982.

Alabama. Department of Examiners of Public Accounts. Division of Field Audits. (This Division is subdivided into geographical districts.)

Alabama. Department of Examiners of Public accounts. Division of Operational Audits.

The Legislative Committee on Public Accounts exercises general supervision and control over the Department. It consists of twelve members: five members elected by the House of Representatives from its membership, five elected by the Senate from its membership, the President of the Senate, who is Chairman, and the Speaker of the House, who is Vice-Chairman. The Committee meets annually and receives the report and recommendations of the Chief Examiner. Special meetings may be called by the Chairman. The Committee reports its findings and recommendations to the Legislature at each session and to the Governor (Acts 1947, No. 351, p. 231).