About the OAG

The Office of the Auditor General (OAG) was established by the Rhode Island General Assembly in 1974 to independently evaluate the State’s government programs and financial operations. The duties and responsibilities of the Auditor General are outlined within Chapter 22-13 of the Rhode Island General Laws (RIGL). Our audits are conducted in accordance with the following professional standards:

• Generally Accepted Auditing Standards issued by the American Institute of Certified Public Accountants.
• Government Auditing Standards issued by the Comptroller General of the United States.
• Federal Uniform Guidance (Title 2 CFR Part 200 Subpart F – Audit Requirements)

The OAG is authorized under RIGL §22-13-4 to perform a variety of auditing functions defined in statute or as directed by the Joint Committee on Legislative Services (JCLS). The JCLS is a bipartisan committee comprised of the Speaker of the House, the Senate President, the majority and minority leaders of the House and the minority leader of the Senate.

Our audit reports provide objective and timely information to General Assembly members on the operations of State government, as well as valuable information to the auditees, Rhode Island citizens, and other interested parties. These reports are important to help ensure that Rhode Island state government is accountable and that its citizens have independent information regarding the effectiveness and efficiency of their government. Other users include the federal government which relies on our annual Single Audit of the State to help ensure that more than $6.8 billion of federal assistance is expended in compliance with federal laws and program regulations. Investors, creditors and bond rating agencies rely on our annual audit of the State's financial statements to assess the State's financial condition.

Types of Audits

Financial and Compliance Audits

These audits focus on attesting to information an entity presents in its financial statements. An opinion is issued on the fairness of the information presented in conformance with generally accepted accounting principles. Financial audits performed in accordance with Government Auditing Standards also result in a report on the entity's internal controls over financial reporting and its compliance with laws, regulations and contracts. In accordance with the federal Single Audit Act, we combine the State’s annual financial audit with a compliance audit of federal awards, ensuring the State uses federal funding in accordance with mandated requirements. The compliance audit includes procedures to determine whether the State complied with federal laws and regulations in administering federal programs.

Performance Audits

These audits are conducted using Government Auditing Standards to determine whether the auditee is performing their functions efficiently and effectively and are using their resources in compliance with applicable laws and regulations. The scope of each performance audit is tailored to the individual circumstances; however, a performance audit generally results in recommendations to management to improve operating practices and overall performance and effectiveness.

Local Government Oversight

Under RIGL, the OAG has also been granted certain financial oversight responsibilities for the State’s 39 municipalities. Those responsibilities include (1) receiving and reviewing the annual audited financial statements of the cities and towns, (2) prescribing and supervising their application of uniform accounting principles, procedures and reporting standards, (3) monitoring compliance of contributions to locally administered pension plans, (4) making determinations and certifications of whether an emergency situation exists to permit a municipality to exceed the statutory cap on annual property tax levy increases, and (5) coordinating with municipalities for OAG review and approval of their proposed corrective actions when cumulative deficits are reported in the General Fund or combined General and Unrestricted School fund.

The OAG also has certain oversight responsibilities for regional school districts, charter schools, and fire districts which are detailed in the Local Governments section of this website.

Additional Responsibilities

The OAG also serves in an oversight capacity for component units of the State such as the Rhode Island Public Transit Authority, the Rhode Island Convention Center Authority, the Rhode Island Airport Corporation and many others. Since most of these entities get reported as component units within the State’s financial reporting entity, our oversight includes review of audit specifications and audit reports for each entity in addition to coordination regarding audits of federal assistance received by the State in conjunction with our responsibilities as the lead auditor on the State’s financial statements and Single Audit.

As the State's independent auditors, we also participate in the sale of the State's general obligation bonds and any other bonds to be repaid, as a whole or in part, with state revenues. This includes coordination with the State's fiscal advisors and bond counsel and technical review of the State's Official Statements which include detailed financial information and the State's financial statements, including our opinion thereon.

Other activities include issuance of accounting opinions, attending meetings and hearings relevant to ongoing or completed audit assignments, and special non-audit projects and reports that provide timely information to decision-makers.