Kansas Statutes 74-8774. Audits; selection of firm
Terms Used In Kansas Statutes 74-8774
- Commission: means the Kansas lottery commission. See Kansas Statutes 74-8702
- Contract: A legal written agreement that becomes binding when signed.
- Executive director: means the executive director of the Kansas lottery. See Kansas Statutes 74-8702
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Kansas lottery: means the state agency created by this act to operate a lottery or lotteries pursuant to this act. See Kansas Statutes 74-8702
- Person: means any natural person, association, limited liability company, corporation or partnership. See Kansas Statutes 74-8702
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Kansas Statutes 77-201
- Vendor: means any person who has entered into a major procurement contract with the Kansas lottery. See Kansas Statutes 74-8702
(a) (1) Beginning in calendar year 2019, and at least once every three years thereafter, there shall be conducted a security audit of the Kansas lottery. Any security audit conducted pursuant to this section shall include a comprehensive study and evaluation of all aspects of security in the operation of such state agency. The firm to conduct a security audit shall be selected and shall perform such audit work as provided in Kan. Stat. Ann. §§ 74-8776 through 74-8779, and amendments thereto. The firm selected to perform a security audit shall be experienced in security procedures, including, but not limited to, computer systems and security. A contract to conduct such a security audit required by this subsection shall not be awarded until a background investigation is conducted by the executive director of the Kansas lottery on the person or firm selected to perform the audit. Such background investigation shall include: (A) The vendor to whom the contract is to be awarded; (B) all persons who own a controlling interest in such vendor; and (C) all applicable staff having involvement with the audit.
(2) For the purpose of conducting a security audit under this subsection, a person or a firm selected to perform the security audit shall not be limited to a legal entity permitted by law to engage in practice as a certified public accountant.
(b) Beginning in calendar year 2019, a financial-compliance audit shall be conducted annually on the accounts and transactions of the Kansas lottery and the Kansas lottery commission. The first financial-compliance audit shall examine the accounts and transactions for fiscal year 2019. The firm to conduct this audit work shall be selected as provided in Kan. Stat. Ann. §§ 74-8776 and 74-8777, and amendments thereto. The audits required pursuant to this subsection shall be conducted in accordance with generally accepted governmental auditing standards, and shall be conducted as soon after the close of the fiscal year as practicable, but shall be completed no later than the deadlines as set forth in Kan. Stat. Ann. § 74-8779, and amendments thereto.