109-1-04 Internal audit committee.

(A) The attorney general shall appoint a standing internal audit committee (IAC). The IAC shall advise the attorney general in identifying and implementing improvements to internal processes and activities. Areas of focus for the IAC shall include without limitation:

(1) Efficacy of operations;

(2) Reliability of financial reporting

(3) Deterring and investigating fraud;

(4) Safeguarding assets;

(5) Compliance with applicable laws, rules and regulations;

(6) Transparency of outside counsel appointment decisions and processes;

(7) Review and consider outside counsel’s political contributions that are disclosed pursuant to Ohio law and disclose any appearances of improper favoritism in the choice of outside counsel.

(8) Disclose campaign contributions made by any attorney or law firm that would disqualify that attorney or law firm from serving as outside counsel in accordance with applicable law.

(B) The attorney general shall preside over the IAC as its chairperson and shall appoint no fewer than four and no more than nine persons to serve on the committee. The appointees serve at the pleasure of the attorney general who has sole discretion to remove, replace or add IAC appointees. At least two such IAC appointees shall be external appointees. To qualify as an external IAC appointee, the appointee shall certify that she/he:

(1) Is not a current attorney general employee or a current candidate for employment by the attorney general;

(2) Has no current contact with the attorney general, the Ohio department of administrative services or the auditor of state to provide goods or services in exchange for payment;

(3) Is not currently seeking a contract with the attorney general to provide goods or services in exchange for payment;

(4) She/he has not contributed more than one thousand dollars to the attorney general’s campaign committee within the twenty-four calendar months prior to her/his appointment;

(5) Is not currently appointed by the attorney general to serve as outside counsel and is not currently seeking an appointment from the attorney general to serve as outside counsel; and

(6) Is not employed by a firm that also employees an attorney who is:

(a) Currently appointed by the attorney general to serve as outside counsel; or

(b) Currently a candidate for an appointment from the attorney general to serve as outside counsel.

(C) The attorney general shall convene the IAC at least four times per calendar year. The attorney general shall allow no more than six calendar months to lapse between consecutive IAC meetings. Notice of IAC meetings shall be provide for in a manner directed by the attorney general and in accordance with applicable law. The attorney general may designate a representative to preside over an IAC meeting when the attorney general is unavailable for such a meeting.

(D) The attorney general shall cause a report to be prepared and provided to the IAC prior to each meeting of that committee. That report shall describe the status and progress of the attorney general’s internal audit activities and the other areas of focus described in paragraphs (A)(1) to (A)(8) of this rule.

Effective: 01/22/2009

R.C. 119.032 review dates: 01/22/2014

Promulgated Under: 111.15

Statutory Authority: 111.15

Rule Amplifies: 111.15 and 109