Vermont Auditor of Accounts: Role and Responsibilities

The Vermont Auditor of Accounts is a constitutional officer responsible for the independent financial oversight of state government operations. This page covers the office's statutory authority, audit functions, jurisdictional boundaries, and how its work intersects with other branches and agencies of Vermont state government. The office operates independently of the executive branch, making it a critical check on the stewardship of public funds across Vermont's state government structure.

Definition and scope

The Vermont Auditor of Accounts is established under Chapter II, Section 47 of the Vermont Constitution, making it one of six statewide elected offices in Vermont. The officer is elected to a two-year term and serves as the principal auditor of all state accounts, funds, and financial activities supported by public dollars.

Statutory authority is codified in 32 V.S.A. Chapter 3, which defines the Auditor's power to examine accounts, compel production of records, and report findings to the Vermont General Assembly and the public. The office conducts three primary categories of work:

1. Financial audits — examination of the accuracy and completeness of financial statements and records for state agencies and departments.
2. Performance audits — evaluation of whether programs are achieving their stated objectives efficiently and in compliance with applicable law.
3. Investigative reviews — targeted examinations of specific allegations of financial irregularity, waste, or misuse of public resources.

The Auditor's office is distinct from the Vermont Treasurer's Office, which manages cash flow, investments, and debt issuance. The Treasurer holds and disburses public funds; the Auditor independently verifies how those funds are used. These two functions are constitutionally separated to prevent any single officer from controlling and reviewing the same public resources.

Scope coverage: The Auditor's jurisdiction extends to all departments, agencies, boards, and commissions funded wholly or in part by the State of Vermont, including entities receiving state grants or contracts. This encompasses agencies such as the Vermont Agency of Human Services, the Vermont Agency of Transportation, and the Vermont Agency of Education, among others.

How it works

The Auditor's office conducts its work under professional auditing standards issued by the U.S. Government Accountability Office — specifically the Government Auditing Standards (Yellow Book), which establishes independence, fieldwork, and reporting requirements for governmental auditors (GAO Government Auditing Standards, 2018 Revision).

A standard financial audit cycle involves:

1. Planning — identification of audit scope, risk assessment, and development of an audit program.
2. Fieldwork — examination of agency records, financial statements, transaction samples, and internal controls.
3. Draft reporting — preparation of findings with documented evidence, shared with the audited entity for response.
4. Final report issuance — publication of findings, agency responses, and recommendations, transmitted to the Vermont Legislature and made available to the public.

Performance audits follow a similar sequence but require additional program-specific criteria against which performance is measured. The Auditor may initiate a performance audit based on legislative referral, public complaint, or the office's own risk-based audit plan.

The office employs Certified Public Accountants (CPAs) and Certified Government Financial Managers (CGFMs). Professional staff must maintain continuing professional education requirements under Yellow Book standards — a minimum of 80 hours of CPE every 2 years, with at least 24 hours directly related to governmental auditing (GAO Yellow Book, §4.26).

Audit reports are transmitted to the Joint Fiscal Committee of the Vermont General Assembly and posted publicly on the Auditor's official website, fulfilling the transparency mandate under Vermont law.

Common scenarios

The Auditor of Accounts engages in financial and performance oversight across a range of operational contexts:

• State agency financial statement reviews — The Auditor examines annual financial statements of major agencies to confirm compliance with Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standards Board (GASB).
• Federal fund compliance audits — Vermont receives substantial federal transfers, including Medicaid matching funds administered through the Agency of Human Services. The Auditor conducts Single Audits under the federal requirements of 2 C.F.R. Part 200 (Uniform Guidance) (eCFR, 2 C.F.R. Part 200) to verify that federal dollars are spent in accordance with program requirements.
• Program efficiency reviews — Performance audits may examine specific programs, such as correctional services under the Vermont Department of Corrections or labor programs administered by the Vermont Department of Labor, to assess whether operational outcomes align with legislative intent and appropriated budgets.
• Grant recipient oversight — Municipalities, school districts, and nonprofit organizations receiving state grants may be subject to audit procedures, particularly where grant agreements specify audit rights.
• Pension fund reviews — State retirement system expenditures and fund management practices fall within audit scope, intersecting with the work of the Vermont Pension Investment Committee.

Decision boundaries

The Auditor of Accounts holds independent authority but operates within defined limits that distinguish its role from other state officers and bodies.

What the Auditor does:
- Issues findings and recommendations; does not hold prosecutorial authority.
- Identifies financial irregularities and refers matters to the appropriate enforcement authority — typically the Vermont Attorney General for legal action.
- Reports to the Legislature and the public but does not direct agency operations or compel corrective action unilaterally.

What the Auditor does not do:
- The office does not pre-approve expenditures or issue warrants; those functions belong to the Vermont Secretary of State and the Treasurer under separate statutory authority.
- The Auditor does not adjudicate disputes between agencies and employees; those matters route to the Vermont Labor Relations Board or the courts.
- Oversight of judicial branch financial operations follows distinct constitutional separation principles; the Auditor's authority over the Vermont Judicial Branch is limited by judicial independence doctrine.
- Federal agency audits, audits of federally chartered entities, and audits of purely private entities not receiving state funds fall outside scope entirely.

Contrast with legislative oversight: The Joint Fiscal Office serves the Vermont Legislature in a budget analysis and policy research capacity. That office supports legislative decision-making on appropriations and fiscal policy. The Auditor, by contrast, examines how already-appropriated funds were actually spent — a retrospective, evidence-based function rather than a forward-looking policy function. The two offices are complementary but structurally and functionally separate.

The Vermont state budget process governs how funds are appropriated; the Auditor of Accounts determines whether those appropriations were administered lawfully and efficiently after the fact.

References

• Vermont Constitution, Chapter II, § 47 — Statewide Elected Officers
• 32 V.S.A. Chapter 3 — Auditor of Accounts (Vermont Statutes Online)
• U.S. Government Accountability Office — Government Auditing Standards (Yellow Book), 2018 Revision
• eCFR — 2 C.F.R. Part 200, Uniform Administrative Requirements (Uniform Guidance)
• Vermont Auditor of Accounts — Official Office
• Governmental Accounting Standards Board (GASB)
• Vermont General Assembly — Joint Fiscal Office