BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 617 (Calderon) Hearing Date: 5/9/2011 Amended: 5/4/2011 Consultant: Bob Franzoia Policy Vote: GO 13-0 _________________________________________________________________ ____ BILL SUMMARY: SB 617 would do the following: - Expand the existing Financial Integrity and State Manger's Accountability Act of 1983 to require that effective, independent and ongoing monitoring of the internal accounting and administrative controls of state agencies are included within that system. - Require state agencies to implement systems and processes to ensure the independence and objectivity of the monitoring of internal accounting and administrative control as an ongoing activity. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Establish ongoing monitoring Likely minor costs initially and ongoing; General/ of state accounting andpotential savings and cost avoidance Special administrative controls within ongoing existing system _________________________________________________________________ ____ STAFF COMMENTS: The purpose of this bill is to update the Financial Integrity and State Manager's Accountability Act of 1983 to reflex evolving accounting processes that place a greater emphasis on ongoing monitoring in order to ensure effective oversight and accountability. This bill would require the Director of Finance, in consultation with the State Auditor and the Controller, to establish and may modify from time to time as necessary, a general framework of recommended practices to guide stat agencies in conducting active, ongoing monitoring of processes for internal accounting and administrative controls.