BILL ANALYSIS Ó
AB 117
Page 1
Date of Hearing: April 3,2013
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
AB 117 (Cooley) - As Introduced: January 14, 2013
SUBJECT : State Government: Financial and Administrative
Accountability
SUMMARY : This bill makes specified legislative findings and
directs the Department of Finance (DOF) to establish guidelines
for agencies to ensure proper internal monitoring, accounting,
and administrative controls within these agencies.
Specifically, this bill:
1)Requires DOF put in place guidelines that ensure agency
monitors are independent and objective.
2)Requires state agency heads follow standards that facilitate
production of timely and accurate financial reports including
recommendations for how to achieve greater efficiencies in
support of the agency's mission without undermining program
effectiveness, quality, or customer satisfaction.
3)Requires DOF put in place guidelines for state agency managers
on how the role of independent monitor should be staffed,
structured, and its reporting function standardized so it fits
within an efficient and normalized agency administrative
framework.
EXISTING LAW established the Financial Integrity and State
Manager's Accountability Act of 1983. Within the Act the
Legislature, among other things, declared it to be the policy of
the state that each state agency maintains effective systems of
internal accounting and administrative control as an integral
part of its management practices, and that those systems are
evaluated on an ongoing basis through regular and ongoing
monitoring processes.
FISCAL EFFECT : unknown
COMMENTS : According to the author, recent events have
highlighted and heightened the importance of continued progress
in strengthening the soundness of fiscal auditing and
AB 117
Page 2
transparent accountability of state operations.
This bill seeks to create stronger guidelines for agencies'
internal monitors ensuring that the state follows the same best
practices as required in the private sector and gives an
additional check on state finances to ensure public funds are
wisely spent.
The bill accomplishes this by directing DOF to develop
guidelines ensuring agency monitors are independent and
objective. This includes the consideration of how an independent
monitor should be staffed, structured, and utilized in a
standardized way to ensure efficiency and fit within an agencies
normal administrative framework.
Additionally, the bill directs state agency heads use financial
reports that include recommendations on how an agency may
achieve greater efficiencies without undermining its mission or
customer satisfaction.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : William Herms / A. & A.R. / (916)
319-3600