BILL ANALYSIS Ó
AB 117
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Date of Hearing: April 17, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 117 (Cooley) - As Introduced: January 14, 2013
Policy Committee:
AccountabilityVote:13 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill directs the Department of Finance (DOF) to establish
guidelines to ensure proper internal monitoring, accounting, and
administrative controls within all state agencies.
Specifically, this bill:
1)Makes it the responsibility of DOF to 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.
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.
FISCAL EFFECT
Costs associated with this legislation should be minor and
absorbable within existing resources.
COMMENTS
Rationale . This bill is a follow up to SB 617 (Calderon and
Pavley; Chapter 496, Statutes of 2011). The intent is to provide
further clarification to the changes made to the Financial
Integrity and State Managers Accountability (FISMA) Act of 1983
that were included in that legislation. According to the author,
recent events have highlighted the importance of strengthening
AB 117
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the fiscal auditing and transparent accountability of state
operations. The intent of this bill is to create stronger
guidelines for agencies' internal monitors to ensure the state
follows best practices.
The bill attempts to accomplish 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 agency's
normal administrative framework.
Additionally, the bill directs state agency heads to use
financial reports that include recommendations on how an agency
may achieve greater efficiencies without undermining its mission
or customer satisfaction.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081