BILL ANALYSIS Ó
Bill No: AB
117
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
AB 117 Author: Cooley
As Introduced: January 14, 2013
Hearing Date: June 11, 2013
Consultant: Paul Donahue
SUBJECT
State government: Financial and administrative
accountability
DESCRIPTION
This bill makes specified legislative findings and directs
the Department of Finance (Finance) to establish guidelines
for agencies to ensure proper internal monitoring,
accounting, and administrative controls within these
agencies. Specifically, this bill:
1)Provides that the elements of a satisfactory system of
internal accounting and administrative control, shall
additionally include submittal, when appropriate, of
recommendations for how greater efficiencies in support
of an agency's mission may be attainable via the
consolidation or restructuring of potentially duplicative
or inefficient processes, programs, or practices where it
appears such changes may be achieved without undermining
program effectiveness, quality, or customer satisfaction.
2)Requires Finance 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.
AB 117 (Cooley) continued
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EXISTING LAW
Under the Financial Integrity and State Manager's
Accountability Act of 1983, the Legislature declares it to
be the policy of the State of California that, among other
things, each state agency must maintain effective systems
of internal accounting and administrative control as an
integral part of its management practices, and that those
systems be evaluated on an ongoing basis through regular
and ongoing monitoring processes.
BACKGROUND
According to the author, recent events have highlighted and
heightened the importance of continued progress in
strengthening the soundness of fiscal auditing and
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 author adds that this bill accomplishes this by
directing Finance 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.
PRIOR/RELATED LEGISLATION
SB 617 (Calderon), Chapter 496, Statutes of 2011. Requires
the director of Finance, in consultation with the State
Auditor and the Controller, to establish, and modify as
necessary, a general framework of recommended practices to
AB 117 (Cooley) continued
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guide state agencies in conducting active, ongoing
monitoring of processes for internal accounting and
administrative control.
SUPPORT: None on file
OPPOSE: None on file
DUAL REFERRAL: Senate Governance and Finance Committee
FISCAL COMMITTEE: Senate Appropriations Committee
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