BILL ANALYSIS Ó AB 1218 Page 1 ASSEMBLY THIRD READING AB 1218 (Gray) As Amended April 16, 2013 Majority vote ADMINISTRATIVE REVIEW 12-1 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Frazier, Achadjian, |Ayes:|Gatto, Harkey, Bigelow, | | |Buchanan, | |Bocanegra, Bradford, Ian | | |Ian Calderon, Cooley, | |Calderon, Campos, | | |Gorell, Hagman, | |Donnelly, Eggman, Gomez, | | |Lowenthal, Medina, Olsen, | |Hall, Rendon, Linder, | | |Quirk-Silva, Salas | |Pan, Quirk, Wagner, Weber | |-----+--------------------------+-----+--------------------------| |Nays:|Allen | | | | | | | | ----------------------------------------------------------------- SUMMARY : Authorizes the California State Auditor (CSA), after performing audits, to conduct followup audit work related to the audits' original findings and recommendations. EXISTING LAW requires the CSA to conduct audits as directed by statute and those requested by the Joint Legislative Audit Committee. FISCAL EFFECT : According to the Assembly Appropriations Committee, there are no significant costs associated with this legislation. COMMENTS : This bill, which is sponsored by the CSA, would authorize the CSA to conduct followup work related to original audit findings and recommendations. While the CSA conducts followup work under current authority granted by the Government Code, this bill would clarify that authority by making it explicit. Government Code requires the CSA to comply with Government Auditing Standards (GAS) published by the Comptroller General of the United States and standards published by the American Institute of Certified Public Accountants. Generally, these standards have historically required audit entities to conduct followup work. However, the CSA noted that a recent change to GAS language no longer explicitly states a followup requirement, AB 1218 Page 2 but instead implies it. The CSA is seeking to clearly express this followup authority in its governing statutes since the current authority is based on standards that could change. According to the CSA, this change is sought so entities subject to followup work clearly understand the authority and grant the CSA appropriate access. Analysis Prepared by : Scott Herbstman / A. & A.R. / (916) 319-3600 FN: 0000663