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    
           
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          |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                     |     |                          |
          |     |                          |     |                          |
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           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
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          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 


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