BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1218|
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CONSENT
Bill No: AB 1218
Author: Gray (D)
Amended: 4/16/13 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 11-0, 6/25/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,
De León, Galgiani, Hernandez, Lieu, Padilla
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 72-0, 5/24/13 - See last page for vote
SUBJECT : California State Auditor: duties
SOURCE : State Auditor's Office
DIGEST : This bill adds clarity to existing law by authorizing
the California State Auditor (CSA), after performing an audit,
to conduct follow-up audit work that is related to the audits'
original findings and recommendations.
ANALYSIS :
Existing law:
1.Requires the CSA to conduct financial and performance audits
as directed by statute, and to conduct audits of a state or
local governmental agencies or other publicly created entities
as requested by the Joint Legislative Audit Committee (JLAC).
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2.Provides that the CSA is appointed by the Governor, from a
list submitted by JLAC, to a four-year term.
This bill adds clarity to existing law by authorizing the CSA,
after performing an audit, to conduct follow-up audit work that
is related to the audits' original findings and recommendations.
Background
SB 37 (Maddy, Chapter 12, Statutes of 1993) created the Bureau
of State Audits (BSA) as part of the Executive Branch. SB 1395
(Rubio, Chapter 281, Statutes of 2012) renamed the BSA as the
"California State Auditor's Office."
To assure its independence, the CSA is free from the control of
the Executive and Legislative branches; the Milton Marks "Little
Hoover" Commission oversees its administrative operations. The
CSA, under the direction of the CSA, performs an annual
examination (single audit) of the state's general-purpose
financial statements as prepared by the State Controller's
Office. The federal government, as a condition of receiving
federal funds, requires this audit. The single audit also
includes a review of major federal programs for compliance with
federal laws and regulations, and recommendations to improve the
state's financial systems and internal control.
The CSA also conducts financial and performance audits as
directed by statute, and other government audits requested by
JLAC. The CSA has the explicit authority to audit any entity
that receives state funds. Consequently, it sometimes audits at
the local government level. In addition, the CSA administers
the "Reporting of Improper Governmental Activities Act," which
includes a hotline for anonymous reporting.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/9/13)
State Auditor's Office (source)
ARGUMENTS IN SUPPORT : This bill authorizes the CSA to conduct
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follow-up work related to original audit findings and
recommendations. While the CSA conducts follow-up work under
current authority granted by the Government Code, this bill
clarifies that authority by making it explicit. According to
the bill's sponsor, the State Auditor, this change is sought so
entities subject to follow-up work clearly understand the
authority and grant the CSA appropriate access.
ASSEMBLY FLOOR : 72-0, 5/24/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bradford, Brown, Buchanan,
Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray,
Hagman, Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer,
Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor,
Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,
Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel
Pérez, Quirk, Quirk-Silva, Rendon, Salas, Stone, Ting, Wagner,
Weber, Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Bonta, Grove, Holden, Skinner, Waldron, Wilk,
Vacancy, Vacancy
MW:ej 8/13/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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