BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1218| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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). CONTINUED AB 1218 Page 2 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 CONTINUED AB 1218 Page 3 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 **** END **** CONTINUED