BILL ANALYSIS Ó
AB 1583
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Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
AB 1583 (Allen and Gray) - As Amended: April 3, 2014
SUBJECT : Controller: outside accounts: annual report
SUMMARY : Requires the California State Controller's Office
(State Controller) to collect additional information from state
agencies that maintain bank accounts outside of the state
treasury system and to annually prepare and submit this
information in a report to the Department of Finance (Finance)
and the Legislature. Specifically, the report must include:
1)The name of the account;
2)The source of authorization for establishing the account;
3)The account balance; and,
4)Cost recovery revenues deposited into the account.
EXISTING LAW requires the State Controller to submit certain
fiscal reports that contain information on the State's revenues
and expenditures during the preceding fiscal year to the
Governor and Legislature.
FISCAL EFFECT : Unknown
COMMENTS : In an October 2013 report, the Bureau of State Audits
(BSA) noted that of the roughly $55 billion in the possession or
control of the State, 14% or $9.3 billion, is in nearly 1,400
bank accounts outside the treasury system. The treasury system
was established to safeguard and maximize the return on state
money with control agencies such as Finance, the State
Controller, and the State Treasurer all contributing to
safeguarding these assets.
State departments, agencies, and other entities may need to
establish outside accounts because they must deal with funds
held in trust for others or to gain operational efficiencies. To
do so requires either express statutory authority or
authorization from Finance, and subjects the agency to certain
monitoring and reporting requirements.
The State Controller currently collects information on accounts
outside the state treasury system including account names,
AB 1583
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source of authorization and balances. The State Controller
annually provides a comprehensive listing of this information to
the Governor's Office in the Budget/Legal Basis Analysis Report.
The BSA found that control agencies did not adequately track
which state agencies have outside accounts nor did they
adequately ensure that all agencies report on such accounts and
therefore failed to identify omissions. Additionally the BSA
found that the State Controller did not have any written
procedures to ensure that all state agencies report their
outside account information and lacked processes to ensure that
state agencies consistently report outside account information.
This bill implements the legislative recommendations made by the
BSA to remedy the identified problems.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : William Herms / A. & A.R. / (916)
319-3600