BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 584
          Author:   Wyland (R)
          Amended:  4/15/13
          Vote:     21


           SENATE EDUCATION COMMITTEE  :  5-0, 4/3/13
          AYES:  Liu, Wyland, Correa, Hueso, Huff
          NO VOTE RECORDED:  Block, Hancock, Jackson, Monning

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    School facilities:  financial and performance audits

           SOURCE  :     California League of Bond Oversight Committees
                      Howard Jarvis Taxpayers Association


           DIGEST  :    This bill requires the Controller, on or before  
          January 1, 2015, and in consultation with the State Allocation  
          Board, the Department of Finance, and the State Department of  
          Education, to submit content to the Education Audits Appeal  
          Panel to be included in the audit guide, Standards and  
          Procedures for Audits of California K-12 Local Educational  
          Agencies 2015-16, beginning in the 2015-16 fiscal year, that is  
          related to specified financial and performance audits required  
          for specified school facility projects.

           ANALYSIS  :    Existing law requires the Controller, in  
          consultation with the Department of Finance, the State  
          Department of Education, and representatives of certain  
          nongovernmental organizations, to recommend the statements and  
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          other information to be included in the audit reports filed with  
          the state, and to propose the content of an audit guide that is  
          required to be submitted by the Controller to the Education  
          Audits Appeal Panel for review and possible amendment.

          This bill requires the Controller, on or before January 1, 2015,  
          and in consultation with the State Allocation Board, the  
          Department of Finance, and the State Department of Education, to  
          submit content to the Education Audits Appeal Panel to be  
          included in the audit guide, Standards and Procedures for Audits  
          of California K-12 Local Educational Agencies 2015-16, beginning  
          in the 2015-16 fiscal year, that is related to specified  
          financial and performance audits required for specified school  
          facility projects.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  4/29/13)

          California League of Bond Oversight Committees (co-source)
          Howard Jarvis Taxpayers Association (co-source)

           ARGUMENTS IN SUPPORT  :    According to the author, "while current  
          California law provides a detailed audit guide for  
          non-Proposition 39 financial and compliance audits, there are no  
          explicit guidelines crafted specifically for constitutionally  
          required proposition 39 independent financial and performance  
          audits.  Much like the process for crafting non- Proposition 39  
          financial and compliance guidelines, which brings together  
          various state and local entities, it is important for various  
          education entities, including the State Allocation Board, which  
          allocates Proposition 39 funds, to be on the same page when it  
          comes to preparing audits."


          PQ:ej  4/29/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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