BILL ANALYSIS Ó
AB 255
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Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Rudy Salas, Chair
AB 255
Irwin - As Amended April 23, 2015
SUBJECT: Veterans: Inspector General for Veterans Affairs
SUMMARY: Creates the office of Internal Audits for Veterans
Affairs within the California Department of Veterans Affairs
(CalVet). Specifically, this bill:
1)Establishes the office, led by the chief auditor (auditor),
who would be subject to appointment by the Governor and
confirmation by the Senate.
2)Requires the auditor to report to the CalVet secretary
(secretary) and conduct reviews and investigations at the
request of the secretary or other members of senior
management.
3)Sets the intent and scope of the auditor's reviews and
investigations.
4)Requires the auditor to report findings of employee misconduct
to the secretary.
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5)Subjects the auditor to specified sections of Government Code
related to internal auditors' independence and
responsibilities.
6)Requires the auditor to establish a toll-free public telephone
number for receiving complaints of possible wrongdoing.
7)Allows the auditor to initiate a review or investigation of an
alleged wrongdoing.
8)Protects the identity of a person providing information that
results in a review or investigation, with some exceptions.
9)Requires the auditor to submit annual summary reports to the
California Veterans Board and relevant policy committees of
the Legislature.
10)Includes a January 1, 2020 sunset.
EXISTING LAW establishes reporting and independence requirements
for internal auditors of state agencies.
FISCAL EFFECT: Unknown
COMMENTS: This bill will establish an internal auditor's office
within CalVet. The auditor will be appointed by the Governor
subject to Senate confirmation, report to the secretary, and
conduct reviews and investigations at the discretion of the
secretary and senior management.
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While the department does not have an internal audit office, it
has had an inspector general (IG) in the past. The IG was
established in 1999 and eliminated by a budget bill in 2004.
According to analyses of that budget bill, some of the oversight
function of the IG was expected to be performed by other state
entities, including the Bureau of State Audits and Department of
Finance. While both entities have conducted several audits of
CalVet programs and issues, there is not an internal audit
function at CalVet that reviews the department's programs and
operations on an ongoing basis.
According to the author, the intent of this bill is for the
auditor to work with CalVet leadership to improve the
department's operations and efficiency while providing
additional accountability.
This bill states that the auditor shall work with the "intent of
increasing efficiencies, improving operations, and reducing
fraud, waste, and abuse." The auditor would be charged with
reviewing the operations and financial conditions of California
veterans homes, the veterans farm and home purchase program, as
well as other CalVet programs and operations.
Additionally, the auditor would be allowed to receive
communications from any individual, including CalVet program
participants and veteran home residents. The auditor would be
required to establish a toll-free public telephone number for
the purpose of receiving complaints about potential wrongdoing
and he or she would be authorized to investigate allegations.
This bill specifies that CalVet and the auditor will be subject
to Government Code sections related to internal audits at state
departments. These sections set reporting structures for the
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auditor to enhance independence and specify methods to report
concerns to authorities outside of the department if necessary.
Under this bill, the auditor would be required to submit an
annual summary report to the California Veterans Board and the
relevant committees of the Legislature. The report must include
information about the auditor's activities as well as
recommendations that led to efficiencies, and improvements.
This bill sunsets the auditor's office on January 1, 2020.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by:Scott Herbstman / A. & A.R. / (916)
319-3600
AB 255
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