BILL ANALYSIS Ó
AB 255
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Date of Hearing: May 13, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
255 (Irwin) - As Amended April 23, 2015
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|Policy |Veterans Affairs |Vote:|8 - 1 |
|Committee: | | | |
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| |Accountability and | |9 - 0 |
| |Administrative Review | | |
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|-------------+-------------------------------+-----+-------------|
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill creates the office of Internal Audits for Veterans
Affairs within the California Department of Veterans Affairs
(CalVet). Specifically, this bill:
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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)Requires the auditor to report findings of employee misconduct
to the secretary.
4)Subjects the auditor to specified sections of Government Code
related to internal auditors' independence and
responsibilities.
5)Allows the auditor to initiate a review or investigation of an
alleged wrongdoing.
6)Requires the auditor, beginning January 1, 2017, and each year
thereafter, to submit an annual summary report to the
California Veterans Board and relevant policy committees of
the Legislature.
7)Includes a January 1, 2020 sunset.
FISCAL EFFECT:
Moderate ongoing costs, in the range of $500,000 to $750,000
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(GF), to CalVets to staff an audit unit. and submit the
required reports.
COMMENTS:
1)Purpose. 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.
2)Background. 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, but it was eliminated
in 2004 Budget Act. According to analyses of that Budget Act,
some of the oversight functions of the IG were 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.
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.
Analysis Prepared by:Pedro R. Reyes / APPR. / (916)
319-2081
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