California Legislature—2015–16 Regular Session

Assembly Bill No. 341

Introduced by Assembly Member Achadjian

February 13, 2015

An act to amend Section 53891 of the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 341, as introduced, Achadjian. Financial affairs: reports.

Existing law requires the officer of each local agency, who has charge of the financial records of the local agency, to furnish to the Controller a report of all the financial transactions of the local agency during the next preceding fiscal year within 90 days of the close of each fiscal year, or within 110 days if the report is furnished in an electronic format.

This bill would require the report to contain underlying data from audited financial statements, as specified, if this data is available. This bill would extend the amount of time in which the report is required to be furnished to the Controller from 90 days to 180, days and from 110 days to 210 days.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

(a) The Legislature finds and declares that the
existing timelines between the close of the fiscal year and the
requirement for local agencies to submit financial transaction
reports to the Controller within 90 or 110 days are often insufficient
to ensure the required audits of this data have been completed.
Submitting incomplete or unaudited data can create confusion for
the public and additional work for both the State Controller’s office
and the local agency staff to update information to reflect final
audits.

(b) It is the intent of the Legislature in enacting this act to adjust
the existing timelines described in subdivision (a) so that local
agencies have sufficient time to ensure that local financial
transaction reports submitted to the Controller and published online
by the Controller reflect final audited data. By making these
changes, it is the intent of the Legislature to improve the quality
of information provided to the public.

SEC. 2.  

Section 53891 of the Government Code is amended
to read:

53891.  

begin insert (a) end insert begin insert   end insert The officer of each local agency who has charge
of the financial records shall furnish to the Controller a report of
all the financial transactions of the local agency during the next
preceding fiscal year. begin insert The report shall contain underlying data
from audited financial statements prepared in accordance with
generally accepted accounting principles, if this data is available. end insert
The report shall be furnished within begin delete 90 end delete begin insert 180 end insert days after the close of
each fiscal year and shall be in the form required by the Controller.
If the report is filed in electronic format as prescribed by the
Controller, the report shall be furnished within begin delete 110 end delete begin insert 210 end insert days after
the close of each fiscal year. However, whenever a local agency
files annual financial materials with the Office of Statewide Health
Planning and Development or any successor thereto pursuant to
Section 128735 of the Health and Safety Code, the audited report
shall be furnished within 120 days after the close of each fiscal
year. Further, whenever a community redevelopment agency files
an annual report with the Controller pursuant to Section 33080 of
the Health and Safety Code, the report shall be furnished within
six months of the end of the agency’s fiscal year.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert Controller shall prescribe uniform accounting and
reporting procedures that shall be applicable to all local agencies
except cities, counties, and school districts, and except for local
agencies that substantially follow a system of accounting prescribed
by the Public Utilities Commission of the State of California or
the Federal Energy Regulatory Commission. The procedures shall
be adopted under begin delete the provisions of end delete Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2. The Controller
shall prescribe the procedures only after consultation with and
approval of a local governmental advisory committee established
pursuant to Section 12463.1. Approval of the procedures shall be
by majority vote of the members present at a meeting of the
committee called by the chairperson thereof.