AB 728, as amended, Hadley. State government: financial reporting.
Existing law, the State Leadership Accountability Act, provides that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified. Existing law requires state agency heads to, biennially, conduct an internal review and prepare a report on the adequacy of the agency’s systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copy is required to be available for public inspection.
This bill would also require the report to be posted on the agency’s Internet Web site within 5begin insert
businessend insert daysbegin delete of finalizationend deletebegin insert after acceptance by the departmentend insert.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 13405 of the Government Code, as
2amended by Section 18 of Chapter 25 of the Statutes of 2015, is
3amended to read:
(a) To ensure that the requirements of this chapter are
5fully complied with, each agency head that the Department of
6Finance determines is covered by this section shall, on a biennial
7basis but no later than December 31 of each odd-numbered year,
8conduct an internal review and prepare a report on the adequacy
9of the state agency’s systems of internal control, and monitoring
10practices in accordance with the guide prepared by the Department
11of Finance pursuant to subdivision (d).
12(b) The report, including the state agency’s response to review
13recommendations, shall be signed by the agency head and
14addressed to the agency secretary, or the Director of Finance for
15a state agency without a
secretary. An agency head shall submit a
16copy of the report and related response, pursuant to a method
17determined by the Department of Finance, to the Legislature, the
18California State Auditor, the Controller, the Department of Finance,
19the Secretary of Government Operations, and to the State Library
20where the copy shall be available for public inspection. A copy of
21the report shall be posted on the agency’s Internet Web site within
22fivebegin insert businessend insert daysbegin delete of finalizationend deletebegin insert after acceptance by the
23Department of Financeend insert.
24(c) The report shall identify any material inadequacy or material
25weakness
in a state agency’s systems of internal control that
26prevents the agency head from stating that the state agency’s
27systems comply with this chapter. Concurrently with the
28submission of the report pursuant to subdivision (b), the state
29agency shall provide to the Department of Finance a plan and
30schedule for correcting the identified inadequacies and weaknesses,
31that shall be updated every six months until all corrections are
32implemented.
33(d) The Department of Finance in consultation with the
34California State Auditor and the Controller, shall establish, and
35may modify from time to time as necessary, a system of reporting
36and a general framework to guide state agencies in conducting
37internal reviews of their systems of internal control.
P3 1(e) The Department of Finance in
consultation with the
2California State Auditor and the Controller, shall establish, and
3may modify from time to time as necessary, a general framework
4of recommended practices to guide state agencies in conducting
5active, ongoing monitoring of processes for internal control.
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