AB 2613, as amended, Achadjian. County auditor: audits: special districts.
Existing law requires the county auditor to either contract with a certified public accountant or public accountant to perform an audit, or perform an audit, of the accounts and records of every special district within the county, as
begin delete specified circumstances.end delete Existing law authorizes a special district, by unanimous request of its governing board and unanimous approval by the board of supervisors, to replace the annual audit with an audit over a longer period of time or with a financial review, as specified.
This bill would additionally authorize a special
begin delete district to,end delete by
unanimous request of its governing board and with unanimous approval of the board of supervisors, replace the annual audit with an annual financial compilation and an annual review of the internal control procedures of the special district to be performed by the county auditor in accordance with professional standards if certain conditions are met.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 26909 of the Government Code is
2amended to read:
(a) (1) The county auditor shall either make or contract
4with a certified public accountant or public accountant to make an
5annual audit of the accounts and records of every special district
6within the county for which an audit by a certified public
7accountant or public accountant is not otherwise provided. In each
8case, the minimum requirements of the audit shall be prescribed
9by the Controller and shall conform to generally accepted auditing
begin deleteWhere end deletean
audit of a special district’s accounts and records
12is made by a certified public accountant or public accountant, the
13minimum requirements of the audit shall be prescribed by the
14Controller and shall conform to generally accepted auditing
15 standards, and a report thereof shall be filed with the Controller
16and with the county auditor of the county in which the special
17district is located. The report shall be filed within 12 months of
18the end of the fiscal year or years under examination.
19(3) Any costs incurred by the county auditor, including contracts
20with, or employment of, certified public accountants or public
21accountants, in making an audit of every special district pursuant
22to this section shall be borne by the special district and shall be a
23charge against any unencumbered funds of the district available
24for the purpose.
25(4) For a special district that is located in two or more counties,
begin delete the provisions ofend delete this
subdivision shall apply to the auditor of the
27county in which the treasury is located.
28(5) The county controller, or ex officio county controller, shall
29effect this section in those counties having a county
begin delete controller,end delete
30 or ex officio county controller.
31(b) A special district may, by unanimous request of the
32governing board of the special
begin delete district,end delete with unanimous
33approval of the board of supervisors, replace the annual audit
34 required by this section with one of the following, performed in
35accordance with professional standards, as determined by the
37(1) A biennial audit covering a two-year period.
P3 1(2) An audit covering a five-year
begin delete period,end delete if the special
2district’s annual revenues do not exceed an amount specified by
3the board of supervisors.
4(3) An audit conducted at specific intervals, as recommended
5by the county auditor, that shall be completed at least once every
7(c) (1) A special district may, by unanimous request of the
8governing board of the special
begin delete district,end delete with unanimous
9approval of the board of supervisors, replace the annual audit
10required by this section with a financial review, in accordance with
11the appropriate professional standards, as determined by the county
12auditor, if the following conditions are met:
13(A) All of the special district’s revenues and expenditures are
14transacted through the county’s financial system.
15(B) The special district’s annual revenues do not exceed one
16hundred fifty thousand dollars ($150,000).
17(2) If the board of supervisors is the governing board of the
18special district, it may, upon unanimous approval, replace the
19annual audit of the special district required by this section with a
20financial review in accordance with the appropriate professional
21standards, as determined by the county auditor, if the special district
22satisfies the requirements of subparagraphs (A) and (B) of
24(d) A special district may, by unanimous request
25of the governing board of the special district and with
26 unanimous approval of the board of supervisors, replace the annual
27audit required by this section with an annual financial compilation
28and an annual review of the internal control procedures of the
29special district to be performed by the county auditor in accordance
begin delete standardsend delete if all of the following
31conditions are met:
33 All of the special district’s revenues and expenditures are
34transacted through the county’s financial system.
36 The special district’s annual revenues do not exceed one
37hundred fifty thousand dollars ($150,000).
39 The special district shall pay for any costs incurred by the
40county auditor in performing a financial compilation and evaluation
P4 1of the internal control procedures. Those costs shall be a charge
2against any unencumbered funds of the district available for that
begin delete the provisions ofend delete this section, a special
10district shall be exempt from the requirement of an annual audit
11if the financial statements are audited by the Controller to satisfy
12federal audit requirements.