BILL NUMBER: AB 2613 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 2, 2016
INTRODUCED BY Assembly Member Achadjian
FEBRUARY 19, 2016
An act to amend amend, repeal, and add
Section 26909 of the Government Code, relating to local
government.
LEGISLATIVE COUNSEL'S DIGEST
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 specified
circumstances. specified. 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 district
to, district, until January 1, 2027, and for a period
of not more than 5 consecutive years, by annual
unanimous request of its governing board and with annual
unanimous approval of the board of supervisors, to 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 1. Section 26909 of the Government Code is amended to
read:
26909. (a) (1) The county auditor shall either make or contract
with a certified public accountant or public accountant to make an
annual audit of the accounts and records of every special district
within the county for which an audit by a certified public accountant
or public accountant is not otherwise provided. In each case, the
minimum requirements of the audit shall be prescribed by the
Controller and shall conform to generally accepted auditing
standards.
(2) Where If an audit of a special
district's accounts and records is made by a certified public
accountant or public accountant, the minimum requirements of the
audit shall be prescribed by the Controller and shall conform to
generally accepted auditing standards, and a report thereof shall be
filed with the Controller and with the county auditor of the county
in which the special district is located. The report shall be filed
within 12 months of the end of the fiscal year or years under
examination.
(3) Any costs incurred by the county auditor, including contracts
with, or employment of, certified public accountants or public
accountants, in making an audit of every special district pursuant to
this section shall be borne by the special district and shall be a
charge against any unencumbered funds of the district available for
the purpose.
(4) For a special district that is located in two or more
counties, the provisions of this subdivision shall
apply to the auditor of the county in which the treasury is located.
(5) The county controller, or ex officio county controller, shall
effect this section in those counties having a county
controller, controller or ex officio county
controller.
(b) A special district may, by unanimous request of the governing
board of the special district, district and
with unanimous approval of the board of supervisors, replace
the annual audit required by this section with one of the following,
performed in accordance with professional standards, as determined by
the county auditor:
(1) A biennial audit covering a two-year period.
(2) An audit covering a five-year period,
period if the special district's annual revenues do not exceed
an amount specified by the board of supervisors.
(3) An audit conducted at specific intervals, as recommended by
the county auditor, that shall be completed at least once every five
years.
(c) (1) A special district may, by unanimous request of the
governing board of the special district,
district and with unanimous approval of the board of
supervisors, replace the annual audit required by this section with a
financial review, in accordance with the appropriate professional
standards, as determined by the county auditor, if the following
conditions are met:
(A) All of the special district's revenues and expenditures are
transacted through the county's financial system.
(B) The special district's annual revenues do not exceed one
hundred fifty thousand dollars ($150,000).
(2) If the board of supervisors is the governing board of the
special district, it may, upon unanimous approval, replace the annual
audit of the special district required by this section with a
financial review in accordance with the appropriate professional
standards, as determined by the county auditor, if the special
district satisfies the requirements of subparagraphs (A) and (B) of
paragraph (1).
(d) (1) A special district may, by
annual unanimous request of the governing board of the special
district and with annual unanimous approval of the board
of supervisors, replace the annual audit required by this section
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 standards, if all of the following
conditions are met:
(1)
(A) All of the special district's revenues and
expenditures are transacted through the county's financial system.
(2)
( B) The special district's annual revenues
do not exceed one hundred fifty thousand dollars ($150,000).
(3)
(C) The special district shall pay for any costs
incurred by the county auditor in performing a financial compilation
and evaluation of the internal control procedures. Those costs shall
be a charge against any unencumbered funds of the district available
for that purpose.
(2) A special district shall not replace an annual audit required
by this section with an annual financial compilation and an annual
review of the internal control procedures of the special district
pursuant to paragraph (1) for more than five consecutive years, after
which a special district shall comply with subdivision (a).
(e) Notwithstanding the provisions of this
section, a special district shall be exempt from the requirement of
an annual audit if the financial statements are audited by the
Controller to satisfy federal audit requirements.
(f) This section shall remain in effect only until January 1,
2027, and as of that date is repealed.
SEC. 2. Section 26909 is added to the
Government Code , to read:
26909. (a) (1) The county auditor shall either make or contract
with a certified public accountant or public accountant to make an
annual audit of the accounts and records of every special district
within the county for which an audit by a certified public accountant
or public accountant is not otherwise provided. In each case, the
minimum requirements of the audit shall be prescribed by the
Controller and shall conform to generally accepted auditing
standards.
(2) If an audit of a special district's accounts and records is
made by a certified public accountant or public accountant, the
minimum requirements of the audit shall be prescribed by the
Controller and shall conform to generally accepted auditing
standards, and a report thereof shall be filed with the Controller
and with the county auditor of the county in which the special
district is located. The report shall be filed within 12 months of
the end of the fiscal year or years under examination.
(3) Any costs incurred by the county auditor, including contracts
with, or employment of, certified public accountants or public
accountants, in making an audit of every special district pursuant to
this section shall be borne by the special district and shall be a
charge against any unencumbered funds of the district available for
the purpose.
(4) For a special district that is located in two or more
counties, this subdivision shall apply to the auditor of the county
in which the treasury is located.
(5) The county controller, or ex officio county controller, shall
effect this section in those counties having a county controller or
ex officio county controller.
(b) A special district may, by unanimous request of the governing
board of the special district and with unanimous approval of the
board of supervisors, replace the annual audit required by this
section with one of the following, performed in accordance with
professional standards, as determined by the county auditor:
(1) A biennial audit covering a two-year period.
(2) An audit covering a five-year period if the special district's
annual revenues do not exceed an amount specified by the board of
supervisors.
(3) An audit conducted at specific intervals, as recommended by
the county auditor, that shall be completed at least once every five
years.
(c) (1) A special district may, by unanimous request of the
governing board of the special district with unanimous approval of
the board of supervisors, replace the annual audit required by this
section with a financial review, in accordance with the appropriate
professional standards, as determined by the county auditor, if the
following conditions are met:
(A) All of the special district's revenues and expenditures are
transacted through the county's financial system.
(B) The special district's annual revenues do not exceed one
hundred fifty thousand dollars ($150,000).
(2) If the board of supervisors is the governing board of the
special district, it may, upon unanimous approval, replace the annual
audit of the special district required by this section with a
financial review in accordance with the appropriate professional
standards, as determined by the county auditor, if the special
district satisfies the requirements of subparagraphs (A) and (B) of
paragraph (1).
(d) Notwithstanding this section, a special district shall be
exempt from the requirement of an annual audit if the financial
statements are audited by the Controller to satisfy federal audit
requirements.
(e) The section shall become operative on January 1, 2027.