SB 481, as amended, Hueso. Local government: auditors: independence.
Existing law requires, with certain exceptions, that all city, county, city and county, and district employees who conduct audits or that conduct audit activities of those respective agencies, conduct their work under the general and specified standards prescribed by the Institute of Internal Auditors or the Government Auditing Standards issued by the Comptroller General of the United States, as appropriate. Those standards generally provide, among other things, that auditors should be independent of the activities they audit. Existing law makes every willful omission to perform any duty enjoined by law upon any public officer, or person holding any public trust or employment, where no special provision is made for the punishment of that delinquency, a crime.
This bill would prohibit the general counsel of the city, county, city and county, or
district, or the employees of the general counsel from having direct oversight over the city, county, city and county, and district employees that conduct audits or that conduct audit activities of those respective agencies.begin delete This bill would also prohibit all city, county, city and county, and district employees that conduct audits or that conduct audit activities of those respective agencies from being required to report to the general counsel or any employees of the general counsel.end delete
By expanding the definition of an existing crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 1236 of the Government Code is amended
2to read:
(a) All city, county, city and county, and district
4employees that conduct audits or that conduct audit activities of
5those respective agencies shall conduct their work under the general
6and specified standards prescribed by the Institute of Internal
7Auditors or the Government Auditing Standards issued by the
8Comptroller General of the United States, as appropriate. The
9standards generally provide as follows:
10(1) That auditors should be independent of the activities they
11audit.
12(2) That audits should be performed with proficiency and due
13professional care.
14(3) That the scope of the audit should encompass the
15examination and evaluation of the adequacy and effectiveness of
16the organization’s system of internal control and the quality of
17performance in carrying out assigned responsibilities.
18(4) That audit work should include planning the audit, examining
19and evaluating information, communicating results, and following
20up.
21(5) That the chief auditor should properly manage the auditing
22department.
23(b) Nothing in this section is intended to limit the rights or
24obligations of auditors to conduct audits and audit activities in
P3 1accordance with other laws and regulations that may apply to a
2particular entity, as
appropriate.
3(c) The general counsel of the city, county, city and county, or
4district, or the employees of the general counsel shall not have
5direct oversight over the city, county, city and county, or district
6employees that conduct audits or that conduct audit activities of
7the respective agency.begin delete All city, county, city and county, and district
8employees that conduct audits or that conduct audit activities of
9those respective agencies shall not be required to report to the
10general counsel or any employees of the general counsel.end delete
No reimbursement is required by this act pursuant to
12Section 6 of Article XIII B of the California Constitution because
13the only costs that may be incurred by a local agency or school
14district will be incurred because this act creates a new crime or
15infraction, eliminates a crime or infraction, or changes the penalty
16for a crime or infraction, within the meaning of Section 17556 of
17the Government Code, or changes the definition of a crime within
18the meaning of Section 6 of Article XIII B of the California
19Constitution.
O
96