BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1473|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) |Version: |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 1473
Author: Wyland (R)
Amended: 6/23/10
Vote: 21
SENATE EDUCATION COMMITTEE : 8-0, 4/21/10
AYES: Romero, Huff, Alquist, Hancock, Liu, Price,
Simitian, Wyland
NO VOTE RECORDED: Maldonado
SENATE FLOOR : 34-0, 5/3/10 (Consent)
AYES: Aanestad, Ashburn, Cedillo, Cogdill, Corbett,
Correa, Cox, Denham, DeSaulnier, Ducheny, Dutton, Florez,
Hancock, Harman, Hollingsworth, Huff, Kehoe, Leno, Liu,
Lowenthal, Negrete McLeod, Oropeza, Padilla, Pavley,
Price, Romero, Runner, Simitian, Strickland, Walters,
Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Alquist, Calderon, Steinberg, Wiggins,
Vacancy, Vacancy
ASSEMBLY FLOOR : 76-0, 7/1/10 (Consent) - See last page for
vote
SUBJECT : School facilities bond proceeds: performance
audits
SOURCE : California League of Bond Oversight Committees\
Howard Jarvis Taxpayers Association
DIGEST : This bill requires that the constitutionally
CONTINUED
SB 1473
Page
2
required performance audit established by initiative
measure (Proposition 39, November 2000) be conducted in
accordance with Government Auditing Standards issued by the
Comptroller General of the United States.
Assembly Amendments made clarifying changes.
ANALYSIS : Article XI, Section 18 of the California
Constitution, as amended by voter initiative measure
(Proposition 39, November 2000) authorizes a school
district, community college district, or county office of
education to incur bond indebtedness for the construction,
reconstruction, rehabilitation, or replacement of school
facilities, with the approval of 55 percent of the voters
of the district or county. Article XIII A provides that
this vote threshold only applies if, among other things,
the local bond measure includes a specific list of school
projects to be funded and requires the authorizing board to
conduct annual, independent financial and performance
audits until all bond funds have been spent to ensure they
are used exclusively for the projects listed in the
measure. Current law provides that a Citizen's Oversight
Committee be established to, among other things, receive
and review copies of the constitutionally required annual
independent financial and performance audits.
Current law requires every country superintendent of
schools to provide for an audit of all funds under his or
her jurisdiction and control and the governing board of
each local educational agency to either provide for an
audit of its books and accounts or make arrangements with
its county superintendent of schools to provide for the
audit. Current law also requires the audit fully comply
with the Government Auditing Standards issued by the
Comptroller General of the United States.
This bill requires that the annual independent performance
audit required as the result of the passage of Proposition
39 be conducted in accordance with the Government Auditing
Standards issued by the Comptroller General of the United
States.
Comments
SB 1473
Page
3
Need for the Bill . According to the author's office, while
Proposition 39 required, and the Education Code current
requires both annual financial and annual performance
audits for funds connected to bonds issued under the
provisions of Proposition 39, the standards and
methodologies to use with the performance audits have never
been defined.
Government Auditing Standards . Government Auditing
Standards (the "Yellow Book") contains standards for audits
of government organizations, programs, activities, and
functions, and of government assistance received by
contractors, nonprofit organizations, and other
nongovernmental organizations. These standards, often
referred to as Generally Accepted Government Auditing
Standards (GAGAS), are to be followed by auditors and audit
organizations when required by law, regulation, agreement,
contract, or policy. These standards pertain to auditors'
professional qualifications, the quality of audit effort,
and the characteristics of professional and meaningful
audit reports.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 4/28/10)
California League of Bond Oversight Committees (co-source)
Howard Jarvis Taxpayers Association (co-source)
Board of Governors of the California Community Colleges
California Association of School Business Officials
OPPOSITION : (Verified >)
>
ARGUMENTS IN SUPPORT : According to the California
Association of School Business Officials, "While
Proposition 39 clearly called for school districts and
community college districts to complete annual performance
audits to ensure that funds from 55 percent bonds were
spent on the projects specified in the local bond measure,
it was silent as to what standards those audits were to
SB 1473
Page
4
meet. Since GAGAS if the standard used by school districts
on their annual financial audits, it makes sense to clarify
that performance audits for these local bond funds should
also meet GAGAS standards."
ARGUMENTS IN OPPOSITION : >
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall,
Bill Berryhill, Tom Berryhill, Blakeslee, Block,
Blumenfield, Bradford, Brownley, Buchanan, Caballero,
Charles Calderon, Carter, Chesbro, Conway, Cook, Coto,
Davis, De La Torre, De Leon, DeVore, Eng, Evans, Feuer,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Gatto, Gilmore, Hagman, Hall, Harkey, Hayashi,
Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,
Lieu, Logue, Bonnie Lowenthal, Mendoza, Miller, Monning,
Nava, Nestande, Niello, Nielsen, Norby, V. Manuel Perez,
Portantino, Ruskin, Salas, Saldana, Silva, Skinner,
Smyth, Solorio, Audra Strickland, Swanson, Torlakson,
Torres, Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Fletcher, Ma, John A. Perez, Vacancy
CPM:cm 7/2/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****