BILL ANALYSIS �
AB 187
Page 1
ASSEMBLY THIRD READING
AB 187 (Lara and Smyth)
As Amended May 27, 2011
Majority vote
ADMINISTRATIVE REVIEW 13-0APPROPRIATIONS 17-0
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|Ayes:|Dickinson, Garrick, |Ayes:|Fuentes, Harkey, |
| |Block, Buchanan, Cook, | |Blumenfield, Bradford, |
| |Fletcher, Grove, Hagman, | |Charles Calderon, Campos, |
| |Huber, Bonnie Lowenthal, | |Davis, Donnelly, Gatto, |
| |Mitchell, Pan, Portantino | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
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SUMMARY : This bill authorizes the State Auditor to establish a
high-risk local government agency audit program. Specifically,
this bill :
1)Authorizes the State Auditor to establish a high-risk local
agency audit program to audit any city, county, special
district or other publicly-created entity which the Auditor
determines is "at risk for the potential of waste, fraud,
abuse, or mismanagement."
2)Authorizes the State Auditor to consult with the State
Controller, Attorney General or other state agencies that have
oversight responsibilities over the local entity.
3)Requires the State Auditor to notify the Joint Legislative
Audit Committee whenever it identifies a local government as
being at risk.
4)Requires the State Auditor to issue audit reports at least
once every two years if a local agency is determined to be at
high risk.
5)Requires the State Auditor to provide annual updates to the
Joint Legislative Audit Committee, at a public hearing,
regarding all audits in progress pursuant to this program.
6)Specifies that the State Auditor is responsible for costs
AB 187
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associated with audits conducted pursuant to this program.
7)Specifies that the State Auditor may conduct this program as
funds permit, as long as it does not interfere with mandated
duties or requests from the Joint Legislative Audit Committee.
8)Specifies that an agency shall be removed from this program if
it has taken "significant corrective measures for deficiencies
identified" by the State Auditor.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, annual General Fund costs are expected to be
approximately $500,000.
COMMENTS : The general jurisdiction of the State Auditor
includes all levels of state and local government. But the
existing high-risk audit program applies only to state
government, and does not give the State Auditor the authority to
include local governments in its high-risk assessments. Adding
local governments to the high-risk program could improve the
ability of the State Auditor to provide statewide oversight and
ensure transparency among local governmental agencies. The bill
is permissive and therefore would not mandate the creation of
this program.
Analysis Prepared by : Nancy Chaires / A. & A.R. / (916)
319-3600
FN: 0001146