BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 617 (Calderon)
          
          Hearing Date: 5/9/2011          Amended: 5/4/2011
          Consultant: Bob Franzoia        Policy Vote: GO 13-0
          
















































          _________________________________________________________________
          ____
          BILL SUMMARY: SB 617 would do the following:
          - Expand the existing Financial Integrity and State Manger's 
          Accountability Act of 1983 to require that effective, 
          independent and ongoing monitoring of the internal accounting 
          and administrative controls of state agencies are included 
          within that system.
          - Require state agencies to implement systems and processes to 
          ensure the independence and objectivity of the monitoring of 
          internal accounting and administrative control as an ongoing 
          activity.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Establish ongoing monitoring      Likely minor costs initially 
          and ongoing;           General/
          of state accounting andpotential savings and cost avoidance 
          Special
          administrative controls within    ongoing
          existing system                                             
          _________________________________________________________________
          ____

          STAFF COMMENTS:

          The purpose of this bill is to update the Financial Integrity 
          and State Manager's Accountability Act of 1983 to reflex 
          evolving accounting processes that place a greater emphasis on 
          ongoing monitoring in order to ensure effective oversight and 
          accountability.
           
          This bill would require the Director of Finance, in consultation 
          with the State Auditor and the Controller, to establish and may 
          modify from time to time as necessary, a general framework of 
          recommended practices to guide stat agencies in conducting 
          active, ongoing monitoring of processes for internal accounting 
          and administrative controls.