AB 341: Financial affairs: reports.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-07-02
Existing law requires the officer of each local agency, who has charge of the financial records of the local agency, to furnish to the Controller a report of all the financial transactions of the local agency during the next preceding fiscal year within 90 days of the close of each fiscal year, or within 110 days if the report is furnished in an electronic format. Existing law requires the report to include, among other things, the annual compensation of a local agencys elected officials, officers, and employees, as specified.
This bill would require the report to contain underlying data from audited financial statements, as specified, if this data is available. This bill would extend the amount of time in which the report is required to be furnished to the Controller from 90 days to seven months. The bill would also require information regarding the annual compensation of a local agencys elected officials, officers, and employees, as specified, to be submitted to the controller no later than April 30th after the end of the calendar year.
Existing law requires the Controller to, among other things, compile and publish reports of the financial transactions of each county, city, and special district, as specified, on or before August 1, September 1, and October 1, respectively, of each year.
This bill would instead require the Controller to compile and publish reports of the financial transactions of each county, city, and special district on or before November 1 of each year.
Existing law requires the officer of each local agency, who has charge of the financial records of the local agency, to furnish to the Controller a report of all the financial transactions of the local agency during the next preceding fiscal year within 90 days of the close of each fiscal year, or within 110 days if the report is furnished in an electronic format. Existing law requires the report to include, among other things, the annual compensation of a local agencys elected officials, officers, and employees, as specified.
This bill would require the report to contain underlying data from audited financial statements, as specified, if this data is available. This bill would extend the amount of time in which the report is required to be furnished to the Controller from 90 days to seven months. The bill would also require information regarding the annual compensation of a local agencys elected officials, officers, and employees, as specified, to be submitted to the controller no later than April 30th after the end of the calendar year.
Existing law requires the Controller to, among other things, compile and publish reports of the financial transactions of each county, city, and special district, as specified, on or before August 1, September 1, and October 1, respectively, of each year.
This bill would instead require the Controller to compile and publish reports of the financial transactions of each county, city, and special district on or before November 1 of each year.
Existing law requires the officer of each local agency, who has charge of the financial records of the local agency, to furnish to the Controller a report of all the financial transactions of the local agency during the next preceding fiscal year within 90 days of the close of each fiscal year, or within 110 days if the report is furnished in an electronic format. Existing law requires the report to include, among other things, the annual compensation of a local agencys elected officials, officers, and employees, as specified.
This bill would require the report to contain underlying data from audited financial statements, as specified, if this data is available. This bill would extend the amount of time in which the report is required to be furnished to the Controller from 90 days to 180, days and from 110 days to 210 days. seven months. The bill would also require information regarding the annual compensation of a local agencys elected officials, officers, and employees, as specified, to be submitted to the controller no later than April 30th after the end of the calendar year.
Existing law requires the Controller to, among other things, compile and publish reports of the financial transactions of each county, city, and special district, as specified, on or before August 1, September 1, and October 1, respectively, of each year.
This bill would instead require the Controller to compile and publish reports of the financial transactions of each county, city, and special district on or before November 1 of each year.
Existing law requires the officer of each local agency, who has charge of the financial records of the local agency, to furnish to the Controller a report of all the financial transactions of the local agency during the next preceding fiscal year within 90 days of the close of each fiscal year, or within 110 days if the report is furnished in an electronic format.
This bill would require the report to contain underlying data from audited financial statements, as specified, if this data is available. This bill would extend the amount of time in which the report is required to be furnished to the Controller from 90 days to 180, days and from 110 days to 210 days.
(a)The Controller shall compile, publish, and make publicly available on the Controllers Internet Web site, in a format that may be printed and downloaded, reports of the financial transactions and information on annual compensation, consistent with subdivision (l) of Section 53892, of each county, city, and special district, respectively, within this state, together with any other matter he or she deems of public interest. The reports shall include the appropriations limits and the total annual appropriations subject to limitation of the counties, cities, and special districts. The reports to the Controller shall be made in the form and manner prescribed by the Controller.
(b)The Controller shall compile and publish reports of the financial transactions of each county, city, and special district pursuant to subdivision (a) on or before November 1 of each year following the end of the annual reporting period. The Controller shall make data collected pursuant to this subdivision available upon request to the Legislature and its agents, on or before April 1 of each year.
(c)The Controller shall annually publish, on the Internet Web site of the Controller, reports of the financial transactions of each school district within this state, together with any other matter he or she deems of public interest. The reports shall include the appropriations limit and the total annual appropriations subject to limitation of the school district. The reports to the Controller shall be made in the time, form, and manner prescribed by the Controller.
(d)As used in this section, the following terms have the following meanings:
(1)School district means a school district as defined in Section 80 of the Education Code.
(2)Special district means any of the following:
(A)A special district as defined in Section 95 of the Revenue and Taxation Code.
(B)A commission provided for by a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(C)A nonprofit corporation that is any of the following:
(i)Was formed in accordance with the provisions of a joint powers agreement to carry out functions specified in the agreement.
(ii)Issued bonds, the interest on which is exempt from federal income taxes, for the purpose of purchasing land as a site for, or purchasing or constructing, a building, stadium, or other facility, that is subject to a lease or agreement with a local public entity.
(iii)Is wholly owned by a public agency.
SEC. 2.Section 53891 of the Government Code is amended to read:53891.(a)The officer of each local agency who has charge of the financial records shall furnish to the Controller a report of all the financial transactions of the local agency during the preceding fiscal year. The report shall contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if this data is available. The report shall be furnished within seven months after the close of each fiscal year and shall be in the form required by the Controller. A local agency shall submit to the Controller information on annual compensation, as described in subdivision (l) of Section 53892, for the previous calendar year no later than April 30th.
(b)The Controller shall prescribe uniform accounting and reporting procedures that shall be applicable to all local agencies except cities, counties, and school districts, and except for local agencies that substantially follow a system of accounting prescribed by the Public Utilities Commission of the State of California or the Federal Energy Regulatory Commission. The procedures shall be adopted under Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. The Controller shall prescribe the procedures only after consultation with and approval of a local governmental advisory committee established pursuant to Section 12463.1. Approval of the procedures shall be by majority vote of the members present at a meeting of the committee called by the chairperson thereof.
SEC. 3.Section 53893 of the Government Code is amended to read:53893.Upon the completion of the report the legislative body shall either post it in a conspicuous location on its Internet Web site, or cause copies of the report to be prepared and the clerk of the legislative body shall furnish a copy to any person requesting it. A charge not to exceed twenty-five cents ($0.25) for each copy may be imposed.
(a)The Controller shall compile, publish, and make publicly available on the Controllers Internet Web site, in a format that may be printed and downloaded, reports of the financial transactions and information on annual compensation, consistent with subdivision (l) of Section 53892, of each county, city, and special district, respectively, within this state, together with any other matter he or she deems of public interest. The reports shall include the appropriations limits and the total annual appropriations subject to limitation of the counties, cities, and special districts. The reports to the Controller shall be made in the form and manner prescribed by the Controller.
(b)The Controller shall compile and publish reports of the financial transactions of each county, city, and special district pursuant to subdivision (a) on or before November 1 of each year following the end of the annual reporting period. The Controller shall make data collected pursuant to this subdivision available upon request to the Legislature and its agents, on or before April 1 of each year.
(c)The Controller shall annually publish, on the Internet Web site of the Controller, reports of the financial transactions of each school district within this state, together with any other matter he or she deems of public interest. The reports shall include the appropriations limit and the total annual appropriations subject to limitation of the school district. The reports to the Controller shall be made in the time, form, and manner prescribed by the Controller.
(d)As used in this section, the following terms have the following meanings:
(1)School district means a school district as defined in Section 80 of the Education Code.
(2)Special district means any of the following:
(A)A special district as defined in Section 95 of the Revenue and Taxation Code.
(B)A commission provided for by a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(C)A nonprofit corporation that is any of the following:
(i)Was formed in accordance with the provisions of a joint powers agreement to carry out functions specified in the agreement.
(ii)Issued bonds, the interest on which is exempt from federal income taxes, for the purpose of purchasing land as a site for, or purchasing or constructing, a building, stadium, or other facility, that is subject to a lease or agreement with a local public entity.
(iii)Is wholly owned by a public agency.
SEC. 2.Section 53891 of the Government Code is amended to read:53891.(a)The officer of each local agency who has charge of the financial records shall furnish to the Controller a report of all the financial transactions of the local agency during the preceding fiscal year. The report shall contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if this data is available. The report shall be furnished within seven months after the close of each fiscal year and shall be in the form required by the Controller. A local agency shall submit to the Controller information on annual compensation, as described in subdivision (l) of Section 53892, for the previous calendar year no later than April 30th.
(b)The Controller shall prescribe uniform accounting and reporting procedures that shall be applicable to all local agencies except cities, counties, and school districts, and except for local agencies that substantially follow a system of accounting prescribed by the Public Utilities Commission of the State of California or the Federal Energy Regulatory Commission. The procedures shall be adopted under Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. The Controller shall prescribe the procedures only after consultation with and approval of a local governmental advisory committee established pursuant to Section 12463.1. Approval of the procedures shall be by majority vote of the members present at a meeting of the committee called by the chairperson thereof.
SEC. 3.Section 53893 of the Government Code is amended to read:53893.Upon the completion of the report the legislative body shall either post it in a conspicuous location on its Internet Web site, or cause copies of the report to be prepared and the clerk of the legislative body shall furnish a copy to any person requesting it. A charge not to exceed twenty-five cents ($0.25) for each copy may be imposed.
(a)The Legislature finds and declares that the existing timelines between the close of the fiscal year and the requirement for local agencies to submit financial transaction reports to the Controller within 90 or 110 days are often insufficient to ensure the required audits of this data have been completed. Submitting incomplete or unaudited data can create confusion for the public and additional work for both the State Controllers office and the local agency staff to update information to reflect final audits.
(b)It is the intent of the Legislature in enacting this act to adjust the existing timelines described in subdivision (a) so that local agencies have sufficient time to ensure that local financial transaction reports submitted to the Controller and published online by the Controller reflect final audited data. By making these changes, it is the intent of the Legislature to improve the quality of information provided to the public.
SECTION 1.Section 12463 of the Government Code is amended to read:12463.(a)The Controller shall compile, publish, and make publicly available on the Controllers Internet Web site, in a format that may be printed and downloaded, reports of the financial transactions and information on annual compensation, consistent with subdivision (l) of Section 53892, of each county, city, and special district, respectively, within this state, together with any other matter he or she deems of public interest. The reports shall include the appropriations limits and the total annual appropriations subject to limitation of the counties, cities, and special districts. The reports to the Controller shall be made in the time, form, form and manner prescribed by the Controller.
(b)Effective January 1, 2005, the The Controller shall compile and publish reports of the financial transactions of each county, city, and special district pursuant to subdivision (a) on or before August 1, September 1, and October 1 respectively, November 1 of each year following the end of the annual reporting period. The Controller shall make data collected pursuant to this subdivision available upon request to the Legislature and its agents, on or before April 1 of each year.
(c)The Controller shall annually publish, on the Internet Web site of the Controller, reports of the financial transactions of each school district within this state, together with any other matter he or she deems of public interest. The reports shall include the appropriations limit and the total annual appropriations subject to limitation of the school district. The reports to the Controller shall be made in the time, form, and manner prescribed by the Controller.
(d)As used in this section, the following terms have the following meanings:
(1)School district means a school district as defined in Section 80 of the Education Code.
(2)Special district means any of the following:
(A)A special district as defined in Section 95 of the Revenue and Taxation Code.
(B)A commission provided for by a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(C)A nonprofit corporation that is any of the following:
(i)Was formed in accordance with the provisions of a joint powers agreement to carry out functions specified in the agreement.
(ii)Issued bonds, the interest on which is exempt from federal income taxes, for the purpose of purchasing land as a site for, or purchasing or constructing, a building, stadium, or other facility, that is subject to a lease or agreement with a local public entity.
(iii)Is wholly owned by a public agency.
SEC. 2.Section 53891 of the Government Code is amended to read:53891.(a)The officer of each local agency who has charge of the financial records shall furnish to the Controller a report of all the financial transactions of the local agency during the next preceding fiscal year. The report shall contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if this data is available. The report shall be furnished within 180 days seven months after the close of each fiscal year and shall be in the form required by the Controller. If the report is filed in electronic format as prescribed by the Controller, the report shall be furnished within 210 days after the close of each fiscal year. However, whenever a local agency files annual financial materials with the Office of Statewide Health Planning and Development or any successor thereto pursuant to Section 128735 of the Health and Safety Code, the audited report shall be furnished within 120 days after the close of each fiscal year. Further, whenever a community redevelopment agency files an annual report with the Controller pursuant to Section 33080 of the Health and Safety Code, the report shall be furnished within six months of the end of the agencys fiscal year. A local agency shall submit to the Controller information on annual compensation, as described in subdivision (l) of Section 53892, for the previous calendar year no later than April 30th.
(b)The Controller shall prescribe uniform accounting and reporting procedures that shall be applicable to all local agencies except cities, counties, and school districts, and except for local agencies that substantially follow a system of accounting prescribed by the Public Utilities Commission of the State of California or the Federal Energy Regulatory Commission. The procedures shall be adopted under Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. The Controller shall prescribe the procedures only after consultation with and approval of a local governmental advisory committee established pursuant to Section 12463.1. Approval of the procedures shall be by majority vote of the members present at a meeting of the committee called by the chairperson thereof.
SEC. 3.Section 53893 of the Government Code is amended to read:53893.Upon the completion of the report the legislative body shall either post it in a conspicuous location on its Internet Web site, or cause copies of the report to be prepared and the clerk of the legislative body shall furnish a copy to any person requesting it. A charge not to exceed twenty-five cents ($0.25) for each copy may be imposed.
(a)The Legislature finds and declares that the existing timelines between the close of the fiscal year and the requirement for local agencies to submit financial transaction reports to the Controller within 90 or 110 days are often insufficient to ensure the required audits of this data have been completed. Submitting incomplete or unaudited data can create confusion for the public and additional work for both the State Controllers office and the local agency staff to update information to reflect final audits.
(b)It is the intent of the Legislature in enacting this act to adjust the existing timelines described in subdivision (a) so that local agencies have sufficient time to ensure that local financial transaction reports submitted to the Controller and published online by the Controller reflect final audited data. By making these changes, it is the intent of the Legislature to improve the quality of information provided to the public.
SEC. 2.Section 53891 of the Government Code is amended to read:53891.(a)The officer of each local agency who has charge of the financial records shall furnish to the Controller a report of all the financial transactions of the local agency during the next preceding fiscal year. The report shall contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if this data is available. The report shall be furnished within 90 180 days after the close of each fiscal year and shall be in the form required by the Controller. If the report is filed in electronic format as prescribed by the Controller, the report shall be furnished within 110 210 days after the close of each fiscal year. However, whenever a local agency files annual financial materials with the Office of Statewide Health Planning and Development or any successor thereto pursuant to Section 128735 of the Health and Safety Code, the audited report shall be furnished within 120 days after the close of each fiscal year. Further, whenever a community redevelopment agency files an annual report with the Controller pursuant to Section 33080 of the Health and Safety Code, the report shall be furnished within six months of the end of the agencys fiscal year.
The
(b)The Controller shall prescribe uniform accounting and reporting procedures that shall be applicable to all local agencies except cities, counties, and school districts, and except for local agencies that substantially follow a system of accounting prescribed by the Public Utilities Commission of the State of California or the Federal Energy Regulatory Commission. The procedures shall be adopted under the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. The Controller shall prescribe the procedures only after consultation with and approval of a local governmental advisory committee established pursuant to Section 12463.1. Approval of the procedures shall be by majority vote of the members present at a meeting of the committee called by the chairperson thereof.
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Date
|
Status
|
|---|---|
| May 22, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 1565.) |
| Jul 2, 2015 | Chaptered by Secretary of State - Chapter 37, Statutes of 2015. |
| Jul 2, 2015 | Approved by the Governor. |
| Jun 23, 2015 | Enrolled and presented to the Governor at 3:30 p.m. |
| Jun 18, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 1491.). |
| Jun 18, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Jun 18, 2015 | In Assembly. Ordered to Engrossing and Enrolling. |
| Jun 11, 2015 | Read second time. Ordered to Consent Calendar. |
| Jun 10, 2015 | From committee: Do pass. To Consent Calendar. (Ayes 7. Noes 0.) (June 10). |
| Jun 4, 2015 | Referred to Com. on GOV. & F. |
| Feb 13, 2015 | Read first time. To print. |
| May 22, 2015 | Read third time. Passed. Ordered to the Senate. |
| May 22, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 18, 2015 | Read second time. Ordered to Consent Calendar. |
| May 14, 2015 | From committee: Do pass. To Consent Calendar. (Ayes 9. Noes 0.) (May 13). |
| May 6, 2015 | Re-referred to Com. on L. GOV. |
| May 5, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Apr 14, 2015 | In committee: Hearing postponed by committee. |
| Feb 23, 2015 | Referred to Com. on L. GOV. |
| Feb 17, 2015 | From printer. May be heard in committee March 19. |
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Date
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Description
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Location
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Votes
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|
|---|---|---|---|---|
| Jun 18, 2015 | Consent Calendar 2nd AB341 Achadjian | Senate Floor |
Passed |
|
| Jun 10, 2015 | Do pass and be ordered to the Consent Calendar | Senate Standing Committee on Governance and Finance |
Passed |
|
| May 22, 2015 | AB 341 ACHADJIAN Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 13, 2015 | Do pass. To Consent Calendar. | Assembly Standing Committee on Local Government |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
AB 341
Page 3
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
CONSENT
Bill No: AB 341
Amended: 5/5/15 in Assembly
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 6/10/15
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley
ASSEMBLY FLOOR: 74-0, 5/22/15 (Consent) - See last page for vote
SUBJECT: Financial affairs: reports
DIGEST: This bill makes several changes to the statutes requiring local governments to report annual financial information to the State Controller’s Office.
Existing law:
Requires the State Controller to compile and publish reports of the financial transactions of local governments, including counties, cities, special districts, and joint powers authorities.
Requires local governments, within 90 to 110 days of the end of their respective fiscal years, to furnish the State Controller with annual reports of their financial transactions.
This bill:
Extends, to seven months after the end of a local agency’s fiscal year, the deadline for submitting to the Controller an annual report of a local agency’s financial transactions.
Requires the report submitted to the Controller to contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if the data is available.
Allows a legislative body to post the report that is submitted to the Controller’s Office in a conspicuous location on its Internet Website, as an alternative to furnishing paper copies of the report to the public upon request.
Requires that a local agency must submit to the Controller specified annual compensation information for the previous calendar year no later than April 30th.
Requires the Controller to compile and publish reports, of the financial transactions of each county, city, and special district, on or before November 1st of each year following the end of the annual reporting period.
Repeals a provision of law which establishes a separate reporting deadline for a local agency that reports specified information to the Office of Statewide Health Planning and Development.
Repeals an obsolete deadline for a community redevelopment agency to submit annual financial transactions information to the Controller.
Background
Because the deadlines by which local governments must submit annual financial transactions data to the State Controller often fall before the date on which audited financial information for the prior fiscal year is available, the data submitted to the Controller is often imprecise and requires revisions before it is published by the Controller. Local officials want the Legislature to change the timelines for submitting some local financial information to the Controller and make additional changes to state law to ensure that local government financial transactions information is more accurate and accessible when it is made available to the public.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
California Special Districts Association
California State Association of Counties
League of California Cities
OPPOSITION: (Verified 6/11/15)
ASSEMBLY FLOOR: 74-0, 5/22/15
AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Alejo, Jones, O'Donnell, Olsen, Waldron, Weber
Prepared by: Brian Weinberger / GOV. & F. / (916) 651-4119
6/12/15 15:42:43
**** END ****
AB 341 (Achadjian) 5/5/15 Page 3 of 3
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
Bill No: |
AB 341 |
Hearing Date: |
6/10/15 |
Author: |
Achadjian |
Tax Levy: |
No |
Version: |
5/5/15 |
Fiscal: |
No |
Consultant: |
Weinberger |
||
LOCAL GOVERNMENTS’ FINANCIAL TRANSACTIONS REPORTS
Makes several changes to the statutes requiring local governments to report annual financial information to the State Controller’s Office.
Background
The State Controller must compile and publish reports of the financial transactions of local governments, including counties, cities, special districts, and joint powers authorities. Local governments must, within 90 to 110 days of the end of their respective fiscal years, furnish the State Controller with annual reports of their financial transactions.
Because the deadlines by which local governments must submit annual financial transactions data to the State Controller often fall before the date on which audited financial information for the prior fiscal year is available, the data submitted to the Controller is often imprecise and requires revisions before it is published by the Controller. Local officials want the Legislature to change the timelines for submitting some local financial information to the Controller and make additional changes to state law to ensure that local government financial transactions information is more accurate and accessible when it is made available to the public.
Proposed Law
I. Local government reports to the Controller. Current law requires the officer of each local agency who has charge of the agency’s financial records to furnish to the State Controller a report of all the local agency’s financial transactions during the prior fiscal year. The report must be filed either within 90 days of the end of a local agency’s fiscal year or, if it is filed electronically, within 110 days of the end of a local agency’s fiscal year. Assembly Bill 341:
Extends, to seven months after the end of a local agency’s fiscal year, the deadline for submitting to the Controller an annual report of a local agency’s financial transactions.
Requires the report to contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if the data is available.
Current law requires that, upon the completion of the annual report submitted to the Controller’s Office, a local government’s legislative body must cause copies of the report to be prepared and the clerk of the legislative body must furnish a copy to any person requesting it. Assembly Bill 341, as an alternative to furnishing paper copies of the report upon request, allows a legislative body to post the report in a conspicuous location on its Internet Website.
Current law requires that the annual report submitted to the Controller, must state the annual compensation of a local agency’s elected officials, officers, and employees in accordance with reporting instructions developed by the Controller, in consultation with affected local agencies. Assembly Bill 341 requires that a local agency must submit to the Controller, specified annual compensation information for the previous calendar year no later than April 30th.
II. Controller’s published reports. Current law requires the Controller, subject to specified statutory requirements, to compile and publish annual reports of the financial transactions of each county, city, and special district on or before August 1st, September 1st, and October 1st respectively following the end of the annual reporting period. Assembly Bill 341 instead requires the Controller to compile and publish reports, of the financial transactions of each county, city, and special district on or before November 1st of each year following the end of the annual reporting period.
III. Other provisions. Assembly Bill 341 repeals a provision of law which establishes a separate reporting deadline, for a local agency that reports specified information to the Office of Statewide Health Planning and Development.
Assembly Bill 341 repeals an obsolete deadline, for a community redevelopment agency to submit annual financial transactions information to the Controller.
Assembly Bill 341 makes other technical and conforming changes to current law.
State Revenue Impact
No estimate.
Comment
1. Purpose of the bill. Because current law requires local governments to submit annual financial transactions reports to the State Controller within 90 to 110 days of the end of a fiscal year, those reports typically are submitted before the completion of an independent audit of the prior year’s fiscal transactions. After independent audits are completed, local governments frequently have to resubmit reports to the Controller’s Office with additional or corrected information that is identified in the audit. Submitting incomplete or unaudited data can create confusion for the public and additional work for both the State Controller’s office and the local agency staff to update information to reflect final audits. By extending the period of time during which a local agency can submit the report to the Controller’s office and requiring that the report will contain data from audited financial statements, if the data is available, AB 341 will provide the public with more accurate information about local governments’ financial transactions and saves public agencies’ time and resources.
Assembly Actions
Assembly Local Government Committee: 9-0
Assembly Floor: 74-0
Support and Opposition
(6/4/15)
Support: California Special Districts Association; California State Association of Counties; League of California Cities.
Opposition: Unknown.
-- END -
AB 341
Page 4
Date of Hearing: May 13, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Maienschein, Chair
AB 341
(Achadjian) – As Amended May 5, 2015
SUBJECT:
Financial affairs: reports.
SUMMARY:
Extends the amount of time for local agencies to report financial information to the State Controller for the publication of local financial transactions. Specifically, this bill:
Extends the amount of time a local agency has to furnish to the Controller a report of all the financial transactions during the preceding fiscal year (FY) from 90 or 110 days to seven months, after the close of each FY.
Requires the report to contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if the data is available.
Allows a legislative body to post the report in a conspicuous location on its Internet Website or to furnish hardcopies to any person requesting it.
Requires a local agency to submit to the Controller information on annual compensation, pursuant to the requirements in existing law, for the previous calendar year no later than April 30.
Requires the Controller to compile and publish reports of the financial transactions of each county, city, and special district on or before November 1 of each year following the end
of the annual reporting period, instead of on or before August 1, September 1, and October 1, respectively.
Repeals a provision of law which establishes separate reporting requirements for a local agency reporting to the Office of Statewide Health Planning and Development and for a community redevelopment agency.
Makes other technical and conforming changes.
EXISTING LAW:
Requires the officer of each local agency who has charge of the financial records to furnish to the Controller a report of all the financial transactions of the local agency during the next preceding FY.
Requires the report to be furnished within 90 days after the close of each FY and to be in the form required by the Controller. Requires the report to be furnished within 110 days after the close of each FY if the report is filed in electronic format as prescribed by the Controller.
Requires the report to contain specified contents and requires the report to contain additional information for cities.
Requires the Controller to compile and publish reports of the financial transactions of each county, city, and special district, respectively, within this state, together with any other matter he or she deems of public interest, and requires the reports to include the appropriations limits and the total annual appropriations subject to limitation of the counties, cities, and special districts.
Defines local agency to mean "any city, county, any district, and any community redevelopment agency required to furnish financial reports," pursuant to specified sections of existing law.
Requires the Controller to prescribe uniform accounting and reporting procedures applicable to special districts, except for those that substantially follow a system of accounting prescribed by the Public Utilities Commission or the Federal Power Commission, and requires the Controller to prescribe these procedures only after consultation with and approval of a local governmental advisory committee established in current law.
Requires the legislative body of the local agency to prepare copies of the report and requires the legislative body's clerk to provide a copy to any person requesting it. Authorizes a charge, not to exceed twenty-five cents, for each copy of the report.
FISCAL EFFECT:
None
COMMENTS:
Background. Existing law requires the officer of each city, county, and special district, who has charge of the financial records of the agency, to furnish to the State Controller a report of all the financial transactions of the local agency during the next preceding FY, within 90 or 110 days of the close of each FY. Current law also requires the Controller to compile and publish reports of the financial transactions of each county, city, and special district. The annual financial transactions data published by the Controller is the most comprehensive, and in some cases, the only source of financial data for California's local governments. The Legislature, Legislative Analyst's Office, local officials, grand juries, policy organizations, and other observers all rely on these reports.
Bill Summary. This bill makes a number of changes to the timelines established in existing law for local agencies to submit their annual financial transactions report to the Controller. This bill extends the amount of time to seven months after the close of each FY that local agencies have to provide the annual financial transactions reports to the Controller. Under this bill, the report must contain underlying data from audited financial statements prepared in accordance with generally accepted principals, if the data is available. Upon completion of the report, this bill allows a local agency to post the report on its website or provide hardcopies to those individuals requesting copies. This bill makes conforming changes to the publishing requirements for the Controller.
This bill also establishes a separate reporting date for local agencies to submit information required by existing law regarding compensation to the Controller for the previous calendar year, no later than April 30.
This bill is sponsored by the League of California Cities.
Author's Statement. According to the author, "For most local agencies, an [FY] ends between June 31st and July 1st. Upon conclusion of the [FY], local agencies are required to submit financial information to the Controller’s Office within 90 days. The Controller’s Office then publishes certain financial information about selected districts for public view on the Controller’s website. While they are required to submit this information within 90 days, most local agencies have a third party auditor come in to perform a complete audit report. However, the audits are not often completed until December-January.
"As a result, local agencies often resubmit their reports with additional or corrected information found in the audit to the Controller’s Office after the audit is completed. Submitting incomplete or unaudited data can create confusion for the public and additional work for both the State Controller’s office and the local agency staff to update information to reflect final audits.
"This bill will extend the deadline which a local agency is required to submit the report to the Controller’s office. The bill will require that the report will contain data from audited financial statements if the data is available. This will give local agencies additional time to work with an auditor if they choose to, in order to ensure that accurate data is available for the public’s view."
Arguments in Support. Supporters argue that this bill increases transparency, provides more accurate information to the public, and saves local agencies time and resources.
Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
League of California Cities [SPONSOR]
California Special Districts Association
California State Association of Counties
Opposition
None on file
Analysis Prepared by:
Misa Lennox / L. GOV./(916) 319-3958
Bill Author
Bill Co-Author(s):