AB 728: State government: financial reporting.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-09-30
Existing law, the State Leadership Accountability Act, provides that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified. Existing law requires state agency heads to, biennially, conduct an internal review and prepare a report on the adequacy of the agencys systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copy is required to be available for public inspection.
This bill would also require the report to be posted on the agencys Internet Web site within 5 business days after acceptance by the department.
Existing law, the State Leadership Accountability Act, provides that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified. Existing law requires state agency heads to, biennially, conduct an internal review and prepare a report on the adequacy of the agencys systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copy is required to be available for public inspection.
This bill would also require the report to be posted on the agencys Internet Web site within 5 business days after acceptance by the department.
Existing law, the State Leadership Accountability Act, provides that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified. Existing law requires state agency heads to, biennially, conduct an internal review and prepare a report on the adequacy of the agencys systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copy is required to be available for public inspection.
This bill would also require the report to be posted on the agencys Internet Web site within 5 business days of finalization after acceptance by the department.
Existing law, the State Leadership Accountability Act, provides that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified. Existing law requires state agency heads to, biennially, conduct an internal review and prepare a report on the adequacy of the agency’s systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copy is required to be available for public inspection.
This bill would also require the report to be posted on the agency’s Internet Web site within 5 days of finalization.
Existing law, the Financial Integrity and State Managers Accountability Act of 1983 (FISMA), State Leadership Accountability Act, provides that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified. Existing law requires state agency heads covered by the FISMA to, biennially, conduct an internal review and prepare a report on the adequacy of the agencys systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Treasurer, the Attorney General, the Governor, the director, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copies are copy is required to be available for public inspection.
This bill would also require the report to be posted on the agencys Internet Web site within 5 days of finalization.
(1)Existing
Existing law, the Financial Integrity and State Managers Accountability Act of 1983 (FISMA), provides that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified. Existing law requires state agency heads covered by the FISMA to, biennially, conduct an internal review and prepare a report on the adequacy of the agencys systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Treasurer, the Attorney General, the Governor, the director, and to the State Library where the copies are required to be available for public inspection.
This bill would also require the report to be posted on the agencys Internet Web site within 5 days of finalization.
(2)Existing law requires the internal auditor operations of any state agency that does not report to a governing body to meet certain requirements, including, among others, the requirement that the chief internal auditor report audit findings and recommendations made under his or her jurisdiction to the head or deputy head of the state agency and to the general counsel to the state agency, as specified. Existing law requires the internal auditor operations of any state agency that is overseen by a governing body to meet certain requirements, including, among others, the requirement that the chief internal auditor report audit findings and recommendations made under his or her jurisdiction to the audit committee and the general counsel to the governing body.
This bill would require a state agency to post any audit findings and recommendations on its Internet Web site within 5 days of a report of audit findings and recommendations to either the head or deputy head of the state agency and to the general counsel to the state agency, in the case of a state agency that does not report to a governing body, or to the audit committee and the general counsel to the governing body, in the case of a state agency that is overseen by a governing body.
(1)Existing law, the Financial Integrity and State Managers Accountability Act of 1983 (FISMA), provides that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified. Existing law requires state agency heads covered by the FISMA to, biennially, conduct an internal review and prepare a report on the adequacy of the agencys systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Treasurer, the Attorney General, the Governor, the director, and to the State Library where the copies are required to be available for public inspection.
This bill would also require the report to be posted on the agencys Internet Web site within 5 days of finalization.
(2)Existing law requires the internal auditor operations of any state agency that does not report to a governing body to meet certain requirements, including, among others, the requirement that the chief internal auditor report audit findings and recommendations made under his or her jurisdiction to the head or deputy head of the state agency and to the general counsel to the state agency, as specified. Existing law requires the internal auditor operations of any state agency that is overseen by a governing body to meet certain requirements, including, among others, the requirement that the chief internal auditor report audit findings and recommendations made under his or her jurisdiction to the audit committee and the general counsel to the governing body.
This bill would require a state agency to post any audit findings and recommendations on its Internet Web site within 5 days of a report of audit findings and recommendations to either the head or deputy head of the state agency and to the general counsel to the state agency, in the case of a state agency that does not report to a governing body, or to the audit committee and the general counsel to the governing body, in the case of a state agency that is overseen by a governing body.
(a)To ensure that the requirements of this chapter are fully complied with, each agency head that the Department of Finance determines is covered by this section shall, on a biennial basis but no later than December 31 of each odd-numbered year, conduct an internal review and prepare a report on the adequacy of the state agencys systems of internal control, and monitoring practices in accordance with the guide prepared by the Department of Finance pursuant to subdivision (d).
(b)The report, including the state agencys response to review recommendations, shall be signed by the agency head and addressed to the agency secretary, or the Director of Finance for a state agency without a secretary. An agency head shall submit a copy of the report and related response, pursuant to a method determined by the Department of Finance, to the Legislature, the California State Auditor, the Controller, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copy shall be available for public inspection. A copy of the report shall be posted on the agencys Internet Web site within five business days after acceptance by the Department of Finance.
(c)The report shall identify any material inadequacy or material weakness in a state agencys systems of internal control that prevents the agency head from stating that the state agencys systems comply with this chapter. Concurrently with the submission of the report pursuant to subdivision (b), the state agency shall provide to the Department of Finance a plan and schedule for correcting the identified inadequacies and weaknesses, that shall be updated every six months until all corrections are implemented.
(d)The Department of Finance in consultation with the California State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a system of reporting and a general framework to guide state agencies in conducting internal reviews of their systems of internal control.
(e)The Department of Finance in consultation with the California State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a general framework of recommended practices to guide state agencies in conducting active, ongoing monitoring of processes for internal control.
(a)To ensure that the requirements of this chapter are fully complied with, each agency head that the Department of Finance determines is covered by this section shall, on a biennial basis but no later than December 31 of each odd-numbered year, conduct an internal review and prepare a report on the adequacy of the state agencys systems of internal control, and monitoring practices in accordance with the guide prepared by the Department of Finance pursuant to subdivision (d).
(b)The report, including the state agencys response to review recommendations, shall be signed by the agency head and addressed to the agency secretary, or the Director of Finance for a state agency without a secretary. An agency head shall submit a copy of the report and related response, pursuant to a method determined by the Department of Finance, to the Legislature, the California State Auditor, the Controller, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copy shall be available for public inspection. A copy of the report shall be posted on the agencys Internet Web site within five business days after acceptance by the Department of Finance.
(c)The report shall identify any material inadequacy or material weakness in a state agencys systems of internal control that prevents the agency head from stating that the state agencys systems comply with this chapter. Concurrently with the submission of the report pursuant to subdivision (b), the state agency shall provide to the Department of Finance a plan and schedule for correcting the identified inadequacies and weaknesses, that shall be updated every six months until all corrections are implemented.
(d)The Department of Finance in consultation with the California State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a system of reporting and a general framework to guide state agencies in conducting internal reviews of their systems of internal control.
(e)The Department of Finance in consultation with the California State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a general framework of recommended practices to guide state agencies in conducting active, ongoing monitoring of processes for internal control.
(a)To ensure that the requirements of this chapter are fully complied with, each agency head that the Department of Finance determines is covered by this section shall, on a biennial basis but no later than December 31 of each odd-numbered year, conduct an internal review and prepare a report on the adequacy of the state agencys systems of internal control, and monitoring practices in accordance with the guide prepared by the Department of Finance pursuant to subdivision (d).
(b)The report, including the state agencys response to review recommendations, shall be signed by the agency head and addressed to the agency secretary, or the Director of Finance for a state agency without a secretary. An agency head shall submit a copy of the report and related response, pursuant to a method determined by the Department of Finance, to the Legislature, the California State Auditor, the Controller, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copy shall be available for public inspection. A copy of the report shall be posted on the agencys Internet Web site within five business days of finalization after acceptance by the Department of Finance.
(c)The report shall identify any material inadequacy or material weakness in a state agencys systems of internal control that prevents the agency head from stating that the state agencys systems comply with this chapter. Concurrently with the submission of the report pursuant to subdivision (b), the state agency shall provide to the Department of Finance a plan and schedule for correcting the identified inadequacies and weaknesses, that shall be updated every six months until all corrections are implemented.
(d)The Department of Finance in consultation with the California State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a system of reporting and a general framework to guide state agencies in conducting internal reviews of their systems of internal control.
(e)The Department of Finance in consultation with the California State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a general framework of recommended practices to guide state agencies in conducting active, ongoing monitoring of processes for internal control.
(a)To ensure that the requirements of this chapter are fully complied with, each agency head that the Department of Finance determines is covered by this section shall, on a biennial basis but no later than December 31 of each odd-numbered year, conduct an internal review and prepare a report on the adequacy of the state agency’s systems of internal control, and monitoring practices in accordance with the guide prepared by the Department of Finance pursuant to subdivision (d).
(b)The report, including the state agency’s response to review recommendations, shall be signed by the agency head and addressed to the agency secretary, or the Director of Finance for a state agency without a secretary. An agency head shall submit a copy of the report and related response, pursuant to a method determined by the Department of Finance, to the Legislature, the California State Auditor, the Controller, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copy shall be available for public inspection. A copy of the report shall be posted on the agency’s Internet Web site within five days of finalization.
(c)The report shall identify any material inadequacy or material weakness in a state agency’s systems of internal control that prevents the agency head from stating that the state agency’s systems comply with this chapter. Concurrently with the submission of the report pursuant to subdivision (b), the state agency shall provide to the Department of Finance a plan and schedule for correcting the identified inadequacies and weaknesses, that shall be updated every six months until all corrections are implemented.
(d)The Department of Finance in consultation with the California State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a system of reporting and a general framework to guide state agencies in conducting internal reviews of their systems of internal control.
(e)The Department of Finance in consultation with the California State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a general framework of recommended practices to guide state agencies in conducting active, ongoing monitoring of processes for internal control.
(a)To ensure that the requirements of this chapter are fully complied with, the head of each state agency that the director determines is covered by this section shall, on a biennial basis but no later than December 31 of each odd-numbered year, conduct an internal review and prepare a report on the adequacy of the agencys systems of internal accounting, administrative control, and monitoring practices in accordance with the guide prepared by the director pursuant to subdivision (d).
(b)The report, including the state agencys response to review recommendations, shall be signed by the head of the agency and addressed to the agency secretary, or the director for agencies without a secretary. Copies of the reports shall be posted on the agencys Internet Web site within five days of finalization, and submitted to the Legislature, the California State Auditor, the Controller, the Treasurer, the Attorney General, the Governor, the director, and to the State Library where they shall be available for public inspection.
(c)The report shall identify any material inadequacy or material weakness in an agencys systems of internal accounting and administrative control that prevents the head of the agency from stating that the agencys systems comply with this chapter. No later than 30 days after the report is submitted, the agency shall provide to the director a plan and schedule for correcting the identified inadequacies and weaknesses, which shall be updated every six months until all corrections are completed.
(d)The director, in consultation with the State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a system of reporting and a general framework to guide state agencies in conducting internal reviews of their systems of internal accounting and administrative control.
(e)The director, in consultation with the State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a general framework of recommended practices to guide state agencies in conducting active, ongoing monitoring of processes for internal accounting and administrative control.
SECTION 1.Section 13405 of the Government Code, as amended by Section 18 of Chapter 25 of the Statutes of 2015, is amended to read:13405.(a)To ensure that the requirements of this chapter are fully complied with, each agency head that the Department of Finance determines is covered by this section shall, on a biennial basis but no later than December 31 of each odd-numbered year, conduct an internal review and prepare a report on the adequacy of the state agencys systems of internal control, and monitoring practices in accordance with the guide prepared by the Department of Finance pursuant to subdivision (d).
(b)The report, including the state agencys response to review recommendations, shall be signed by the agency head and addressed to the agency secretary, or the Director of Finance for a state agency without a secretary. An agency head shall submit a copy of the report and related response, pursuant to a method determined by the Department of Finance, to the Legislature, the California State Auditor, the Controller, the Department of Finance, the Secretary of Government Operations, and to the State Library where the copy shall be available for public inspection. A copy of the report shall be posted on the agencys Internet Web site within five days of finalization.
(c)The report shall identify any material inadequacy or material weakness in a state agencys systems of internal control that prevents the agency head from stating that the state agencys systems comply with this chapter. Concurrently with the submission of the report pursuant to subdivision (b), the state agency shall provide to the Department of Finance a plan and schedule for correcting the identified inadequacies and weaknesses, that shall be updated every six months until all corrections are implemented.
(d)The Department of Finance in consultation with the California State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a system of reporting and a general framework to guide state agencies in conducting internal reviews of their systems of internal control.
(e)The Department of Finance in consultation with the California State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a general framework of recommended practices to guide state agencies in conducting active, ongoing monitoring of processes for internal control.
(a)To ensure that the requirements of this chapter are fully complied with, the head of each state agency that the director determines is covered by this section shall, on a biennial basis but no later than December 31 of each odd-numbered year, conduct an internal review and prepare a report on the adequacy of the agencys systems of internal accounting, administrative control, and monitoring practices in accordance with the guide prepared by the director pursuant to subdivision (d).
(b)The report, including the state agencys response to review recommendations, shall be signed by the head of the agency and addressed to the agency secretary, or the director for agencies without a secretary. Copies of the reports shall be posted on the agencys Internet Web site within five days of finalization, and submitted to the Legislature, the California State Auditor, the Controller, the Treasurer, the Attorney General, the Governor, the director, and to the State Library where they shall be available for public inspection.
(c)The report shall identify any material inadequacy or material weakness in an agencys systems of internal accounting and administrative control that prevents the head of the agency from stating that the agencys systems comply with this chapter. No later than 30 days after the report is submitted, the agency shall provide to the director a plan and schedule for correcting the identified inadequacies and weaknesses, which shall be updated every six months until all corrections are completed.
(d)The director, in consultation with the State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a system of reporting and a general framework to guide state agencies in conducting internal reviews of their systems of internal accounting and administrative control.
(e)The director, in consultation with the State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a general framework of recommended practices to guide state agencies in conducting active, ongoing monitoring of processes for internal accounting and administrative control.
SEC. 2.Section 13887.4 is added to the Government Code, to read:13887.4.A state agency shall post any audit findings and recommendations on its Internet Web site within five days of a report being made pursuant to paragraph (2) of subdivision (a) or paragraph (2) of subdivision (b) of Section 13887.
(a)To ensure that the requirements of this chapter are fully complied with, the head of each state agency that the director determines is covered by this section shall, on a biennial basis but no later than December 31 of each odd-numbered year, conduct an internal review and prepare a report on the adequacy of the agencys systems of internal accounting, administrative control, and monitoring practices in accordance with the guide prepared by the director pursuant to subdivision (d).
(b)The report, including the state agencys response to review recommendations, shall be signed by the head of the agency and addressed to the agency secretary, or the director for agencies without a secretary. Copies of the reports shall be posted on the agencys Internet Web site within five days of finalization, and submitted to the Legislature, the California State Auditor, the Controller, the Treasurer, the Attorney General, the Governor, the director, and to the State Library where they shall be available for public inspection.
(c)The report shall identify any material inadequacy or material weakness in an agencys systems of internal accounting and administrative control that prevents the head of the agency from stating that the agencys systems comply with this chapter. No later than 30 days after the report is submitted, the agency shall provide to the director a plan and schedule for correcting the identified inadequacies and weaknesses, which shall be updated every six months until all corrections are completed.
(d)The director, in consultation with the State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a system of reporting and a general framework to guide state agencies in conducting internal reviews of their systems of internal accounting and administrative control.
(e)The director, in consultation with the State Auditor and the Controller, shall establish, and may modify from time to time as necessary, a general framework of recommended practices to guide state agencies in conducting active, ongoing monitoring of processes for internal accounting and administrative control.
SEC. 2.Section 13887.4 is added to the Government Code, to read:13887.4.A state agency shall post any audit findings and recommendations on its Internet Web site within five days of a report being made pursuant to paragraph (2) of subdivision (a) or paragraph (2) of subdivision (b) of Section 13887.
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Date
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Status
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|---|---|
| Sep 1, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Aug 17, 2015 | Action rescinded whereby the Assembly concurred in Senate amendments. |
| Aug 17, 2015 | In Senate. Held at Desk. |
| Aug 17, 2015 | Ordered to the Senate. |
| Aug 17, 2015 | Withdrawn from Engrossing and Enrolling. |
| Aug 20, 2015 | Action rescinded whereby the bill was read third time, passed, and to Assembly. |
| Aug 20, 2015 | Ordered to third reading. |
| Aug 24, 2015 | Read third time and amended. Ordered to second reading. |
| Aug 25, 2015 | Read second time. Ordered to third reading. |
| Sep 1, 2015 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 3 pursuant to Assembly Rule 77. |
| Jul 13, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 2355.). |
| Sep 1, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2333.). |
| Sep 2, 2015 | Assembly Rule 77 suspended. |
| Sep 2, 2015 | Assembly Rule 77 suspended. (Page 2795.) |
| Sep 2, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 2810.). |
| Sep 2, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0.). |
| Sep 15, 2015 | Enrolled and presented to the Governor at 4 p.m. |
| Sep 30, 2015 | Approved by the Governor. |
| Sep 30, 2015 | Chaptered by Secretary of State - Chapter 371, Statutes of 2015. |
| May 7, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1348.) |
| Feb 26, 2015 | From printer. May be heard in committee March 28. |
| Mar 12, 2015 | Referred to Com. on A. & A.R. |
| Apr 8, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on A. & A.R. Read second time and amended. |
| Apr 9, 2015 | Re-referred to Com. on A. & A.R. |
| Apr 15, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 15). Re-referred to Com. on APPR. |
| Apr 29, 2015 | From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (April 29). |
| Apr 30, 2015 | Read second time. Ordered to Consent Calendar. |
| May 7, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 7, 2015 | Read third time. Passed. Ordered to the Senate. |
| Feb 25, 2015 | Read first time. To print. |
| May 21, 2015 | Referred to Com. on G.O. |
| Jun 9, 2015 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (June 9). Re-referred to Com. on APPR. |
| Jul 1, 2015 | From committee: Be placed on second reading file pursuant to Senate Rule 28.8, be amended, and ordered to consent calendar. |
| Jul 2, 2015 | Read second time and amended. Ordered to consent calendar. |
| Jul 9, 2015 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 11 pursuant to Assembly Rule 77. |
| Jul 9, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Jul 9, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 1878.). |
| Jul 13, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. |
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Date
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Description
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Location
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Votes
|
|
|---|---|---|---|---|
| Sep 2, 2015 | AB 728 HADLEY Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 1, 2015 | Assembly 3rd Reading AB728 Hadley By Morrell | Senate Floor |
Passed |
|
| Jul 13, 2015 | AB 728 HADLEY Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Jul 9, 2015 | Consent Calendar 2nd AB728 Hadley | Senate Floor |
Passed |
|
| Jun 9, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governmental Organization |
Passed |
|
| May 7, 2015 | AB 728 HADLEY Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Apr 29, 2015 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 15, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Accountability and Administrative Review |
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.
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Organization
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Position
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Date
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|---|---|---|
| Howard Jarvis Taxpayers Association | ** Support | Sep 1, 2015 |
AB 728
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 728
(Hadley)
As Amended August 24, 2015
Majority vote
ASSEMBLY: |
77-0 |
(May 7, 2015) |
SENATE: |
40-0 |
(September 1, 2015) |
Original Committee Reference: A. & A.R.
SUMMARY: Requires state agencies to post their State Leadership Accountability Act (SLAA) reports on their Web sites after acceptance by the Department of Finance (DOF).
The Senate amendments:
Specify the reports must be posted within five business days after acceptance by DOF.
Make technical non-substantive changes to incorporate the chaptering of a budget trailer bill that affected the same code section in this bill.
EXISTING LAW:
Requires agency heads covered by SLAA to conduct reviews and issue SLAA reports about internal controls and monitoring processes.
Requires agencies to submit SLAA reports to various state entities, including the State Library, where reports are required to be available for public inspection.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: This bill requires state agencies to post SLAA reports on their website. Senate amendments clarify that they must be posted within five business days after acceptance by DOF. The prior version of this bill required posting "within five days of finalization" and did not specify if the days were calendar or business days, or how finalization would be determined.
SLAA reports, which are due by the end of each odd-number calendar year, assess an agency's systems of internal controls and monitoring practices.
State agencies are currently required to submit SLAA reports to the Legislature, State Auditor, Controller, DOF, the Secretary of Government Operations, and to the State Library where they must be available for public inspection.
Senate amendments incorporate language in SB 84 (Budget and Fiscal Review Committee), Chapter 25, Statutes of 2015, a budget trailer bill, which change the name of the Financial Integrity and State Manager's Accountability Act of 1983 (FISMA) to SLAA.
Analysis Prepared by: Scott Herbstman / A. & A.R. / (916) 319-3600 FN: 0001701
AB 728
Page 4
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Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 728
Amended: 8/24/15 in Senate
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/9/15
AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Runner, Vidak
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 5/7/15 (Consent) - See last page for vote
SUBJECT: State government: financial reporting
DIGEST: This bill requires that any internal audit report performed by a state agency to be posted on the agency’s Internet Web site within five business days after acceptance by the Department of Finance (DOF).
Senate Floor Amendments of 8/24/15 specify that the agency’s internal report shall be posted on the agency’s Internet Web site within five business days after acceptance by the DOF. The bill previously required that the internal report be posted on the agency’s Internet Web site within five days of finalization.
ANALYSIS:
Existing law:
Provides, under the Financial Integrity and State Manager’s Accountability Act of 1983 (FISMA), that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified.
Requires state agency heads covered by the FISMA to, biennially, conduct an internal review and prepare a report on the adequacy of the agency’s systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Treasurer, the Attorney General, the Governor, the Director of Finance, and to the State Library where the copies are required to be available for public inspection.
This bill requires that any internal audit report performed by a state agency to be posted on the agency’s Internet Web site within five business days after acceptance by the DOF.
Comments
Purpose of the bill. According to the author, every state agency with annual spending greater than $50 million is recommended to establish ongoing audit activities. Currently, 42 state agencies employ dedicated audit staff which provides independent and objective assessments to improve accountability, identify misuse of public funds, and detect waste, fraud, or abuse.
The author argues “that agencies are already performing such audits and maintaining their existing websites. Current law requires that these audits are submitted to various state agencies. While these audit reports are technically public record, there is no requirement to notify the public if and when an audit has been conducted. Without access to such information, the public is effectively prevented from demanding accountability and ensuring that audit recommendations are implemented in order to correct a waste or abuse of taxpayer funds.”
The author concludes that by requiring all internal audits performed by state agencies to be published on the agency’s Internet Web site within five business days after acceptance by DOF, this bill is a simple solution to this transparency problem.
Prior/Related Legislation
AB 661 (Beth Gaines, 2013) would have required state agencies to post FISMA reports on their Web sites within five days of finalization. Additionally, it would have required the head of an agency to sign off on the reports under penalty of perjury and would have suspended without pay agency heads who did not submit FISMA reports within 30 days of their due dates. (Held in Assembly Appropriations Committee)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 8/25/15)
Howard Jarvis Taxpayers Association
OPPOSITION: (Verified 8/25/15)
None received
ARGUMENTS IN SUPPORT: According to the Howard Jarvis Taxpayers Association, existing law requires numerous state agencies to receive internal audits performed by a state agency. Essentially, everybody receives these audits but the public, and requiring that financial audits be posted on the agency’s Web site in a timely manner is an effective way to ensure that taxpayers have more immediate access to information about how their dollars are spent.
ASSEMBLY FLOOR: 77-0, 5/7/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, 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, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Roger Hernández, Steinorth
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
8/25/15 16:03:30
**** END ****
AB 728
Page 3
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 728
Amended: 7/2/15 in Senate
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/9/15
AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Runner, Vidak
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 5/7/15 (Consent) - See last page for vote
SUBJECT: State government: financial reporting
DIGEST: This bill requires that any internal audit report performed by a state agency to be posted on the agency’s Internet Web site within five days of finalization.
ANALYSIS:
Existing law:
Provides, under the Financial Integrity and State Manager’s Accountability Act of 1983 (FISMA), that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified.
Requires state agency heads covered by the FISMA to, biennially, conduct an internal review and prepare a report on the adequacy of the agency’s systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Treasurer, the Attorney General, the Governor, the Director of Finance, and to the State Library where the copies are required to be available for public inspection.
This bill requires that any internal audit report performed by a state agency to be posted on the agency’s Internet Web site within five days of finalization.
Comments
Purpose of the bill. According to the author, every state agency with annual spending greater than $50 million is recommended to establish ongoing audit activities. Currently, 42 state agencies employ dedicated audit staff which provides independent and objective assessments to improve accountability, identify misuse of public funds, and detect waste, fraud, or abuse.
The author argues “that agencies are already performing such audits and maintaining their existing websites. Current law requires that these audits are submitted to various state agencies. While these audit reports are technically public record, there is no requirement to notify the public if and when an audit has been conducted. Without access to such information, the public is effectively prevented from demanding accountability and ensuring that audit recommendations are implemented in order to correct a waste or abuse of taxpayer funds.”
The author concludes that by requiring all internal audits performed by state agencies to be published on the agency’s Internet Web site within five days of publishing, this bill is a simple solution to this transparency problem.
Prior/Related Legislation
AB 661 (Beth Gaines, 2013) would have required state agencies to post FISMA reports on their Web sites within five days of finalization. Additionally, it would have required the head of an agency to sign off on the reports under penalty of perjury and would have suspended without pay agency heads who did not submit FISMA reports within 30 days of their due dates. (Held in Assembly Appropriations Committee)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 6/22/15)
Howard Jarvis Taxpayers Association
OPPOSITION: (Verified 6/22/15)
None received
ARGUMENTS IN SUPPORT: According to the Howard Jarvis Taxpayers Association, existing law requires numerous state agencies to receive internal audits performed by a state agency. Essentially, everybody receives these audits but the public, and requiring that financial audits be posted on the agency’s Web site in a timely manner is an effective way to ensure that taxpayers have more immediate access to information about how their dollars are spent.
ASSEMBLY FLOOR: 77-0, 5/7/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, 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, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Roger Hernández, Steinorth
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
8/21/15 9:41:39
**** END ****
AB 728
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 728
(Hadley)
As Amended July 2, 2015
Majority vote
ASSEMBLY: |
77-0 |
(May 7, 2015) |
SENATE: |
39-0 |
(July 9, 2015) |
Original Committee Reference: A. & A.R.
SUMMARY: Requires state agencies to post their State Leadership Accountability Act (SLAA) reports on their Web sites within five days of finalization.
The Senate amendments make technical non-substantive changes to incorporate the chaptering of a budget trailer bill that affected the same code section in this bill.
EXISTING LAW:
Requires agency heads covered by SLAA to conduct reviews and issue SLAA reports about internal controls and monitoring processes.
Requires agencies to submit SLAA reports to various state entities, including the State Library, where reports are required to be available for public inspection.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: This bill requires state agencies to post SLAA reports on their Web sites within five days of finalization. These reports, which are due by the end of each odd-number calendar year, assess an agency's systems of internal controls and monitoring practices.
State agencies are currently required to submit SLAA reports to the Legislature, State Auditor, Controller, Department of Finance (Finance), the Secretary of Government Operations, and to the State Library where they must be available for public inspection.
Senate amendments incorporate language in SB 84 (Budget and Fiscal Review Committee), Chapter 25, Statutes of 2015, a budget trailer bill, which change the name of the Financial Integrity and State Manager's Accountability Act of 1983 (FISMA) to SLAA.
Analysis Prepared by: Scott Herbstman / A. & A.R. / (916) 319-3600 FN: 0001184
AB 728
Page 3
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
CONSENT
Bill No: AB 728
Amended: 7/2/15 in Senate
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/9/15
AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Runner, Vidak
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 5/7/15 (Consent) - See last page for vote
SUBJECT: State government: financial reporting
DIGEST: This bill requires that any internal audit report performed by a state agency to be posted on the agency’s Internet Web site within five days of finalization.
ANALYSIS:
Existing law:
Provides, under the Financial Integrity and State Manager’s Accountability Act of 1983 (FISMA), that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified.
Requires state agency heads covered by the FISMA to, biennially, conduct an internal review and prepare a report on the adequacy of the agency’s systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Treasurer, the Attorney General, the Governor, the Director of Finance, and to the State Library where the copies are required to be available for public inspection.
This bill requires that any internal audit report performed by a state agency to be posted on the agency’s Internet Web site within five days of finalization.
Comments
Purpose of the bill. According to the author, every state agency with annual spending greater than $50 million is recommended to establish ongoing audit activities. Currently, 42 state agencies employ dedicated audit staff which provides independent and objective assessments to improve accountability, identify misuse of public funds, and detect waste, fraud, or abuse.
The author argues “that agencies are already performing such audits and maintaining their existing websites. Current law requires that these audits are submitted to various state agencies. While these audit reports are technically public record, there is no requirement to notify the public if and when an audit has been conducted. Without access to such information, the public is effectively prevented from demanding accountability and ensuring that audit recommendations are implemented in order to correct a waste or abuse of taxpayer funds.”
The author concludes that by requiring all internal audits performed by state agencies to be published on the agency’s Internet Web site within five days of publishing, this bill is a simple solution to this transparency problem.
Prior/Related Legislation
AB 661 (Beth Gaines, 2013) would have required state agencies to post FISMA reports on their Web sites within five days of finalization. Additionally, it would have required the head of an agency to sign off on the reports under penalty of perjury and would have suspended without pay agency heads who did not submit FISMA reports within 30 days of their due dates. (Held in Assembly Appropriations Committee)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 6/22/15)
Howard Jarvis Taxpayers Association
OPPOSITION: (Verified 6/22/15)
None received
ARGUMENTS IN SUPPORT: According to the Howard Jarvis Taxpayers Association, existing law requires numerous state agencies to receive internal audits performed by a state agency. Essentially, everybody receives these audits but the public, and requiring that financial audits be posted on the agency’s Web site in a timely manner is an effective way to ensure that taxpayers have more immediate access to information about how their dollars are spent.
ASSEMBLY FLOOR: 77-0, 5/7/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, 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, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Roger Hernández, Steinorth
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
7/2/15 11:37:51
**** END ****
AB 728 (Hadley) Page 3 of 3
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 728 Hearing Date: 6/9/2015
Author: |
Hadley |
||
Version: |
4/8/2015 Amended |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Felipe Lopez |
||
SUBJECT: State government: financial reporting.
DIGEST: This bill requires that any internal audit report performed by a state agency to be posted on the agency’s Internet Web site within five days of finalization.
ANALYSIS:
Existing law:
Provides, under the Financial Integrity and State Manager’s Accountability Act of 1983 (FISMA), that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified.
Requires state agency heads covered by the FISMA to, biennially, conduct an internal review and prepare a report on the adequacy of the agency’s systems of internal accounting, administrative control, and monitoring practices. Copies of the reports are required to be submitted to the Legislature, the California State Auditor, the Controller, the Treasurer, the Attorney General, the Governor, the Director of Finance, and to the State Library where the copies are required to be available for public inspection.
This bill requires that any internal audit report performed by a state agency to be posted on the agency’s Internet Web site within five days of finalization.
Background
Purpose of the bill. According to the author, every state agency with annual spending greater than $50 million is recommended to establish ongoing audit activities. Currently, 42 state agencies employ dedicated audit staff which provides independent and objective assessments to improve accountability, identify misuse of public funds, and detect waste, fraud, or abuse.
The author argues “that agencies are already performing such audits and maintaining their existing websites. Current law requires that these audits are submitted to various state agencies. While these audit reports are technically public record, there is no requirement to notify the public if and when an audit has been conducted. Without access to such information, the public is effectively prevented from demanding accountability and ensuring that audit recommendations are implemented in order to correct a waste or abuse of taxpayer funds.”
The author concludes that by requiring all internal audits performed by state agencies to be published on the agency’s internet website within five days of publishing, this bill is a simple solution to this transparency problem.
Prior/Related Legislation
AB 661 (Beth Gaines, 2013) would have required state agencies to post FISMA reports on their websites within five days of finalization. Additionally, it would have required the head of an agency to sign off on the reports under penalty of perjury and would have suspended without pay agency heads who did not submit FISMA reports within 30 days of their due dates. (Held in Assembly Appropriation Committee)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT:
Howard Jarvis Taxpayers Association
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to the Howard Jarvis Taxpayers Association, current law requires numerous state agencies to receive internal audits performed by a state agency. Essentially, everybody receives these audits but the public, and requiring that financial audits be posted on the agency’s website in a timely manner is an effective way to ensure that taxpayers have more immediate access to information about how their dollars are spent.
AB 728
Page 1
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 728
(Hadley) – As Amended April 8, 2015
Policy Committee: |
Accountability and Administrative Review |
Vote: |
9 - 0 |
|
|
|
|
|
|
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires state agencies to post their Financial Integrity and State Manager's Accountability Act of 1983 (FISMA) reports on their websites within five days of finalization.
FISCAL EFFECT:
Minor and absorbable costs to state agencies to post reports on their websites.
COMMENTS:
Purpose and Background. This bill requires state agencies to post FISMA reports on their websites within five days of finalization. These reports, which are due by the end of each odd-number calendar year, assess an agency's system of internal accounting, administrative controls, and monitoring practices. State agencies are currently required to submit FISMA reports to the Legislature, State Auditor, Controller, Treasurer, Attorney General, Governor, Director of Finance, and State Library where they must be available for public inspection. The web posting requirements in this bill are intended to increase public access to these reports. According to the author, this bill will encourage transparency and build public trust.
While the website posting of these reports is not currently required, the Department of Finance (DOF) issued a February 2013 audit memo that encourages agencies to post their FISMA reports on their websites. While some agencies have posted these reports online, it appears as though many agencies have not.
Previous Legislation. AB 661 (Beth Gaines) of 2013 would have required agencies to post FISMA reports on their websites within five days of finalization. Additionally, it would have required the head of an agency to sign off on the reports under penalty of perjury and would have suspended without pay agency heads who did not submit FISMA reports within 30 days of their due dates. AB 661 was held on this Committee's Suspense File.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
AB 728
Page 2
Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Rudy Salas, Chair
AB 728
Hadley – As Amended April 8, 2015
SUBJECT: State government: financial reporting
SUMMARY: Requires state agencies to post their Financial Integrity and State Manager's Accountability Act of 1983 (FISMA) reports on their websites within five days of finalization.
EXISTING LAW:
Specifies under FISMA that state agency heads are responsible for establishing and maintaining a system of internal accounting and administrative control within their agencies.
Requires agency heads covered by FISMA to conduct reviews and issue FISMA reports about these controls and monitoring processes.
Requires agencies to submit FISMA reports to various state entities, including the State Library, where reports are required to be available for public inspection.
FISCAL EFFECT: Unknown
COMMENTS: This bill requires state agencies to post FISMA reports on their websites within five days of finalization. These reports, which are due by the end of each odd-number calendar year, assess an agency's system of internal accounting, administrative controls, and monitoring practices.
State agencies are currently required to submit FISMA reports to the Legislature, State Auditor, Controller, Treasurer, Attorney General, Governor, Director of Finance, and State Library where they must be available for public inspection.
While the website posting of these reports is not currently required, the Department of Finance (Finance) issued a February 2013 audit memo that encourages agencies to post their FISMA reports on their websites. While some agencies have posted these reports online, it appears as though many agencies have not.
As FISMA reports are already required to be sent to the State Library for public viewing, the public has access to them. However, the web posting requirements in this bill could likely increase public access to these reports. According to the author, this bill will encourage transparency and build public trust.
PRIOR LEGISLATION: AB 661 (Beth Gaines) of 2013 would have required agencies to post FISMA reports on their websites within five days of finalization. Additionally, it would have required the head of an agency to sign off on the reports under penalty of perjury and would have suspended without pay agency heads who did not submit FISMA reports within 30 days of their due dates. AB 661 was held in the Assembly Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
Howard Jarvis Taxpayers Association
Opposition
None on file
Analysis Prepared by: Scott Herbstman / A. & A.R. / (916) 319-3600
Discussed in Hearing
View Older Hearings
Bill Author
Bill Co-Author(s):