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california legislation > SB 1395

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Bill No: SB
1395

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis


SB 1395 Author: Rubio
As Amended: April 17, 2012
Hearing Date: April 24, 2012
Consultant: Art Terzakis


SUBJECT
State Auditor

DESCRIPTION

SB 1395 renames the "Bureau of State Audits" as the "State
Auditor's Office" and makes other minor code maintenance
changes.

EXISTING LAW


Senate Bill 37 (Maddy) Chapter 12, Statutes of 1993,
(Government Code 8543), created the Bureau of State Audits
(BSA) as part of the Executive Branch. To assure its
independence, the BSA is free from the control of the
Executive and Legislative branches; the Milton Marks
"Little Hoover" Commission oversees its administrative
operations. The BSA, under the direction of the State
Auditor, performs an annual examination (single audit) of
the State's general-purpose financial statements as
prepared by the State Controller's Office. The federal
government, as a condition of receiving federal funds,
requires this audit. The single audit also includes a
review of major federal programs for compliance with
federal laws and regulations, and recommendations to
improve the State's financial systems and internal control.


The BSA also conducts financial and performance audits as
directed by statute, and other government audits requested




SB 1395 (Rubio) continued
Page 2



by the Joint Legislative Audit Committee (JLAC). The BSA
has the explicit authority to audit any entity that
receives state funds. Consequently, it sometimes audits at
the local government level. In addition, the BSA
administers the "Reporting of Improper Governmental
Activities Act," which includes a hotline for anonymous
reporting.

Existing law provides that the State Auditor is appointed
by the Governor, from a list submitted by the Joint
Legislative Audit Committee, to a four-year term.

BACKGROUND

Purpose of SB 1395: According to the author's office, this
measure is simply intended to rename the "Bureau of State
Audits" as the "State Auditor's Office."
Staff Comments: As this measure moves through the
legislative process, the author may wish to consider adding
a provision restricting expenditures on the name change
until existing supplies, logos, and such are exhausted or
unserviceable, thereby minimizing costs associated with the
change.

PRIOR LEGISLATION

AB 187 (Lara) Chapter 451, Statutes of 2011. Subject to
specified conditions, authorized the State Auditor to
establish a high-risk local government agency audit program
to identify, audit, and issue reports on any local
government agency, including any city, county, or special
district, or any publicly created entity that the State
Auditor identifies as being at high risk for the potential
of waste, fraud, abuse, or mismanagement or that has major
challenges associated with its economy, efficiency, or
effectiveness.

SB 1314 (Wyland) 2007-08 Session.
Would have transferred
audit and evaluation duties within the Department of
Finance to the Bureau of State Audits (BSA) and renamed the
BSA as the Bureau of State Audits and Evaluations (BSAE)
with responsibility for auditing the performance of state
programs and managers and for recommending actions to
correct any inefficiencies or ineffectiveness that may
exist. (Held in this Committee at Author's Request)





SB 1395 (Rubio) continued
Page 3



SB 1452 (Speier) Chapter 452, Statutes of 2006.
Updated
the auditing standards for state and local agencies and
enacted the Omnibus Audit Accountability Act of 2006 which
established a process whereby the Legislature would be
informed when auditor recommendations are being ignored or
not implemented by state agencies.

SB 1437 (Speier) Chapter 251, Statutes of 2004.
Authorized
the State Auditor to establish a high-risk government
agency audit program for the purpose of identifying,
auditing, and issuing reports on any state agency that the
auditor identifies as high risk for the potential of waste,
fraud, abuse, and mismanagement, or that has major
challenges associated with its economy, efficiency, or
effectiveness.

SB 37 (Maddy) Chapter 12, Statutes of 1993. Created the
Bureau of State Audits under the direction of the Little
Hoover Commission - many of the duties and power of the
Office of Auditor General were passed to the Bureau of
State Audits. This was done in response to the passage of
Proposition 140 which had the effect of greatly reducing
the size and scope of the Auditor General's office.

SUPPORT: Bureau of State Audits (sponsor)

OPPOSE: None on file as of April 20, 2012.

FISCAL COMMITTEE: Senate Appropriations Committee

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