Bill Text: CA AB162 | 2011-2012 | Regular Session | Introduced

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Bill Title: Local government: financial reports.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB162 Detail]

Download: California-2011-AB162-Introduced.html

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BILL NUMBER: AB 162	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Smyth

                        JANUARY 19, 2011

   An act to amend Section 12410.5 of the Government Code, relating
to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 162, as introduced, Smyth. Local government: financial reports.

   Existing federal law, the Single Audit Act of 1984, requires any
nonfederal entity, defined as states, local governments, or nonprofit
organizations, that accepts $300,000 or more in federal money to
prepare an annual audit that meets certain specifications and
transmit that audit to specified federal agencies. Existing law
requires the Controller to receive every audit report prepared by any
local public agency pursuant to the federal Single Audit Act of
1984, and that the Controller review those reports for compliance
with federal law before forwarding them to the designated state
agency.
   This bill would additionally require that, if an audit of a local
agency reveals certain financial irregularities, the findings be sent
separately to the Controller immediately after the audit has been
concluded. By increasing the duties of local officials, this bill
would impose a state-mandated local program.
   This bill would require the Controller to prepare and transmit a
report on those findings, and the Controller's recommendations, to
the Assembly Committee on Local Government and the Senate Committee
on Local Government.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 12410.5 of the Government Code is amended to
read:
   12410.5.   (a)    The Controller shall receive
every audit report prepared for any local public agency in compliance
with the federal Single Audit Act of 1984 (P.L. 98-502; 31 U.S.C.
Sec. 7501 et seq.) and required under any law to be submitted to any
state agency, and shall, after ascertaining its compliance with that
federal act, transmit the report to the designated state agency. 

   (b) If findings are made in a local agency's annual financial
audit, prepared pursuant to subdivision (a), that there have been
possible deficiencies in internal control, fraud, illegal acts,
violations of provisions of contracts or grant agreements, or abuses,
the findings shall be sent separately to the Controller immediately
after the audit has been concluded.  
   (c) Upon receiving findings prepared pursuant to subdivision (b),
the Controller shall prepare and transmit a report on the matter,
including the recommendations of the Controller, to the Assembly
Committee on Local Government and the Senate Committee on Local
Government. 
  SEC. 2.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.