AB 162

Bill Subjects

Abstract

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.