AB 661

Bill Subjects

Abstract

Existing law, the Financial Integrity and State Manager's 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 that state agency heads covered by FISMA shall, 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, 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 agency's Internet Web site within 5 days of finalization and would require the report to be signed by the head of the agency under penalty of perjury. By requiring the head of an agency to sign the report under penalty of perjury, this bill would expand circumstances under which a person may be convicted of a crime and, thereby, would impose a state-mandated local program. This bill would provide that the head of an agency that fails to submit the report within 30 days of its deadline shall be suspended without pay until the agency comes into compliance with the reporting requirements. This bill would require the framework for conducting an internal review of an agency's systems of internal accounting and administrative control to include Protocols for auditing and monitoring of the agency's assets, liabilities, revenues, and expenditures, as well as reconciliation of accounting and budget documents reported to the Department of Finance and the Office of the Controller. Existing law requires the head of an internal audit staff of a state agency to investigate any allegation that an employee of the agency provided false or misleading information in connection with the review of the agency's systems of internal accounting and administrative control or in connection with the preparation of the biennial report on the systems of internal accounting, administrative control, and monitoring practices. Existing law requires the head of an internal audit staff or designated internal control person to report in writing to the head of the agency or the division if there is reasonable cause to believe that false or misleading information was provided. This bill would require the report to also be submitted to the Department of Finance and the Joint Legislative Audit Committee. 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 no reimbursement is required by this act for a specified reason.