Bill Text: CA AB450 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: California State University: food service contracts.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Vetoed) 2011-10-08 - Vetoed by Governor. [AB450 Detail]

Download: California-2011-AB450-Introduced.html

---

BILL NUMBER: AB 450	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wieckowski

                        FEBRUARY 15, 2011

   An act to amend Section 12440.1 of the Government Code, relating
to the California State University.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 450, as introduced, Wieckowski. California State University:
audits.
   (1) Existing law requires the Trustees of the California State
University to maintain records of certain vendor payments for 3 years
and make those records available to the Controller for postaudit
review, as needed.
   This bill instead would require the trustees to maintain those
records for 5 years.
   (2) Existing law requires the trustees to contract with one or
more public accounting firms to conduct specified financial statement
and compliance audits without obtaining the approval of any other
state officer or entity. Internal and independent financial statement
audits of the trustees are required to test compliance with
procurement procedures and the integrity of the payments made.
   This bill would require the trustees to contract with the public
accounting firms pursuant to an open bidding process, and would
specify that the Department of Finance shall have final approval over
the selection of the accounting firm. It would require the internal
and independent financial statement audits of the trustees to be
conducted using generally accepted accounting principles. It would
also delete the requirement of a test of compliance with procurement
procedures and the integrity of the payments made, and instead would
require that the audits include a determination of these factors.
   (3) Existing law requires at least 10 individual campus audits to
be conducted on a rotating basis, and requires each campus to be
audited at least once every 2 years.
   This bill would delete these provisions and instead would require
that in addition to an annual statewide system audit, each campus be
audited at least once every year.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 12440.1 of the Government Code is amended to
read:
   12440.1.  (a) The trustees, in conjunction with the Controller,
shall implement a process that allows any campus or other unit of the
university to make payments of obligations of the university from
its revolving fund directly to all of its vendors. Notwithstanding
Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of
Division 4  of Title 2  , or any other provision of
law, the trustees may draw from funds appropriated to the university,
for use as a revolving fund, amounts necessary to make payments of
obligations of the university directly to vendors. In any fiscal
year, the trustees shall obtain the approval of the Director of
Finance to draw amounts in excess of 10 percent of the total
appropriation to the university for that fiscal year for use as a
revolving fund.
   (b) Notwithstanding Sections 925.6, 12410, and 16403, or any other
provision of law, the trustees shall maintain payment records for
 three   five  years and make those records
available to the Controller for postaudit review, as needed.
   (c) Notwithstanding Section 8546.4 or any other provision of law,
the trustees shall  , pursuant to an open bidding process, 
contract with one or more public accounting firms to conduct
systemwide and individual campus annual financial statement and
compliance audits  without obtaining the approval of any
other state officer or entity   , with the Department of
Finance to have final approval over the selection of the accounting
firm  .  At least 10 individual campus audits shall be
conducted on a rotating basis, and   In addition to an
annual systemwide audit,  each campus shall be audited at least
once every  two years   year  .
   (d) The internal and independent financial statement audits of the
trustees  ,   conducted using generally accepted
accounting principles,  shall  test  
include a determination of  compliance with procurement
procedures and the integrity of the payments made. The results of
these audits shall be included in the biennial report required by
Section 13405.
   (e) As used in this section:
   (1) "Trustees" means the Trustees of the California State
University.
   (2) "University" means the California State University.