Bill Text: CA AB661 | 2013-2014 | Regular Session | Amended
Bill Title: State government: FISMA.
Sponsorship: Partisan Bill (Republican 11)
Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB661 Detail]
Download: California-2013-AB661-Amended.html
BILL NUMBER: AB 661 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 15, 2013
AMENDED IN ASSEMBLY MARCH 18, 2013
INTRODUCED BY Assembly Member Beth Gaines
(Coauthors: Assembly Members Conway, Harkey, Logue, Olsen,
Patterson, and Wagner)
(Coauthors: Senators Gaines, Knight, Nielsen, and Walters)
FEBRUARY 21, 2013
An act to amend Sections 13405 and 13406 of the Government Code,
relating to state government.
LEGISLATIVE COUNSEL'S DIGEST
AB 661, as amended, Beth Gaines. State government: FISMA.
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.
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 13405 of the Government Code is amended to
read:
13405. (a) To ensure that the requirements of this chapter are
fully complied with, the head of each state agency that the director
determines is covered by this section shall, on a biennial basis but
no later than December 31 of each odd-numbered year, conduct an
internal review and prepare a report on the adequacy of the agency's
systems of internal accounting, administrative control, and
monitoring practices in accordance with the guide prepared by the
director pursuant to subdivision (d).
(b) The report, including the state agency's response to review
recommendations, shall be signed, under penalty of perjury, by the
head of the agency and addressed to the agency secretary, or the
director for agencies without a secretary. Copies of the reports
shall be posted on the agency's Internet Web site within five days of
finalization, and 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 they shall be
available for public inspection. If an agency fails to submit the
report within 30 days of the report deadline, the head of the agency
shall be suspended without pay until the agency comes into compliance
with the reporting requirements.
(c) The report shall identify any material inadequacy or material
weakness in an agency's systems of internal accounting and
administrative control that prevents the head of the agency from
stating that the agency's systems comply with this chapter. No later
than 30 days after the report is submitted, the agency shall provide
to the director a plan and schedule for correcting the identified
inadequacies and weaknesses, which shall be updated every six months
until all corrections are completed.
(d) The director, in consultation with the State Auditor and the
Controller, shall establish, and may modify from time to time as
necessary, a system of reporting and a general framework to guide
state agencies in conducting internal reviews of their systems of
internal accounting and administrative control. This framework shall
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.
(e) The director, in consultation with the State Auditor and the
Controller, shall establish, and may modify from time to time as
necessary, a general framework of recommended practices to guide
state agencies in conducting active, ongoing monitoring of processes
for internal accounting and administrative control.
SEC. 2. Section 13406 of the Government Code is amended to read:
13406. (a) The head of the internal audit staff of a state
agency, a division, as specified by the director, or, in the event
there is no internal audit function, a professional accountant, if
available on the staff, designated as the internal control person by
the head of the state agency or a division, shall receive and
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.
(b) If, in connection with any investigation under subdivision
(a), the head of the internal audit staff or the designated internal
control person determines that there is reasonable cause to believe
that false or misleading information was provided, he or she shall
report in writing that determination to the head of the agency or the
division, the Department of Finance, and the Joint Legislative Audit
Committee.
(c) The head of the agency or division shall review any matter
referred to him or her under subdivision (b), shall take such
disciplinary or corrective action as he or she deems necessary, and
shall forward a copy of the report, indicating therein the action
taken, to the director within 90 days of the date of the report.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
