Bill Text: CA AB728 | 2015-2016 | Regular Session | Chaptered

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Bill Title: State government: financial reporting.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2015-09-30 - Chaptered by Secretary of State - Chapter 371, Statutes of 2015. [AB728 Detail]

Download: California-2015-AB728-Chaptered.html

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BILL NUMBER: AB 728	CHAPTERED
	BILL TEXT

	CHAPTER  371
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2015
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2015
	PASSED THE SENATE  SEPTEMBER 1, 2015
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2015
	AMENDED IN SENATE  AUGUST 24, 2015
	AMENDED IN SENATE  JULY 2, 2015
	AMENDED IN ASSEMBLY  APRIL 8, 2015

INTRODUCED BY   Assembly Member Hadley

                        FEBRUARY 25, 2015

   An act to amend Section 13405 of the Government Code, relating to
state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 728, Hadley. State government: financial reporting.
   Existing law, the State Leadership Accountability Act, 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 state agency heads to, 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
Department of Finance, the Secretary of Government Operations, and to
the State Library where the copy is 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 business days after acceptance by the
department.



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

  SECTION 1.  Section 13405 of the Government Code, as amended by
Section 18 of Chapter 25 of the Statutes of 2015, is amended to read:

   13405.  (a) To ensure that the requirements of this chapter are
fully complied with, each agency head that the Department of Finance
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 state
agency's systems of internal control, and monitoring practices in
accordance with the guide prepared by the Department of Finance
pursuant to subdivision (d).
   (b) The report, including the state agency's response to review
recommendations, shall be signed by the agency head and addressed to
the agency secretary, or the Director of Finance for a state agency
without a secretary. An agency head shall submit a copy of the report
and related response, pursuant to a method determined by the
Department of Finance, to the Legislature, the California State
Auditor, the Controller, the Department of Finance, the Secretary of
Government Operations, and to the State Library where the copy shall
be available for public inspection. A copy of the report shall be
posted on the agency's Internet Web site within five business days
after acceptance by the Department of Finance.
   (c) The report shall identify any material inadequacy or material
weakness in a state agency's systems of internal control that
prevents the agency head from stating that the state agency's systems
comply with this chapter. Concurrently with the submission of the
report pursuant to subdivision (b), the state agency shall provide to
the Department of Finance a plan and schedule for correcting the
identified inadequacies and weaknesses, that shall be updated every
six months until all corrections are implemented.
   (d) The Department of Finance in consultation with the California
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 control.
   (e) The Department of Finance in consultation with the California
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 control.