Bill Text: CA SB481 | 2015-2016 | Regular Session | Enrolled

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Bill Title: Local government: auditors: independence.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2016-04-18 - Last day to consider Governors veto pursuant to Joint Rule 58.5. [SB481 Detail]

Download: California-2015-SB481-Enrolled.html

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BILL NUMBER: SB 481	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 20, 2015
	PASSED THE ASSEMBLY  JULY 16, 2015
	AMENDED IN ASSEMBLY  JUNE 18, 2015
	AMENDED IN SENATE  APRIL 8, 2015
	AMENDED IN SENATE  APRIL 6, 2015

INTRODUCED BY   Senator Hueso

                        FEBRUARY 26, 2015

   An act to amend Section 1236 of the Government Code, relating to
local government.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 481, Hueso. Local government: auditors: independence.
   Existing law requires, with certain exceptions, that all city,
county, city and county, and district employees who conduct audits or
that conduct audit activities of those respective agencies, conduct
their work under the general and specified standards prescribed by
the Institute of Internal Auditors or the Government Auditing
Standards issued by the Comptroller General of the United States, as
appropriate. Those standards generally provide, among other things,
that auditors should be independent of the activities they audit.
Existing law makes every willful omission to perform any duty
enjoined by law upon any public officer, or person holding any public
trust or employment, where no special provision is made for the
punishment of that delinquency, a crime.
   This bill would prohibit the general counsel of the city, county,
city and county, or district, or the employees of the general counsel
from having direct oversight over the city, county, city and county,
and district employees that conduct audits or that conduct audit
activities of those respective agencies.
   By expanding the definition of an existing crime, this bill would
impose a state-mandated local program.
   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.


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

  SECTION 1.  Section 1236 of the Government Code is amended to read:

   1236.  (a) All city, county, city and county, and district
employees that conduct audits or that conduct audit activities of
those respective agencies shall conduct their work under the general
and specified standards prescribed by the Institute of Internal
Auditors or the Government Auditing Standards issued by the
Comptroller General of the United States, as appropriate. The
standards generally provide as follows:
   (1) That auditors should be independent of the activities they
audit.
   (2) That audits should be performed with proficiency and due
professional care.
   (3) That the scope of the audit should encompass the examination
and evaluation of the adequacy and effectiveness of the organization'
s system of internal control and the quality of performance in
carrying out assigned responsibilities.
   (4) That audit work should include planning the audit, examining
and evaluating information, communicating results, and following up.
   (5) That the chief auditor should properly manage the auditing
department.
   (b) Nothing in this section is intended to limit the rights or
obligations of auditors to conduct audits and audit activities in
accordance with other laws and regulations that may apply to a
particular entity, as appropriate.
   (c) The general counsel of the city, county, city and county, or
district, or the employees of the general counsel shall not have
direct oversight over the city, county, city and county, or district
employees that conduct audits or that conduct audit activities of the
respective agency.
  SEC. 2.  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.