Today's Law As Amended


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AB-884 State agencies: audits.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 1237 of the Government Code is amended to read:

1237.
 (a)  All state and  local agencies with an aggregate spending of fifty million dollars ($50,000,000) or more annually shall consider establishing an ongoing audit function.
(b) All state agencies with an aggregate spending of fifty million dollars ($50,000,000) or more annually shall establish an ongoing audit function.

SEC. 2.

 Section 13886 of the Government Code is amended to read:

13886.
 (a) Any governing body that oversees a state agency that performs or reviews internal audits shall establish an audit committee that generally meets the frameworks recommended by the American Institute of Certified Public Accountants, as set forth in the publication entitled “AICPA Audit Committee Toolkit: Government Organizations.”
(b) For purposes of this chapter, “governing body” means a board, commission, board of trustees, council, or other similar body that oversees a state agency.
(c) If a governing body is subject to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1), an audit committee established by the governing body pursuant to this section shall be subject to the same requirements.

SEC. 3.

 Section 13887 of the Government Code is amended to read:

13887.
 (a) In order to achieve independence and objectivity pursuant to Section 13886, for any state agency that does not report to a governing body, the internal auditor operations shall meet all of the following requirements:
(1) The chief internal auditor shall be accountable to the head or deputy head of the state agency.
(2) The chief internal auditor shall report audit findings and recommendations made under his or her  the chief internal auditor’s  jurisdiction to the head or deputy head of the state agency and to the general counsel to the state agency, if applicable.
(3) The operations shall be organizationally outside the staff or line management function of the unit under audit.
(b) In order to achieve independence and objectivity as required by the standards identified in Section 13886, for any state agency that is overseen by a governing body, the internal audit operations shall meet all of the following requirements:
(1) The chief internal auditor shall be accountable to the audit committee of the governing body.
(2) The chief internal auditor shall report audit findings and recommendations made under his or her  the chief internal auditor’s  jurisdiction to the audit committee and the general counsel to the governing body.
(3) The operations shall be organizationally outside the staff or line management function of the unit under audit.
(c) A state agency shall post any audit findings and recommendations on its internet website within five days of a report being made pursuant to paragraph (2) of subdivision (a) or paragraph (2) of subdivision (b).
SEC. 4.
 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.