| 1 | 1 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1225Introduced by Assembly Member DixonFebruary 16, 2023 An act to amend Sections 1237 and 13887 of the Government Code, relating to state government. LEGISLATIVE COUNSEL'S DIGESTAB 1225, as introduced, Dixon. State agencies: audits.Existing law requires all state and local agencies with an aggregate spending of $50,000,000 or more annually to consider establishing an ongoing audit function. This bill would instead provide that all state agencies with an aggregate spending of $50,000,000 or more annually may consider establishing an ongoing audit function.Existing law generally requires all internal auditor operations of state agencies to meet specified criteria. If a state agency does not report to a governing body, existing law requires the internal auditor operations to, among other things, report audit findings and recommendations to the head or deputy head of the state agency and to the general counsel of the state agency, if applicable. If a state agency is overseen by a governing body, existing law requires the internal audit operations to, among other things, report audit findings and recommendations to the audit committee and general counsel of the governing body. This bill would require a state agency to post any audit findings and recommendations on its internet website within 14 days of reporting audit findings.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1237 of the Government Code is amended to read:1237. All state and local agencies with an aggregate spending of fifty million dollars ($50,000,000) or more annually shall may consider establishing an ongoing audit function.SEC. 2. 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 auditors 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 auditors 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 14 days of a report being made pursuant to either of the following:(1) Paragraph (2) of subdivision (a).(2) Paragraph (2) of subdivision (b). |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1225Introduced by Assembly Member DixonFebruary 16, 2023 An act to amend Sections 1237 and 13887 of the Government Code, relating to state government. LEGISLATIVE COUNSEL'S DIGESTAB 1225, as introduced, Dixon. State agencies: audits.Existing law requires all state and local agencies with an aggregate spending of $50,000,000 or more annually to consider establishing an ongoing audit function. This bill would instead provide that all state agencies with an aggregate spending of $50,000,000 or more annually may consider establishing an ongoing audit function.Existing law generally requires all internal auditor operations of state agencies to meet specified criteria. If a state agency does not report to a governing body, existing law requires the internal auditor operations to, among other things, report audit findings and recommendations to the head or deputy head of the state agency and to the general counsel of the state agency, if applicable. If a state agency is overseen by a governing body, existing law requires the internal audit operations to, among other things, report audit findings and recommendations to the audit committee and general counsel of the governing body. This bill would require a state agency to post any audit findings and recommendations on its internet website within 14 days of reporting audit findings.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill |
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| 13 | 13 | | No. 1225 |
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| 14 | 14 | | |
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| 15 | 15 | | Introduced by Assembly Member DixonFebruary 16, 2023 |
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| 16 | 16 | | |
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| 17 | 17 | | Introduced by Assembly Member Dixon |
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| 18 | 18 | | February 16, 2023 |
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| 19 | 19 | | |
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| 20 | 20 | | An act to amend Sections 1237 and 13887 of the Government Code, relating to state government. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 23 | 23 | | |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 1225, as introduced, Dixon. State agencies: audits. |
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| 27 | 27 | | |
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| 28 | 28 | | Existing law requires all state and local agencies with an aggregate spending of $50,000,000 or more annually to consider establishing an ongoing audit function. This bill would instead provide that all state agencies with an aggregate spending of $50,000,000 or more annually may consider establishing an ongoing audit function.Existing law generally requires all internal auditor operations of state agencies to meet specified criteria. If a state agency does not report to a governing body, existing law requires the internal auditor operations to, among other things, report audit findings and recommendations to the head or deputy head of the state agency and to the general counsel of the state agency, if applicable. If a state agency is overseen by a governing body, existing law requires the internal audit operations to, among other things, report audit findings and recommendations to the audit committee and general counsel of the governing body. This bill would require a state agency to post any audit findings and recommendations on its internet website within 14 days of reporting audit findings. |
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| 30 | 30 | | Existing law requires all state and local agencies with an aggregate spending of $50,000,000 or more annually to consider establishing an ongoing audit function. |
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| 32 | 32 | | This bill would instead provide that all state agencies with an aggregate spending of $50,000,000 or more annually may consider establishing an ongoing audit function. |
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| 33 | 33 | | |
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| 34 | 34 | | Existing law generally requires all internal auditor operations of state agencies to meet specified criteria. If a state agency does not report to a governing body, existing law requires the internal auditor operations to, among other things, report audit findings and recommendations to the head or deputy head of the state agency and to the general counsel of the state agency, if applicable. If a state agency is overseen by a governing body, existing law requires the internal audit operations to, among other things, report audit findings and recommendations to the audit committee and general counsel of the governing body. |
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| 36 | 36 | | This bill would require a state agency to post any audit findings and recommendations on its internet website within 14 days of reporting audit findings. |
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| 37 | 37 | | |
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| 38 | 38 | | ## Digest Key |
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| 40 | 40 | | ## Bill Text |
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| 42 | 42 | | The people of the State of California do enact as follows:SECTION 1. Section 1237 of the Government Code is amended to read:1237. All state and local agencies with an aggregate spending of fifty million dollars ($50,000,000) or more annually shall may consider establishing an ongoing audit function.SEC. 2. 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 auditors 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 auditors 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 14 days of a report being made pursuant to either of the following:(1) Paragraph (2) of subdivision (a).(2) Paragraph (2) of subdivision (b). |
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| 44 | 44 | | The people of the State of California do enact as follows: |
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| 46 | 46 | | ## The people of the State of California do enact as follows: |
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| 48 | 48 | | SECTION 1. Section 1237 of the Government Code is amended to read:1237. All state and local agencies with an aggregate spending of fifty million dollars ($50,000,000) or more annually shall may consider establishing an ongoing audit function. |
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| 50 | 50 | | SECTION 1. Section 1237 of the Government Code is amended to read: |
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| 52 | 52 | | ### SECTION 1. |
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| 54 | 54 | | 1237. All state and local agencies with an aggregate spending of fifty million dollars ($50,000,000) or more annually shall may consider establishing an ongoing audit function. |
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| 56 | 56 | | 1237. All state and local agencies with an aggregate spending of fifty million dollars ($50,000,000) or more annually shall may consider establishing an ongoing audit function. |
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| 58 | 58 | | 1237. All state and local agencies with an aggregate spending of fifty million dollars ($50,000,000) or more annually shall may consider establishing an ongoing audit function. |
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| 62 | 62 | | 1237. All state and local agencies with an aggregate spending of fifty million dollars ($50,000,000) or more annually shall may consider establishing an ongoing audit function. |
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| 64 | 64 | | SEC. 2. 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 auditors 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 auditors 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 14 days of a report being made pursuant to either of the following:(1) Paragraph (2) of subdivision (a).(2) Paragraph (2) of subdivision (b). |
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| 66 | 66 | | SEC. 2. Section 13887 of the Government Code is amended to read: |
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| 68 | 68 | | ### SEC. 2. |
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| 70 | 70 | | 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 auditors 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 auditors 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 14 days of a report being made pursuant to either of the following:(1) Paragraph (2) of subdivision (a).(2) Paragraph (2) of subdivision (b). |
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| 72 | 72 | | 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 auditors 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 auditors 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 14 days of a report being made pursuant to either of the following:(1) Paragraph (2) of subdivision (a).(2) Paragraph (2) of subdivision (b). |
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| 74 | 74 | | 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 auditors 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 auditors 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 14 days of a report being made pursuant to either of the following:(1) Paragraph (2) of subdivision (a).(2) Paragraph (2) of subdivision (b). |
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| 78 | 78 | | 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: |
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| 80 | 80 | | (1) The chief internal auditor shall be accountable to the head or deputy head of the state agency. |
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| 82 | 82 | | (2) The chief internal auditor shall report audit findings and recommendations made under his or her the chief internal auditors jurisdiction to the head or deputy head of the state agency and to the general counsel to the state agency, if applicable. |
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| 84 | 84 | | (3) The operations shall be organizationally outside the staff or line management function of the unit under audit. |
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| 86 | 86 | | (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: |
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| 88 | 88 | | (1) The chief internal auditor shall be accountable to the audit committee of the governing body. |
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| 90 | 90 | | (2) The chief internal auditor shall report audit findings and recommendations made under his or her the chief internal auditors jurisdiction to the audit committee and the general counsel to the governing body. |
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| 92 | 92 | | (3) The operations shall be organizationally outside the staff or line management function of the unit under audit. |
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| 94 | 94 | | (c) A state agency shall post any audit findings and recommendations on its internet website within 14 days of a report being made pursuant to either of the following: |
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| 96 | 96 | | (1) Paragraph (2) of subdivision (a). |
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| 98 | 98 | | (2) Paragraph (2) of subdivision (b). |
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