CENTRAL AUDIT ORGANIZATIONS - 20010
The state’s central audit organizations include Finance, State Auditor, and the Controller.
CALIFORNIA DEPARTMENT OF FINANCE
Finance serves as the Governor’s chief fiscal policy advisor and has general responsibility for supervising matters concerning the state’s financial and business policies. Additionally, Finance is responsible for coordinating the internal audit function for the executive branch of state government. Finance’s OSAE assists and supports Finance in these responsibilities.
Finance’s broad oversight responsibilities and numerous statutes result in OSAE performing a wide variety of activities, including financial, performance, and compliance audits; quality assurance reviews; budgetary reviews; and consulting services.
Additionally, OSAE monitors and coordinates SLAA as described in SAM section 20060 and 20070, issues Audit Memos to provide instruction to departments and internal audit organizations, promotes bond accountability through ongoing oversight activities, and coordinates and carries out the state’s federal reporting responsibilities related to the Single Audit Act of 1984 and Single Audit Act Amendment of 1996 (Single Audit Act). A majority of OSAE’s activities are conducted on a cost reimbursement basis.
Senate Bill 37, Chapter 12, Statutes of 1993 (GC 8543), created the Bureau of State Audits. GC 8543 was amended in September 2012, establishing the California State Auditor’s Office. To assure its independence, the State Auditor is free from the control of the executive and legislative branches. A state commission oversees its administrative operations. The State Auditor performs an annual audit of the state's financial statements prepared by the Controller and the annual audit of the federal funds (Single Audit) compiled by Finance.
The State Auditor also conducts financial and performance audits as directed by statute, and other government audits requested by the Joint Legislative Audit Committee. The State Auditor has the explicit authority to audit any agency that receives state funds.
Consequently, it sometimes audits at the local government level. In addition, the State Auditor administers the "California Whistleblower Protection Act,” which includes a hotline for anonymous reporting.
CALIFORNIA STATE CONTROLLER’S OFFICE
The primary function of the Controller is to provide sound fiscal control over both receipts and disbursements of public funds and to report periodically on the financial operations and condition of both state and local government. Consequently, the Controller performs financial audits and financial related audits of federal and state funds, and audits state agencies’ payroll procedures in connection with the Controller's central disbursing function. Additionally, the Controller performs audits under contract for state and federal agencies and reviews single audit activities of local government and K-12 school districts.
The Controller also provides pre-audits and post-audits of claims for payment as part of the state's central disbursement function. The Controller functions in a coordinating role for Auditor/Controllers at the local government level.
Revisions
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