MANAGEMENT RESPONSIBILITIES – STATE LEADERSHIP ACCOUNTABILITY ACT - 7270

State managers have a responsibility to provide stewardship of the resources entrusted in their care. The State Leadership Accountability Act (SLAA) requires agency/department heads to establish, maintain, and monitor a system of internal controls within their entity. The requirements of SLAA are codified in Government Code sections 13400-13407.

Government Code section 13403 lists the components and elements of an effective system of internal controls. Management is responsible for protecting the state’s assets and for ensuring the integrity and comprehensiveness of the data collected by the accounting system. In order to meet this objective, accounting and fiscal managers must incorporate the elements of a satisfactory system of internal controls which shall include, but are not limited to the following requirements:

1. A plan of organization that provides segregation of duties appropriate for proper safeguarding of state agency assets.
2. A plan that limits access to state agency assets to authorized personnel who require these assets in the performance of their assigned duties.
3. A system of policies and procedures adequate to provide compliance with applicable laws, criteria, standards, and other requirements.
4. An established system of practices to be followed in performance of duties and functions in each of the state agencies.
5. Personnel of a quality commensurate with their responsibilities.
6. An effective system of internal review.
7. A technology infrastructure to support the completeness, accuracy, and validity of information processed.