Article 2 - Powers and Duties

California Government Code — §§ 8546-8546.11

Sections (4)

Amended by Stats. 2012, Ch. 281, Sec. 25. (SB 1395) Effective January 1, 2013.

It is the intent of the Legislature that the California State Auditor’s Office have the independence necessary to conduct all of its audits in conformity with “Government Auditing Standards” published by the Comptroller General of the United States and the standards published by the American Institute of Certified Public Accountants, free from influence of existing state control agencies that could be the subject of audits conducted by the office. Therefore, all of the following exclusions apply to the office:

(a)Notwithstanding Section 19790, the California State Auditor shall establish an equal employment opportunity program that shall meet the criteria and objectives established by the State

Personnel Board. The California State Auditor shall report annually to the State Personnel Board and the commission regarding the program.

(b)Notwithstanding Section 12470, the California State Auditor shall be responsible for maintaining its payroll system. In lieu of audits of the uniform payroll system performed by the Controller or any other department, the office shall contract pursuant to subdivision (e) of Section 8544.5 for an annual audit of its payroll and financial operations by an independent public accountant.
(c)Notwithstanding Section 13292, the California State Auditor is delegated the authority to establish and administer the fiscal and administrative policies of the office in conformity with the State Administrative Manual without oversight by the Department of

Finance, the Department of Information Technology, or any other state agency.

(d)Notwithstanding Section 11032, the California State Auditor may approve actual and necessary traveling expenses for travel outside the state for officers and employees of the office.
(e)Notwithstanding Section 11033, the California State Auditor or officers and employees of the office may be absent from the state on business of the state upon approval of the California State Auditor or Chief Deputy California State Auditor.
(f)Sections 11040, 11042, and 11043 shall not apply to the California State Auditor’s Office. The California State Auditor may employ legal counsel under those terms that he or she deems necessary to conduct the legal

business of, or render legal counsel to, the California State Auditor.

(g)The provisions and definitions of Article 2 (commencing with Section 11342.510) of Chapter 3.5 of Division 3 shall not be construed to include the California State Auditor’s Office. The California State Auditor may adopt regulations necessary for the operation of the office pursuant to the provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Division 3), but these regulations shall not be subject to the review or approval of the Office of Administrative Law.
(h)The California State Auditor shall be exempt from all contract requirements of the Public Contract Code that require oversight, review, or approval by the Department of General Services or any

other state agency. The California State Auditor may contract on behalf of the State of California for goods and services that he or she deems necessary for the furtherance of the purposes of the office.

(i)(1) Subject to Article VII of the California Constitution, the California State Auditor is delegated the authority to establish and administer the personnel policies and practices of the California State Auditor’s Office in conformity with Part 2.6 (commencing with Section 19815) of Division 5 of Title 2 without oversight or approval by the

Department of Human Resources.

(2)At the election of the California State Auditor, officers and employees of the office may participate in benefits programs administered by the Department of Human Resources subject to the same conditions for participation that apply to civil service employees in other state agencies. For the purposes of benefits programs administration only, the California State Auditor is subject to the determinations of the department. The California State Auditor’s Office shall reimburse the Department of Human Resources for the normal administrative costs incurred by the Department of Human Resources and for any extraordinary costs resulting from the inclusion of the office employees in these state benefit programs.

Amended by Stats. 2013, Ch. 189, Sec. 1. (AB 1218) Effective January 1, 2014.

(a)The California State Auditor shall conduct financial and performance audits as directed by statute. The California State Auditor may conduct these audits of any state agency as defined by Section 11000, whether created by the California Constitution or otherwise, any local governmental agency, including any city, county, and school or special district, or any publicly created entity. However, the California State Auditor shall not audit the activities of the Milton Marks “Little Hoover” Commission on California State Government Organization and Economy or the Legislature to ensure compliance with government auditing standards.
(b)The California State Auditor shall conduct any audit of a state

or local governmental agency or any other publicly created entity that is requested by the Joint Legislative Audit Committee to the extent that funding is available and pursuant to the priority established by the committee with respect to other audits requested by the committee. Members of the Legislature may submit requests for audits to the committee for its consideration and approval. Any audit request approved by the committee shall be forwarded to the California State Auditor as a committee request.

(c)The California State Auditor shall complete any audit in a timely manner and pursuant to the “Government Auditing Standards” published by the Comptroller General of the United States.
(d)The California State Auditor, after performing an audit pursuant to subdivision (a) or

(b), may conduct additional followup audit work that is related to any findings and recommendations related to those audits.

(e)Immediately upon completion of the audit, the California State Auditor shall transmit a copy of the audit report to the commission. Not later than 24 hours after delivery to the commission, the California State Auditor shall deliver the report to the Legislature, appropriate committees or subcommittees of the Legislature, and the Governor. Once transmitted to these parties, the report shall be made available to the public.

Amended by Stats. 2018, Ch. 515, Sec. 1.5. (SB 1293) Effective January 1, 2019.

(a)The California State Auditor may establish a high-risk local government agency audit program for the purpose of identifying, auditing, and issuing reports on any local government agency, including, but not limited to, any city, county, special district, or any publicly created entity, whether created by the California Constitution or otherwise, that the California State Auditor identifies as being at high risk for the potential of waste, fraud, abuse, or mismanagement or that has major challenges associated with its economy, efficiency, or effectiveness.
(b)In addition to identifying a local government agency as high risk on the basis of weaknesses identified in audit and investigative reports produced by the office, the California State Auditor may review

publicly available information and consult with the Controller, Attorney General, and other state agencies that have oversight responsibilities over any local government agency, in identifying local governments that are at high risk.

(c)The California State Auditor’s Office shall be responsible for the state costs associated with the high-risk local government agency audit program, shall conduct the program as funds permit, and shall only conduct the program to the extent that it does not interfere with duties related to mandated audits and requests from the Joint Legislative Audit Committee.
(d)(1) The California State Auditor shall notify the Joint Legislative Audit Committee whenever he or she identifies a local government as at high risk.
(2)The California State Auditor shall provide the

Joint Legislative Audit Committee, at a public hearing of the committee, an annual update of all audits in progress.

(3)If a local government agency has taken significant corrective measures for deficiencies identified by the California State Auditor, that agency shall be removed from the high-risk local government agency audit program.
(e)Notwithstanding the requirements of Section 10231.5, if the California State Auditor establishes the program provided for in this section and the California State Auditor determines that a local government agency is at high risk, the California State Auditor shall issue audit reports at least once every three years with recommendations for improvement in the local government so identified.
(f)Audits conducted pursuant to this section shall be approved by the Joint Legislative

Audit Committee.

(g)(1) The California State Auditor may conduct an initial assessment at a local government agency prior to conducting an audit, during which he or she may gather any publicly available information from a local government agency and any additional information, including any interviews, that the local government agency is willing to provide, for the purpose of identifying whether or not it is a high-risk local government agency.
(2)Before beginning an initial assessment at a local government agency, the California State Auditor shall notify the Joint Legislative Audit Committee in writing which local government agency will be assessed.

Added by Stats. 2024, Ch. 41, Sec. 31. (SB 164) Effective June 29, 2024.

(a)The California State Auditor shall conduct an audit of the County of Mendocino by January 1, 2026, which shall include, but not be limited to, all of the following.
(1)Any potential waste, fraud, abuse, and mismanagement.
(2)The county’s administration of elections in 2024.
(3)Contracting and procurement.
(b)Notwithstanding Section 10231.5, the California State Auditor shall report their findings to the Legislature, including the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Local

Government, and the Senate Committee on Local Government, by January 1, 2026.