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.