Report 2010-117 Recommendation 3 Responses

Report 2010-117: General Obligation Bonds: The Departments of Water Resources and Finance Should Do More to Improve Their Oversight of Bond Expenditures (Release Date: May 2011)

Recommendation #3 To: Finance, Department of

To ensure that expenditures were consistent with bond laws and that the project achieved the intended benefits or outcomes agreed to when the project was originally awarded, Finance should conduct audits of, or approve and assure that, Water Resources and other agencies obtain audits of, Strategic Growth Plan bond expenditures.

Annual Follow-Up Agency Response From November 2012

As of July 2011, Finance has issued four additional Strategic Growth Plan (SGP) department bond audit reports and Finance is currently auditing Water Resources. Additionally, in fiscal year 2011-12 we completed audits of 69 grant awards totaling over $95 million in bond proceeds. As previously noted, all state agencies administering SGP bonds have either entered into an interagency agreement with Finance to conduct audits or have made arrangements with other entities, with the approval of Finance, to conduct the required audits. Accordingly, we will continue to conduct audits as required by Executive Order S-02-07. All bond audit reports are posted the Bond Accountability website at www.bondaccountability.ca.gov.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

All Recommendations in 2010-117

Agency responses received after June 2013 are posted verbatim.