Legislation that became effective in January 2005 authorizes the California State Auditor to develop a high-risk government agency audit program to identify, audit, and issue reports on any agency of the state that the State Auditor identifies as being at high risk for waste, fraud, abuse, and mismanagement or as having major challenges associated with its economy, efficiency, or effectiveness. The State Auditor publishes a list, every two years as required, of issue areas and/or state agencies that the State Auditor believes to be at high-risk. Then, as resources become available, the State Auditor conducts audits concerning those issue areas and agencies and publishes reports about the audits with recommendations for improving state government. The State Auditor also may require a state agency identified as being at high risk, or as responsible for all or a portion of a statewide issue to report periodically to the office regarding the status of the recommendations outlined in the report.
You can find the State Auditor's reports about high risk issues and agencies here. This link takes you to a list of reports.
Recent legislation—AB 187, which went into effect in January 2012—permits the California State Auditor to develop a high-risk local government agency audit program for the purpose of identifying, auditing, and issuing reports on any local government agency, including a city, county, special district, or other publicly created entity, that the State Auditor identifies as being at high risk for waste, fraud, abuse, and mismanagement or as having major challenges associated with its economy, efficiency, or effectiveness. However, any audit that the State Auditor wishes to perform under this authority must be authorized by the Legislature's Joint Legislative Audit Committee before it may move forward.
Because this legislation just recently took effect, the program still is being developed. Please check back periodically for updates regarding the implementation of this program. As we establish protocols for the program, we will post the information on our Web site. In the meantime, if you have any information about a local government agency that you would like to share with us, refer to "Report an Improper Activity"on our home page.