Bill Aims to Add Accountant to Calif. State Fund Staff

June 14, 2007

The California Assembly has passed a bill, which would require the organization to add a certified public accountant to its staff. Additionally, the bill would require SCIF’s board of directors to appoint a subcommittee from among its members to serve as an audit committee. The bill, AB 326, aims to address recent questions of ethics in SCIF.

According to the bill, the audit committee would be charged with:
– Assisting the board in fulfilling its responsibility for
oversight of the quality and integrity of the accounting, auditing,
and financial reporting practices of the state fund, and to perform
such other duties as may be directed to the committee by the board.

-Supervising the fund’s financial reporting, management of
business and financial risk, and compliance with legal, ethical and
regulatory requirements.

-Appointing, setting compensation for, and providing oversight of the
public accounting firm engaged to prepare or issue an audit report on
the financial statements of the fund. The results of the audit shall
be reported directly to the audit committee.

-The audit committee shall cause an abstract summary thereof to
be published one or more times in at least two newspapers of general
circulation in the state.

The bill is now awaiting review by the Senate.

Source: California Legislature

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