Report 2017-601

REPORT SECTION	HIGH‑RISK ISSUE OR HIGH‑RISK AGENCY
INTRODUCTION
CHAPTER ONE: INFRASTRUCTURE MODERNIZATION AND IMPROVEMENT
It Is Too Early to Assess the State’s Efforts to Ensure the Efficient and Effective Use of Increased Transportation Funds	Transportation Infrastructure
Water Infrastructure Remains a High-Risk Issue Because Most Flood Control Structures Are Aging and Deteriorating and Because Water Supply Issues Persist	Water Infrastructure
Increases in Renewable Energy Production and the Early Retirement of Aging Power Plants Have Stabilized the State’s Electricity Supply	Electricity Infrastructure (no longer a high-risk issue)
CHAPTER TWO: INDIVIDUAL AGENCIES WITH HIGH‑RISK CHARACTERISTICS
The Uncertainty of the Future of the Affordable Care Act Keeps Covered California a High‑Risk Agency	Covered California
Although It Has Made Progress, Corrections Still Remains a High‑Risk Agency	California Department of Corrections and Rehabilitation
Because of Unimplemented Recommendations Concerning Its Administration of the Mental Health Services Act, Health Care Services Remains a High-Risk Agency	California Department of Health Care Services
Health Care Services Has Not Addressed Recommendations Related to Concerns With Its Beneficiary Eligibility System	California Department of Health Care Services
Public Health Remains a High‑Risk Agency Because of Unimplemented Recommendations That Could Affect Public Health and Safety	California Department of Public Health
CHAPTER THREE: EFFECTIVE OVERSIGHT OF INFORMATION TECHNOLOGY
IT Oversight Remains a High‑Risk Issue Because State Agencies Continue to Struggle to Implement New Information Systems and Because the Technology Department’s New Process for Helping Them Has Only Recently Been Implemented	Information Technology Oversight
Although the Technology Department Has Made Progress Improving Its Oversight, Information Security Remains a High‑Risk Issue	Information Security
CHAPTER FOUR: ACCESS TO AFFORDABLE AND HIGH-QUALITY PUBLIC EDUCATION
K–12 Education Remains High-Risk Because of Gaps in Oversight From State Agencies	Kindergarten Through 12th Grade Education
Because Access and Affordability Issues at UC and CSU Continue, Higher Education Remains a High-Risk Issue	Higher Education
CHAPTER FIVE: SOUND FISCAL POLICY AND DECISION MAKING
The Length of Time Needed to Fully Fund the California State Teachers’ Pension Liability Causes It to Remain a High‑Risk Issue	California State Teachers’ Retirement System
The State’s Substantial Other Postemployment Benefits Liability Remains a High-Risk Issue	Other Postemployment Benefits
The State’s Budget Condition Is No Longer a High-Risk Issue	State Budget (no longer a high-risk issue)
CHAPTER SIX: THE STATE’S WORKFORCE AND SUCCESSION PLANNING
CalHR’s Process to Aid Agencies in Workforce and Succession Planning Is New and a High Number of Agencies Lack Completed Plans	Workforce and Succession Planning
APPENDIX A: CONSIDERATIONS FOR DETERMINING HIGH RISK
APPENDIX B: CALIFORNIA STATE AUDITOR’S SURVEY OF SELECT ENTITIES FOR LEVELS OF COMPLIANCE WITH SECURITY STANDARDS

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