Report 2013-107 Recommendation 3 Responses

Report 2013-107: Accounts Outside the State's Centralized Treasury System: Processes Exist to Safeguard Money, but Controls for These Accounts Need Strengthening (Release Date: October 2013)

Recommendation #3 To: Treasurer, State

Within the next 60 days, the state treasurer should implement the policies and procedures it developed to ensure the receipt of outside account reports in each reporting period and to enhance monitoring efforts.

60-Day Agency Response

The state treasurer has developed and implemented policies and procedures as recommended.

Specifically, and to provide greater oversight and to safeguard public funds, the state treasurer has:

- Received all known outside account reports through direct follow up with state departments.

- Ensured collateralization with all depository banks holding funds in accounts required to be collateralized.

- Updated the State Administrative Manual (SAM) requiring departments to provide month-end bank statements semiannually for outside accounts that must be collateralized.

- Updated SAM and the annual Report 14 requiring departments to provide all Tax Identification Numbers (TINs) used or that could be used to open outside bank accounts. The TINs will be used to confirm with depository and non-depository banks the existence of all outside accounts and associated balances and to ensure that all accounts held by non-depository banks are adequately collateralized.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

All Recommendations in 2013-107

Agency responses received are posted verbatim.