Report 2013-107 Recommendation 5 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 #5 To: Finance, Department of

Within the next 60 days, the Department of Finance 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

Policies and procedures have been implemented to ensure receipt of outside account reports and to enhance monitoring efforts. For 2012-13 fiscal year-end outside account reports, Finance continues to verify the authorities of accounts authorized by Finance, ensure accounts are consistent with approved purposes, track closed accounts and follow-up with departments on discrepancies as reports are received. To further enhance monitoring efforts, Finance recently collaborated with the State Controller and State Treasurer to update state policy to require tax identification numbers and bank statements from departments. This information will assist the State Treasurer ensure that all outside accounts requiring collateralization 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.