CA SB503

Controller must select and audit one or more projects funded by state general obligation bonds approved by voters on or after January 1, 2010, to ensure efficient, cost-effective, and timely implementation and legal use of bond proceeds.

Controller has access to all records of agencies, contractors, subcontractors, vendors, and other entities receiving bond proceeds, with the same authority and confidentiality provisions as the State Auditor.

Audited entities must reimburse the Controller for actual audit costs from bond proceeds allocated for administrative purposes; Controller cannot conduct an audit if the entity cannot pay the estimated cost from those proceeds.

Controller must prepare an annual audit plan by April 30 for the following fiscal year, identifying projects to be audited and responsible agencies, and shall assign up to five auditor positions annually to conduct these audits.

Legislature intends that savings from audit recommendations fully offset the cost of conducting the audits.