CA AB187

Authorizes the State Auditor to establish a high-risk local government agency audit program to identify and audit cities, counties, special districts, and publicly created entities at risk for waste, fraud, abuse, or mismanagement.

Allows the State Auditor to consult with the Controller, Attorney General, and other state agencies with oversight responsibilities to identify high-risk local government agencies.

Requires the State Auditor to notify the Joint Legislative Audit Committee when a local government is identified as high risk and provide annual updates on audits in progress at public hearings.

Mandates that audit reports be issued at least once every two years for identified high-risk local governments with recommendations for improvement, subject to funding availability and priority of mandated audits.

Permits removal of a local government agency from the high-risk program once it has taken significant corrective measures for identified deficiencies.