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§ 61013. Criteria for Determining a State Agency or Statewide Issue Is High Risk.

2 CA ADC § 61013Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 2. Administration
Division 10. California State Auditor's Office
Chapter 2. State High-Risk Government Agency Audit Program
Subchapter 2. The State High Risk List
2 CCR § 61013
§ 61013. Criteria for Determining a State Agency or Statewide Issue Is High Risk.
(a) A state agency is high risk, and therefore may be added to the state high risk list if, in the professional judgment of the State Auditor, the agency is at risk of suffering waste, fraud, abuse, or mismanagement or major challenges associated with its economy, efficiency, or effectiveness under circumstances that cause the risk to be high because all four of the following conditions are present:
(1) The waste, fraud, abuse, or mismanagement or impaired economy, efficiency, or effectiveness that is being risked may result in serious detriment to the State or its residents;
(2) The likelihood of the waste, fraud, abuse, or mismanagement or impaired economy, efficiency, or effectiveness causing serious detriment to the State or its residents is great enough, when compared with the level of serious detriment that may result, for there to be substantial risk of serious detriment to the State or its residents;
(3) The agency is not taking adequate corrective actions to prevent the risk of waste, fraud, abuse, or mismanagement or impaired economy, efficiency, or effectiveness from continuing to present a substantial risk of serious detriment to the State or its residents; and
(4) The substantial risk of serious detriment to the State or its residents may be reduced significantly by the State Auditor auditing the state agency and issuing recommendations that are implemented to control or eliminate the causes for the state agency being identified as high risk.
(b) A statewide issue is high risk, and therefore may be added to the state high risk list if, in the professional judgment of the State Auditor, the issue is at risk of producing waste, fraud, abuse, or mismanagement or major challenges associated with economy, efficiency, or effectiveness under circumstances that cause the risk to be high and make two or more responsible state agencies a proper subject for auditing because all four of the following conditions are present:
(1) The waste, fraud, abuse, or mismanagement or impaired economy, efficiency, or effectiveness that is being risked in connection with the issue may result in serious detriment to the State or its residents;
(2) The likelihood of the waste, fraud, abuse, or mismanagement or impaired economy, efficiency, or effectiveness causing serious determinant to the State or its residents is great enough, when compared with the level of serious detriment that may result, for there to be substantial risk of serious detriment to the State or its residents;
(3) The responsible state agencies are not taking adequate corrective actions to prevent the waste, fraud, abuse, or mismanagement or impaired economy, efficiency, or effectiveness from continuing to present a substantial risk of serious detriment to the State or its residents; and
(4) The substantial risk of serious detriment to the State or its residents may be reduced significantly by the State Auditor auditing the responsible state agencies and issuing recommendations to control or eliminate the causes for the statewide issue being identified as high risk.
(c) A state agency shall be considered a responsible state agency for a statewide issue if, in the professional judgment of the State Auditor, the state agency is responsible for a portion of a statewide issue or could be tasked with responsibility for resolving a portion of a statewide issue.

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Note: Authority cited: Section 8546, Government Code. Reference: Section 8546.5, Government Code.
History
1. New section filed 2-22-2016; operative 4-1-2016. Submitted to OAL for printing only and not subject to OAL review pursuant to Government Code section 8546(g) (Register 2016, No. 9).
This database is current through 5/17/24 Register 2024, No. 20.
Cal. Admin. Code tit. 2, § 61013, 2 CA ADC § 61013
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