Section 11817.8 Of Article 4. County Alcohol And Other Drug Program From California Health And Safety Code >> Division 10.5. >> Part 2. >> Chapter 4. >> Article 4.
11817.8
. (a) It is the intent of the Legislature that the state and
the counties work together to minimize audit exceptions. Audit
findings as contained in the department audit reports may be appealed
by counties directly to the department. Counties may retain disputed
audit amounts while an audit appeal is pending and then only to the
extent that the audit appeal is resolved in favor of the county and
the amount is in the county's favor.
(b) The department shall audit the expenditures of counties,
direct contractors, and county subcontractors. The department shall
develop an annual audit plan that will identify the counties, direct
contractors, and county subcontractors funded in whole or in part
with the funds administered by the department. The annual audit plan
shall consist of a sufficient number of audits and financial reviews
to provide reasonable assurance that federal and state funds have
been used for their intended purpose in accordance with applicable
funding requirements and restrictions contained in statutes,
regulations, and contracts.
(c) The department may conduct investigations, audits, and
financial related reviews on other than a routine basis of any
county, direct contractor, or county subcontractor funded in whole or
in part with funds administered by the department, as the department
deems necessary and appropriate.
(d) Counties may audit the expenditures of organizations funded in
whole or in part with funds administered by the department.
(e) A county shall repay to the department amounts of state and
federal funds found, as a result of an audit, not to have been
expended in accordance with the requirements set forth in this part,
federal block grant law, federal or state regulations pertaining to
alcohol or other drug abuse services, and the conditions set forth in
any contract for alcohol and other drug abuse services or an
interagency agreement. For organizations or services and the
conditions set forth in any combination of state, federal, or other
public funds, where a clear audit trail shows that the source and
application of these funds is not maintained, repayment shall be
determined by prorating audit findings between each funding source.
(f) For those audits conducted by the department, the director
shall administratively establish policies and procedures for the
resolution of disputed audit findings. The department shall consult
with county administrators when proposing changes in the procedures
for the resolution of disputed audit findings.
(g) There is established in the State Treasury an Audit Repayment
Trust Fund. The money in the fund shall be available upon
appropriation by the Legislature.
(h) The department may deny or withhold payments or advances of
funds to a county if the department finds, by audit or otherwise,
that a program is not in compliance with this part or the contract.
(i) Notwithstanding subdivision (a) of Section 53134 of the
Government Code, audits performed pursuant to this section shall be
conducted by qualified state or local government auditors or
independent public accountants in accordance with generally accepted
governing auditing standards, as prescribed by Government Auditing
Standards, issued by the Comptroller General of the United States.
These audits shall be completed no later than six months after the
completion of the audit fieldwork.
(j) (1) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, the department may implement, interpret, or
make specific the amendments to this section made by the act that
added this subdivision by means of all-county letters, plan letters,
plan or provider bulletins, or similar instructions from the
department until regulations are adopted pursuant to that chapter of
the Government Code.
(2) The department shall adopt emergency regulations no later than
July 1, 2014. The department may subsequently readopt any emergency
regulation authorized by this section that is the same as or is
substantially equivalent to an emergency regulation previously
adopted pursuant to this section.
(3) The initial adoption of emergency regulations implementing the
amendments to this section and the one readoption of emergency
regulations authorized by this subdivision shall be deemed an
emergency and necessary for the immediate preservation of the public
peace, health, safety, or general welfare. Initial emergency
regulations and the one readoption of emergency regulations
authorized by this section shall be exempt from review by the Office
of Administrative Law. The initial emergency regulations and the one
readoption of emergency regulations authorized by this section shall
be submitted to the Office of Administrative Law for filing with the
Secretary of State and each shall remain in effect for no more than
180 days, by which time final regulations may be adopted.