In 1927, the Legislature established the State Department of Finance (Finance) and assigned to it general responsibility for supervising matters concerning the state’s financial and business policies. This responsibility included all Executive Branch audit functions. In 1941, the Director established a separate audit function, which initially conducted only financial audits. In 1954, the audit responsibilities expanded to include performance audits.
While the organization and scope of the Executive Branch audit function has continually evolved, Finance’s responsibility as the Executive Branch auditor has remained unchanged. The Office of State Audits and Evaluations’ (OSAE) current name and functions were established in July 1992 when Finance merged the Financial and Performance Audits Unit and the Program Evaluation Unit. This merger increased effectiveness by assigning staff with varied experiences and expertise into one organizational office.
OSAE assists and supports Finance in serving as the Governor's chief fiscal policy advisor and promoting long-term economic sustainability and responsible resource allocation. OSAE accomplishes this through independent audits, objective evaluations, and other related services. Several statutes require Finance to perform audits/evaluations of various state funds and/or programs. Additionally, OSAE conducts engagements as requested by the Governor’s Office, Finance Director, or other state entities.
OSAE accomplishes these multifaceted objectives using staff with diverse backgrounds, professional certifications, and technological expertise. OSAE is committed to adherence to professional standards and to maintaining the credibility of the organization.
Finance’s broad oversight responsibilities result in a wide variety of activities, including financial, performance, and compliance audits; quality assurance reviews; budgetary reviews; and consulting services. Consistent with Finance’s leadership and oversight responsibilities, OSAE monitors and coordinates the State Leadership Accountability Act (SLAA), issues Audit Memos to provide instruction to departments and internal audit organizations, promotes bond accountability through ongoing oversight activities, and coordinates and carries out the state’s responsibilities related to the federal Single Audit Act. Additionally, effective July 1, 2016, the Local Government Unit within Finance merged with OSAE. OSAE will continue with the implementation of Assembly Bill (AB)x1 26, AB 1484, AB 471, and SB 107 related to the dissolution of Redevelopment Agencies throughout California.
OSAE helps entities to:
- Maintain effective governance
- Safeguard assets
- Report reliable information
- Operate Programs efficiently and effectively
- Comply with applicable federal and state requirements
- Achieve program goals and objectives
OSAE’s primary responsibilities are as follows:
California Board of Accountancy Regulations require that all licensees notify clients that they are licensed by the California Board of Accountancy. This is specifically required by California Code of Regulations, Title 16, Division 1, Article 9, Section 50, "Client Notification." The following OSAE staff are Certified Public Accountants licensed by the California Board of Accountancy.
|Humberto (Rick) Cervantes
PEER REVIEW REPORT
Government Auditing Standards (GAS) requires organizations performing audits in accordance with GAS to have an independent external peer review performed at least once every 3 years. OSAE received an Unqualified Opinion on its most recent Peer Review Report.
2015 Peer Review Report