Report 2015-047 Recommendation 4 Responses

Report 2015-047: The State Bar of California: Its Lack of Transparency Has Undermined Its Communications With Decision Makers and Stakeholders (Release Date: May 2016)

Recommendation #4 To: Bar of California, State

To reduce the risk of errors in financial reporting, the State Bar should update its procedures to include guidance on detailed steps that staff should take to prepare financial statements and to ensure that the statements are accurate and complete.

6-Month Agency Response

Staff has developed a tool by utilizing Excel VlookUp function to roll general ledger revenue and expense object lines/balances to the consolidated operating statement and balance sheet. This process will create accurate financial reports in a consistent manner because after downloading the accounting balance from Oracle, the account mapping and grouping processes are fully automated. In addition, to standardize the account grouping, this report writing tool is built based on the Financial Statement Grouping documented in the Budget Policy Manual (Attached, see pages 16-27).

California State Auditor's Assessment of 6-Month Status: Fully Implemented


60-Day Agency Response

Staff has updated the fiscal policies and added guidance and steps for financial statement preparation (section VII in the General Accounting Policy). In addition, to ensure the accuracy and consistency of financial reporting, staff has developed a report template to automatically roll up revenue and expenditure categories for financial reporting.

California State Auditor's Assessment of 60-Day Status: Pending

The State Bar plans to submit supporting documentation at its 6 month response.


All Recommendations in 2015-047

Agency responses received are posted verbatim.