Department of Finance
915 L Street
Sacramento, CA 95814
 

OSAE Information

• OSAE Overview
• Areas of Responsibilities (.doc, <1 MB)

OSAE Resources

• Peer Review Report
• Audit Memos
• Audit Reports
• Directory of State Internal Audit Organizations (.pdf, <1 MB)
• Financial Integrity and State Manager’s Accountability Act (FISMA)
• Special Reviews

Contact OSAE

• OSAE e-Mail Hotline
• FISMA Hotline
• Staff Contacts (.pdf, <1 MB)
• Unit CPAs (.pdf, <1 MB)

OSAE Overview

The origin of the Office of State Audits and Evaluations (OSAE) dates to 1927 when the Legislature established the State Department of Finance (Department) and assigned to it general responsibility for supervising matters concerning the State’s financial and business policies, including all Executive Branch audit functions. In 1941, the Department Director established a separate Audit Division, which initially conducted only financial audits. In 1954, the Audit Division’s responsibilities expanded to also include performance audits.

While the organization and scope of the Executive Branch audit function has continually evolved, the Department’s responsibility as the Executive Branch auditor has remained unchanged. OSAE, as the audit division is currently known, was established in July 1992 when the Department merged the Financial and Performance Audits Unit and the Program Evaluation Unit. The goal of this merger was to more effectively use resources by placing staff with varied experiences and expertise in the one organizational office.

Numerous statutes require the Department to perform audits of various state funds and/or programs. The Department’s broad oversight responsibilities result in a wide variety of work being conducted, including financial audits, financial related audits, performance audits, information technology audits, internal control reviews, compliance audits, consulting, quality assurance reviews, and budgetary reviews. Additionally, the Department monitors and coordinates the implementation of the Financial Integrity and State Manager's Accountability Act, and issues Audit Memos instructing internal audit organizations on audit policies, procedures, and requirements. Finally, the Department performs reviews of suspected instances of fraud and special program reviews as requested by the Governor’s Office, the Director of the Department, or other state agencies. Many of these activities are conducted on a reimbursement basis through interagency agreements.

In assisting and supporting the Department in supervising the state’s financial and business policies and in conserving the state’s rights, interests, and resources through independent audits, objective evaluations, and other related services, OSAE’s scope of work typically includes the review of the:

• Reliability and integrity of financial and operating information, and the means used to identify, measure, classify, and report such information.
• Systems established to ensure compliance with those policies, plans, procedures, laws and regulations that could significantly impact operations and output.
• Means of safeguarding assets.
• Economy and efficiency with which resources are acquired, protected and employed.
• Operations and programs to determine whether results are consistent with established goals and objectives.
• Corrective actions taken by agency officials on previous audit findings.

OSAE accomplishes these multifaceted objectives using staff with diversified backgrounds, professional certifications, and technological know-how. OSAE is committed to adherence to professional standards and to maintaining the credibility of the organization.