Existing law divides the state into agricultural districts and provides for the management of each district by a district agricultural association, which is governed by a board of directors. Existing law sets forth the powers and duties of a district agricultural association, including, among other things, for a district agricultural association with an annual budget exceeding $5,000,000, the duty to conduct an annual audit by an independent certified public accountant or certified public accountancy firm selected by the board of directors of the association, or, if the district agricultural association has an annual budget of less than $5,000,000, the duty to have its books and accounts examined and reviewed annually and audited once every 3 years by an independent certified public accountant or certified public accountancy firm selected by the board of directors of the association.
This bill would require district agricultural associations to report every year the salary information of their employees to the Controller. The bill would require the chief executive officer and each director of a district agricultural association to comply with certain requirements to attend an orientation course on relevant ethics statutes and regulations. The bill would require the Department of Food and Agriculture to develop appropriate controls to protect the assets of district agricultural associations and to mitigate the potential for misuse, prevent inappropriate purchases and travel, and segregate duties as a preventive measure against improper purchases by district agricultural associations. The bill would require the department to conduct or cause to be conducted a fiscal and compliance audit of a district agricultural association that has been placed on the department's "Fairs on the Watch Program."