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SB-992 • 2026

County auditors: special districts: annual audit exceptions.

County auditors: special districts: annual audit exceptions.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Niello
Last action
2026-04-09
Official status
Set for hearing April 29.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide information on whether county auditors can still appoint accountants for audits after receiving simpler reviews, so this claim was removed.

Changes to Annual Audits for Special Districts

This law changes rules about when special districts can skip full audits and have simpler financial reviews instead.

What This Bill Does

  • Removes the January 1, 2027 deadline for allowing special districts to use simpler financial reviews instead of full audits.
  • Increases the revenue limit from $150,000 to $250,000 for special districts that can choose a simpler review over a full audit.

Who It Names or Affects

  • Special districts with annual revenues up to $250,000
  • County auditors responsible for auditing special district accounts

Terms To Know

special district
A local government agency that provides specific services within a defined area.
annual audit
A yearly check of financial records to make sure they are accurate and follow rules.

Limits and Unknowns

  • The bill does not specify what happens after January 1, 2027 for special districts that were previously allowed to use simpler reviews.
  • It is unclear how many special districts will be affected by the increased revenue cap from $150,000 to $250,000.

Bill History

  1. 2026-04-09 California Legislative Information

    Set for hearing April 29.

  2. 2026-03-18 California Legislative Information

    March 18 set for first hearing canceled at the request of author.

  3. 2026-03-05 California Legislative Information

    Set for hearing March 18.

  4. 2026-02-18 California Legislative Information

    Referred to Com. on L. GOV.

  5. 2026-02-09 California Legislative Information

    From printer. May be acted upon on or after March 8.

  6. 2026-02-05 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 992, as introduced, Niello.
County auditors: special districts: annual audit exceptions.
Existing law requires a county auditor to make or contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of every special district within the county for which an audit is not otherwise provided, as specified. Existing law authorizes a special district to replace this annual audit with a financial review, or, until January 1, 2027, an agreed-upon procedures engagement or an annual financial compilation of the special district, if specified conditions are met, including that the special district’s annual revenues do not exceed $150,000. Until January 1, 2027, upon receipt of the financial review, agreed-upon procedures engagement, or financial compilation, existing law authorizes a county auditor to appoint a certified public accountant or a public accountant to conduct an audit of the special district, as specified.
This bill would remove the January 1, 2027,
repeal date referenced above, and would increase the revenue cap described above to $250,000.

Current Bill Text

Read the full stored bill text 
Download Bill PDF