Government Code section 13401

(a)

The Legislature finds and declares that this chapter is an active oversight process designed to provide public accountability of state entities by maintaining a robust risk management system and internal control with ongoing monitoring.

(b)

Each state entity shall maintain and monitor a system designed to manage risk, including fraud, errors, waste, and abuse, to effectively safeguard, administer, and monitor public resources, as provided in this chapter.

(c)

All levels of entity management shall be involved in developing and maintaining a risk management system and internal control, as provided in this chapter.

(d)

Each state entity shall prepare an annual report on its risk management system, to promote transparency and accountability, as provided in Section 13405.

(e)

The Department of Finance is responsible for establishing the guidance for the implementation of the requirements of this chapter and may consult with the Controller and the California State Auditor, as needed, as provided in Section 13403.

Source: Section 13401, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=GOV§ionNum=13401.­ (updated Sep. 18, 2026; accessed Oct. 19, 2026).

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Verified:
Oct. 19, 2026

§ 13401's source at ca​.gov