Proposition 84 Bond Accountability

  • Front-end
  • In-progress
  • Follow-up (Audit)

Each department will develop criteria or processes that will govern the expenditure of bond funds, and the outcomes that such expenditures are intended to achieve. These criteria and outcomes are defined in, or derived from:

  • Requirements of state or federal law.

  • Regulations or guidelines defining the basis upon which bond proceeds are to be allocated for a program administered by the department.

  • A strategic plan for implementing the mission of the department or the pertinent program funded by bond proceeds. Strategic plans will be adopted by the executive officer or governing body of the department and will be made available to the public.

  • A capital outlay program that identifies departmental infrastructure needs and delineates projects or strategies for addressing those needs. Such a program shall have been duly adopted by the executive officer or governing body of the department and be available to the public.

  • Performance standards or outcome measures duly adopted by the executive officer or governing body of the department and available to the public. All projects, grants, loans or other expenditures of bond proceeds will be consistent with these criteria and processes. In addition, a list of all projects, grants, loans or other activities funded from bond proceeds will be made available to the public.

Projects selected for funding are required to spend funds according to the approved project scope and budget. Timely progress reports are required for all projects. Project status will be updated at least bi-annually on the Bonds Accountability Website. Site visits may also be conducted during construction for development projects. Payment requests must include a certification by the project proponent that each expense complies with requirements outlined in the project agreement. Project proponents must also submit supporting documentation for each expense, with reimbursements approved only for eligible expenses pursuant to program guidelines and contained within the approved project budget. Programs may also withhold a portion of each payment request to be released contingent upon project completion.

Department expenditures of bond proceeds are subject to audit to determine whether the expenditures made from bond proceeds:

  • Were made according to the established front-end criteria and processes.

  • Were consistent with all legal requirements.

  • Achieved the intended outcomes.

To comply with this requirement, Departments will contract with the Department of Finance or will perform the audits internally through methods pre-approved by the Department of Finance. In general, projects will be subject to a close-out review at the time the project is complete and prior to releasing final funds. The purpose of the close-out review is to ensure all project components were completed according to program guidelines and the terms of the project agreement, including project scope and budget. Project Proponents must comply with all current laws and regulations which apply to the project and submit documents summarizing total project costs and all additional funding sources.