SB 827 Training Toolkit: Ethics, Fiscal and Financial Questions

TABLE OF CONTENTS:

1. Ethics Training Questions by Topic
2. Fiscal and financial Training Questions by Topic

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→ Learn about the new law: California SB 827 Ethics and Fiscal Training Requirements for Local Agencies Guide

SB 827 (AB 1234) Ethics Training: Questions by Topic

 

Conflicts of Interest and Personal Financial Gain

• Could this decision affect my finances, my business, my property, a source of income, or certain financial interests of my family members?
• Do I have a financial interest in a contract, permit, license, or other matter the agency is considering?
• Am I required to disqualify myself from this decision? What's the process for doing so?
• Have I disclosed all required financial interests on my Form 700 (Statement of Economic Interests)?
• What's the difference between a direct financial interest and an indirect one? When does each require recusal?

Gifts, Travel, and Perquisites of Office

• Am I being offered a gift, meal, event ticket, travel, hotel stay, discount, or other benefit from someone who does business with the agency?
• What are the current gift limits, and how do I track cumulative gifts from a single source?
• When does accepted travel become a reportable gift? What are the exceptions for travel payments?
• Am I using public resources — staff time, equipment, email, facilities — only for authorized public purposes?
• Do I understand the restrictions on mass mailings at public expense? What qualifies as a prohibited mass mailing?
• What are the rules on free or discounted transportation for public officials?

Government Transparency

• Does this discussion or decision need to happen in an open meeting under the Brown Act?
• What constitutes a 'meeting' under the Brown Act? Can a series of one-on-one conversations create one?
• What are the limited circumstances under which a closed session is permitted?
• Am I handling public records properly? Do I understand what constitutes a public record under the California Public Records Act?
• Are communications on personal devices or accounts about public business subject to disclosure?
• Have I completed my Form 700 accurately and on time?

Fair Process

• Could a reasonable person question my impartiality in this decision?
• Have I had ex parte communications about a quasi-judicial matter that should be disclosed?
• Am I holding an office or position that's legally incompatible with my current role?
• Is this procurement being conducted through competitive bidding as required? Are there proper justifications for any sole-source contracts?
• Is a family member involved in or affected by this decision? What are the rules on nepotism and family-member conflicts?
• Am I treating all participants in this process — applicants, bidders, parties — equally and without favoritism?

Ethical Decision-Making

• Would this action damage public trust if it became public?
• Am I making this decision based on the public interest, or could it be perceived as self-serving?
• Have I paused to consider whether I should seek guidance before acting?
• Is there a difference between what I'm legally allowed to do and what I should do?
• Do I know who to ask when I'm unsure — agency counsel, the FPPC, my clerk?

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SB 827 Fiscal and Financial Training: Questions by Topic

 

Financial Governance and Policies

• Does our agency have written policies for budget, investment, debt, procurement, and reserves? When were they last reviewed?
• What are my fiduciary responsibilities in my specific role — governing body member, executive, department head, or designated staff?
• Am I reviewing budget-to-actual reports regularly? Do I understand what the variances mean?
• Are our internal controls functioning? Is there proper segregation of duties in financial operations?
• Are audit findings being addressed? Are there repeat findings — and if so, why?

Budgeting and Financial Planning

• Is our budget balanced, surplus, or deficit? Is that pattern structural (consistent over multiple years)?
• How does this year's proposed budget compare to last year's — by department, by expense category?
• What are the discretionary vs. non-discretionary items? How much of our spending is actually flexible?
• Are we distinguishing between one-time revenue and ongoing revenue? Are we funding ongoing obligations with one-time money?
• Do we have a long-term financial plan? Does it account for pension obligations, infrastructure needs, and economic uncertainty?

Revenue and Expense Policy

• What are our revenue sources, and what portions come from restricted vs. unrestricted funds?
• Do our fees reflect the true cost of services provided? When were they last updated?
• What programs are subsidized by the general fund — and is that a conscious policy choice or an inherited default?
• Are we tracking expenses by department, by program, by activity? Do we know what each service actually costs?
• Are service levels going up or down? Why? Are those changes sustainable?

Reserves

• How do our actual reserve levels compare to our established targets or policies?
• What's the purpose of each reserve — emergency, capital, rate stabilization? Are those purposes clearly defined?
• Are capital needs fully identified? Do current reserves align with those needs?
• Is the level of unrestricted reserves appropriate? If reserves appear high, what's the justification?

Financial Reporting and Auditing

• Can I read and interpret the key sections of our agency's financial statements?
• What does our Management Discussion and Analysis (MD&A) say? Does it tell the full story?
• Are there findings in our audit management letter? Are any of them repeat findings?
• Are we providing interim financial reports that identify trends and tell the story behind the numbers?

Capital Financing and Debt Management

• What are the objectives of any proposed debt issuance? What's the full cost of debt service?
• How will borrowing affect our financial position, our ability to meet other obligations, and our credit rating?
• Are there alternatives to borrowing — pay-as-you-go financing, grants, fee adjustments?
• Do we have a debt management policy? Are we monitoring total debt levels against established limits?
• Are we considering intergenerational equity — are today's residents paying for benefits that extend to future ones, or vice versa?

Pensions and Long-Term Liabilities

• What are our unfunded pension and OPEB liabilities? Are they growing or shrinking?
• How are we addressing those liabilities — increased contributions, changes to benefit structures, additional funding?
• Do we understand the difference between the funded ratio and the unfunded accrued liability?
• Are pension costs crowding out other priorities in our budget?

Cash Management and Investments

• Who can sign checks, authorize bank transfers, and handle cash? Is the same person responsible for all three? (They shouldn't be.)
• Are we following the prudent investor standard — prioritizing safety, then liquidity, then yield, in that order?
• Does our investment policy reflect the actual size and scope of funds available for investment?
• Are we receiving timely investment and treasurer's reports?

Procurement and Contracting

• Are competitive bidding requirements being followed? Are sole-source justifications sufficient and documented?
• Are vendors vetted fairly? Is vendor performance evaluated periodically?
• Why are there change orders to this contract? If there are many, what's the root cause?
• Are procurement practices in line with agency values — including engagement of local, minority, and veteran-owned businesses?
• Is the procurement process documented well enough to produce to the public upon request?

Legal Compliance and Ethical Stewardship

• Is every expenditure serving a public purpose as required by the California Constitution?
• Are we spending within approved budget authority and appropriation limits?
• Are restricted funds being used only for their designated purposes?
• Could any official involved in this financial decision have a conflict of interest that requires disclosure or recusal?
• Would this use of public funds withstand public scrutiny if it appeared in a news report?

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Need SB 827 training for your California agency?

Two requirements. Two courses. One system to track training completion dates and certificates for both. Vubiz offers both SB 827 trainings as self-paced online courses, available on demand so new officials can start the day they're seated.

Ethics Training for Local Agency Officials

Two hours covering AB 1234 ethics requirements as expanded by SB 827, including department heads and administrative officers now in scope. View course 👉

Fiscal and Financial Training for Local Agency Officials

Two hours covering financial administration, municipal budgeting, financial reporting, capital financing, debt management, pensions, cash management, and procurement. View course 👉