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A BILL TO BE ENTITLED
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AN ACT
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relating to the conduct of efficiency audits of state agencies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 3, Government Code, is amended |
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by adding Chapter 327 to read as follows: |
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CHAPTER 327. EFFICIENCY AUDITS OF STATE AGENCIES |
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Sec. 327.001. DEFINITIONS. In this chapter: |
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(1) "Audit plan" has the meaning assigned by Section |
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321.001. |
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(2) "Department" has the meaning assigned by Section |
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321.001. |
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(3) "Efficiency audit" means an evaluation of the |
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economy, efficiency, and effectiveness of department operations, |
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including the effectiveness of department programs at achieving |
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intended objectives. |
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(4) "External auditor" means a private entity selected |
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by the state auditor to conduct an efficiency audit of a department. |
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(5) "Legislative audit committee" means the committee |
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described by Section 321.002. |
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Sec. 327.002. REQUIRED EFFICIENCY AUDIT. (a) Each |
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department, including an institution of higher education, as |
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defined by Section 61.003, Education Code, shall undergo an |
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efficiency audit in accordance with this chapter. |
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(b) The state auditor, subject to the legislative audit |
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committee's approval, shall adopt a schedule for conducting the |
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efficiency audits required by this chapter and include the annual |
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portion of the schedule in the audit plan under Section 321.013. |
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The schedule must provide for each department to be audited every |
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six years. A department may not be audited under this chapter in |
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the same year that the department is reviewed under Chapter 325 |
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(Texas Sunset Act). |
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(c) A department required by law to perform an internal |
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efficiency audit is not required to perform the audit in any year |
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the department is audited under this chapter. |
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(d) A department shall pay the costs incurred by the state |
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auditor relating to an efficiency audit required by this chapter. |
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The state auditor shall determine the costs of the audit and the |
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department shall pay the amount of those costs promptly on receipt |
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of a statement from the state auditor regarding those costs. |
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Sec. 327.003. SELECTION AND SUPERVISION OF AUDITOR. (a) |
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Not later than March 1 of the year in which an efficiency audit of a |
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department is scheduled under this chapter, the state auditor shall |
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contract with an external auditor to conduct the audit. |
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(b) The state auditor shall oversee the external auditor and |
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ensure that the efficiency audit is conducted in accordance with |
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the requirements of this chapter. |
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(c) The external auditor is not subject to direction from |
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the department being audited. |
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Sec. 327.004. SCOPE OF AUDIT. (a) The state auditor shall |
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establish the scope of each efficiency audit conducted under this |
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chapter with the external auditor contracted to perform the audit. |
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(b) At a minimum, an efficiency audit must: |
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(1) examine all state resources, including financial |
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resources, staff, and technology, to determine whether those |
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resources: |
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(A) are used effectively and efficiently to |
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achieve the desired outcome for a department's program |
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beneficiaries; and |
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(B) are not used for purposes other than the |
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intended goals of the audited programs; |
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(2) identify and make recommendations for cost savings |
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and reallocation of resources to improve the effectiveness of |
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audited programs; and |
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(3) identify opportunities for improving services |
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through consolidation of functions, outsourcing, and elimination |
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of duplicative efforts. |
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Sec. 327.005. REPORT TO LEGISLATURE. (a) Not later than |
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November 1 of the year an efficiency audit is conducted under this |
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chapter, the state auditor shall: |
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(1) prepare a report with the external auditor |
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contracted to perform the audit and submit the report to the chairs |
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of the standing committees of each house of the legislature with |
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primary jurisdiction over the audited department; and |
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(2) submit the report, recommendations, and complete |
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audit to the audited department. |
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(b) The state auditor and the audited department shall |
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publish the report, recommendations, and complete efficiency audit |
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on the entity's Internet website. |
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Sec. 327.006. REQUIRED IMPLEMENTATION PLAN. Not later than |
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the 90th day after receiving the complete audit and |
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recommendations, the administrative head of the audited department |
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shall deliver a plan for implementing the recommendations to the |
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legislative audit committee and to the chairs of the standing |
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committees of each house of the legislature with primary |
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jurisdiction over the audited department. The implementation plan |
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must include a justification for any recommendation the audited |
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department declines to implement. |
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SECTION 2. Section 322.017, Government Code, is repealed. |
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SECTION 3. Not later than January 1, 2024, the state auditor |
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shall adopt the schedule required by Section 327.002, Government |
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Code, as added by this Act, for conducting efficiency audits of each |
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department. |
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SECTION 4. This Act takes effect September 1, 2023. |