By Montford S.B. No. 1503
74R7942 SRC-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the state auditor, the operation of the state auditor's
1-3 office, and the management of state auditing and risk assessment.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 321, Government Code, is amended by
1-6 adding Section 321.0121 to read as follows:
1-7 Sec. 321.0121. POLICIES AND PROCEDURES. The committee shall
1-8 adopt rules of operation for the office of the State Auditor and
1-9 the execution of the powers and duties provided by this chapter.
1-10 The rules must specify the oversight responsibilities of the
1-11 committee.
1-12 SECTION 2. Section 321.013(c), Government Code, is amended
1-13 to read as follows:
1-14 (c) In accordance with procedures adopted by the committee,
1-15 the <The> State Auditor shall propose an <determine the> audit plan
1-16 for the state for each fiscal year and submit the plan to the
1-17 committee for approval. The State Auditor shall review the plan at
1-18 least quarterly, and the plan may be revised periodically in
1-19 accordance with the rules of the committee. In devising the plan,
1-20 the State Auditor shall consider recommendations concerning
1-21 coordination of agency functions made by the committee composed of
1-22 the Legislative Budget Board, Sunset Advisory Commission, and State
1-23 Auditor's Office. The plan shall provide for auditing of federal
1-24 programs at least once in each fiscal biennium and shall ensure
2-1 that audit requirements of all bond covenants and other credit or
2-2 financial agreements are satisfied. <The committee shall review
2-3 and approve the plan.>
2-4 SECTION 3. Section 321.013(j), Government Code, is amended
2-5 to read as follows:
2-6 (j) The State Auditor shall, before December 1 of each year,
2-7 comprehensively analyze each annual internal audit and each annual
2-8 report prepared under Section 2102.009 or other law, evaluate the
2-9 quality of the internal audit program of each agency <6A, Texas
2-10 Internal Auditing Act (Article 6252-5d, Vernon's Texas Civil
2-11 Statutes)>, and publish a summary of the State Auditor's findings.
2-12 The summary must include all major internal audit findings,
2-13 conclusions, and recommendations, <and> must identify and analyze
2-14 issues that are common to more than one state agency, and must
2-15 report the assessment of the quality of the internal audit program
2-16 of each agency.
2-17 SECTION 4. Section 321.013, Government Code, is amended by
2-18 adding Subsection (k) to read as follows:
2-19 (k) The State Auditor shall assess the quality of management
2-20 of financial risk by each state agency.
2-21 SECTION 5. Chapter 321, Government Code, is amended by
2-22 adding Section 321.024 to read as follows:
2-23 Sec. 321.024. ADVISORY BOARD. The committee shall appoint
2-24 an advisory board of not fewer than five auditing professionals to
2-25 advise the committee and the State Auditor in carrying out the
2-26 powers and duties provided by this chapter.
2-27 SECTION 6. Section 12B(c), Chapter 141, Acts of the 63rd
3-1 Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
3-2 Civil Statutes), is amended to read as follows:
3-3 (c) The report of an audit conducted under Subsection (b) of
3-4 this section is a public record. <The board of the authority shall
3-5 deliver a copy of the report of an audit performed under this
3-6 section to the presiding officer of the governing body of each
3-7 county or municipality having territory in the authority, to the
3-8 governor, to the lieutenant governor, to the speaker of the house
3-9 of representatives, and to the state auditor. The state auditor
3-10 may file comments relating to the audit with the Legislative Audit
3-11 Committee and the board of the authority. The state auditor may
3-12 examine any workpapers from the audit or audit the financial
3-13 transactions of the authority if the state auditor determines that
3-14 an audit is necessary.>
3-15 SECTION 7. The following are repealed:
3-16 (1) Sections 12(d) and (k), Article 21.28, Insurance
3-17 Code;
3-18 (2) Section 481.0842(d), Government Code; and
3-19 (3) Section 325.012(b), Government Code.
3-20 SECTION 8. (a) This Act takes effect September 1, 1995.
3-21 (b) The legislative audit committee shall appoint a state
3-22 auditor in accordance with Section 321.005(c), Government Code, as
3-23 amended by this Act, for a term expiring February 1, 1998.
3-24 (c) The person serving as first assistant state auditor on
3-25 the effective date of this Act is entitled to continue in that
3-26 position after October 1, 1995, only with the consent of the
3-27 legislative audit committee in accordance with Section 321.010(a),
4-1 Government Code, as amended by this Act.
4-2 SECTION 9. The importance of this legislation and the
4-3 crowded condition of the calendars in both houses create an
4-4 emergency and an imperative public necessity that the
4-5 constitutional rule requiring bills to be read on three several
4-6 days in each house be suspended, and this rule is hereby suspended.