By: Nelson S.B. No. 703
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the consolidation of the fiscal and program audit
1-2 functions of the Texas Department of Criminal Justice.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (a), Section 491.001, Government Code,
1-5 is amended to read as follows:
1-6 (a) In this subtitle, except for Chapter 511:
1-7 (1) "Board" means the Texas Board of Criminal Justice.
1-8 (2) "Community justice assistance division" means the
1-9 community justice assistance division of the department.
1-10 (3) "Department" means the Texas Department of
1-11 Criminal Justice, except in Chapter 509.
1-12 (4) "Executive director" means the executive director
1-13 of the department.
1-14 (5) "Institutional division" means the institutional
1-15 division of the department.
1-16 (6) "Internal audit division" means the internal audit
1-17 division of the department.
1-18 (7) "Pardons and paroles division" means the pardons
1-19 and paroles division of the department.
1-20 (8) [(7)] "State jail division" means the state jail
1-21 division of the department.
1-22 SECTION 2. Subsections (a) and (c), Section 493.002,
1-23 Government Code, are amended to read as follows:
2-1 (a) The following divisions are within the department:
2-2 (1) the community justice assistance division;
2-3 (2) the institutional division;
2-4 (3) the pardons and paroles division; [and]
2-5 (4) the state jail division; and
2-6 (5) the internal audit division.
2-7 (c) Except as provided by Section 493.0052, the [The]
2-8 executive director shall hire a director for each division in the
2-9 department, and each[. Each] director serves at the pleasure of
2-10 the executive director.
2-11 SECTION 3. Section 493.0081, Government Code, is
2-12 redesignated as Section 493.0052, Government Code, and amended to
2-13 read as follows:
2-14 Sec. 493.0052 [493.0081]. [OFFICE OF] INTERNAL AUDIT
2-15 DIVISION [AUDITS]. (a) The board shall hire a director for
2-16 [create within] the [department an office of] internal audit
2-17 division [audits]. [The board shall employ a chief of the office
2-18 of internal audits based on recommendations from the executive
2-19 director regarding qualified candidates for the position.] The
2-20 employment of the director [chief of the office of internal audits]
2-21 may be terminated only with the approval of the board.
2-22 (b) The [office of] internal audit division [audits] shall
2-23 conduct a program of internal auditing in accordance with Chapter
2-24 2102. The program may include internal audits, contract audits,
2-25 and community supervision and corrections department audits for the
3-1 department. The division shall:
3-2 (1) conduct recurring financial and management audits;
3-3 (2) conduct internal audits to evaluate department
3-4 programs and the economy and efficiency of those programs; and
3-5 (3) recommend improvements in management and programs
3-6 on the basis of evaluations made under this subsection.
3-7 (c) The director [chief of the office] of the internal audit
3-8 division [audits] shall send reports, audits, evaluations, and
3-9 recommendations to the board and to the executive director. The
3-10 director [chief] shall report directly to the board at least once a
3-11 year on:
3-12 (1) the activities of the division [office]; and
3-13 (2) the response of the department to recommendations
3-14 made by the division [office].
3-15 (d) The director [chief] shall report directly to the board
3-16 on other matters at the times required by board policy.
3-17 (e) The office of the state auditor shall provide ongoing
3-18 training and technical assistance for the benefit of the internal
3-19 audit division and the department's managers. The training and
3-20 assistance provided shall include training and assistance with
3-21 respect to the design and implementation of effective internal
3-22 audit plans, the development of practical fiscal oversight
3-23 strategies that are prioritized according to degree of risk, and
3-24 the advancement of antifraud measures. The state auditor's office
3-25 shall assist the department in preparing the annual audit plan
4-1 required by Section 2102.005 for fiscal years 1998 and 1999. This
4-2 subsection expires January 1, 2000.
4-3 SECTION 4. Chapter 493, Government Code, is amended by
4-4 adding Section 493.0082 to read as follows:
4-5 Sec. 493.0082. DISPOSITION OF CERTAIN FINANCIAL ASSETS.
4-6 (a) All money and other financial assets collected or received by
4-7 the department shall be deposited:
4-8 (1) in the general revenue fund of the state treasury;
4-9 (2) in trust with the comptroller; or
4-10 (3) in a local bank account on approval by the
4-11 comptroller.
4-12 (b) For purposes of this section, a financial asset
4-13 collected or received by the department includes:
4-14 (1) an asset held outside the state treasury; or
4-15 (2) an asset held in trust by the department, such as
4-16 money held in an inmate or employee trust account or in an
4-17 education and recreation account.
4-18 SECTION 5. Subsection (a), Section 509.005, Government Code,
4-19 is amended to read as follows:
4-20 (a) The community justice assistance division shall from
4-21 time to time [may] inspect and evaluate and the internal audit
4-22 division may at any reasonable time [a department or] conduct an
4-23 audit of the financial, program compliance, or performance records
4-24 of a department [at any reasonable time] to determine:
4-25 (1) compliance with the division's rules and
5-1 standards;
5-2 (2) economical and efficient use of resources;
5-3 (3) accomplishment of goals and objectives;
5-4 (4) reliability and integrity of information; and
5-5 (5) safeguarding of assets.
5-6 SECTION 6. This Act takes effect September 1, 1997.
5-7 SECTION 7. Not later than October 1, 1997, the custodian of
5-8 a fund or account in which a financial asset, including money, is
5-9 held by the Texas Department of Criminal Justice outside of the
5-10 state treasury shall deposit that asset in the general revenue fund
5-11 of the state treasury, in trust with the comptroller of public
5-12 accounts, or in a local bank account as required by Section
5-13 493.0082, Government Code, as added by this Act.
5-14 SECTION 8. The importance of this legislation and the
5-15 crowded condition of the calendars in both houses create an
5-16 emergency and an imperative public necessity that the
5-17 constitutional rule requiring bills to be read on three several
5-18 days in each house be suspended, and this rule is hereby suspended.