By: Shapiro S.B. No. 770
A BILL TO BE ENTITLED
AN ACT
1-1 relating to state agency internal auditing.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 2102.006, Government Code, is amended by
1-4 amending Subsection (a) and adding Subsection (d) to read as
1-5 follows:
1-6 (a) The governing board of a state agency [or its designee,]
1-7 or the administrator of a state agency without a governing board[,]
1-8 shall appoint an internal auditor.
1-9 (d) The governing board of a state agency or the
1-10 administrator of a state agency without a governing board shall
1-11 review the staffing and budget of the agency's program of internal
1-12 auditing to determine whether the agency has resources adequate to
1-13 address in a reasonable amount of time the risks identified in the
1-14 agency's annual risk assessment.
1-15 SECTION 2. Subsection (a), Section 2102.007, Government
1-16 Code, is amended to read as follows:
1-17 (a) The internal auditor shall:
1-18 (1) report directly to the state agency's governing
1-19 board;
1-20 (2) develop an annual audit plan;
1-21 (3) conduct audits as specified in the audit plan and
1-22 document deviations;
1-23 (4) prepare audit reports;
1-24 (5) conduct quality assurance reviews in accordance
2-1 with professional standards and periodically take part in a
2-2 comprehensive external peer review in accordance with standards
2-3 described by Section 2102.011; and
2-4 (6) conduct economy and efficiency audits and program
2-5 results audits as directed by the state agency's governing board.
2-6 SECTION 3. Section 2102.008, Government Code, is amended to
2-7 read as follows:
2-8 Sec. 2102.008. APPROVAL OF AUDIT PLAN AND AUDIT REPORT. The
2-9 annual audit plan developed by the internal auditor must be
2-10 approved by the state agency's governing board [or its designee,]
2-11 or by the administrator of a state agency without a governing
2-12 board. Audit reports must be reviewed by the state agency's
2-13 governing board and the administrator.
2-14 SECTION 4. Section 2102.009, Government Code, is repealed.
2-15 SECTION 5. This Act takes effect September 1, 1999.
2-16 SECTION 6. The importance of this legislation and the
2-17 crowded condition of the calendars in both houses create an
2-18 emergency and an imperative public necessity that the
2-19 constitutional rule requiring bills to be read on three several
2-20 days in each house be suspended, and this rule is hereby suspended.