By Shapiro S.B. No. 770
76R4924 JJT-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state agency internal auditing.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2102.006, Government Code, is amended by
1-5 amending Subsection (a) and by adding Subsection (d) to read as
1-6 follows:
1-7 (a) The governing board of a state agency [or its designee,]
1-8 or the administrator of a state agency without a governing board[,]
1-9 shall appoint an internal auditor.
1-10 (d) The governing board of a state agency or the
1-11 administrator of a state agency without a governing board shall
1-12 review the staffing and budget of the agency's program of internal
1-13 auditing to determine whether the agency has resources adequate to
1-14 address in a reasonable amount of time the risks identified in the
1-15 agency's annual risk assessment.
1-16 SECTION 2. Section 2102.007(a), Government Code, is amended
1-17 to read as follows:
1-18 (a) The internal auditor shall:
1-19 (1) report directly to the state agency's governing
1-20 board;
1-21 (2) develop an annual audit plan;
1-22 (3) conduct audits as specified in the audit plan and
1-23 document deviations;
1-24 (4) prepare audit reports;
2-1 (5) conduct quality assurance reviews in accordance
2-2 with professional standards and periodically take part in a
2-3 comprehensive external peer review in accordance with standards
2-4 described by Section 2102.011; and
2-5 (6) conduct economy and efficiency audits and program
2-6 results audits as directed by the state agency's governing board.
2-7 SECTION 3. Section 2102.008, Government Code, is amended to
2-8 read as follows:
2-9 Sec. 2102.008. APPROVAL OF AUDIT PLAN AND AUDIT REPORT. The
2-10 annual audit plan developed by the internal auditor must be
2-11 approved by the state agency's governing board [or its designee,]
2-12 or by the administrator of a state agency without a governing
2-13 board. Audit reports must be reviewed by the state agency's
2-14 governing board and the administrator.
2-15 SECTION 4. Section 2102.009, Government Code, is repealed.
2-16 SECTION 5. This Act takes effect September 1, 1999.
2-17 SECTION 6. The importance of this legislation and the
2-18 crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended.