1-1 By: Shapiro S.B. No. 770
1-2 (In the Senate - Filed March 1, 1999; March 3, 1999, read
1-3 first time and referred to Committee on State Affairs;
1-4 March 22, 1999, reported favorably by the following vote: Yeas 9,
1-5 Nays 0; March 22, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to state agency internal auditing.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 2102.006, Government Code, is amended by
1-11 amending Subsection (a) and adding Subsection (d) to read as
1-12 follows:
1-13 (a) The governing board of a state agency [or its designee,]
1-14 or the administrator of a state agency without a governing board[,]
1-15 shall appoint an internal auditor.
1-16 (d) The governing board of a state agency or the
1-17 administrator of a state agency without a governing board shall
1-18 review the staffing and budget of the agency's program of internal
1-19 auditing to determine whether the agency has resources adequate to
1-20 address in a reasonable amount of time the risks identified in the
1-21 agency's annual risk assessment.
1-22 SECTION 2. Subsection (a), Section 2102.007, Government
1-23 Code, is amended to read as follows:
1-24 (a) The internal auditor shall:
1-25 (1) report directly to the state agency's governing
1-26 board;
1-27 (2) develop an annual audit plan;
1-28 (3) conduct audits as specified in the audit plan and
1-29 document deviations;
1-30 (4) prepare audit reports;
1-31 (5) conduct quality assurance reviews in accordance
1-32 with professional standards and periodically take part in a
1-33 comprehensive external peer review in accordance with standards
1-34 described by Section 2102.011; and
1-35 (6) conduct economy and efficiency audits and program
1-36 results audits as directed by the state agency's governing board.
1-37 SECTION 3. Section 2102.008, Government Code, is amended to
1-38 read as follows:
1-39 Sec. 2102.008. APPROVAL OF AUDIT PLAN AND AUDIT REPORT. The
1-40 annual audit plan developed by the internal auditor must be
1-41 approved by the state agency's governing board [or its designee,]
1-42 or by the administrator of a state agency without a governing
1-43 board. Audit reports must be reviewed by the state agency's
1-44 governing board and the administrator.
1-45 SECTION 4. Section 2102.009, Government Code, is repealed.
1-46 SECTION 5. This Act takes effect September 1, 1999.
1-47 SECTION 6. The importance of this legislation and the
1-48 crowded condition of the calendars in both houses create an
1-49 emergency and an imperative public necessity that the
1-50 constitutional rule requiring bills to be read on three several
1-51 days in each house be suspended, and this rule is hereby suspended.
1-52 * * * * *