By Hochberg H.B. No. 609
77R9964 JJT-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to internal auditing of state agencies.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2102.004, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 2102.004. APPLICABILITY. This chapter applies [only]
1-7 to each [a] state agency that receives an appropriation [:]
1-8 [(1) has an operating budget exceeding $10 million
1-9 annually;]
1-10 [(2) has a staff of more than 300 employees; or]
1-11 [(3) receives and processes cash items in excess of
1-12 $10 million annually].
1-13 SECTION 2. Section 2102.006(a), Government Code, is amended
1-14 to read as follows:
1-15 (a) The governing board of a state agency or [its designee,
1-16 or] the administrator of a state agency that does not have
1-17 [without] a governing board[,] shall appoint an internal auditor.
1-18 SECTION 3. Section 2102.007(a), Government Code, is amended
1-19 to read as follows:
1-20 (a) The internal auditor shall:
1-21 (1) report directly to the state agency's governing
1-22 board or the administrator of the state agency if the state agency
1-23 does not have a governing board;
1-24 (2) develop an annual audit plan;
2-1 (3) conduct audits as specified in the audit plan and
2-2 document deviations;
2-3 (4) prepare audit reports;
2-4 (5) conduct quality assurance reviews in accordance
2-5 with professional standards as provided by Section 2102.011 and
2-6 periodically take part in a comprehensive external peer review; and
2-7 (6) conduct economy and efficiency audits and program
2-8 results audits as directed by the state agency's governing board or
2-9 the administrator of the state agency if the state agency does not
2-10 have a governing board.
2-11 SECTION 4. Sections 2102.008, 2102.0091, and 2102.010,
2-12 Government Code, are amended to read as follows:
2-13 Sec. 2102.008. APPROVAL OF AUDIT PLAN AND AUDIT REPORT. The
2-14 annual audit plan developed by the internal auditor must be
2-15 approved by the state agency's governing board [or its designee,]
2-16 or by the administrator of a state agency if the state agency does
2-17 not have [without] a governing board. Audit reports must be
2-18 reviewed by the state agency's governing board and the
2-19 administrator.
2-20 Sec. 2102.0091. REPORTS OF PERIODIC AUDITS. (a) A state
2-21 agency shall file with the Sunset Advisory Commission, the budget
2-22 division of the governor's office, the state auditor, and the
2-23 Legislative Budget Board a copy of each report submitted to the
2-24 state agency's governing board [body] or the administrator of the
2-25 state agency if the state agency does not have a governing board
2-26 [its designee] by the agency's internal auditor.
2-27 (b) Each report shall be filed not later than the 30th day
3-1 after the date the report is submitted to the state agency's
3-2 governing board [body] or the administrator of the state agency if
3-3 the state agency does not have a governing board [its designee].
3-4 (c) In addition to the requirements of Subsection (a), a
3-5 state agency shall file with the budget division of the governor's
3-6 office, the state auditor, and the Legislative Budget Board any
3-7 action plan or other response issued by the state agency's
3-8 governing board or the administrator of the state agency if the
3-9 state agency does not have a governing board [body] in response to
3-10 the report of the state agency's internal auditor.
3-11 Sec. 2102.010. CONSULTATIONS. An internal auditor may
3-12 consult the state agency's governing board or the administrator of
3-13 the state agency if the state agency does not have a governing
3-14 board, the governor's office, the state auditor, and legislative
3-15 agencies or committees about matters affecting duties or
3-16 responsibilities under this chapter.
3-17 SECTION 5. A state agency to which Chapter 2102, Government
3-18 Code, did not apply before September 1, 2001, that becomes subject
3-19 to Chapter 2102, Government Code, on September 1, 2001:
3-20 (1) shall appoint an internal auditor, as that chapter
3-21 requires, not later than January 1, 2002; and
3-22 (2) is not required to submit an annual report under
3-23 Section 2102.009, Government Code, until October 31, 2002.
3-24 SECTION 6. This Act takes effect September 1, 2001.