By Hochberg H.B. No. 609
77R1393 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 2102.006(a), Government Code, is amended
1-5 to read as follows:
1-6 (a) The governing board of a state agency or [its designee,
1-7 or] the administrator of a state agency that does not have
1-8 [without] a governing board[,] shall appoint an internal auditor.
1-9 SECTION 2. Section 2102.007(a), Government Code, is amended
1-10 to read as follows:
1-11 (a) The internal auditor shall:
1-12 (1) report directly to the state agency's governing
1-13 board or the administrator of the state agency if the state agency
1-14 does not have a governing board;
1-15 (2) develop an annual audit plan;
1-16 (3) conduct audits as specified in the audit plan and
1-17 document deviations;
1-18 (4) prepare audit reports;
1-19 (5) conduct quality assurance reviews in accordance
1-20 with professional standards and periodically take part in a
1-21 comprehensive external peer review; and
1-22 (6) conduct economy and efficiency audits and program
1-23 results audits as directed by the state agency's governing board or
1-24 the administrator of the state agency if the state agency does not
2-1 have a governing board.
2-2 SECTION 3. Section 2102.008, Government Code, is amended to
2-3 read as follows:
2-4 Sec. 2102.008. APPROVAL OF AUDIT PLAN AND AUDIT REPORT. The
2-5 annual audit plan developed by the internal auditor must be
2-6 approved by the state agency's governing board [or its designee,]
2-7 or by the administrator of a state agency if the state agency does
2-8 not have [without] a governing board. Audit reports must be
2-9 reviewed by the state agency'sgoverning board and the
2-10 administrator.
2-11 SECTION 4. Section 2102.0091, Government Code, is amended to
2-12 read as follows:
2-13 Sec. 2102.0091. REPORTS OF PERIODIC AUDITS. (a) A state
2-14 agency shall file with the budget division of the governor's
2-15 office, the state auditor, and the Legislative Budget Board a copy
2-16 of each report submitted to the state agency's governing board
2-17 [body] or the administrator of the state agency if the state agency
2-18 does not have a governing board [its designee] by the agency's
2-19 internal auditor.
2-20 (b) Each report shall be filed not later than the 30th day
2-21 after the date the report is submitted to the state agency's
2-22 governing board [body] or the administrator of the state agency if
2-23 the state agency does not have a governing board [its designee].
2-24 (c) In addition to the requirements of Subsection (a), a
2-25 state agency shall file with the budget division of the governor's
2-26 office, the state auditor, and the Legislative Budget Board any
2-27 action plan or other response issued by the state agency's
3-1 governing board or the administrator of the state agency if the
3-2 state agency does not have a governing board [body] in response to
3-3 the report of the state agency's internal auditor.
3-4 SECTION 5. Section 2102.010, Government Code, is amended to
3-5 read as follows:
3-6 Sec. 2102.010. CONSULTATIONS. An internal auditor may
3-7 consult the state agency's governing board or the administrator of
3-8 the state agency if the state agency does not have a governing
3-9 board, the governor's office, the state auditor, and legislative
3-10 agencies or committees about matters affecting duties or
3-11 responsibilities under this chapter.
3-12 SECTION 6. Section 2102.004, Government Code, is repealed.
3-13 SECTION 7. A state agency to which Chapter 2102, Government
3-14 Code, did not apply before September 1, 2001, that becomes subject
3-15 to Chapter 2102, Government Code, on September 1, 2001:
3-16 (1) shall appoint an internal auditor, as that chapter
3-17 requires, not later than January 1, 2002; and
3-18 (2) is not required to submit an annual report under
3-19 Section 2102.009, Government Code, until October 31, 2002.
3-20 SECTION 8. This Act takes effect September 1, 2001.