1-1 By: Hochberg (Senate Sponsor - Shapiro) H.B. No. 609
1-2 (In the Senate - Received from the House May 7, 2001;
1-3 May 7, 2001, read first time and referred to Committee on Finance;
1-4 May 11, 2001, reported favorably by the following vote: Yeas 10,
1-5 Nays 0; May 11, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to internal auditing of state agencies.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 2102.004, Government Code, is amended to
1-11 read as follows:
1-12 Sec. 2102.004. APPLICABILITY. This chapter applies [only]
1-13 to each [a] state agency that receives an appropriation [:]
1-14 [(1) has an operating budget exceeding $10 million
1-15 annually;]
1-16 [(2) has a staff of more than 300 employees; or]
1-17 [(3) receives and processes cash items in excess of
1-18 $10 million annually].
1-19 SECTION 2. Section 2102.006(a), Government Code, is amended
1-20 to read as follows:
1-21 (a) The governing board of a state agency or [its designee,
1-22 or] the administrator of a state agency that does not have
1-23 [without] a governing board[,] shall appoint an internal auditor.
1-24 SECTION 3. Section 2102.007(a), Government Code, is amended
1-25 to read as follows:
1-26 (a) The internal auditor shall:
1-27 (1) report directly to the state agency's governing
1-28 board or the administrator of the state agency if the state agency
1-29 does not have a governing board;
1-30 (2) develop an annual audit plan;
1-31 (3) conduct audits as specified in the audit plan and
1-32 document deviations;
1-33 (4) prepare audit reports;
1-34 (5) conduct quality assurance reviews in accordance
1-35 with professional standards as provided by Section 2102.011 and
1-36 periodically take part in a comprehensive external peer review; and
1-37 (6) conduct economy and efficiency audits and program
1-38 results audits as directed by the state agency's governing board or
1-39 the administrator of the state agency if the state agency does not
1-40 have a governing board.
1-41 SECTION 4. Sections 2102.008, 2102.0091, and 2102.010,
1-42 Government Code, are amended to read as follows:
1-43 Sec. 2102.008. APPROVAL OF AUDIT PLAN AND AUDIT REPORT. The
1-44 annual audit plan developed by the internal auditor must be
1-45 approved by the state agency's governing board [or its designee,]
1-46 or by the administrator of a state agency if the state agency does
1-47 not have [without] a governing board. Audit reports must be
1-48 reviewed by the state agency's governing board and the
1-49 administrator.
1-50 Sec. 2102.0091. REPORTS OF PERIODIC AUDITS. (a) A state
1-51 agency shall file with the Sunset Advisory Commission, the budget
1-52 division of the governor's office, the state auditor, and the
1-53 Legislative Budget Board a copy of each report submitted to the
1-54 state agency's governing board [body] or the administrator of the
1-55 state agency if the state agency does not have a governing board
1-56 [its designee] by the agency's internal auditor.
1-57 (b) Each report shall be filed not later than the 30th day
1-58 after the date the report is submitted to the state agency's
1-59 governing board [body] or the administrator of the state agency if
1-60 the state agency does not have a governing board [its designee].
1-61 (c) In addition to the requirements of Subsection (a), a
1-62 state agency shall file with the budget division of the governor's
1-63 office, the state auditor, and the Legislative Budget Board any
1-64 action plan or other response issued by the state agency's
2-1 governing board or the administrator of the state agency if the
2-2 state agency does not have a governing board [body] in response to
2-3 the report of the state agency's internal auditor.
2-4 Sec. 2102.010. CONSULTATIONS. An internal auditor may
2-5 consult the state agency's governing board or the administrator of
2-6 the state agency if the state agency does not have a governing
2-7 board, the governor's office, the state auditor, and legislative
2-8 agencies or committees about matters affecting duties or
2-9 responsibilities under this chapter.
2-10 SECTION 5. A state agency to which Chapter 2102, Government
2-11 Code, did not apply before September 1, 2001, that becomes subject
2-12 to Chapter 2102, Government Code, on September 1, 2001:
2-13 (1) shall appoint an internal auditor, as that chapter
2-14 requires, not later than January 1, 2002; and
2-15 (2) is not required to submit an annual report under
2-16 Section 2102.009, Government Code, until October 31, 2002.
2-17 SECTION 6. This Act takes effect September 1, 2001.
2-18 * * * * *