SRC-TJG, VRA C.S.H.B. 2485 78(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 2485
By: Hochberg (Ratliff)
Government Organization
5/23/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

The 77th Legislature passed H.B. 609, which extended the internal audit
requirement to all state agencies that receive an appropriation.
Conducting these audits when the situation necessitates rather than
annually will more judiciously use small state agency funds.  C.S.H.B.
2485 requires small agencies to complete an annual written risk
assessment, and to require the state auditor to evaluate the risk
assessments and recommend audits for those with significant financial,
managerial or compliance risk, or significant risk related to the use of
information technology. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, department, agency or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2102.004, Government Code, as follows:

(a)  Provides that Sections 2102.005-2102.012 apply only to a state agency
that meets certain criteria.  

(b)  Provides that Sections 2102.013 and 2102.014 apply to each state
agency that receives an appropriation and that is not described by
Subsection (a). 

SECTION 2.  Amends Chapter 2102, Government Code, by adding Sections
2102.013 and 2102.014, as follows: 
 
Sec. 2102.013.  ANNUAL RISK ASSESSMENT; REPORT.  (a)  Requires a state
agency described by Section 2102.004(b) to conduct each year a formal risk
assessment consisting of an executive management review of agency
functions, activities, and processes. 
 
  (b)  Requires the risk assessment to perform certain tasks.
  
(c)  Requires the state agency to submit the written risk assessment to
the state auditor in the form and at the time prescribed by the state
auditor. 
 
Sec. 2102.014.  EVALUATION OF RISK ASSESSMENT REPORTS; AUDITS.  (a)
Requires the state auditor, based on risk assessment and subject to the
legislative audit committee's approval of including the work described by
this subsection in the audit plan under Section 321.013(c), Government
Code, to perform certain tasks. 
 
(b)  Authorizes the governor to order an agency identified under this
section to perform certain tasks. 
  
(c)  Authorizes the governor to provide funds to agencies as necessary to
pay the costs of audits ordered under this section from any funds
appropriated to the governor for this purpose. 
 
 SECTION 3. Effective date:  upon passage or September 1, 2003.