BILL ANALYSIS
Senate Research Center H.B. 3290
80R7688 JRD-D By: Otto (Nichols)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The purpose of the State Auditor's Office (office) is to provide government leaders and citizens with independent, objective, and reliable information concerning the operations of state agencies and institutions of higher education. The office begins each audit with, and conducts the audits according to, a list of objectives. Inclusion of an objective to expand an audit of an agency or institution upon a finding of certain wrongdoings may ensure better conduction of the office's duties.
H.B. 3290 requires the office, in the course of an audit of the operations of a state agency or institution, to expand the scope of the audit to other aspects of the agency's operation upon a finding of gross mismanagement or grossly improper management oversight practices.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Chapter 321, Government Code, by adding Section 321.0161, as follows:
Sec. 321.0161. GROSS MISMANAGEMENT; EXPANDING SCOPE OF AUDIT. Requires the State Auditor, after consulting with the head of the agency or institution in which the State Auditor finds evidence of gross mismanagement or grossly improper management oversight practices while in the course of an audit, to expand the scope of the audit as soon as practicable into other aspects of the operations of the agency or institution to determine whether similar problems exist elsewhere.
SECTION 2. Effective date: September 1, 2007.