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A BILL TO BE ENTITLED
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AN ACT
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relating to postpayment audits conducted by the comptroller and |
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annual financial reports submitted by state agencies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 403.071, Government Code, is amended by |
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amending Subsections (g) and (h) and adding Subsections (i) and (j) |
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to read as follows: |
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(g) Notwithstanding Subsection (a), the comptroller [and a
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state agency] may [contract in writing for the comptroller to] |
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audit claims presented by the state agency after the comptroller |
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prepares warrants or uses the electronic funds transfer system to |
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pay the claims. [If the comptroller and a state agency execute a
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contract, the comptroller may decide the types of claims that will
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be audited after payment.] |
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(h) [This subsection applies if the comptroller and a state
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agency have contracted in accordance with Subsection (g). The
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comptroller shall audit claims after payment in the same way that
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the comptroller audits claims before payment under Subsection (a).] |
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The comptroller may establish requirements and adopt rules |
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concerning the time that a state agency must retain documentation |
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in its files to enable a postpayment audit. If a postpayment audit |
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by the comptroller shows that a claim presented by a state agency |
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was invalid, the comptroller may: |
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(1) implement procedures to ensure that similar |
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invalid claims from the state agency are not paid in the future; |
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(2) report to the governor, the lieutenant governor, |
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the speaker of the house of representatives, the state auditor, and |
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the Legislative Budget Board the results of the audit; |
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(3) require the state agency to obtain a refund of the |
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monies from the payee; and |
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(4) [cancel the contract with the state agency; and
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[(5)] reduce the state agency's remaining |
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appropriations by the amount of the claim. |
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(i) The comptroller may access the books, accounts, |
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confidential or nonconfidential reports, vouchers, electronic |
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data, or other records or information of a state agency subject to a |
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postpayment audit. If information may not be released under |
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federal law, the comptroller may not access the information without |
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approval of the appropriate federal agency. |
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(j) The comptroller shall use reasonable efforts to avoid |
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hindering the daily operations of a state agency subject to a |
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postpayment audit by coordinating requests for access to books, |
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accounts, reports, vouchers, electronic data, or other records or |
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information of the audited agency. |
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SECTION 2. Sections 2101.011(b) and (c), Government Code, |
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are amended to read as follows: |
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(b) Not later than November 20 of each year or an earlier |
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date designated by the comptroller, a state agency shall submit an |
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annual financial report regarding the agency's use of appropriated |
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money during the preceding fiscal year to: |
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(1) the governor; |
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(2) the comptroller; |
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(3) the Legislative Reference Library; |
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(4) the state auditor; and |
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(5) the Legislative Budget Board. |
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(c) A state agency's annual financial report must include |
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information on [a detailed statement of] all assets, liabilities, |
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and fund balances, including: |
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(1) cash on hand and on deposit in banks and accounts |
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in the state treasury; |
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(2) [the value of consumable supplies and postage;
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[(3)] the value of the agency's inventory of movable |
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equipment and other fixed assets; |
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(3) [(4) all other assets;
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[(5)] an itemization of the investments, bonds, notes, |
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and other securities owned by any special funds under the agency's |
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jurisdiction, including the amount and value of the securities; |
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(4) [(6)] all money due the agency from any source; |
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(5) [(7)] all outstanding commitments of the agency, |
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including amounts due for services or goods received by the agency; |
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(6) [(8)] a summary by source of all revenue collected |
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or accruing through the agency; |
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(7) [(9)] a summary of all appropriations, |
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expenditures, bona fide encumbrances, and other disbursements by |
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the agency; and |
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(8) [(10)] any other financial information requested |
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by the comptroller. |
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SECTION 3. Section 2101.012(b), Government Code, is amended |
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to read as follows: |
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(b) The procedures must[:
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[(1) comply with generally accepted accounting
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principles as established by the Governmental Accounting Standards
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Board and the American Institute of Certified Public Accountants or
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their successors; and
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[(2)] include the requirements for compliance with the |
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federal Single Audit Act of 1984 and Office of Management and Budget |
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Circular A-133 and any subsequent changes or amendments that will |
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fulfill the audit requirements for a statewide single audit. |
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SECTION 4. Section 403.071, Government Code, as amended by |
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this Act, applies to a claim presented by a state agency to the |
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warrant clerk on or after the effective date of this Act. A claim |
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presented before the effective date of this Act is governed by the |
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law in effect on the date the claim is presented, and the former law |
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is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2019. |