LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 86TH LEGISLATIVE REGULAR SESSION
 
May 9, 2019

TO:
Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
 
FROM:
John McGeady, Assistant Director     Sarah Keyton, Assistant Director
Legislative Budget Board
 
IN RE:
HB2042 by Stucky (Relating to postpayment audits conducted by the comptroller and annual financial reports submitted by state agencies.), As Engrossed

No significant fiscal implication to the State is anticipated.

The bill would amend the Government Code to authorize the Comptroller of Public Accounts to conduct post-payment audits without requiring a contract between the Comptroller and the agency under audit. The bill would remove requirements that the Comptroller's uniform accounting and financial reporting procedures for preparation of annual financial reports by state agencies comply with generally accepted accounting principles as established by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants (AICPA) or their successors.

According to the Comptroller, the bill's provisions could be implemented within existing resources.

Based on the analysis of the University of Texas System Administration and the Texas A&M University System Administrative and General Offices, there would be costs associated if the Comptroller requires reporting procedures for annual financial reports that do not comply with the generally accepted accounting principles established by GASB and AICPA. This analysis assumes that any costs for institutions of higher education to implement the provisions of the bill could be absorbed within current resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration
LBB Staff:
WP, CLo, NV, LCO, CMa