CHAPTER 321. STATE AUDITOR

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GOVERNMENT CODE

TITLE 3. LEGISLATIVE BRANCH

SUBTITLE C. LEGISLATIVE AGENCIES AND OVERSIGHT COMMITTEES

CHAPTER 321. STATE AUDITOR

Sec. 321.001. DEFINITIONS. In this chapter:

(1) "Audit plan" means the outline of work approved by the

committee for the State Auditor's Office in a year for the

performance of audits and related services, including technical

assistance, data analysis, consulting and oversight functions,

investigations, and the preparation of audit reports and other

types of communications.

(2) "Audit working paper" means all documentary and other

information prepared or maintained in conducting an audit or

investigation, including all intra-agency and interagency

communications relating to an audit or investigation and all

draft reports or portions thereof.

(3) "Committee" means the legislative audit committee.

(4) "Department" includes every state department, agency, board,

bureau, institution, or commission.

(5) "Risk assessment" means the process by which the State

Auditor analyzes risks to the state on the basis of, at a

minimum, the following:

(A) the identification of problems that can occur in operational

or program areas of departments, including institutions of higher

education, that are subject to audit by the State Auditor;

(B) a determination of the potential adverse effects from the

problems; and

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 1997, 75th Leg., ch. 1122, Sec. 2, eff. Sept. 1,

1997; Acts 2003, 78th Leg., ch. 785, Sec. 2, eff. Sept. 1, 2003.

Sec. 321.002. LEGISLATIVE AUDIT COMMITTEE. (a) The legislative

audit committee consists of:

(1) the lieutenant governor;

(2) the speaker of the house of representatives;

(3) the chairman of the senate finance committee;

(4) one member of the senate appointed by the lieutenant

governor;

(5) the chairman of the house appropriations committee; and

(6) the chairman of the house ways and means committee.

(b) In the absence of the chairman of a house or senate

committee, the vice-chairman of the respective committee shall

act.

entitled to actual and necessary expenses incurred in performing

official duties.

(d) The committee shall employ necessary clerical assistants as

allowed by legislative appropriation.

(e) The lieutenant governor and the speaker are joint chairs of

the committee. The committee shall elect one member to serve as

secretary.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 2003, 78th Leg., ch. 1328, Sec. 4, eff. June 21,

2003; Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 6.01, eff. Jan.

11, 2004.

Sec. 321.004. PROCEDURE FOR TIE VOTE. (a) If the full

committee is present and is not able to resolve a tie vote within

a reasonable time on a matter this chapter requires the committee

to decide, the committee shall select a member of the house or

senate to meet with the committee and to cast the tie-breaking

vote.

(b) The seventh member's duty to the committee ends when the

member casts the tie-breaking vote and the matter is resolved.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Sec. 321.005. APPOINTMENT OF STATE AUDITOR. (a) The committee

shall appoint a State Auditor to investigate all custodians of

state funds, disbursing agents, and department personnel.

(b) The committee shall execute a written declaration of the

person appointed State Auditor and file the declaration with the

secretary of state.

(d) The committee shall fill any vacancy in the office of State

Auditor.

(e) A majority vote of the committee members is sufficient to

exercise any action authorized by this section.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 1987, 70th Leg., ch. 167, Sec. 2.08(a), eff.

Sept. 1, 1987; Acts 1987, 70th Leg., ch. 862, Sec. 1, eff. Aug.

31, 1987.

Sec. 321.006. REQUIREMENTS FOR APPOINTMENT. To be eligible for

appointment as State Auditor, a person must have unquestioned

integrity and moral character and must have had at least five

years' experience:

(1) as a certified public accountant in this or another state;

and

(2) in a professional or administrative position a major duty of

which involved fiscal management, the review of fiscal

management, or the auditing or review of operational efficiency

or program performance.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 1987, 70th Leg., ch. 167, Sec. 2.08(a), eff.

Sept. 1, 1987; Acts 1987, 70th Leg., ch. 862, Sec. 2, eff. Aug.

31, 1987.

Sec. 321.007. CONFLICT OF INTEREST. (a) The State Auditor may

not serve as an ex officio member on any administrative board or

commission.

(b) The State Auditor may not have a financial interest in the

transactions of any department.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Sec. 321.008. QUALIFYING FOR OFFICE. (a) To qualify for

office, the State Auditor must take the constitutional oath of

office.

(b) The State Auditor must file the oath with the secretary of

state not later than the 10th day after the date on which the

committee appointed the State Auditor, or the committee or a

majority of the committee members shall appoint another qualified

person as State Auditor.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 1987, 70th Leg., ch. 167, Sec. 2.08(b), eff.

Sept. 1, 1987; Acts 1987, 70th Leg., ch. 862, Sec. 3, eff. Aug.

31, 1987; Acts 1997, 75th Leg., ch. 1122, Sec. 3, eff. Sept. 1,

1997.

Sec. 321.010. FIRST ASSISTANT STATE AUDITOR. (a) The State

Auditor may appoint a first assistant state auditor.

(b) The first assistant state auditor shall:

(1) perform the duties and assignments prescribed by the State

Auditor; and

(2) act as the State Auditor when the State Auditor is absent.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Sec. 321.011. PERSONNEL. (a) The State Auditor may employ a

professional staff, including assistant auditors and stenographic

and clerical personnel.

(b) The State Auditor may conduct professional examinations to

determine the qualifications of prospective staff members.

stenographic or clerical personnel at any time for any reason

satisfactory to the State Auditor and without a hearing.

(d) The State Auditor and staff are to be free from partisan

politics, and the State Auditor is free to select the most

efficient personnel available for each position in his office so

that the State Auditor may render to the legislature the service

the legislature has a right to expect. It is against public

policy and illegal for a member of the legislature, an officer or

employee of the state, or an officer or employee of a state

department to recommend or suggest that the State Auditor appoint

a person to a position on the state auditor's staff.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 1987, 70th Leg., ch. 862, Sec. 4, eff. Aug. 31,

1987.

Sec. 321.012. EXPENDITURES AND SALARIES. (a) The committee

directs and controls the expenditure of any money appropriated to

the office of the State Auditor and must approve the State

Auditor's appropriation requests and audit plan.

(b) Before payment may be made on a voucher issued for payment

of the salaries and expenses of the office, the State Auditor

must approve the voucher.

clerical personnel may not exceed the amounts paid by other

departments for similar services.

(d) Salaries shall be paid monthly.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 1991, 72nd Leg., ch. 641, Sec. 2, eff. Sept. 1,

1991; Acts 2003, 78th Leg., ch. 785, Sec. 3, eff. Sept. 1, 2003.

Sec. 321.013. POWERS AND DUTIES OF STATE AUDITOR. (a) The

State Auditor shall conduct audits of all departments, including

institutions of higher education, as specified in the audit plan.

At the direction of the committee, the State Auditor shall

conduct an audit or investigation of any entity receiving funds

from the state.

(b) The State Auditor shall conduct the audits in accordance

with generally accepted auditing standards as prescribed by the

American Institute of Certified Public Accountants, the

Governmental Accounting Standards Board, the United States

General Accounting Office, or other professionally recognized

entities that prescribe auditing standards.

state for each year to the committee. In devising the plan, the

State Auditor shall consider recommendations concerning

coordination of agency functions made jointly by representatives

of the Legislative Budget Board, Sunset Advisory Commission, and

State Auditor's Office. The State Auditor shall also consider the

extent to which a department has received a significant increase

in appropriations, including a significant increase in federal or

other money passed through to the department, and shall review

procurement activities for compliance with Section 2161.123. The

plan shall provide for auditing of federal programs at least as

often as required under federal law and shall ensure that audit

requirements of all bond covenants and other credit or financial

agreements are satisfied. The committee shall review and approve

the plan.

(d) At any time during an audit or investigation, the State

Auditor may require the assistance of the administrative head,

official, auditor, accountant, or other employees of the entity

being audited or investigated.

(e) The State Auditor is entitled to access to all of the books,

accounts, confidential or unconfidential reports, vouchers, or

other records of information in any department or entity subject

to audit, including access to all electronic data. However, the

State Auditor has access to information and data the release of

which is restricted under federal law only with the approval of

the appropriate federal administrative agency, and the State

Auditor shall have access to copyrighted or restricted

information obtained by the Office of the Comptroller of Public

Accounts under subscription agreements and utilized in the

preparation of economic estimates only for audit purposes.

(f) The State Auditor may conduct financial audits, compliance

audits and investigations, and, with specific authority from the

committee, economy and efficiency audits, effectiveness audits,

and special audits as defined by this chapter and specified in

the audit plan.

(g) To the extent that the performance of the powers and duties

of the State Auditor under law is not impeded or otherwise

hindered, the State Auditor shall make reasonable efforts to

coordinate requests for employee assistance under Subsection (d)

or requests for access to books, accounts, vouchers, records, or

data under Subsection (e) so as not to hinder the daily

operations of the audited entity.

(h) The State Auditor may not conduct audits of private entities

concerning collection or remittance of taxes or fees to the state

if the entity is subject to audit by another state agency for the

taxes or fees.

(i) If the State Auditor decides a change in an accounting

system is necessary, the State Auditor shall consider the present

system of books, records, accounts, and reports to ensure that

the transition will be gradual and that the past and present

records will be coordinated into the new system.

(j) In devising the audit plan under Subsection (c), the State

Auditor shall perform risk assessments as required by law. The

process of assessing risks to the state is the first stage of

auditing, and all records of risk assessment are part of the

working papers of the State Auditor. Accordingly, all

documentation of risk assessments by the State Auditor is exempt

from disclosure under Section 552.116.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 1987, 70th Leg., ch. 862, Sec. 5, eff. Aug. 31,

1987; Acts 1991, 72nd Leg., 1st C.S., ch. 4, Sec. 9.03, eff. Aug.

22, 1991; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(37), eff. Sept.

1, 1995; Acts 1997, 75th Leg., ch. 1122, Sec. 18, eff. Sept. 1,

1997; Acts 1999, 76th Leg., ch. 1499, Sec. 1.04, eff. Sept. 1,

1999; Acts 2003, 78th Leg., ch. 785, Sec. 4, eff. Sept. 1, 2003.

Sec. 321.0131. FINANCIAL AUDIT. A financial audit is an audit

to determine:

(1) in the case of the state or a department, whether the

records, books, and accounts of the audited entity accurately

reflect its financial and fiscal operations;

(2) whether the audited entity is maintaining effective

accounting control over revenues, obligations, expenditures,

assets, and liabilities;

(3) whether the accounting and record-keeping of collections of

state revenues and receipts by the audited entity are fair,

accurate, and in accordance with law;

(4) whether the accounting and record-keeping of money or

negotiable securities or similar assets handled by the audited

entity on behalf of the state or received from the state and held

in trust by the audited entity are proper, accurate, and in

accordance with law; and

(5) whether financial, program, and statistical reports of the

audited entity are fairly presented.

Added by Acts 1987, 70th Leg., ch. 862, Sec. 6, eff. Aug. 31,

1987.

Sec. 321.0132. COMPLIANCE AUDIT. A compliance audit is an audit

to determine:

(1) whether the audited entity has obligated, expended,

received, and used state funds in accordance with the purpose for

which those funds have been appropriated or otherwise authorized

by law;

(2) whether the audited entity has obligated, expended,

received, and used state funds in accordance with any

limitations, restrictions, conditions, or mandatory directions

imposed by law on those obligations, expenditures, receipts, or

uses;

(3) in the case of a local or private entity or agency, whether

the records, books, and accounts of the audited entity fairly and

accurately reflect its financial and fiscal operations relating

to the obligation, receipt, expenditure, and use of state funds

or funds represented as being collected for a state purpose;

(4) whether the collections of state revenues and receipts by

the audited entity are in accordance with applicable laws and

regulations; and

(5) whether money or negotiable securities or similar assets

handled by the audited entity on behalf of the state or received

from the state and held in trust by the audited entity have been

properly and legally administered.

Added by Acts 1987, 70th Leg., ch. 862, Sec. 6, eff. Aug. 31,

1987.

Sec. 321.0133. ECONOMY AND EFFICIENCY AUDIT. An economy and

efficiency audit is an audit to determine:

(1) whether the audited entity is managing or utilizing its

resources, including state funds, personnel, property, equipment,

and space, in an economical and efficient manner;

(2) causes of inefficiencies or uneconomical practices,

including inadequacies in management information systems,

internal and administrative procedures, organizational structure,

use of resources, allocation of personnel, purchasing, policies,

and equipment; and

(3) whether financial, program, and statistical reports of the

audited entity contain useful data and are fairly presented.

Added by Acts 1987, 70th Leg., ch. 862, Sec. 6, eff. Aug. 31,

1987.

Sec. 321.0134. EFFECTIVENESS AUDIT. (a) An effectiveness audit

is an audit to determine, according to established or designated

program objectives, responsibilities or duties, statutes and

regulations, program performance criteria, or program evaluation

standards:

(1) whether the objectives and intended benefits are being

achieved efficiently and effectively; and

(2) whether the program duplicates, overlaps, or conflicts with

another state program.

(b) An effectiveness audit may be scheduled only when the

audited entity is not scheduled for review under the Texas Sunset

Act (Chapter 325).

Added by Acts 1987, 70th Leg., ch. 862, Sec. 6, eff. Aug. 31,

1987.

Sec. 321.0135. SPECIAL AUDIT. A special audit is a financial

audit of limited scope.

Added by Acts 1987, 70th Leg., ch. 862, Sec. 6, eff. Aug. 31,

1987.

Sec. 321.0136. INVESTIGATION. An investigation is an inquiry

into specified acts or allegations of impropriety, malfeasance,

or nonfeasance in the obligation, expenditure, receipt, or use of

state funds, or into specified financial transactions or

practices that may involve such impropriety, malfeasance, or

nonfeasance.

Added by Acts 1987, 70th Leg., ch. 862, Sec. 6, eff. Aug. 31,

1987.

Sec. 321.0137. INDEPENDENT AUDIT OF JUNIOR COLLEGE DISTRICT.

(a) At a reasonable time in advance of an independent audit of a

junior college district, the state auditor shall provide the

presiding officer of the district's governing body and the chief

executive officer of the district with written information

relating to the procedures for and scope of the audit. The state

auditor shall include in the materials information describing:

(1) how the appropriate representatives of the district may

participate in the audit planning process; and

(2) how the district may request information or assistance in

preparing for the audit from the state auditor.

(b) The state auditor shall seek the recommendations of the

Texas Higher Education Coordinating Board in preparing materials

to be provided under Subsection (a).

Added by Acts 1997, 75th Leg., ch. 978, Sec. 2, eff. Sept. 1,

1997.

Sec. 321.0138. REVIEW OF STATE TAX SETTLEMENTS AND OTHER

DECISIONS. (a) This section applies to:

(1) a settlement of a claim for a tax, refund, or credit of a

tax, penalty, or interest imposed by Title 2, Tax Code;

(2) a settlement of a taxpayer suit under Chapter 112, Tax Code;

(3) any circumstance in which a taxpayer received a warrant,

offset, check, payment, or credit from the comptroller or

comptroller's office arising from the filing of a tax return with

the state.

(b) The state auditor and the committee shall review the

comptroller's records of all tax refunds, credits, payments,

warrants, offsets, checks, and settlements for the preceding six

years from the effective date of this section. The state auditor

and the committee may review the comptroller's records of all tax

refunds, credits, payments, warrants, offsets, checks, and

settlements that occur following the effective date of this

section. Notwithstanding any other law, in reviewing these tax

refunds, credits, payments, warrants, offsets, checks, and

settlements, the state auditor and the committee are entitled to

access to related information to the same extent they would be

entitled under Section 321.013 if the information were in a

department or entity that is subject to audit. In accordance with

Section 321.013(h), neither the state auditor nor the committee

may conduct audits of private entities concerning the collection

or remittance of taxes or fees to this state.

section, the comptroller shall provide to the state auditor

information designated by the state auditor, after consultation

with the comptroller, relating to tax refunds, credits, payments,

warrants, offsets, checks, and settlements made in the past six

years as requested by the state auditor. Commencing February 1,

2004, on a monthly basis, the comptroller shall provide to the

state auditor information designated by the state auditor

relating to tax refunds, credits, payments, warrants, offsets,

checks, and settlements to which this section applies.

(d) A review by the state auditor under this section is

considered an audit for purposes of the application of Section

552.116, relating to confidentiality of audit working papers.

Information obtained or possessed by the state auditor or the

committee that is confidential under law when in the possession

of the comptroller remains confidential while in the possession

of the state auditor or committee, except as provided by

Subsection (e).

(e) The committee shall determine the manner in which the state

auditor shall report information obtained pursuant to Subsection

(b). The report may include any information obtained during the

review, except that the report may not be formatted in a manner

or include any information that discloses or effectively

discloses the specific identity of an individual or taxpayer. The

report must state the information by category or by numeric

pseudonym and may include other information maintained by the

Texas Ethics Commission.

(f) Except as provided by Subsection (e), this section does not

affect any other law relating to confidentiality of information

relating to tax information, including Sections 111.006, 151.027,

and 171.206, Tax Code.

(g) This section does not affect any other law relating to

release of information for legislative purposes, including

Section 552.008, Government Code.

Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 23.01, eff.

Feb. 1, 2004.

Sec. 321.014. AUDIT REPORTS. (a) The State Auditor shall

prepare a written report for each audit conducted by the State

Auditor.

(b) The written report must include comments about internal

controls, compliance with state or federal laws, and

recommendations for improving financial operations or program

effectiveness, as applicable. The report must also include an

opinion on fair presentation of financial statements if the State

Auditor considers an opinion to be necessary.

prior to publication. The State Auditor shall file a copy of each

report prepared under this section with:

(1) the governor;

(2) the lieutenant governor;

(3) the speaker of the house of representatives;

(4) the secretary of state;

(5) the Legislative Reference Library;

(6) each member of the governing body and the administrative

head of each entity that is the subject of the report; and

(7) members of the legislature on a committee with oversight

responsibility for the entity or program that is the subject of

the report.

(d) The State Auditor shall maintain a complete file containing:

(1) copies of each audit report; and

(2) audit work papers and other evidence relating to the work of

the State Auditor.

(e) The State Auditor shall maintain the files required by

Subsection (d) for at least eight years after the date on which

the information is filed.

(f) Each audited department or entity shall report on the manner

in which the department or entity has addressed the findings and

recommendations that are included in a report prepared by the

state auditor under this section. The state auditor shall

prescribe the form and schedule for a report by the department or

entity under this subsection.

(g) If a department or entity does not agree with a

recommendation contained in the state auditor's report, the

department or entity shall file a report with the State Auditor

and the persons specified by Subsection (c). The report must:

(1) identify the recommendation with which the department or

entity did not agree;

(2) state the reason the department or entity did not agree with

the recommendation; and

(3) state whether the department or entity intends to implement

the recommendation.

(h) Repealed by Acts 1989, 71st Leg., ch. 2, Sec. 9.02, eff.

Aug. 28, 1989.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 1987, 70th Leg., ch. 167, Sec. 2.09(a), eff.

Sept. 1, 1987; Acts 1987, 70th Leg., ch. 862, Sec. 7, eff. Aug.

31, 1987; Acts 1989, 71st Leg., ch. 2, Sec. 9.02, eff. Aug. 28,

1989; Acts 1991, 72nd Leg., ch. 599, Sec. 30, eff. Sept. 1, 1991;

Acts 1997, 75th Leg., ch. 1122, Sec. 4, eff. Sept. 1, 1997; Acts

1999, 76th Leg., ch. 1499, Sec. 1.05, eff. Sept. 1, 1999; Acts

2003, 78th Leg., ch. 785, Sec. 5, eff. Sept. 1, 2003.

Sec. 321.016. IMPROPER PRACTICES AND ILLEGAL TRANSACTIONS. (a)

If in the course of an audit the State Auditor finds evidence of

improper practices of financial administration, inadequate fiscal

records, uneconomical use of resources, or ineffective program

performance, the State Auditor, after consulting with the head of

the agency, shall immediately report the evidence to the

governor, the committee, and the administrative head and the

chairman of the governing body of the affected department.

(b) If in the course of an audit the State Auditor finds

evidence of an illegal transaction, the State Auditor, after

consulting with the head of the agency, shall immediately report

the transaction to the governor, the committee, and the

appropriate legal authority.

State Auditor alleging improper practices of financial

administration, uneconomical use of resources, or ineffective

program performance, the committee shall review the report and

shall consult with and may hold hearings with the administrative

head and the chairman of the governing body of the affected

department regarding the report.

(d) If the administrative head or the governing body of the

affected department refuses to make the changes recommended by

the committee at the hearing or provide any additional

information or reports requested, the committee shall report the

refusal to the legislature.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 1987, 70th Leg., ch. 862, Sec. 9, eff. Aug. 31,

1987.

Sec. 321.0161. GROSS MISMANAGEMENT; EXPANDING SCOPE OF AUDIT. If

in the course of an audit of a state agency or institution the

State Auditor finds evidence of gross mismanagement or grossly

improper management oversight practices, the State Auditor, after

consulting with the head of the agency or institution, shall as

soon as is practicable expand the scope of the audit into other

aspects of the operations of the agency or institution to

determine whether similar problems exist elsewhere.

Added by Acts 2007, 80th Leg., R.S., Ch.

758, Sec. 1, eff. September 1, 2007.

Sec. 321.017. REVIEW AND OVERSIGHT OF FUNDS AND ACCOUNTS

RECEIVING COURT COSTS. (a) The state auditor may review each

fund and account into which money collected as a court cost is

directed by law to be deposited to determine whether:

(1) the money is being used for the purpose or purposes for

which the money is collected; and

(2) the amount of the court cost is appropriate, considering the

purpose or purposes for which the cost is collected.

(b) The state auditor may perform reviews under this section as

specified in the audit plan developed under Section 321.013.

performed under this section available to the public and shall

report the findings to the governor, the chief justice of the

supreme court, the presiding judge of the court of criminal

appeals, and the committee. The report may include the state

auditor's recommendations for legislation or policy changes.

Added by Acts 2001, 77th Leg., ch. 952, Sec. 1, eff. Sept. 1,

2001.

Sec. 321.018. SUBPOENAS. (a) At the request of the State

Auditor or on its own motion, the committee may subpoena

witnesses or any books, records, or other documents reasonably

necessary to conduct an examination under this chapter.

(b) Each subpoena must be signed by either of the joint chairs

of the committee or the secretary of the committee.

committee or the secretary of the committee, the sergeant at arms

or an assistant sergeant at arms of either house of the

legislature or any peace officer shall serve the subpoena in the

manner prescribed for service of a district court subpoena.

(d) If the person to whom a subpoena is directed fails to

comply, the committee may bring suit in district court to enforce

the subpoena. If the court determines that good cause exists for

the issuance of the subpoena, the court shall order compliance.

The court may modify the requirements of a subpoena that the

court determines are unreasonable. Failure to comply with the

order of the district court is punishable as contempt.

(e) The committee may provide for the compensation of subpoenaed

witnesses. The amount of compensation may not exceed the amount

paid to a witness subpoenaed by a district court in a civil

proceeding.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 6.02, eff.

Jan. 11, 2004.

Sec. 321.019. INTERFERENCE WITH AUDIT OR INVESTIGATION. (a) An

officer or employee of this state or of an entity subject to

audit or investigation by the state auditor commits an offense if

the officer or employee:

(1) refuses to immediately permit the State Auditor to examine

or have access to the books, accounts, reports, vouchers, papers,

documents, or electronic data to which the State Auditor is

entitled under Section 321.013(e) or other law, or to the cash

drawer, or cash from the officer's or employee's department;

(2) interferes with an examination by the State Auditor; or

(3) refuses to make a report required by this chapter.

(b) An offense under this section is a Class A misdemeanor.

Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.

Amended by Acts 1987, 70th Leg., ch. 862, Sec. 10, eff. Aug. 31,

1987; Acts 1997, 75th Leg., ch. 1122, Sec. 5, eff. Sept. 1, 1997.

Sec. 321.020. COORDINATION OF CERTAIN AUDITS. (a)

Notwithstanding any other law, a state agency, or a corporation

that is dedicated to the benefit of a state agency and that meets

the criteria specified by Section B, Article 2.23B, Texas

Non-Profit Corporation Act (Article 1396-2.23B, Vernon's Texas

Civil Statutes), may employ a private auditor to audit the state

agency or corporation only if:

(1) the agency or corporation is authorized to contract with a

private auditor through a delegation of authority from the state

auditor;

(2) the scope of the proposed audit has been submitted to the

state auditor for review and comment; and

(3) the services of the private auditor are procured through a

competitive selection process in a manner allowed by law.

(b) At the joint direction of the lieutenant governor and the

speaker of the house of representatives, the state auditor shall

provide contract management services to the agency or corporation

for an audit described by this section.

Added by Acts 1997, 75th Leg., ch. 1122, Sec. 6, eff. Sept. 1,

1997.

Amended by:

Acts 2005, 79th Leg., Ch.

1012, Sec. 1, eff. June 18, 2005.

Sec. 321.021. GIFTS AND GRANTS. (a) The legislative audit

committee may accept gifts, grants, and donations from any

organization described in Section 501(c)(3) of the Internal

Revenue Code for the purpose of funding any activity under this

chapter.

(b) All gifts, grants, and donations must be accepted in an open

meeting by a majority of the voting members of the legislative

audit committee and reported in the public record of the

committee with the name of the donor and purpose of the gift,

grant, or donation.

Added by Acts 1987, 70th Leg., ch. 617, Sec. 2, eff. Sept. 1,

1987.

Sec. 321.022. COORDINATION OF INVESTIGATIONS. (a) If the

administrative head of a department or entity that is subject to

audit by the state auditor has reasonable cause to believe that

money received from the state by the department or entity or by a

client or contractor of the department or entity may have been

lost, misappropriated, or misused, or that other fraudulent or

unlawful conduct has occurred in relation to the operation of the

department or entity, the administrative head shall report the

reason and basis for the belief to the state auditor. The state

auditor may investigate the report or may monitor any

investigation conducted by the department or entity.

(b) The state auditor, in consultation with state agencies and

institutions, shall prescribe the form, content, and timing of a

report required by this section.

relating to a report to the state auditor under Subsection (a)

are audit working papers of the state auditor.

Added by Acts 1997, 75th Leg., ch. 1122, Sec. 7, eff. Sept. 1,

1997.

Sec. 321.023. SEAL. The state auditor shall obtain a seal with

"State Auditor, State of Texas" engraved around the margin and a

five-pointed star in the center to be used to authenticate

official documents issued by the state auditor.

Added by Acts 1989, 71st Leg., ch. 584, Sec. 122, eff. Sept. 1,

1989.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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