Mississippi House Bill HB1223

Mississippi 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22
• Failed: 2/1/22

Caption

Internal audit office; require universities and certain state agencies to establish.

Impact

The enforcement of HB 1223 would mean that all specified universities and state agencies will have to hire an internal audit director to spearhead the internal auditing process. The adequacy of staffing for the internal auditing will depend on the legislature's appropriation of funds, which places some financial drivers into the implementation of the bill. Furthermore, the establishment of this program is projected to strengthen the financial integrity of both colleges and universities and ensure that public funds are utilized in an efficient and accountable manner.

Summary

House Bill 1223 seeks to amend Sections 25-65-7 and 25-65-9 of the Mississippi Code of 1972, mandating that universities and certain state agencies employ an agency internal audit director and implement a comprehensive internal auditing program. This bill aims to enhance accountability and transparency within state-related agencies by establishing a structured internal audit framework that is essential for effective financial oversight. Notably, the bill proposes the creation of an internal audit unit under the Mississippi Community College Board, specifically designed to address the needs of community and junior colleges across the state.

Contention

While the bill is recognized for its aims to enhance systematic oversight, there are potential concerns regarding its implementation, especially the dependency on legislative appropriations. This may lead to uneven execution across different institutions based on budget priorities. Additionally, the provision allowing for the outsourcing of internal audits raises questions about the integrity and independence of audits if not handled carefully. Stakeholders might engage in discussions about balancing accountability with financial practicality, criticizing any lack of assurance that audit functions remain strictly within the confines of effective governmental oversight.