H.B. No. 2042
AN ACT
relating to postpayment audits conducted by the comptroller and
annual financial reports submitted by state agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 403.071, Government Code, is amended by
amending Subsections (g) and (h) and adding Subsections (i) and (j)
to read as follows:
(g) Notwithstanding Subsection (a), the comptroller [and a
state agency] may [contract in writing for the comptroller to]
audit claims presented by the state agency after the comptroller
prepares warrants or uses the electronic funds transfer system to
pay the claims. [If the comptroller and a state agency execute a
contract, the comptroller may decide the types of claims that will
be audited after payment.]
(h) [This subsection applies if the comptroller and a state
agency have contracted in accordance with Subsection (g). The
comptroller shall audit claims after payment in the same way that
the comptroller audits claims before payment under Subsection (a).]
The comptroller may establish requirements and adopt rules
concerning the time that a state agency must retain documentation
in its files to enable a postpayment audit. If a postpayment audit
by the comptroller shows that a claim presented by a state agency
was invalid, the comptroller may:
(1) implement procedures to ensure that similar
invalid claims from the state agency are not paid in the future;
(2) report to the governor, the lieutenant governor,
the speaker of the house of representatives, the state auditor, and
the Legislative Budget Board the results of the audit;
(3) require the state agency to obtain a refund of the
monies from the payee; and
(4) [cancel the contract with the state agency; and
[(5)] reduce the state agency's remaining
appropriations by the amount of the claim.
(i) The comptroller may access the books, accounts,
confidential or nonconfidential reports, vouchers, electronic
data, or other records or information of a state agency subject to a
postpayment audit. If information may not be released under
federal law, the comptroller may not access the information without
approval of the appropriate federal agency.
(j) The comptroller shall use reasonable efforts to avoid
hindering the daily operations of a state agency subject to a
postpayment audit by coordinating requests for access to books,
accounts, reports, vouchers, electronic data, or other records or
information of the audited agency.
SECTION 2. Section 2101.011(c), Government Code, is amended
to read as follows:
(c) A state agency's annual financial report must include
information on [a detailed statement of] all assets, liabilities,
and fund balances, including:
(1) cash on hand and on deposit in banks and accounts
in the state treasury;
(2) [the value of consumable supplies and postage;
[(3)] the value of the agency's inventory of movable
equipment and other fixed assets;
(3) [(4) all other assets;
[(5)] an itemization of the investments, bonds, notes,
and other securities owned by any special funds under the agency's
jurisdiction, including the amount and value of the securities;
(4) [(6)] all money due the agency from any source;
(5) [(7)] all outstanding commitments of the agency,
including amounts due for services or goods received by the agency;
(6) [(8)] a summary by source of all revenue collected
or accruing through the agency;
(7) [(9)] a summary of all appropriations,
expenditures, bona fide encumbrances, and other disbursements by
the agency; and
(8) [(10)] any other financial information requested
by the comptroller.
SECTION 3. Section 2101.012(b), Government Code, is amended
to read as follows:
(b) The procedures must[:
[(1) comply with generally accepted accounting
principles as established by the Governmental Accounting Standards
Board and the American Institute of Certified Public Accountants or
their successors; and
[(2)] include the requirements for compliance with the
federal Single Audit Act of 1984 and Office of Management and Budget
Circular A-133 and any subsequent changes or amendments that will
fulfill the audit requirements for a statewide single audit.
SECTION 4. Sections 403.071(i) and (j), Government Code, as
added by this Act, apply to a postpayment audit initiated on or
after the effective date of this Act. A postpayment audit initiated
before the effective date of this Act is governed by the law in
effect on the date the audit is initiated, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2042 was passed by the House on May 3,
2019, by the following vote: Yeas 140, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2042 was passed by the Senate on May
22, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor