| 1 | 1 | | 87R1185 KSD-D |
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| 2 | 2 | | By: Cortez H.B. No. 294 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the financial audit of public institutions of higher |
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| 8 | 8 | | education by the state auditor. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 321, Government Code, is amended by |
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| 11 | 11 | | adding Section 321.01365 to read as follows: |
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| 12 | 12 | | Sec. 321.01365. FINANCIAL AUDIT OF INSTITUTIONS OF HIGHER |
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| 13 | 13 | | EDUCATION. (a) In this section, "institution of higher education" |
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| 14 | 14 | | has the meaning assigned by Section 61.003, Education Code. |
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| 15 | 15 | | (b) Beginning September 1, 2022, the state auditor shall |
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| 16 | 16 | | conduct a financial audit of each institution of higher education |
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| 17 | 17 | | at least every five years. |
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| 18 | 18 | | (c) The state auditor, in consultation with the Texas Higher |
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| 19 | 19 | | Education Coordinating Board, shall determine when each |
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| 20 | 20 | | institution of higher education is audited under this section, |
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| 21 | 21 | | taking into account the resources of the state auditor and any other |
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| 22 | 22 | | factors the state auditor considers appropriate. The state auditor |
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| 23 | 23 | | shall consider the requirements of this section in devising an |
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| 24 | 24 | | audit plan under Section 321.013(c). |
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| 25 | 25 | | (d) An institution of higher education shall include on the |
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| 26 | 26 | | home page of the institution's Internet website a prominently |
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| 27 | 27 | | displayed link to the institution's most recent financial audit |
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| 28 | 28 | | under this section. |
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| 29 | 29 | | SECTION 2. This Act takes effect September 1, 2021. |
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