Texas 2025 - 89th Regular

Texas House Bill HB3666 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		89R18207 CS-D
2		-	By: King, Capriglione, Noble H.B. No. 3666
	2	+	By: King H.B. No. 3666
	3	+	Substitute the following for H.B. No. 3666:
	4	+	By: Capriglione C.S.H.B. No. 3666
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7	9		A BILL TO BE ENTITLED
8	10		AN ACT
9	11		relating to the program of internal auditing conducted by state
10	12		agencies.
11	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	14		SECTION 1. Section 2102.002, Government Code, is amended to
13	15		read as follows:
14	16		Sec. 2102.002. PURPOSE. The purpose of this chapter is to
15	17		establish guidelines for a program of internal auditing to assist
16	18		agency administrators and governing boards by furnishing
17	19		independent analyses, appraisals, and recommendations about the
18	20		adequacy and effectiveness of a state agency's systems of internal
19	21		control policies and procedures and the quality of performance in
20	22		carrying out assigned responsibilities. The purpose of internal
21	23		auditing is to strengthen an organization's ability to create,
22	24		protect, and sustain value by providing agency administrators,
23	25		management, and governing boards with independent, risk-based, and
24	26		objective assurance, advice, insight, and foresight [Internal
25	27		auditing is defined as an independent, objective assurance and
26	28		consulting activity designed to add value and improve an
27	29		organization's operations. It helps an organization accomplish its
28	30		objectives by bringing a systematic, disciplined approach to
29	31		evaluate and improve the effectiveness of risk management, control,
30	32		and governance processes].
31	33		SECTION 2. Section 2102.003, Government Code, is amended by
32	34		adding Subdivision (1-a) to read as follows:
33	35		(1-a) "Advisory services" means consulting and
34	36		related client service activities, the nature and scope of which
35	37		are agreed upon with the client and are intended to add value and
36	38		improve an organization's operations without providing assurance
37	39		or taking on management responsibilities. Advisory services
38	40		include counsel, facilitation, and training.
39	41		SECTION 3. Section 2102.005(a), Government Code, is amended
40	42		to read as follows:
41	43		(a) A state agency shall conduct a program of internal
42	44		auditing that includes:
43	45		(1) an annual audit plan that is prepared using risk
44	46		assessment techniques and that identifies the individual audits to
45	47		be conducted during the year; and
46	48		(2) [periodic] audits of the agency's major systems
47	49		and controls, including:
48	50		(A) financial [accounting] systems and controls;
49	51		(B) operational or administrative systems and
50	52		controls; and
51	53		(C) information technology [electronic data
52	54		processing] systems and controls.
53	55		SECTION 4. Section 2102.007(a), Government Code, is amended
54	56		to read as follows:
55	57		(a) The internal auditor shall:
56	58		(1) report directly to the state agency's governing
57	59		board or the administrator of the state agency if the state agency
58	60		does not have a governing board;
59	61		(2) develop an annual audit plan;
60	62		(3) conduct audits as specified in the audit plan and
61	63		document deviations;
62	64		(4) prepare [audit] reports and communicate advisory
63	65		and assurance services engagement results;
64	66		(5) conduct quality assurance reviews in accordance
65	67		with professional standards as provided by Section 2102.011 and
66	68		periodically take part in a comprehensive external peer review; and
67	69		(6) conduct economy and efficiency audits and program
68	70		results audits as directed by the state agency's governing board or
69	71		the administrator of the state agency if the state agency does not
70	72		have a governing board.
71	73		SECTION 5. The heading to Section 2102.008, Government
72	74		Code, is amended to read as follows:
73	75		Sec. 2102.008. APPROVAL OF AUDIT PLAN AND REVIEW OF AUDIT
74	76		REPORTS [REPORT].
75	77		SECTION 6. The heading to Section 2102.0091, Government
76	78		Code, is amended to read as follows:
77	79		Sec. 2102.0091. REPORTS OF [PERIODIC] AUDITS.
78	80		SECTION 7. Section 2102.011, Government Code, is amended to
79	81		read as follows:
80	82		Sec. 2102.011. INTERNAL AUDIT STANDARDS. The internal
81	83		audit program shall conform to the Global Internal Audit Standards
82	84		[for the Professional Practice of Internal Auditing, the Code of
83	85		Ethics contained in the Professional Practices Framework] as
84	86		promulgated by the Institute of Internal Auditors[, and generally
85	87		accepted government auditing standards].
86	88		SECTION 8. Section 2102.003(4), Government Code, is
87	89		repealed.
88	90		SECTION 9. This Act takes effect immediately if it receives
89	91		a vote of two-thirds of all the members elected to each house, as
90	92		provided by Section 39, Article III, Texas Constitution. If this
91	93		Act does not receive the vote necessary for immediate effect, this
92	94		Act takes effect September 1, 2025.