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
(C)  a ranking of the risks associated with the problems.

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.
(c)  Members of the committee serve without compensation but are 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.
(c)  The State Auditor serves at the will of the committee.
(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.
(c)  The State Auditor may discharge any assistant auditors or 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.
(c)  The salaries of the assistant auditors and stenographic and 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.
(c)  The State Auditor shall recommend the audit plan for the 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, Andy Nolen, pledge

that I will provide you
with vigorous
representation, and be by
your side throughout this
entire process. I will fight
for you both in and out of
the courtroom and do
everything within my
power to protect your
constitutional rights.
One of Houston's
Top Attorneys for
Probation
Violation Cases.  

In most cases
there is no appeal
from a decision to
revoke your
probation.  You
MUST win your
case.

Call Attorney Andy
Nolen - He WILL
help keep you out
of jail.
713-697-4373
ANDY NOLEN HOUSTON CRIMINAL LAWYER
OVER 17 YEARS CRIMINAL LAW EXPERIENCE
LICENSED IN BOTH STATE AND FEDERAL COURT
19 years Experience And Hundreds of Cases Dismissed Places Houston Criminal Defense Attorney Andy Nolen Amongst the Best Lawyers in Houston, Texas