Government Code § 321.0132

Sec. 321.0132. COMPLIANCE AUDIT. A compliance audit is an audit to determine: (1) whether the audited entity has obligated, expended, received, and used state funds in accordance with the purpose for which those funds have been appropriated or otherwise authorized by law; (2) whether the audited entity has obligated, expended, received, and used state funds in accordance with any limitations, restrictions, conditions, or mandatory directions imposed by law on those obligations, expenditures, receipts, or uses; (3) in the case of a local or private entity or agency, whether the records, books, and accounts of the audited entity fairly and accurately reflect its financial and fiscal operations relating to the obligation, receipt, expenditure, and use of state funds or funds represented as being collected for a state purpose; (4) whether the collections of state revenues and receipts by the audited entity are in accordance with applicable laws and regulations; and (5) whether money or negotiable securities or similar assets handled by the audited entity on behalf of the state or received from the state and held in trust by the audited entity have been properly and legally administered. Added by Acts 1987, 70th Leg., ch. 862, Sec. 6, eff. Aug. 31, 1987.