The State Auditor must prepare an audit report for each audit and include specified comments, recommendations, and sometimes an opinion; reports must be filed with listed recipients, kept on file, and retained for at least eight years. Audited departments or entities must report how they addressed findings, and if they disagree with a recommendation they must file a response explaining the disagreement and intended implementation.
Sec. 321.014. AUDIT REPORTS. (a) The State Auditor shall prepare a written report for each audit conducted by the State Auditor. (b) The written report must include comments about internal controls, compliance with state or federal laws, and recommendations for improving financial operations or program effectiveness, as applicable. The report must also include an opinion on fair presentation of financial statements if the State Auditor considers an opinion to be necessary. (c) The State Auditor shall submit each report to the committee prior to publication. The State Auditor shall file a copy of each report prepared under this section with: (1) the governor; (2) the lieutenant governor; (3) the speaker of the house of representatives; (4) the secretary of state; (5) the Legislative Reference Library; (6) each member of the governing body and the administrative head of each entity that is the subject of the report; and (7) members of the legislature on a committee with oversight responsibility for the entity or program that is the subject of the report. (d) The State Auditor shall maintain a complete file containing: (1) copies of each audit report; and (2) audit work papers and other evidence relating to the work of the State Auditor. (e) The State Auditor shall maintain the files required by Subsection (d) for at least eight years after the date on which the information is filed. (f) Each audited department or entity shall report on the manner in which the department or entity has addressed the findings and recommendations that are included in a report prepared by the state auditor under this section. The state auditor shall prescribe the form and schedule for a report by the department or entity under this subsection. (g) If a department or entity does not agree with a recommendation contained in the state auditor's report, the department or entity shall file a report with the State Auditor and the persons specified by Subsection (c). The report must: (1) identify the recommendation with which the department or entity did not agree; (2) state the reason the department or entity did not agree with the recommendation; and (3) state whether the department or entity intends to implement the recommendation. (h) Repealed by Acts 1989, 71st Leg., ch. 2, Sec. 9.02, eff. Aug. 28, 1989. Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 167, Sec. 2.09(a), eff. Sept. 1, 1987; Acts 1987, 70th Leg., ch. 862, Sec. 7, eff. Aug. 31, 1987; Acts 1989, 71st Leg., ch. 2, Sec. 9.02, eff. Aug. 28, 1989; Acts 1991, 72nd Leg., ch. 599, Sec. 30, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1122, Sec. 4, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1499, Sec. 1.05, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 785, Sec. 5, eff. Sept. 1, 2003.