Bill Text: MS HB1341 | 2013 | Regular Session | Introduced
Bill Title: State Department of Education; require certain actions to improve program of internal auditing.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-02-05 - Died In Committee [HB1341 Detail]
Download: Mississippi-2013-HB1341-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Education
By: Representative Gunn
House Bill 1341
AN ACT TO REQUIRE CERTAIN SPECIFIC ACTIONS TO BE TAKEN RELATING TO THE INTERNAL AUDIT ORGANIZATION OF THE STATE DEPARTMENT OF EDUCATION TO IMPROVE THE AGENCY'S PROGRAM OF INTERNAL AUDITING; TO BRING FORWARD SECTION 25-65-9, MISSISSIPPI CODE OF 1972, WHICH REQUIRES STATE AGENCIES TO EMPLOY AN AGENCY INTERNAL AUDIT DIRECTOR AND STAFF, FOR PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 25-65-11, MISSISSIPPI CODE OF 1972, WHICH ESTABLISHES THE QUALIFICATIONS FOR INTERNAL AUDIT DIRECTORS, FOR PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 25-65-13, MISSISSIPPI CODE OF 1972, WHICH PRESCRIBES THE DUTIES OF INTERNAL AUDIT DIRECTORS, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. In addition to all other duties and requirements prescribed under this chapter for the agency internal audit director and relating to internal auditing programs, the following duties and requirements are applicable specifically to the State Department of Education and the internal audit operations of the department:
(a) The State Board of Education shall take such action as may be necessary to completely separate all other departments, divisions, offices and employees outside the internal audit function of the State Department of Education from the internal audit office of the State Department of Education. The board shall ensure that the internal audit organization is in compliance with the requirements of Section 25-65-9(1), and if necessary, the board shall reorganize various departments, divisions and offices and their respective functions to achieve an organizational status that furthers the ability of the audit office to make independent audits of any aspect of the department's operations.
(b) The State Superintendent of Public Education shall verify that the internal audit director employed by the State Department of Education meets the qualifications prescribed under Section 25-65-11 and has the requisite knowledge and experience to carry out the duties of the internal audit director prescribed under Section 25-65-13. Any person failing to satisfy the minimum qualifications prescribed under Section 25-65-11 and such other qualifications that may be established by the State Board of Education may not hold the position of internal audit director.
(c) The internal audit office shall conduct quality assurance and quality control evaluations of data as part of the office's regular duties. The internal audit office shall establish performance measures and performance measure targets regarding data quality and reliability for the State Department of Education, including, but not limited to, measures to verify the validity and reliability of data used in calculations under the Mississippi Adequate Education Program established under Sections 37-151-5 and 37-151-7.
(d) Before July 1, 2013, and each following year, the internal audit director shall submit to the State Board of Education an annual plan of action describing the measures taken or to be taken in carrying out the specific provisions of this chapter. The State Board of Education shall submit a copy of the initial report to the State Auditor and shall make a copy of the report available to the Chairmen of the Appropriations Committees of the House of Representatives and Senate.
SECTION 2. Section 25-65-9, Mississippi Code of 1972, is brought forward as follows:
25-65-9. (1) Except as otherwise provided by subsection (2) of this section, each university, community/junior college and state agency shall, subject to specific appropriation of available funding, employ an agency internal audit director who shall be appointed by the university president or chancellor, the community/junior college president, elected official or executive director or his counterpart of a state agency without a governing board or commission. The university president or chancellor, the community/junior college president of the agency head shall ensure that the university, community/junior college or agency shall employ, subject to specific funding being appropriated, a sufficient number of professional and support staff to implement an effective program of internal auditing. Compensation, training, job tenure and advancement of internal auditing staff shall be based upon the rules of the State Personnel Board for other business employees in the system. The internal audit organization shall have organizational status outside the agency's staff or line management functions or units subject to audit, and shall be free of operational and management responsibilities that would impair the ability to make independent audits of any aspects of the agency's operations. An agency, university or community/junior college internal audit director may be terminated by the appointing authority in accordance with State Personnel Board rules and regulations for any state employee after a seven-day notification period to the State Auditor.
(2) The university president or chancellor, the community/junior college president or agency head of a university, community/junior college or state agency, respectively, may outsource the internal audit function if he determines that it is more cost efficient than establishing the audit personnel and procedures provided in subsection (1) of this section. Internal audit services may not be outsourced to the same firm or individual who performs independent audit or other consulting services to the university, community/junior college or agency.
SECTION 3. Section 25-65-11, Mississippi Code of 1972, is brought forward as follows:
25-65-11. The university, community/junior college or agency internal audit director shall possess the following qualifications:
(a) A bachelor's degree from an accredited college or university and five (5) years of progressively responsible professional auditing experience as an internal auditor or independent postauditor, electronic data processing auditor or any combination thereof. The auditing experience shall at a minimum consist of audits of units of government or private business enterprises, operating for profit or not for profit; or
(b) A master's degree from an accredited college or university and three (3) years of progressively responsible professional auditing experience as an internal auditor or independent postauditor, electronic data processing auditor or any combination therefor; or
(c) A certificate as a certified internal auditor issued by The Institute of Internal Auditors and three (3) years of progressively responsible professional auditing experience as an internal auditor or independent postauditor, electronic data processing auditor or any combination thereof; or
(d) A certificate as a Certified Public Accountant with at least three (3) years experience.
SECTION 4. Section 25-65-13, Mississippi Code of 1972, is brought forward as follows:
25-65-13. The university, community/junior college or agency internal audit director shall:
(a) Report directly to the university president or chancellor, community/junior college president or agency head or deputy university official, community/junior college official or agency head.
(b) Conduct financial, compliance, electronic data processing and operational and efficiency audits of university, community/junior college or agency programs, activities and functions and prepare audit reports of findings.
(c) Review and evaluate internal controls over university, community/junior college or agency programs, accounting systems, administrative systems, electronic data processing systems and all other major systems necessary to ensure accountability of the university, community/junior college or state agency.
(d) Develop long-term and annual audit plans to be based on the findings of periodic documented risk assessments. The plan shall show the individual audits to be conducted during each year and the related resources to be devoted to each of the respective audits. The audit plan shall ensure that internal controls are reviewed on a periodic basis. The plan shall be submitted to the university, community/junior college or agency head for approval and the audit committee for comment. A copy of the approved plan shall be available upon request to the State Auditor or other appropriate external auditor to assist in planning and coordination of any external financial, compliance, electronic data processing or performance audit.
(e) The scope and assignment of the audits shall be determined by the university, community/junior college or internal audit director; however, the university president or chancellor, community/junior college president or head of the agency may at any time direct the internal audit director to perform an audit of a special program, activity, function or organizational unit.
SECTION 5. Section 1 of this act shall be codified as a new section in Chapter 65, Title 25, Mississippi Code of 1972.
SECTION 6. This act shall take effect and be in force from and after its passage.
