Bill Text: TX SB75 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to forensic audits of certain school district projects.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-02-01 - Referred to Education [SB75 Detail]
Download: Texas-2019-SB75-Introduced.html
86R2931 SOS-D | ||
By: Hall | S.B. No. 75 |
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relating to forensic audits of certain school district projects. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 44, Education Code, is | ||
amended by adding Section 44.0085 to read as follows: | ||
Sec. 44.0085. FORENSIC AUDIT OF CERTAIN PROJECTS REQUIRED. | ||
(a) In this section, "capital project" means the construction, | ||
acquisition, and equipment of a public school building that are | ||
financed by the issuance of bonds under Section 45.001(a)(1)(A). | ||
(b) The board of trustees of a school district shall | ||
contract with an independent auditing firm to perform one or more | ||
forensic audits of each capital project in the district in | ||
accordance with this section. | ||
(c) A forensic audit under this section must be performed: | ||
(1) every three years if the capital project extends | ||
more than three years following the execution date of the project | ||
contract; and | ||
(2) at the completion of the project or termination of | ||
the project contract. | ||
(d) If multiple forensic audits are required under | ||
Subsection (c), a subsequent audit is not required to cover a period | ||
for which a previous audit was performed under this section. | ||
(e) A forensic audit under this section must include for the | ||
audit period the following information: | ||
(1) any performance metric or measurement tool used by | ||
the school district to evaluate the performance of the capital | ||
project; | ||
(2) the district's quality assessment plan or other | ||
assessment tool to measure risk; | ||
(3) the district's method for monitoring of | ||
deliverables, milestones, and delivery schedules under the | ||
contract, including specifying whether enhanced monitoring is used | ||
by the district; | ||
(4) a project change order or amendment to the | ||
contract; | ||
(5) a decrease or increase in the quantity of work to | ||
be performed or of materials, equipment, or supplies to be | ||
furnished under the contract; | ||
(6) a decrease or increase in the contract price of | ||
more than 25 percent; | ||
(7) project invoices and payments; | ||
(8) contractor reports made or required, including | ||
progress and financial reports; | ||
(9) district reports made or required, including site | ||
monitoring reports; | ||
(10) the length of time between each district | ||
monitoring activity; | ||
(11) any assignment by the contractor of the | ||
contractor's rights or duties under the contract; | ||
(12) any buyout or sale of the entity with which the | ||
district contracted for the project; | ||
(13) any dispute resolved, including the dispute | ||
resolution process used; | ||
(14) any corrective action plan implemented; | ||
(15) any contractor nonperformance, including any | ||
contract remedy used for contractor nonperformance; | ||
(16) any liquidated damages assessed or collected | ||
under the contract; | ||
(17) whether all or part of the contract was | ||
terminated by mutual agreement, convenience, or cause; | ||
(18) any internal audit of the project by the | ||
district; | ||
(19) a determination of compliance with: | ||
(A) any financial provision under the contract; | ||
and | ||
(B) applicable laws, rules, and district | ||
policies; and | ||
(20) any identified fraud or malfeasance. | ||
(f) A forensic audit under this section must be conducted in | ||
accordance with generally accepted auditing standards as | ||
prescribed by: | ||
(1) the American Institute of Certified Public | ||
Accountants; | ||
(2) the Governmental Accounting Standards Board; | ||
(3) the United States Government Accountability | ||
Office; or | ||
(4) any other professionally recognized entity that | ||
prescribes auditing standards. | ||
(g) A school district shall cooperate with an auditor | ||
conducting a forensic audit under this section and provide | ||
assistance to the auditor and access to all information necessary | ||
to conduct the audit, including any confidential information. | ||
(h) A contract under Subsection (b) shall require each | ||
forensic audit to be filed with the school district not later than | ||
the 90th day after the date the applicable audit period ends. The | ||
district shall make each audit available as soon as practicable for | ||
public inspection: | ||
(1) on the district's Internet website; and | ||
(2) at the district's central administrative building | ||
during regular business hours. | ||
(i) A school district shall pay for a forensic audit under | ||
this section using the proceeds from the bonds issued for the | ||
capital project. | ||
SECTION 2. Section 44.0085, Education Code, as added by | ||
this Act, applies only to a project subject to that section that is | ||
financed by bonds issued on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect September 1, 2019. |