Bill Text: TX SB75 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to forensic audits of certain school district projects.
Sponsorship: Partisan Bill (Republican 1)
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 | |
|
|
||
|
|
||
| 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. | ||
