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A BILL TO BE ENTITLED
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AN ACT
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relating to forensic audits of certain school district projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 44, Education Code, is |
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amended by adding Section 44.0085 to read as follows: |
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Sec. 44.0085. FORENSIC AUDIT OF CERTAIN PROJECTS REQUIRED. |
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(a) In this section, "capital project" means the construction, |
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acquisition, and equipment of a public school building that are |
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financed by the issuance of bonds under Section 45.001(a)(1)(A). |
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(b) The board of trustees of a school district shall |
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contract with an independent auditing firm to perform one or more |
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forensic audits of each capital project in the district in |
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accordance with this section. |
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(c) A forensic audit under this section must be performed: |
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(1) every three years if the capital project extends |
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more than three years following the execution date of the project |
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contract; and |
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(2) at the completion of the project or termination of |
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the project contract. |
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(d) If multiple forensic audits are required under |
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Subsection (c), a subsequent audit is not required to cover a period |
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for which a previous audit was performed under this section. |
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(e) A forensic audit under this section must include for the |
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audit period the following information: |
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(1) any performance metric or measurement tool used by |
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the school district to evaluate the performance of the capital |
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project; |
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(2) the district's quality assessment plan or other |
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assessment tool to measure risk; |
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(3) the district's method for monitoring of |
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deliverables, milestones, and delivery schedules under the |
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contract, including specifying whether enhanced monitoring is used |
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by the district; |
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(4) a project change order or amendment to the |
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contract; |
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(5) a decrease or increase in the quantity of work to |
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be performed or of materials, equipment, or supplies to be |
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furnished under the contract; |
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(6) a decrease or increase in the contract price of |
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more than 25 percent; |
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(7) project invoices and payments; |
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(8) contractor reports made or required, including |
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progress and financial reports; |
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(9) district reports made or required, including site |
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monitoring reports; |
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(10) the length of time between each district |
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monitoring activity; |
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(11) any assignment by the contractor of the |
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contractor's rights or duties under the contract; |
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(12) any buyout or sale of the entity with which the |
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district contracted for the project; |
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(13) any dispute resolved, including the dispute |
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resolution process used; |
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(14) any corrective action plan implemented; |
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(15) any contractor nonperformance, including any |
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contract remedy used for contractor nonperformance; |
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(16) any liquidated damages assessed or collected |
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under the contract; |
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(17) whether all or part of the contract was |
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terminated by mutual agreement, convenience, or cause; |
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(18) any internal audit of the project by the |
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district; |
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(19) a determination of compliance with: |
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(A) any financial provision under the contract; |
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and |
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(B) applicable laws, rules, and district |
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policies; and |
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(20) any identified fraud or malfeasance. |
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(f) A forensic audit under this section must be conducted in |
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accordance with generally accepted auditing standards as |
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prescribed by: |
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(1) the American Institute of Certified Public |
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Accountants; |
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(2) the Governmental Accounting Standards Board; |
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(3) the United States Government Accountability |
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Office; or |
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(4) any other professionally recognized entity that |
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prescribes auditing standards. |
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(g) A school district shall cooperate with an auditor |
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conducting a forensic audit under this section and provide |
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assistance to the auditor and access to all information necessary |
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to conduct the audit, including any confidential information. |
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(h) A contract under Subsection (b) shall require each |
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forensic audit to be filed with the school district not later than |
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the 90th day after the date the applicable audit period ends. The |
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district shall make each audit available as soon as practicable for |
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public inspection: |
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(1) on the district's Internet website; and |
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(2) at the district's central administrative building |
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during regular business hours. |
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(i) A school district shall pay for a forensic audit under |
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this section using the proceeds from the bonds issued for the |
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capital project. |
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SECTION 2. Section 44.0085, Education Code, as added by |
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this Act, applies only to a project subject to that section that is |
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financed by bonds issued on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2019. |