CHAPTER 115. AUDIT OF COUNTY FINANCES - Texas Statutes

LOCAL GOVERNMENT CODE

TITLE 4. FINANCES

SUBTITLE B. COUNTY FINANCES

CHAPTER 115. AUDIT OF COUNTY FINANCES

SUBCHAPTER A. AUDIT AUTHORITY OF COUNTY AUDITOR

Sec. 115.001. EXAMINATION OF RECORDS. The county auditor shall

have continual access to and shall examine and investigate the

correctness of:

(1) the books, accounts, reports, vouchers, and other records of

any officer;

(2) the orders of the commissioners court relating to county

finances; and

(3) the vouchers given by the trustees of all common school

districts of the county.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 115.002. EXAMINATION OF BOOKS AND REPORTS. (a) The county

auditor shall carefully examine and report on all reports that

are about the collection of money for the county and that are

required to be made to the commissioners court.

(b) At least once each quarter, the county auditor shall check

the books and shall examine in detail the reports of the county

tax assessor-collector, the county treasurer, and all other

officers. The auditor shall verify the footings and the

correctness of those books and reports. The auditor shall either

stamp the books and reports approved or shall note any

differences, errors, or discrepancies.

(c) The auditor shall carefully examine the report made under

Section 114.026 by the county treasurer, together with the

canceled warrants that have been paid. The auditor shall verify

those warrants with the register of warrants issued as shown on

the auditor's books.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 115.003. EXAMINATION OF FUNDS HELD BY COUNTY TREASURER.

(a) At least once each quarter, or more often if the county

auditor desires, the auditor shall, without advance notice, fully

examine the condition of, or shall inspect and count, the cash

held by the county treasurer or held in a bank in which the

treasurer has placed the cash for safekeeping.

(b) The auditor shall make sure that all balances to the credit

of the various funds are actually on hand in cash and that none

of the funds are invested in any manner except as authorized by

law.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 115.0035. EXAMINATION OF FUNDS COLLECTED BY COUNTY ENTITY

OR THE DISTRICT ATTORNEY. (a) For purposes of this section,

"accounts" means all public funds that are subject to the control

of any precinct, county or district official, including the

accounts of law enforcement agencies and the attorney for the

state composed of money and proceeds of property seized and

forfeited to those officials.

(b) At least once each county fiscal year, or more often if the

county auditor desires, the auditor shall, without advance

notice, fully examine the accounts of all precinct, county and

district officials.

(c) The auditor shall verify the correctness of the accounts and

report the findings of the examination to the commissioners court

of the county at its next term beginning after the date the audit

is completed.

(d) This section does not apply to funds received by the

attorney for the state from the comptroller of public accounts

pursuant to the General Appropriations Act, or to federal or

state grant-in-aid funds received by precinct, county or district

officials.

Added by Acts 1989, 71st Leg., ch. 1007, Sec. 1, eff. Sept. 1,

1989.

Sec. 115.004. AUDIT IN COUNTY WITH POPULATION OF 190,000 OR

MORE. (a) This section applies only to a county with a

population of 190,000 or more.

(b) At the end of the fiscal year or the accounting period fixed

by law, the county auditor shall audit, adjust, and settle the

accounts of the district attorney, the district clerk, and each

county or precinct officer.

(c) If the county auditor is unable to obtain proper reports or

an adequate accounting from any of those persons, either during

or after the person's term of office, the auditor may require an

accounting and may proceed at the county's expense as the auditor

considers necessary to protect the interest of the county or of

the person entitled to any funds.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

SUBCHAPTER B. AUDIT AUTHORITY OF COMMISSIONERS COURT

Sec. 115.021. AUDIT AND SETTLEMENT OF ACCOUNTS. The

commissioners court of a county shall audit and settle all

accounts against the county and shall direct the payment of those

accounts.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 115.022. EXAMINATION OF ACCOUNTS AND REPORTS; SETTLEMENT.

(a) At each regular term, the commissioners court shall examine

all accounts and reports that relate to the county finances and

shall compare the accounts and reports with the accompanying

vouchers. The court shall see that any errors in the accounts and

reports are corrected.

(b) The court shall see that all orders made by the court that

relate to the accounts and reports are entered in the minutes of

the court and that the orders are noted on the accounts and

reports.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

SUBCHAPTER C. INDEPENDENT AUDIT AUTHORITY GENERALLY APPLICABLE

Sec. 115.031. AUDIT BY ACCOUNTANT. (a) If considered by the

commissioners court of a county to be justified by an imperative

public necessity, the court may employ a disinterested,

competent, and expert public accountant to audit all or part of

the books, records, or accounts of:

(1) the county;

(2) a district, county, or precinct officer, agent, or employee,

including the county auditor;

(3) a governmental unit of the county; or

(4) a hospital, farm, or other county institution maintained at

public expense.

(b) The commissioners court may also employ the accountant to

deal with any other matter relating to or affecting the fiscal

affairs of the county.

(c) The resolution providing for the audit must state the

reasons for the audit, such as a determination by the

commissioners court:

(1) of official misconduct, intentional omission, or negligence

in records or reports;

(2) of a misapplication, conversion, or retention of public

funds; or

(3) of a failure to keep accounts, make reports, or account for

public funds by any officer, agent, or employee of the district,

the county, or a precinct, including the officer, agent, or

employee of a depository, hospital, or other public institution

maintained for the public benefit at the public expense.

(d) The reason stated in the audit resolution may also be a

statement by the commissioners court that it considers the audit

necessary for the court to determine and fix the proper

appropriation and expenditure of public money or to determine and

fix a proper tax levy.

(e) The commissioners court may present the audit resolution in

writing at any regular or called session of the commissioners

court, but it shall lie over to the next regular term of the

court.

(f) The commissioners court shall publish the resolution once in

a newspaper of general circulation published in the county. If

there is no newspaper of general circulation published in the

county, the court shall post notice of the resolution at the

courthouse door and two other public places in the county for at

least the 10 days preceding the date the resolution is adopted.

(g) To be implemented, the resolution must be adopted by a

majority vote of the four county commissioners and must be

approved by the county judge at that next regular term of the

commissioners court.

(h) A contract entered into by the commissioners court for the

audit shall be made in accordance with statutes applicable to the

making of contracts by the commissioners court. Payment under the

contract may be made from county funds in accordance with those

statutes.

(i) In addition to the emergency powers under this section, the

commissioners court may provide for an independent audit of the

accounts and officials if the court, by an order properly entered

at any regular term, determines that the audit would best serve

the public interest. A contract for that audit is subject to the

requirements of Subsection (h).

(j) The authority given to county auditors under this subtitle,

as well as other provisions of statutes relating to district,

county, and precinct finances and accounts, is subordinate to the

powers of the commissioners court under this section.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 115.032. SPECIAL AUDIT AFTER VOTER PETITION. (a) If a

number of qualified voters residing in a county equal to at least

30 percent of the voters who voted in the county in the most

recent general gubernatorial election file a petition for an

audit with a district judge who has jurisdiction in the county,

there shall be a special audit of all county records.

(b) On the receipt of the petition, the district judge shall

determine its validity. If the judge determines that the petition

meets the requirements of Subsection (a), the judge shall

immediately employ a person to prepare a special audit of all

county records. The special auditor must have the qualifications

prescribed by law for county auditors. The special auditor is

entitled to receive as compensation for the services rendered a

reasonable fee fixed by the district judge and to be paid out of

the general fund or officers' salary fund of the county.

(c) After the preparation of the audit, it shall be filed with

the district judge.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 584, Sec. 103, eff. Sept. 1,

1989.

Sec. 115.033. AUDIT BY FINANCE COMMITTEE. (a) On the request

of the grand jury, at any term of the district court the district

judge may appoint a finance committee to examine the financial

condition of the county. The committee must be composed of three

persons who are citizens of the county, are of good moral

character and intelligence, and are experienced accountants.

(b) The committee shall examine all of the books, accounts,

reports, vouchers, and orders of the commissioners court relating

to county finances that have not been examined and reported on by

a previous committee.

(c) The committee shall count all the money in the office of the

county treasurer that belongs to the county and shall make any

other examination that it considers necessary and proper to

determine the true condition of the county finances.

(d) If necessary, and on the application of the committee, the

district court shall send for persons and evidence to help in the

investigation.

(e) On the earliest practicable day after its appointment, the

committee shall make a detailed written report to the district

court. The report must state whether the books and records

required by law are correctly kept. The report must fully set out

the financial condition of the county and the state of each

officer's account and must specify any irregularity, omission, or

wrongdoing that the committee discovers.

(f) The committee shall sign and swear to the report and file it

in the office of the district clerk. The attention of the grand

jury shall be called to the report as soon as practicable after

the filing.

(g) Each member of the committee is entitled to receive

compensation for services performed under this section at a rate

of $3 a day. The compensation shall be paid for a period not to

exceed five days and shall be paid from the county treasury on

the certificate of the district judge that states the number of

days the member has served.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

SUBCHAPTER D. INDEPENDENT AUDIT AUTHORITY OF SPECIFIC COUNTIES

Sec. 115.041. INDEPENDENT AUDIT IN COUNTY WITHOUT OFFICE OF

COUNTY AUDITOR. At least once every two years, the commissioners

court of a county that does not have the office of county auditor

shall have conducted an independent audit of the books, records,

and accounts of each of the county officers, agents, and

employees and of any other matter that relates to the county's

fiscal affairs.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 115.042. AUDIT IN COUNTIES WITH POPULATION LESS THAN

25,000. (a) The commissioners court of a county with a

population of less than 25,000 may arrange with one or more other

counties to jointly employ and compensate one or more special

auditors for the purposes set forth in Section 115.031.

(b) The commissioners court of a county affected by this section

may have an audit made of the county books, either in whole or in

part, at any time regardless of whether an arrangement can be

made under Subsection (a). The district judge or the grand jury

of the county may also order such an audit.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 115.043. AUDIT BY ACCOUNTANT IN COUNTIES WITH POPULATION OF

40,000 TO 100,000. (a) This section applies to a county with a

population of 40,000 to 100,000.

(b) On request by the grand jury, at any term of the district

court the district judge of the county shall appoint an auditor

to examine the condition of the county finances. The auditor must

be of good moral character and intelligence and must be an

experienced accountant.

(c) The auditor shall examine all of the books, accounts,

reports, vouchers, and orders of the commissioners court that

relate to the county finances, or a part of those items, as

ordered and directed by the district judge. The auditor shall

count all the money in the office of the county treasurer that

belongs to the county and shall make any other examination that

the auditor considers necessary and proper to determine the true

condition of the county finances or that is ordered by the

district judge.

(d) If necessary, and on the application of the auditor, the

district court shall summon witnesses, compel their attendance,

and require them to give testimony. The district judge shall

require the production of all books, records, and other evidence

requested or desired by the auditor to conduct the investigation.

The district judge may punish for contempt a person who violates

an order of the judge or a process issued under this section.

(e) The auditor shall make a detailed written report to the

district court at the earliest practicable date after

appointment. The report must state:

(1) the true condition of the county finances;

(2) whether the books and records required to be kept by law are

correctly maintained; and

(3) the condition of each officer's account that is included

within the scope and provisions of the judge's order.

(f) The auditor shall specify in the report each irregularity,

omission, and wrongdoing discovered. The auditor shall sign and

swear to the report and file it in the office of the district

clerk. The report must be brought to the attention of the grand

jury as soon as is practicable after the filing.

(g) The auditor is entitled to receive compensation for duties

performed under this section at a rate not to exceed $25 a day.

The compensation shall be paid for the period that is reasonably

required to perform those duties and shall be paid from the

county treasury on the certificate of the district judge that

states the number of days the auditor has served and the total

amount due.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 115.044. BIENNIAL INDEPENDENT AUDIT IN CERTAIN COUNTIES.

(a) A county with a population of 239,000 to 242,000 shall

conduct a biennial independent audit of all books, records, and

accounts of each district, county, and precinct officer, agent,

or employee, including those of the regular county auditor, and

of all governmental units of the county hospitals, farms, and

other institutions. The audit must cover all matters relating to

the fiscal affairs of the county. The audit shall be conducted in

each even-numbered year and must be completed before December 31

of the year.

(b) The commissioners court of the county shall employ a

disinterested, competent, experienced public accountant or

certified public accountant to perform the audit. The court shall

enter a contract for the audit at the first regular meeting of

the court in January of each even-numbered year. The

consideration specified in the contract shall be paid from the

general fund of the county.

(c) This section does not prevent a county from conducting an

annual independent audit of the records covered by this section.

If a county conducts annual independent audits and completes the

audits before December 31 of each year, those audits constitute

compliance with the requirements of this section.

(d) The audit required under this section is in addition to any

special audit prepared under Subchapter C or to any regular or

special audit report prepared by the regular county auditor.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1991, 72nd Leg., ch. 597, Sec. 87, eff. Sept. 1,

1991; Acts 2001, 77th Leg., ch. 669, Sec. 51, 52, eff. Sept. 1,

2001.

Sec. 115.045. ANNUAL INDEPENDENT AUDIT IN COUNTIES WITH

POPULATION OF 350,000 OR MORE. (a) A county with a population

of 350,000 or more shall conduct an annual independent audit of

all books, records, and accounts of each district, county, and

precinct officer, agent, or employee, including the regular

county auditor, and of all governmental units of the county

hospitals, farms, and other institutions. The audit shall cover

all matters relating to the fiscal affairs of the county.

(b) The commissioners court of the county shall employ a

disinterested, competent, experienced public accountant or

certified public accountant to perform the audit. The court shall

contract for the audit at the regular January meeting of the

court. The consideration specified in the contract shall be paid

from the general fund of the county.

(c) The audit required under this section is in addition to any

special audit prepared under Subchapter C or to any regular or

special audit report prepared by the regular county auditor.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

SUBCHAPTER Z. MISCELLANEOUS PROVISIONS

Sec. 115.901. EXAMINATION OF CERTAIN RECORDS BY COUNTY AUDITOR

OR COUNTY TREASURER. (a) The county auditor or, in a county

that does not have the office of county auditor, the county

treasurer, shall examine the accounts, dockets, and records of

each clerk, justice of the peace, and constable and of the

sheriff and county tax assessor-collector to determine if any

money belonging to the county and in the possession of the

officer has not been accounted for and paid over according to

law.

(b) If the auditor or treasurer finds that such money does

exist, the auditor or treasurer shall report the findings of the

examination to the commissioners court of the county at its next

term for the purpose of instituting a suit for the recovery of

the money.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 979, Sec. 1, eff. Aug. 28,

1989.