LOCAL GOVERNMENT CODE

CHAPTER 103. AUDIT OF MUNICIPAL FINANCES


	§ 103.001.  ANNUAL AUDIT;  FINANCIAL STATEMENT.  (a)  A 
municipality shall have its records and accounts audited annually 
and shall have an annual financial statement prepared based on the 
audit.
	(b)  A municipality subject to Section 16.356, Water Code, 
must include in its financial statement a specific report on 
compliance with that section.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1999, 76th Leg., ch. 404, § 1, eff. Sept. 1, 1999.


	§ 103.002.  AUDITOR.  A municipality whose records and 
accounts are not audited annually by a person prescribed by 
statute, by charter, or by a person in the regular employ of the 
municipality shall employ at its own expense a certified public 
accountant who is licensed in this state or a public accountant who 
holds a permit to practice from the Texas State Board of Public 
Accountancy to conduct the audit and to prepare the annual 
financial statement.

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


	§ 103.003.  FILING;  PUBLIC RECORD.  (a)  The annual 
financial statement, including the auditor's opinion on the 
statement, shall be filed in the office of the municipal secretary 
or clerk within 120 days after the last day of the municipality's 
fiscal year.
	(b)  The financial statement is a public record.                               

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


	§ 103.004.  VALUATION OF CERTAIN BENEFIT 
PROGRAMS.  (a)  A municipality that provides a continuing 
organized program of service retirement benefits, disability 
retirement benefits, or death benefits for any of its officers or 
employees must include in the annual financial statement a 
valuation of the financial assets and liabilities of the program as 
shown in the most recent actuarial valuation of the program.
	(b)  This section does not apply to:                                           
		(1)  a program for which the only funding agency is a 
life insurance company;
		(2)  a program providing only workers' compensation 
benefits;  or           
		(3)  a program administered by the municipality as a 
member of the Texas Municipal Retirement System.

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