LOCAL GOVERNMENT CODE
CHAPTER 115. AUDIT OF COUNTY FINANCES
SUBCHAPTER A. AUDIT AUTHORITY OF COUNTY AUDITOR
§ 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, § 1, eff. Sept. 1, 1987.
§ 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, § 1, eff. Sept. 1, 1987.
§ 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, § 1, eff. Sept. 1, 1987.
§ 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, § 1, eff. Sept. 1, 1989.
§ 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, § 1, eff. Sept. 1, 1987.
SUBCHAPTER B. AUDIT AUTHORITY OF COMMISSIONERS COURT
§ 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, § 1, eff. Sept. 1, 1987.
§ 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, § 1, eff. Sept. 1, 1987.
SUBCHAPTER C. INDEPENDENT AUDIT AUTHORITY GENERALLY APPLICABLE
§ 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, § 1, eff. Sept. 1, 1987.
§ 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, § 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 584, § 103, eff. Sept. 1, 1989.
§ 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, § 1, eff. Sept. 1, 1987.
SUBCHAPTER D. INDEPENDENT AUDIT AUTHORITY OF SPECIFIC COUNTIES
§ 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, § 1, eff. Sept. 1, 1987.
§ 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, § 1, eff. Sept. 1, 1987.
§ 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, § 1, eff. Sept. 1, 1987.
§ 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, § 1, eff. Sept. 1, 1987. Amended
by Acts 1991, 72nd Leg., ch. 597, § 87, eff. Sept. 1, 1991; Acts
2001, 77th Leg., ch. 669, § 51, 52, eff. Sept. 1, 2001.
§ 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, § 1, eff. Sept. 1, 1987.
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
§ 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, § 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 979, § 1, eff. Aug. 28, 1989.
