S.B. 205                                                         VETOES

Article - State Government

SUBTITLE 10. INTERNAL AUDITS
10-1001.

(A)     IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(B)      "AGENCY" MEANS EVERY AGENCY, BOARD, BUREAU, COMMISSION,
COUNCIL, DEPARTMENT, OR INSTITUTION IN THE EXECUTIVE BRANCH OF THE
STATE GOVERNMENT.

(C)      "AGENCY HEAD" MEANS THE EXECUTIVE HEAD OF AN AGENCY.

(D)     "CHIEF INTERNAL AUDITOR" MEANS THE PERSON EMPLOYED
DESIGNATED BY AN AGENCY TO DIRECT INTERNAL AUDITS FOR THE AGENCY.

(E)      "INTERNAL AUDIT" MEANS AN EXAMINATION AND EVALUATION OF THE
ADEQUACY AND EFFECTIVENESS OF AN AGENCY'S SYSTEM OF:         

(1)      SYSTEM OF INTERNAL CONTROL;

(2)       COMPLIANCE WITH THE LAW;

(3)       COMPLIANCE WITH RULES AND REGULATIONS; AND

(4)      QUALITY OF PERFORMANCE IN CARRYING OUT ITS
RESPONSIBILITIES.

10-1002.

(A)     EACH AGENCY THAT PERFORMS INTERNAL AUDITS SHALL EMPLOY:

(1)      DESIGNATE A CHIEF INTERNAL AUDITOR; AND

(2)      AS THE AGENCY HEAD DETERMINES. TO BE NECESSARY TO
IMPLEMENT AN EFFECTIVE PROGRAM OF INTERNAL AUDITS, ADDITIONAL THAT
INCLUDES. AS THE AGENCY HEAD DETERMINES TO BE NECESSARY, PROFESSIONAL
AND SUPPORT STAFF THAT HAVE THE TECHNICAL PROFICIENCY AND
EDUCATIONAL BACKGROUND APPROPRIATE FOR THE PERFORMANCE OF THE^:
AUDITS.

(B)     THE AGENCY HEAD SHALL APPOINT THE CHIEF INTERNAL AUDITOR.

(C) (B) THE CHIEF INTERNAL AUDITOR SHALL:

(1) PREFERABLY BE EITHER A CERTIFIED PUBLIC ACCOUNTANT OR A
CERTIFIED INTERNAL AUDITOR; AND

        (2) HAVE AT LEAST 3 YEARS OF AUDITING EXPERIENCE.

10-1003.                                           

THE CHIEF INTERNAL AUDITOR OF AN AGENCY SHALL:

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