CFC (TSBVI) Accounting: Audits


The Internal Audit Director shall prepare an annual report and submit it before November 1 of each year to the Governor, the LBB, the State Auditor, TSBVI Board and Superintendent. Gov’t. Code 2102.009

The State Auditor’s Office, in accordance with the state audit plan approved by the Legislative Audit Committee, may conduct financial audits, compliance audits and investigations, economy and efficiency audits, effectiveness audits, special audits, and investigations as defined by Government Code Chapter 321 and specified in the audit plan. Gov’t. Code 321.013(f)

Other governmental entities with oversight responsibility may conduct audits as allowed by law or rule. TSBVI’s Board may request, by resolution of the Board, a special audit conducted by the State Auditor.

TSBVI may employ a qualified private auditor only if the State Auditor first delegates that authority and grants permission to contract after reviewing the scope of the proposed audit and selection of the private auditor is procured through a competitive selection process. Gov’t. Code 321.020

Cooperating with HHSC Auditors and Federal Regulators

TSBVI staff will promptly cooperate with TSBVI’s Internal Auditor and coordinate efforts to respond and comply with outside auditors, inspectors and/or investigators from the Texas Health and Human Services Commission (HHSC) or federal regulatory agencies with oversight responsibilities. [See Medicaid Administrative Claims Contract requirements.]


TSVBI may not use appropriated money to contract with a person to audit the financial records or accounts of the School except:

  1. for the appointment of an internal auditor under Government Code 2102.005 or to contract with the state auditor; or
  2. to finance a supplemental audit of payments received from the government of the United States if the audit is required as a condition of receipt of the money and an amount for the audit is provided by the federal grant, allocation, aid, or other payment.

Gov’t. Code 2113.102

Before selection of a private auditor, the auditing firm’s most recent peer review report must be shared with the TSBVI Board. It is recognized by TEA that the best practices standard for selecting an auditor under contract includes the following requirements:

  1. The auditor must be associated with a certified public accounting firm (CPA) that has a current valid license issued by the Texas State Board of Accountancy.
  2. The auditor must be a CPA with a current valid license issued by the Board of Accountancy or be a certified internal auditor with at least three years of auditing experience, and
  3. Adhere to the generally accepted auditing standards (GAAS) adopted by the American Institute of CPAs (AICPA), as amended and the generally accepted government auditing standards (GAGAS) adopted by the US Government Accountability Office, as amended.

Additionally, the CPA firm must:

  1. be a member of AICPA Governmental Audit Quality Center (GAQC);
  2. adhere to GAQC’s membership requirements; and
  3. collectively have the knowledge, skills, and experience to be competent in the audit being conducted, including thorough knowledge of the government auditing requirements and the Texas public school.

[See 19 TAC 109.23]

Adopted:         5/8/81

Amended:       1/14/83, 3/25/94, 9/29/95, 9/26/97, 3/21/03, 11/19/04, 4/6/18, 11/15/19, 4/9/21