State Agency Coordinating Committee STATE AGENCY INTERNAL AUDIT

State Agency Coordinating Committee STATE AGENCY INTERNAL AUDIT January 18, 2019 FORUM

Agenda • Introductions • Approval of Minutes – October 19 th • SAO Presentation- Common Issues of Financial Processes Audits • Committee Updates • Open Comments • Adjourn 2

Approval of Minutes 3

SAO Presentation 4

Committee Updates 5

Legislative Issues Committee Chair Objective / Deliverable • To monitor proposed legislation that may directly or indirectly impact the Internal Audit function. • To provide SAIAF members a summary of pending legislation impacting the Internal Audit (IA) function (e. g. , scope of work, resources, mandates, and other high risks audit areas). Bill of Interest SB 127 - Excerpt within Bill Relates to Internal Auditing • Bill Caption: Relating to oversight of and requirements applicable to state agency contracting and procurement • Author – Nelson: Possible Impact to Internal Auditing, Procurement and Contract Policy & Procedures, Information Technology Storage, Records Retention, and State Auditor Duties. Proposed Amendment to Government Code Section 2102. 005 Added language: (b) In conducting the internal auditing program under Subsection (a), a state agency shall consider methods for ensuring compliance with contract processes and controls and for monitoring agency contracts. State Agency Internal Audit Forum

86 th Texas Legislative: Regular Session q Total Bills Introduced = 1, 360 q 29 bills passed as of 1/16/19 ü Passed bills generally relate to tributes in memory of Veterans and other special and government service recognitions, establishment of rules for House for the session, floor privileges, etc. ü HCR (House Concurrent Resolution) #6 - Adjourn for 3 days during period beginning January 16, 2019. Source: Texas Legislature Online

IALDP Update 8

Open Comments 9

Motion to Adjourn Next Meeting Date: Physical Location: February 15, 2019 Tx. DOT 10