2004 Regular Session
By: Representative Brown
AN ACT TO AMEND SECTIONS 25-65-9 AND 25-65-25, MISSISSIPPI CODE OF 1972, TO REMOVE THE CONDITION THAT FUNDS MUST BE SPECIFICALLY APPROPRIATED FOR THE EMPLOYMENT OF AN INTERNAL AUDIT DIRECTOR AND STAFF BEFORE UNIVERSITIES, COMMUNITY/JUNIOR COLLEGES AND STATE AGENCIES MUST EMPLOY AN INTERNAL AUDIT DIRECTOR AND STAFF; TO AMEND CHAPTER 437, LAWS OF 2003, TO EXTEND UNTIL JULY 1, 2006, THE DATE BY WHICH UNIVERSITIES, COMMUNITY/JUNIOR COLLEGES AND AGENCIES MUST COMPLY WITH THE PROVISIONS OF THE INTERNAL AUDIT LAW; TO REMOVE THE CONDITION THAT FUNDS MUST BE SPECIFICALLY APPROPRIATED FOR THE IMPLEMENTATION OF THE INTERNAL AUDIT LAW BEFORE UNIVERSITIES, COMMUNITY/JUNIOR COLLEGES AND AGENCIES MUST COMPLY WITH THE PROVISIONS OF THAT LAW; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 25-65-9, Mississippi Code of 1972, is amended as follows:
25-65-9. (1) Except as otherwise provided by subsection (2) of this section, each university, community/junior college and state agency shall * * * employ an agency internal audit director who shall be appointed by the university president or chancellor, the community/junior college president, elected official or executive director or his counterpart of a state agency without a governing board or commission. The university president or chancellor, the community/junior college president or the agency head shall ensure that the university, community/junior college or agency shall employ * * * a sufficient number of professional and support staff to implement an effective program of internal auditing. Compensation, training, job tenure and advancement of internal auditing staff shall be based upon the rules of the State Personnel Board for other business employees in the system. The internal audit organization shall have organizational status outside the agency's staff or line management functions or units subject to audit, and shall be free of operational and management responsibilities that would impair the ability to make independent audits of any aspects of the agency's operations. An agency, university or community/junior college internal audit director may be terminated by the appointing authority in accordance with State Personnel Board rules and regulations for any state employee after a seven (7) day notification period to the State Auditor.
(2) The university president or chancellor, the community/junior college president or agency head of a university, community/junior college or state agency, respectively, may outsource the internal audit function if he determines that it is more cost efficient than establishing the audit personnel and procedures provided in subsection (1) of this section. Internal audit services may not be outsourced to the same firm or individual who performs independent audit or other consulting services to the university, community/junior college or agency.
SECTION 2. Section 25-65-25, Mississippi Code of 1972, is amended as follows:
25-65-25. (1) The university, community/junior college or agency head shall make available to the internal audit director adequate resources * * * to ensure the professional development and continuing professional education of the internal audit staff.
(2) The internal audit director shall cooperate with the State Auditor or other external auditor in the exchange of technical assistance and access to current information concerning audit techniques, policies and procedures.
SECTION 3. Section 18 of Chapter 437, Laws of 2003, is amended as follows:
Section 18. This act shall take effect and be in force from and after July 1, 2003, and the universities, community/junior colleges and agencies identified in this act shall comply with the provisions of this act not later than July 1, 2006.
SECTION 4. This act shall take effect and be in force from and after July 1, 2004.