Senate Bill 2811

AN ACT TO AMEND SECTIONS 25-65-7 AND 25-65-9, MISSISSIPPI CODE OF 1972, TO REQUIRE INTERNAL AUDIT OFFICES TO BE ESTABLISHED IN THE UNIVERSITIES AND CERTAIN STATE AGENCIES; TO PROVIDE FOR AN INTERNAL AUDIT UNIT TO BE ESTABLISHED AT THE MISSISSIPPI COMMUNITY COLLEGES BOARD TO SERVE THE INTERNAL AUDIT NEEDS OF THE STATE'S COMMUNITY COLLEGES; TO PRECONDITION THE ESTABLISHMENT OF A COMMUNITY COLLEGE INTERNAL AUDIT FUNCTION ON THE SPECIFIC APPROPRIATION OF FUNDS FOR THAT PURPOSE TO THE STATE BOARD FOR COMMUNITY COLLEGES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 25-65-7, Mississippi Code of 1972, is amended as follows:

25-65-7. (1) The provisions of this chapter shall only apply (a) to the following universities: (i) Alcorn State University, (ii) Delta State University, (iii) Jackson State University, (iv) Mississippi State University, (v) Mississippi State University Agriculture and Forestry Experiment Station, (vi) Mississippi State University Cooperative Extension Service, (vii) Mississippi State University Forest and Wildlife Research Center, (viii) Mississippi State University State Chemical Laboratory, (ix) Mississippi University for Women, (x) Mississippi Valley State University, (xi) The University of Mississippi, (xii) University of Mississippi Medical Center and * * *~~the~~ (xiii) The University of Southern Mississippi; * * * and ( * * *cb) to the following agencies: (i) the Department of Finance and Administration, (ii) the * * * ~~State Tax Commission~~ Department of Revenue, (iii) the Department of Education, (iv) the State Department of Health, (v) the Department of Mental Health, (vi) the Department of Agriculture and Commerce, (vii) the Mississippi Development Authority, (viii) the Department of Environmental Quality, (ix) the Department of Wildlife, Fisheries and Parks, (x) the Department of Corrections, (xi) the Division of Medicaid, (xii) the Department of Rehabilitation Services, (xiii) the Department of Public Safety, (xiv) the Mississippi Employment Security Commission, (xv) the Mississippi Department of Information Technology Services, (xvi) the Public Employees Retirement System, (xvii) the Mississippi Department of Transportation, (xviii) the Mississippi Gaming Commission and (xix) the Mississippi Department of Human Services.

(2) If the conditions of Section 25-65-9 are met, the requirements of this chapter shall also apply to the following community/junior colleges: (i) Coahoma Community College, (ii) Copiah-Lincoln Community College, (iii) East Central Community College, (iv) East Mississippi Community College, (v) Hinds Community College, (vi) Holmes Community College, (vii) Itawamba Community College, (viii) Jones County Junior College, (ix) Meridian Community College, (x) Mississippi Delta Community College, (xi) Mississippi Gulf Coast Community College, (xii) Northeast Mississippi Community College, (xiii) Northwest Mississippi Community College, (xiv) Pearl River Community College and (xv) Southwest Mississippi Community College.

SECTION 2. 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, subject to specific appropriation of available funding, employ an agency internal audit director who shall be appointed by the university president or chancellor * * * or the elected official or executive director or his counterpart of a state agency without a governing board or commission. The university president or chancellor * * * or the agency head shall ensure that the university * * *~~, community/junior college~~ or agency shall employ, subject to specific funding being appropriated, 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 * * *, or 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 * * *, or 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.

(3) (a) Internal auditing of all community and junior colleges is mandatory if the Legislature appropriates funds to the State Board for Community Colleges specifically for the purpose of staffing and maintaining an internal audit unit charged with the responsibility of scheduling and conducting audits of the community colleges and reporting their findings, conclusions and recommendations to the presidents of the community colleges. If the Legislature funds the internal audit function, internal auditors shall work with the presidents of each community college to establish schedules, priorities, and other practices necessary to make internal auditing effective.

(b) An internal audit unit established by authority of this section shall be headed by an internal auditor appointed by the Mississippi Community Colleges Board. The internal auditor and staff shall meet all qualifications set out for internal auditors in this chapter, and shall have the duties and responsibilities of internal auditors set out by this chapter. Any reference in this chapter to a community or junior college internal auditor shall mean the internal audit unit established by authority of this section.

SECTION 3. This act shall take effect and be in force from and after July 1, 2022.