Senate Bill 2932

AN ACT TO AMEND SECTION 25-65-9, MISSISSIPPI CODE OF 1972, TO REQUIRE EACH UNIVERSITY, COMMUNITY/JUNIOR COLLEGE AND STATE AGENCY TO EMPLOY AN AGENCY INTERNAL AUDIT DIRECTOR WITHOUT THE REQUIREMENT FOR SPECIFIC APPROPRIATION OF AVAILABLE FUNDING; TO AMEND SECTIONS 25-65-19, 25-65-21 AND 25-65-31, MISSISSIPPI CODE OF 1972, TO REQUIRE THE SUBMISSION OF CERTAIN REPORTS TO THE STATE AUDITOR; 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 * * *of 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, 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 25-65-19, Mississippi Code of 1972, is amended as follows:

25-65-19. (1) At the conclusion of each audit, the internal audit director shall submit preliminary findings and recommendations to the person responsible for supervision of the program, activity, function or organizational unit being audited who shall respond in writing to any findings of the internal audit director within forty-five (45) working days or less at the discretion of the university president or chancellor, the community/junior college president or state agency director after receipt of the findings. Such response and, if necessary, the agency internal audit director's response may be included in the final audit report.

(2) University, community/junior college or the agency internal audit director shall submit the final report * * *~~, which shall be available~~ to the State Auditor * * * ~~upon request~~, to the head of the university, community/junior college, or agency * * * ~~and the State Auditor~~.

SECTION 3. Section 25-65-21, Mississippi Code of 1972, is amended as follows:

25-65-21. (1) No later than six (6) months or less at the discretion of the university president or chancellor, the community/junior college president or state agency director after a financial, compliance, electronic data processing or performance audit is issued, the agency internal audit director shall inform the university president or chancellor, the community/junior college president or the agency head and audit committee of the status of corrective actions taken by the university, community/junior college or agency manager responsible for supervision of the program, activity, function or organizational unit audited.

(2) If a follow-up report is issued, the university, community/junior college or agency internal audit director shall submit the report to the State Auditor, head of the university, community/junior college or agency and the audit committee. The follow-up report shall be provided upon request to any member of the Legislature, * * * ~~the State Auditor,~~ the Attorney General, the Governor or other external auditor.

SECTION 4. Section 25-65-31, Mississippi Code of 1972, is amended as follows:

25-65-31. Within one hundred twenty (120) days after the end of each fiscal year, the university, community/junior college or agency internal audit director shall issue an annual report which separately lists audit reports issued, and other activities completed or in progress as of the end of the fiscal year. The annual report shall describe accomplishments of the internal audit activities. Copies of the report shall be provided to the State Auditor, the governing board or commission and the university president or chancellor, the community/junior college president or the agency head and the audit committee. The annual report shall be provided upon request to * * * ~~the State Auditor or other~~ any external auditor.

SECTION 5. This act shall take effect and be in force from and after July 1, 2019.