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Restricted Expenditures — Contracts and Bids
Audit Services (Contracted)

State Agencies

Except as otherwise described in this section, a state agency may not use appropriated money to contract with a person to audit the financial records or accounts of the agency. Exceptions include:

  • Contracts with the state auditor.
  • Audits authorized by the:
    • Texas Lottery Commission
    • Texas Department of Housing and Community Affairs
    • Texas Turnpike Division of the Texas Department of Transportation

A state agency may use appropriated money 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.


Appropriated money
Money appropriated by the Legislature through the General Appropriations Act (GAA) or other law. (Texas Government Code Section 2113.001(1))
State agency
  • A department, commission, board, office or other agency in the executive branch of state government.
  • The Supreme Court, the Court of Criminal Appeals, another entity in the judicial branch of state government with statewide authority or a court of appeals.
  • A university system or institution of higher education as defined by Texas Education Code Section 61.003, except a public junior college, which is excluded from the meaning of the term. (Texas Government Code Section 2151.002)

Sources [+]

Texas Government Code Section 2113.102(a)-(b), (d); Opinion of the Texas Attorney General NOS. MW-192 (1980), H-1063 (1977), M-1199 (1972).

Documentation Requirements [+]

  1. If a state agency submits a purchase voucher to pay for a supplemental audit required by the United States, the state agency must retain in its files supporting documentation on:
    • The type of audit performed for the supplemental federal audit, and
    • A statement declaring the audit was required by the U.S. and if federal funds were used.