, - 

TEEAT&ZNEZY GENERAL 

OF TEXAS 

Auarrmv. TKXASI 7B7ll 

September 30, 1977 

The Honorable Bob Bullock Opinion No. H-1063 

Comptroller of Public Accounts 

State of Texas Re: Audit authority of the 

Austin, Texas 78774 Comptroller. 

Dear Mr. Bullock: 

You seek our opinion as to whether you possess audit 

authority under various statutes. Article 4344, V.T.C.S., provides: 

Among other duties the Comptroller shall: 

. . . . 

3. Superintend the fiscal concerns of the 

State, as the sole accounting officer 

thereof, and manage the same in the manner 

required by law. 

Article 1.03, Taxation-General, provides: 

The Comptroller shall have power at any 

time to examine and check up all and any 

expenditures of money appropriated for 

any of the state institutions or for any 

other purpose or for improvements made 

by the State on State property or money 

received and disbursed by any board authorized by law to receive and disburse any 

State money. The Comptroller shall also 

have power and authority and it is hereby 

made his duty, to fully investigate any 

State institution when so directed by the 

Governor or required by information coming 

to his own knowledge. He shall investigate the manner of conducting the same and 

the policy pursued by those in charge 

thereof, and the conduct or efficiency of 

any person employed therein by the State. 

He shall examine into and report upon the 

p. 4560 
The Honorable Bob Bullock - Page 2 (H-1063) 

character and manner as well as the amount 

of expenditures thereof, and investigate 

and ascertain all sums of money due the 

State from any source whatever, the ascertainment and collection of which does not 

devolve upon other officers of this State 

under existing law; and he shall report all 

such facts to the Governor. When the Comptroller, acting under the direction'of the 

Governor, calls on any person connected 

with the public service to inspect his 

accounts, records or books, said person 

so called upon shall submit to said agent 

all books, records and accounts so called 

for without delay. 

In addition you call our attention to the following provision contained in both the 1975 and 1977 appropriations acts. 

AUDITS. None of the appropriations herein 

made shall be used to employ any firm or person to audit the books of any department, 

board, commission, institution or State agency, 

this being the duty of the State Auditor. . . . 

. . . . 

Notwithstanding other provisions of this 

Act, any state agency providing grants or 

operating funds for governmental programs to 

local governmental units, private corporations, 

or other organizations other than a state agency 

or a department, may require, as a condition to 

granting or providing such funds, that the receiving entity have a yearly independent audit 

performed and transmitted to the state agency. 

If sufficient personnel are available, the 

state agency may have its internal audit staff 

make a yearly inspection visit to the local 

entity. 

General Appropriations Act, Acts 1975, 64th Leg., ch. 743, at 

2860 - 2861. General Appropriations Act, 65th Leg., art. V, 

s 30. 

In essence, you inquire whether these provisions authorize 

the Comptroller to exercise auditing authority over State agencies, 

and if so, how certain practical problems with respect to such 

audit authority should be resolved. We note that you inquire 

p. 4561 
-. 

, 

The Honorable Bob Bullock - Page 3 (H-1063) 

about the kind of investigation the Comptroller may make on his 

own motion, and not an investigation made at the Governor's 

request. Consequently, we do not address the Comptroller's 

authority when acting on the Governor's command. 

Although article 1.03 has been modified on various occasions, the basic language of the statute was enacted in 1899. 

Acts 1899, 26th Leg., ch. 23, at 26. The office of State Auditor 

was created 30 years later and was vested with broad auditing 

powers, Acts 1929, 41st Leg., 1st called session, ch. 91, at 

222. -- See also Acts 1943, 48th~Leg., ch. 293, at 429. 

We believe the Legislature has manifested its intent 

over the years that the function of auditing other agencies 

belongs to the State Auditor. For example, the Legislature 

which created the Office of State Auditor did not interpret 

article 1.03 as providing the Comptroller with broad power to 

audit other agencies. The emergency clause of the 1929 Act 

establishing the Auditor's office and duties provided: 

The fact that there is now no State Auditor 

and no official designated to audit and 

investigate the custodians of public funds 

and the various departments of the State 

Government create an emergency. . . . 

Acts 1929, 41st Leg., 1st called session, ch. 91, at 225. 

(Emphasis added). Additionally the appropriations act rider 

quoted above clearly indicates the legislative understanding 

that the basic audit authority is vested in the State Auditor. 

The interpretation of a statute by a subsequent Legislature is 

not controlling, but it is entitled to great weight. TexasLouisiana Power Co. v. City of Farmersville, 67 S.W.Zd 235 

(Tex. Comm'n. App. 1933, jdgmt adopted); Neff v. Elgin, 270 

S.W. 873 (Tex. Civ. App. -- San Antonio 1925, writ ref'd). 

In 1948, the Attorney General addressed the effect the 

creation of the State Auditor's Office had on other state 

officers who had statutory authority to conduct audits. The 

statute involved in that opinion was article 4400 which authorized the Attorney General to make a monthly inspection of the 

accounts of the Comptroller and Treasurer. Letter Opinion 

R-1404 (1948) at 6 concluded: 

It is apparent . . . that the duties 

imposed upon the State Auditor and Efficiency Expert by the Act of 1929 and 

upon the State Auditor by the Act of 

p. 4562 
The Honorable Bob Bullock - Page 4 (H-1063) 

1943 included the duties imposed upon 

the Attorney General by the first sentence 

in Article 4400. It is our opinion the 

effect of these Acts was to repeal the 

above-mentioned sentence by implication. 

Accordingly, we believe that the 1929 and 1943 legislation 

removed any independent authority the Comptroller might have 

previously had to initiate investigations and examinations of 

the books and records of state agencies when those activities 

would duplicate or parallel the duties of the State Auditor. 

As far as we can determine, this interpretation has not been 

questioned by prior Comptrollers. We believe this determination is reflected in the rider which prohibits agencies from 

expending state funds for activities which are the responsibility 

of the Auditor. See Attorney General Opinion M-1199 (1972) where 

the same rider waxeld to be valid. 

SUMMARY 

The Comptroller of Public Accounts is not 

authorized to conduct audits of other state 

agencies when such audits would parallel 

or duplicate the duties of the State Auditor. 

APPROVED: 

Very truly yours, 

Y3sLLey 

DAVID M. KENDALL, First SSiStant 

C. ROBERT HEATH, Chairman 

Opinion Committee 

p. 4563