In this chapter:

1. (1) "Audit plan" has the meaning assigned by Section 321.001.
2. (2) "Commission" means the Sunset Advisory Commission.

3. (3) "Efficiency audit" means an evaluation of the economy, efficiency, and effectiveness of state agency operations, including:

   1. (A) determining whether the state agency is managing or using its resources, including state money, personnel, property, equipment, and space, in an economical and efficient manner;
   2. (B) identifying causes of inefficiencies or uneconomical practices, including inadequacies in management information systems, internal and administrative procedures, organizational structure, use of resources, allocation of personnel, purchasing, agency policies, and equipment;
   3. (C) determining whether financial, program, and statistical reports of the state agency contain useful data and are fairly presented;

   4. (D) determining whether the objectives and intended benefits of the agency's program are being achieved efficiently and effectively, according to:

      1. (i) established or designated:

         1. (a) program objectives;
         2. (b) responsibilities or duties;
         3. (c) program performance criteria; or
         4. (d) program evaluation standards; or
      2. (ii) statutes and rules; and
   5. (E) determining whether the agency's program duplicates, overlaps, or conflicts with another state program.
4. (4) "External auditor" means a private entity selected by the state auditor to conduct an efficiency audit of a state agency.
5. (5) "Legislative audit committee" means the committee described by Section 321.002.
6. (6) "State agency" means an entity expressly made subject to Chapter 325 (Texas Sunset Act) other than an entity listed in Section 325.025(b).

Added by Acts 2025, 89th Leg., R.S., Ch. 360 (H.B. 12), Sec. 6, eff. September 1, 2025.