As used in this chapter:

1. (1) "Agency governing board" is any board or commission that has policy making and oversight responsibility over the agency, including the authority to appoint and remove the agency director.
2. (2) "Agency head" means a cabinet officer, an elected official, an executive director, or a board or commission vested with responsibility to administer or make policy for a state agency.

3. (3) "Agency internal audit director" or "audit director" means the person who:

   1. (a) directs the internal audit program for the state agency; and
   2. (b) is appointed by the audit committee or, if no audit committee has been established, by the agency head.

4. (4) "Appointing authority" means:

   1. (a) the governor, for state agencies other than the State Tax Commission;
   2. (b) the Judicial Council, for judicial branch agencies;
   3. (c) the Utah Board of Higher Education, for higher education entities;
   4. (d) the State Board of Education, for entities administered by the State Board of Education; or
   5. (e) the four tax commissioners, for the State Tax Commission.

5. (5) "Audit committee" means:

   1. (a) a standing committee composed of members who:

      1. (i) are appointed by an appointing authority;

      2. (ii)

         1. (A) do not have administrative responsibilities within the agency; and
         2. (B) are not an agency contractor or other service provider; and
      3. (iii) have the expertise to provide effective oversight of and advice about internal audit activities and services; or
   2. (b) for an institution of higher education, as that term is defined in Section 53H-1-101, the institution's board of trustees or a subcommittee of the institution's board of trustees.
6. (6) "Audit plan" means a prioritized list of audits to be performed by an internal audit program within a specified period of time.
7. (7) "Higher education entity" means the Utah Board of Higher Education, an institution of higher education board of trustees, or each higher education institution.
8. (8) "Internal audit" means an independent appraisal activity established within a state agency as a control system to examine and evaluate the adequacy and effectiveness of other internal control systems within the agency.

9. (9) "Internal audit program" means an audit function that:

   1. (a) is conducted by an agency, division, bureau, or office, independent of the agency, division, bureau, or office operations;
   2. (b) objectively evaluates the effectiveness of agency, division, bureau, or office governance, risk management, internal controls, and the efficiency of operations; and

   3. (c) is conducted in accordance with the current:

      1. (i) International Standards for the Professional Practice of Internal Auditing; or
      2. (ii) The Government Auditing Standards, issued by the Comptroller General of the United States.
10. (10) "Judicial branch agency" means each administrative entity of the judicial branch.

11. (11)

    1. (a) "State agency" means:

       1. (i) each department, commission, board, council, agency, institution, officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the state; or
       2. (ii) each state public education entity.

    2. (b) "State agency" does not mean:

       1. (i) a legislative branch agency;
       2. (ii) an independent state agency as defined in Section 63E-1-102;
       3. (iii) a county, municipality, school district, special district, or special service district; or
       4. (iv) any administrative subdivision of a county, municipality, school district, special district, or special service district.

Amended by Chapter 231, 2026 General Session