As used in this chapter:

1. (1) "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.
2. (2) "Agency internal audit director" or "audit director" means the person appointed by the agency head, with the approval of the audit committee if one has been established, to direct the internal audit function for the state agency.

3. (3) "Appointing authority" means:

   1. (a) the governor, for state agencies;
   2. (b) the Judicial Council, for judicial branch agencies;
   3. (c) the Board of Regents, for higher education entities; and
   4. (d) the State Board of Education, for the State Office of Education.

4. (4) "Audit committee" means a standing committee whose members are appointed by an appointing authority:

   1. (a) from members of the agency governing board; and
   2. (b) from individuals who do not have administrative responsibilities within the agency who have the expertise to provide effective oversight of and advice about internal audit activities and services.
5. (5) "Audit plan" means a list of audits to be performed by the internal audit organization within a specified period of time.
6. (6) "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.
7. (7) "Higher education entity" means the board of regents, the institutional councils of each higher education institution, and 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 control systems within the agency.
9. (9) "Judicial branch agency" means each administrative entity of the judicial branch.

10. (10)

    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; and
       2. (ii) each state public education entity.

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

       1. (i) a legislative branch agency;
       2. (ii) an independent agency;
       3. (iii) a county, municipality, school district, local district, or special service district; or
       4. (iv) any administrative subdivision of a county, municipality, school district, local district, or special service district.