Sec. 321.022.  COORDINATION OF INVESTIGATIONS.  (a)  If the administrative head of a department or entity that is subject to audit by the state auditor has reasonable cause to believe that money received from the state by the department or entity or by a client or contractor of the department or entity may have been lost, misappropriated, or misused, or that other fraudulent or unlawful conduct has occurred in relation to the operation of the department or entity, the administrative head shall report the reason and basis for the belief to the state auditor.  The state auditor may investigate the report or may monitor any investigation conducted by the department or entity.
(b)  The state auditor, in consultation with state agencies and institutions, shall prescribe the form, content, and timing of a report required by this section.
(c)  All records of a communication by or to the state auditor relating to a report to the state auditor under Subsection (a) are audit working papers of the state auditor.
Added by Acts 1997, 75th Leg., ch. 1122, Sec. 7, eff. Sept. 1, 1997.