The Attorney General of Texas
April 11, 1978
JOHN L. HILL
Attorney General
Mr. Ron Jackson Opinion No. H- 115 2
Executive Director
Texas Youth Council Re: Authority of TYC to use
8900 Shoal Creek Community Assistance funds to
Austin, Texas 78766 reimburse recipients of such
funds for expenses of outside
audits.
Dear Mr. Jackson:
You have requested our opinion as to the authority of your agency to
use Community Assistance funds to reimburse recipients of such funds for
expenses of having outside audits conducted which are required by law. It is
our opinion that such use of these appropriated funds is implicitly authorized.
Article 3, section 44 of the Texas Constitution provides that “[tl he
Legislature . . . shall not . . . grant, by appropriation or otherwise, any
amount of money out of the Treasury of the State, to any individual, on a
claim, real or pretended, when the same shall not have been provided for by
pre-axisting law. . . .I’ In addition to the requirement of pre-existing law,
article 8, section 6 provides that “[nlo money shall be drawn from the
Treasury but in pursuance of specific appropriations made by law.” We find
the pre-existing law for the requested use of Texas Youth Council (TYC)
funds to be article 5143d, section 6, V.T.C.S. The specific appropriation is
item 5f? “Community Assistance,” of the 1977 appropriations. General
Appropriations Act, Acts 1977, 65th Leg., ch. 872, art. II, at 2786.
Article 5143d, establishing the Texas Youth Council, provides in part:
Sec. 6. The Texas Youth Council shall:
. . .
(e)(l) Assist local communities by providing services
and funding for programs for the pre-delinquent and
p. 4674
Mr. Ron Jackson - Page 2 (H-1152)
delinquent through contracts with local public and private
nonprofit entities which volunteer for such assistance when
funds are available for the purpose. Such assistance shall be
granted under the following terms and conditions:
(A) Rules and Regulations of the Texas Youth Council. (il
The Texas Youth Council shall prescribe such rules, regula-
tions, priorities, and standards, not inconsistent with the
Constitution and laws of this state, as it considers necessary
and appropriate to insure adequate services by the local
entity rendering the service.
. . .
(D) Programs and Services to be Audited. All services
and programs funded by authority of this subsection shall be
monitored and evaluated fiscally and programmatically by
the Texas Youth Council to assure cost and program
effectiveness.
If the TYC determines that using Community Assistance funds to reimburse audit
expenses is “necessary and appropriate to insure adequate services by the local
entity” receiving the fund, such use of funds is authorized. V.T.C.S. art. 5143d, S
6(e)(l)(A). See V.T.C.S. art. 5143d, S 2; Attorney General Opinion WW-865 (1960).
Subdivision (D) of section 6 quoted above requires that the TYC monitor the
Community Assistance program. If audits, funded by Community Assistance funds,
are a reasonably implied necessity for securing the maximum benefit of the
program, then such use of the funds can “assist local communities by providing
services and funding for programs for the pre-delinquent and delinquent. . . .‘I
V.T.C.S. art. 5143d, S 6(e)(l).
Article V, section 30 of the 1977 General Appropriations Act provides in part
that:
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
department, may require, as a condition to granting or
providing such funds, that the receiving entity have a yearly
p. .4675
_ -
Mr. Ron Jackson - Page 3 (H-1152)
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.
Section 30 does not necessarily impose audit costs on the recipients, nor does it
preclude reimbursement by the state.
SUMMARY
The Texas Youth Council has authority to use Community
Assistance funds to reimburse recipients of such funds for
expenses of having outside audits performed.
Y--i--T+J~~.&
’ JOHN L. HILL
Attorney General of Texas
APPROVED:
DAVID M. KENDALL, First As.4
C. ROBERT HEATH, Chairman
.Opinion Committee
jst
p. 4676