As directed in Sections 11.202, 11.203 and 11.204 of the Texas Finance Code, the Commission has appointed an Audit Committee whose objective is to ensure that the three agencies under the Commission’s supervision maintain adequate internal controls and procedures. Currently, each member of the Audit Committee is a Certified Public Accountant. Through the Audit Committee, the Commission employs and oversees the activities of an external audit firm to function as an internal auditor for the agencies. Working with this external firm and the agencies, the Audit Committee establishes an annual risk assessment to determine the areas that need evaluation. The results of internal audits, as well as other audits conducted by state agencies, are presented to the Audit Committee, which makes recommendations to the full membership of the Commission. The Commission reviews and approves both the audit findings and action plans for correction or improvement. The Audit Committee is also tasked with the detailed review of the agencies’ annual operating budgets and quarterly financial statements.