The Texas State Auditor’s Office (SAO) issued a Request for Proposals (RFP) Oct. 13 seeking external auditors to conduct efficiency audits of 16 state agencies scheduled for review by the Texas Sunset Advisory Commission (Sunset) during the 2028-2029 cycle.
The RFP stems from House Bill 12, passed during the 89th Legislative Session, which added Chapter 327 to the Texas Government Code and requires state agencies subject to Sunset review to undergo efficiency audits before their scheduled reviews. While the SAO may conduct some of these efficiency audits internally, the office is contracting externally for agencies it chooses not to review directly.
The Texas Legislature created the Sunset Commission in 1977 to make state government more efficient, effective and accountable, according to their description. The 12-member commission evaluates state agencies and makes recommendations to the Legislature on whether agencies should continue operating, be modified or abolished. The commission is tasked with identifying and eliminating waste, duplication and inefficiency across more than 130 Texas state agencies.
Chapter 327 of the Texas Government Code defines an efficiency audit as an evaluation of the economy, efficiency and effectiveness of state agency operations. The audits are designed to determine whether agencies manage resources economically and efficiently and identify causes of inefficiencies or uneconomical practices. They assess whether program objectives and benefits are being achieved under applicable statutes and plans. The audits also determine whether agency programs duplicate, overlap or conflict with other state programs.
Agencies subject to a Sunset review in the 2028-2029 cycle include:
- Texas Commission on the Arts
- Commission on State Emergency Communications
- Texas Education Agency
- Texas Facilities Commission
- Texas Higher Education Coordinating Board
- Texas Department of Housing and Community Affairs
- Texas State Affordable Housing Corporation
- Railroad Commission of Texas
- Texas Department of Transportation
- Texas Department of Insurance
- Texas Department of Insurance Joint Underwriting and Advisory Organizations
- Texas Department of Insurance Division of Workers’ Compensation
- Office of Injured Employee Counsel
- Office of Public Insurance Counsel
- Public Utility Commission of Texas
- Office of Public Utility Counsel
External auditors selected for the position will work under SAO oversight to conduct efficiency audits in accordance with Chapter 327. The SAO will define the audit scope for each agency and provide guidance throughout the process.
Auditors must examine whether state resources are used effectively and efficiently to achieve intended outcomes, identify and recommend savings and reallocation of resources to improve effectiveness and identify opportunities for improved services through consolidation of efforts.
Proposals are due by 1 p.m. on Dec. 5, with questions accepted through 4:30 p.m. on Nov. 10. The SAO plans to post responses to submitted questions around Nov. 17, according to the RFP. Contract awards are expected no later than Dec. 17, with audit work to begin no later than Feb. 1, 2026.
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