(a) Each year the state auditor shall select and review at least 10 percent of the agreements in effect in that year to determine whether:
(1) each agreement accomplishes the purposes of this subchapter as expressed in Section 403.601; and
(2) the terms of each agreement were executed in compliance with the terms of this subchapter.
(b) In determining which agreements to review under Subsection (a), the state auditor may consider any risk of noncompliance identified in the biennial compliance report regarding an agreement submitted to the comptroller under Section 403.616.
(c) As part of the review, the state auditor shall make recommendations relating to increasing the efficiency and effectiveness of the administration of this subchapter. The state auditor shall submit the recommendations to the governor, comptroller, lieutenant governor, and speaker of the house of representatives not later than December 15 of each year.