A Report on State of Texas Compliance with Federal Requirements for the Research and Development Cluster of Federal Programs for the Fiscal Year Ended August 31, 2010
February 2011
Report Number 11-023
Overall Conclusion
The State of Texas complied in all material respects with the federal requirements for the Research and Development cluster of federal programs in fiscal year 2010.
As a condition of receiving federal funding, U.S. Office of Management and Budget (OMB) Circular A-133 requires non-federal entities that expend at least $500,000 in federal awards in a fiscal year to obtain annual audits. Those audits test compliance with federal requirements in 14 areas, such as allowable costs, procurement, reporting, and monitoring of non-state entities when the State passes federal funds through to those entities. In addition, each program may outline special tests specific to the program that auditors are required to perform. The Single Audit for the State of Texas included (1) all high-risk federal programs for which the State expended more than $85,612,909 in federal funds during fiscal year 2010 and (2) other selected federal programs.
From September 1, 2009, through August 31, 2010, the State of Texas expended $56.9 billion in federal funds for federal programs and clusters of federal programs. The State Auditor's Office audited compliance with requirements for the Research and Development cluster of federal programs at seven higher education institutions and one state agency. Those entities spent $1,054,738,433 in federal Research and Development cluster funds during fiscal year 2010.
Auditors identified 21 findings for the Research and Development cluster of federal programs. All of those findings were significant deficiencies, and 18 of those findings contained non-compliance. Auditors did not identify any findings that were material weaknesses or material non-compliance.