A Report on State of Texas Compliance with Federal Requirements for Selected Major Programs at the Department of Transportation for the Fiscal Year Ended August 31, 2011
February 2012
Report Number 12-020
Overall Conclusion
With the exception of certain non-compliance detailed in this report, the State of Texas complied in all material respects with the federal requirements for the Highway Planning and Construction Cluster of federal programs in fiscal year 2011.
The State of Texas also complied in all material respects with the federal requirements for the Airport Improvement Program and for the Formula Grants for Other Than Urbanized Areas Program in fiscal year 2011.
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 Single Audits. Those audits test compliance with federal requirements in 14 areas, such as allowable costs, procurement, reporting, and monitoring of non-state entities (subrecipients) to which the State passes federal funds. The requirements for 1 of those 14 areas vary by federal program and outline special tests that auditors are required to perform, such as tests of quality assurance programs. The Single Audit for the State of Texas included (1) all high-risk federal programs for which the State expended more than $86,555,601 in federal funds during fiscal year 2011 and (2) other selected federal programs.
From September 1, 2010, through August 31, 2011, the State of Texas expended $57.5 billion in federal funds for federal programs and clusters of programs. The State Auditor's Office audited compliance with requirements for selected major programs at the Department of Transportation (Department), which spent $2,812,182,775 in Highway Planning and Construction Cluster funds, $45,858,424 in Airport Improvement Program funds, and $50,051,772 in Formula Grants for Other Than Urbanized Areas Program funds during fiscal year 2011.