A Report on State of Texas Compliance with Federal Requirements for Selected Major Programs at the Department of Public Safety and the University of Texas Medical Branch at Galveston for the Fiscal Year Ended August 31, 2012
Report Number 13-023
In fiscal year 2012, the State of Texas did not comply in all material respects with federal requirements for:
- The Hazard Mitigation Grant Program.
- The Disaster Grants – Public Assistance (Presidentially Declared Disasters) Program (referred to below as the Public Assistance Program).
However, the State of Texas complied in all material respects with federal requirements for the Homeland Security Grant Program in fiscal year 2012.
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 up to 14 areas that may have a material effect on a federal program at those non-federal entities. Examples of the types of compliance areas include allowable costs, procurement, 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. The Single Audit for the State of Texas included (1) all high-risk federal programs for which the State expended more than $75,562,558 in federal funds during fiscal year 2012 and (2) other selected federal programs.
From September 1, 2011, through August 31, 2012, the State of Texas expended $50.2 billion in federal funds for federal programs and clusters of programs. The State Auditor’s Office audited compliance with requirements for the Homeland Security Grant Program, the Hazard Mitigation Grant Program, and the Public Assistance Program at the Department of Public Safety (Department) and the University of Texas Medical Branch at Galveston (Medical Branch). During the fiscal year 2012, the Department spent $102,646,380 in Public Assistance Program funds and the Medical Branch spent $44,337,867 Public Assistance Program funds. The Department also spent $156,036,990 in Homeland Security Grant Program funds and $30,052,124 in Hazard Mitigation Grant Program funds during fiscal year 2012.
Auditors identified 20 findings, including:
- Seven findings classified as material weaknesses with material non-compliance.
- One finding classified as a material weakness with non-compliance.
- One finding classified as a material weakness.
- Eleven findings classified as significant deficiencies with non-compliance.
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