A Report on State of Texas Compliance with Federal Requirements for the Highway Planning and Construction Cluster at the Department of Transportation for the Fiscal Year Ended August 31, 2013
February 2014
Report Number 14-024
Overall Conclusion
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 2013.
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 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 types of compliance areas include 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 $73,222,469 in federal funds during fiscal year 2013 and (2) other selected federal programs.
From September 1, 2012, through August 31, 2013, the State of Texas expended $48.6 billion in federal funds. The State Auditor's Office audited compliance with requirements for the Highway Planning and Construction Cluster at the Department of Transportation (Department), which spent $2.6 billion in funds from that cluster during fiscal year 2013.