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, 2014
Report Number 15-023
The State of Texas complied in all material respects with federal requirements for the Border Enforcement Grants program, the Homeland Security Grant Program, and the Disaster Grants – Public Assistance (Presidentially Declared Disasters) program in fiscal year 2014.
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, reporting, and monitoring of non-state entities (subrecipients) to which the State passes federal funds. The Single Audit for the State of Texas included (1) all high-risk federal programs for which the State expended more than $73,923,376 in federal funds during fiscal year 2014 and (2) other selected federal programs.
From September 1, 2013, through August 31, 2014, the State of Texas expended $49.1 billion in federal funds. The State Auditor's Office audited compliance with requirements for the Border Enforcement Grants program, the Homeland Security Grant Program, and the Disaster Grants – Public Assistance (Presidentially Declared Disasters) program at the Department of Public Safety (Department) and the University of Texas Medical Branch at Galveston (Medical Branch).
During fiscal year 2014:
- The Department spent $20.1 million in Border Enforcement Grants program funds, $100.4 million in Homeland Security Grant Program funds, and $34.1 million in Disaster Grants – Public Assistance (Presidentially Declared Disasters) program funds.
- The Medical Branch spent $68.9 million in Disaster Grants – Public Assistance (Presidentially Declared Disasters) program funds.
Auditors identified 11 findings, including 9 significant deficiencies with non-compliance and 2 significant deficiencies. Ten of those 11 findings related to the 3 federal programs audited at the Department, and 1 finding was related to the federal program audited at the Medical Branch. The number of federal programs audited and compliance areas determined to be direct and material varied significantly between the Department and the Medical Branch. Therefore, a comparison of the number of reported findings between those entities is not an accurate measure of performance.
Fiscal year 2014 audit results for the Department represented an improvement compared with fiscal year 2013, when auditors identified findings at the Department that were classified as material weaknesses with material non-compliance.