A Report on State of Texas Compliance with Federal Requirements for the Research and Development Cluster for the Year Ended August 31, 2021
The State of Texas complied in all material respects with the federal requirements for the Research and Development Cluster in fiscal year 2021.
As a condition of receiving federal funding, Title 2, Code of Federal Regulations, Section 200, requires non-federal entities that expend $750,000 or more in
federal awards in a fiscal year to obtain annual Single Audits. Those audits test compliance with federal requirements in up to 12 areas that may have a
material effect on a federal program at those non-federal entities.
The Single Audit for the State of Texas included (1) all high-risk federal programs for which the State expended more than $172,578,350 in federal
funds during fiscal year 2021 and (2) other selected federal programs.
From September 1, 2020, through August 31, 2021, the State of Texas expended $115.1 billion in federal funds. The State Auditor’s Office audited compliance
with requirements for the Research and Development Cluster at seven higher education institutions. Those seven higher education institutions spent $1.6 billion
in federal Research and Development Cluster funds during fiscal year 2021.
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Higher education institutions fully implemented corrective action plans for 1 (25
percent) of those 4 findings and partially implemented corrective action plans for 3
(75 percent) of those 4 findings.
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In planning and performing our audit of compliance, we considered the State’s internal control over compliance with the types of requirements that could have a direct and material
effect on the Research and Development Cluster to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance
for the Research and Development Cluster and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing
an opinion on the effectiveness of internal control over compliance.
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This section identifies significant deficiencies, material weaknesses, and instances of non-compliance, including questioned costs,
as required to be reported by Title 2, Code of Federal Regulations, Section 200.516(a).
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