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A Report on State of Texas Compliance with Federal Requirements for the Provider Relief Fund and American Rescue Plan Rural Distribution (COVID-19 Relief) for the Year Ended August 31, 2022

February 2023

Overview

The State of Texas complied in all material respects with the federal requirements for the Provider Relief Fund and American Rescue Plan Rural Distribution (Provider Relief Fund) in fiscal year 2022.

From September 1, 2021, through August 31, 2022, the State of Texas expended $108.1 billion in federal funds, and it reported a total of $294 million in expenditures and lost revenue for the Provider Relief Fund. The State Auditor’s Office audited compliance with requirements for the Provider Relief Fund at three higher education institutions. Those three institutions reported a total of $272.8 million in expenditures and lost revenues on the fiscal year 2022 Schedule of Expenditures of Federal Awards.

Auditors identified one finding related to general controls over information technology at one institution for the Provider Relief Fund. The University of Texas M.D. Anderson Cancer Center did not appropriately restrict user access to certain information resources that it uses to manage federal awards, and it did not ensure that user access settings for all administrative accounts complied with policy requirements.

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Report on Compliance for the Provider Relief Fund

We have audited the State of Texas’s (State) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the Provider Relief Fund for the year ended August 31, 2022.

In our opinion, the State complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on the Provider Relief Fund for the year ended August 31, 2022.

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Report on Internal Control Over Compliance

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify a certain deficiency in internal control over compliance that we consider to be a significant deficiency.

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Federal Award Findings and Questioned Costs

This section identifies significant deficiencies, material weaknesses, and instances of noncompliance, including questioned costs, as required to be reported by Title 2, Code of Federal Regulations, Section 200.516(a).

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Phone: (512) 936-9500
Fax: (512) 936-9400
Email: auditor@sao.texas.gov
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