Certified Public Accountant audit
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Certified Public Accountant audit

An audit may be performed by an independent certified public accountant (CPA), an agency of the federal government, another state transportation agency, or a local transit agency. An audit performed by an independent CPA must be conducted in accordance with current versions of the following:

The provider must provide the department with unrestricted access to the audit work papers, records, and other information as requested by the PEPS Administrative Qualifications Group.

The audit or self-certification shall be based on the provider's fiscal year. The indirect cost rate, as approved by PEPS the Administrative Qualifications Group, shall become effective six months after the end of the provider's fiscal year, or immediately if filed more than six months after the end of the provider's fiscal year. It shall be effective no more than twelve months and shall expire eighteen months after the end of the fiscal year upon which it is based.

A provider must submit on an annual basis a compensation analysis for all executives in accordance with the AASHTO Uniform Audit and Accounting Guide.

The department may audit the indirect cost rate of a provider under contract with, or seeking to do business with, the department. These audits will be conducted in accordance with the criteria outlined in the rules.

A provider must submit a signed certification of Final Indirect Costs with the audit report or self-certification. The certification must follow the requirements of the Federal Highway Administration.

Administrative qualification is applicable only to the incorporated business entity upon which the indirect cost rate is based and does not extend to a subsidiary, affiliate, or parent of the incorporated entity, except as provided for in Texas Administrative Code Section 9.34(b)(4), as well as sections 9.35(b), 9.38(b), and 9.39(b), as applicable.

PEPS AQ Administrator