Audit

Provisions in the AFA between TxDOT and the LG dictate the project audit requirements. The AFA will contain project specific information on audit requirements.
The AFA will also contain a provision regarding the Inspection of Books and Records, which states: “the State, the Local Government, and the FHWA (if federally funded) and their duly authorized representatives shall have access to all the governmental records that are directly applicable to the agreement for the purposes of making audits, examinations, excerpts, and transcripts.”
In addition, for federally funded agreements, the AFA will contain a provision regarding the Office of Management and Budget Audit Requirements requires the parties to the agreement to comply with the requirements of
2 CFR Part 200, Subpart F
regarding single audit reports (previously referenced and stipulated in OMB Circular A-133).
If there is some concern over project records or finances, the TxDOT district engineer can request an audit of a project by the TxDOT Audit Office.
Federal Requirements
  1. 2 CFR Part 200, Subpart F
    – Sets forth the audit requirements for the audit of non-federal entities expending federal awards.