Procedures

As outlined in the statute referenced above, when the Governor’s Office designates TxDOT as the State Single Audit Coordinating Agency, TxDOT is responsible for:
  • Coordinating with the local government or nonprofit entity, the independent auditor, and the state funding agencies to ensure that satisfactory audit coverage is provided in a timely manner and in accordance with the provisions of 2 C.F.R. Part 200.
  • Coordinating and being aware of audit schedules for recipient organizations and providing advice to assist the recipient in the initial engagement of an auditor.
  • Reviewing reports and audit organizations, accomplished through quality assessment, quality control, or desk reviews.
  • Addressing matters during the desk review of audit reports, including:
    • Ensuring that financial statements of the entity fairly present its financial position and results of financial operations in accordance with generally accepted accounting principles.
    • Providing unqualified opinions on General Purpose Financial Statements (GPFS).
    • Providing a statement on internal accounting controls affecting GPFS.
    • Producing a compliance report based on examination of GPFS.
    • Ensuring that the entity has internal accounting and other controls in place to provide reasonable assurance that it is managing its federal programs in compliance with applicable laws and regulations.
The state single audit coordinating agency should ensure that all audit reports of recipient organizations that affect state grantor agencies are received, reviewed, and distributed to appropriate audit officials.
Grantor audit agencies are responsible for establishing and maintaining follow-up systems to ensure that audit findings applicable to their agency’s programs are resolved.