Background

The basic directive pertaining to the audit of state and local governments, institutions of higher education, and other non-profit organizations is 2 C.F.R. Part 200 (formerly OMB revised Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations
.) Circular A-133 implemented the Single Audit Act amendments of 1996 and provided uniform single audit requirements for all non-federal grantees including state and local governments, colleges and universities, hospitals, and other non-profit organizations. This circular, which was issued June 30, 1997, applies to audits for fiscal years beginning after June 30, 1996, and supersedes prior versions of Circular A-133, as well as rescinds Circular A-128,
Audits of State and Local Governments
.
Under 2 C.F.R. Part 200, TxDOT is considered a pass-through entity for federal funds and is charged with the following responsibilities:
  • Informing each subgrantee of the Catalog of Federal Domestic Assistance (CFDA) number and title, amount of funding awarded, award number, and award year.
  • Advising subgrantees of the requirements imposed on them by federal laws, regulations, and provisions of contracts and grant agreements as well as any supplemental requirements imposed by the State.
  • Monitoring the activities of subgrantees as necessary to ensure that federal awards are used for authorized purposes in compliance with laws, regulations and contract provisions, and to ensure that performance goals are achieved.
  • Ensuring that subgrantees expending $750,000 or more during the subgrantee’s fiscal year have met the audit requirements of 2 C.F.R. Part 200 for that fiscal year.
  • Issuing management decisions on audit findings within six months of the receipt of the subgrantee’s audit report and ensuring that the subgrantee takes appropriate and timely corrective action.
  • Considering whether subgrantee audits necessitate adjustments to the State’s own records.
  • Requiring each subgrantee to permit the State and other auditors to have access to records and financial statements as necessary for the State to comply with 2 C.F.R. Part 200.
  • Maintaining subgrantee report submissions (or other written notification when no reports are required to be submitted) on file for four years from the date of receipt.
The TxDOT Traffic Safety Division - Behavioral Traffic Safety Section (TRF-BTS) provides a substantial amount of federal and state funding to a large number and variety of governmental and non-governmental entities. Audits and on-going grant monitoring are two tools that the Department uses to carry out its management oversight responsibilities. Part of TxDOT’s audit-related responsibilities for subgrantees include obtaining, reviewing, and resolving subgrantee audit reports.