The single audit concept provides that recipients of federal funds use their own procedures to arrange for independent audits to be made on an organization-wide basis, rather than on a grant or project basis. If the organization-wide audit complies with the specific requirements of 2 C.F.R. Part 200, then no additional audit requirements are normally imposed and all grantor agencies will rely on such audits.

The State and TxDOT have subscribed to the spirit and principles of the single audit concept. Therefore, the audit work of others will be relied upon to the extent indicated by prudent judgment. Acceptance will be on the basis of written notice or other valid document, wherein, the validity of the audit work involved is reasonably assured.