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Presentation, discussion, and possible action on an order adopting the repeal of 10 TAC Chapter 1, Subchapter D, Uniform Guidance for Recipients of Federal and State Funds, ?1.403 Single Audit Requirements; an order adopting new 10 TAC Chapter 1, Subchapter D, Uniform Guidance for Recipients of Federal and State Funds, ?1.403 Single Audit Requirements; and directing their publication in the Texas Register
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RECOMMENDED ACTION
recommendation
WHEREAS, ?1.403, Single Audit Requirements, requires that Subrecipients or Multifamily Development owners applying for or in receipt of direct loan funds (MF owner), that expend $1,000,000 or more in an entity's fiscal year in federal and/or state awards or have an outstanding loan balance associated with a federal or state resource of $1,000,000 with continuing compliance requirements, or a combination thereof must have a Single Audit or program-specific audit conducted;
WHEREAS, the Single Audit on occasion identifies issues that would suggest that the Subrecipient or MF owner has weaknesses in their operations and/or controls that indicate that they are not likely to be strong candidates in receiving or handling state or federal funds responsibly;
WHEREAS, staff recommends that the current rule at ?1.403 be revised to more clearly specify that the Department will not award funds, and/or may cancel a contract with a Subrecipient or MF Owner, when certain audit findings have been identified in the Single Audit and are significant enough that the state or federal funds are being put at risk;
WHEREAS, to put this rule into effect, such revision was proposed through the repeal of the current rule and a simultaneous new rule to be proposed in its place; and
WHEREAS, such proposed rulemaking was published in the Texas Register for public comment and no comment was received;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director and his designees be and each of them hereby are authorized, empowered, and di...
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