title
Presentation, discussion, and possible action on an order proposing 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 proposing 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 for public comment in the Texas Register
end
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 is being proposed through the repeal of the current rule and a simultaneous new rule to be proposed in its place;
WHEREAS, such proposed rulemaking will be published in the Texas Register for public comment and subsequently returned to the Board for final adoption;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director and his design...
Click here for full text