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An Audit Report on Selected State Entities' Compliance with Requirements Related to the Historically Underutilized Businesses Program and the State Use Program

March 2013

Report Number 13-026

Overall Conclusion

For fiscal year 2011, two of the four entities audited fully or substantially complied, overall, with the State's Historically Underutilized Business (HUB) program requirements tested in the areas of planning, outreach, subcontracting, reporting, and goal attainment. Specifically:

- The University of Texas System fully complied, overall, with HUB program requirements.

- The Texas Department of Criminal Justice (TDCJ) substantially complied, overall, with HUB program requirements. TDCJ fully complied with all HUB program requirements tested in the areas of planning, outreach, subcontracting, and reporting. However, it minimally attained its annual HUB utilization goals.

- The Department of Motor Vehicles (DMV) and the Department of Information Resources (DIR) minimally complied, overall, with HUB program requirements.

In addition, two of the four entities audited substantially complied, overall, with the requirements tested for the Purchasing from People with Disabilities (State Use) program for fiscal year 2011. Specifically:

- TDCJ and DIR substantially complied, overall, with State Use program requirements.

- DMV and the University of Texas System did not comply, overall, with State Use program requirements.

Auditors also followed up on previous recommendations related to the State Use program issued in An Audit Report on Selected State Entities' Compliance with Requirements Related to the Historically Underutilized Business Program and the State Use Program (State Auditor's Office Report No. 11-027, March 2011). Of the four recommendations tested, the Office of the Comptroller of Public Accounts (Comptroller) fully implemented two recommendations and the implementation of the remaining two recommendations was ongoing.

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