A Report on State of Texas Compliance with Federal Requirements for the Homeland Security Cluster of Federal Programs and the Public Assistance Cluster of Federal Programs for the Fiscal Year Ended August 31, 2010
February 2011
Report Number 11-026
Overall Conclusion
For the Homeland Security cluster of federal programs, the State of Texas did not comply in all material respects with federal requirements in fiscal year 2010.
However, for the Public Assistance cluster of federal programs, with the exception of certain non-compliance detailed in this report, the State of Texas complied in all material respects with federal requirements in fiscal year 2010.
As a condition of receiving federal funding, U.S. Office of Management and Budget (OMB) Circular A-133 requires non-federal entities that expend at least $500,000 in federal awards in a fiscal year to obtain annual audits. Those audits test compliance with federal requirements in 14 areas, such as allowable costs, procurement, and monitoring of non-state entities when the State passes federal funds through to those entities (subrecipients). In addition, each program may outline special tests specific to the program that auditors are required to perform. The Single Audit for the State of Texas included (1) all high-risk federal programs for which the State expended more than $85,612,909 in federal funds during fiscal year 2010 and (2) other selected federal programs.
From September 1, 2009, through August 31, 2010, the State of Texas expended $56.9 billion in federal funds for federal programs and clusters of programs. The State Auditor's Office audited compliance with requirements for the Homeland Security cluster of federal programs and the Public Assistance cluster of federal programs at the Department of Public Safety (Department), which spent $129,587,514 in federal Homeland Security cluster funds and $476,103,753 in federal Public Assistance cluster funds during fiscal year 2010.
Auditors identified nine findings, including four material weaknesses with material non-compliance, one material weakness with non-compliance, and four significant deficiencies with non-compliance.