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Section 5: Audit

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Standards

Audits of state DOTs and their subrecipients must be performed in accordance with OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.

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Requirements

These standards primarily require an organization-wide audit to be performed by an independent auditor on an annual basis. In Texas, the MPOs generally use their federal cognizant agency’s audit. In addition, the TxDOT Audit Office (AUD) works with TPP to develop state audit instructions, and a district should refer questions about the audit results to TPP.

As stated in OMB Circular A-133, Subpart B (d), Exemption when federal awards expended are less than $300,000 ($500,000 for fiscal years ending after December 31, 2003):

Non-federal entities that expend less than $300,000 ($500,000 for fiscal years ending after December 31, 2003) a year in federal awards are exempt from federal audit requirements for that year, except as noted in OMB Circular A-133, Subpart B, §_.215(a) [scroll down on linked page to find], but records must be available for review or audit by appropriate officials of the federal agency, pass-through entity, and General Accounting Office (GAO).

The exemption stated in OMB Circular A-133, Subpart B, §_.215(a) states:

Audit under this part in lieu of other audits. An audit made in accordance with this part shall be in lieu of any financial audit required under individual Federal awards. To the extent this audit meets a Federal agency's needs, it shall rely upon and use such audits. The provisions of this part neither limit the authority of Federal agencies, including their Inspectors General, or GAO to conduct or arrange for additional audits (e.g., financial audits, performance audits, evaluations, inspections, or reviews) nor authorize any auditee to constrain Federal agencies from carrying out additional audits. Any additional audits shall be planned and performed in such a way as to build upon work performed by other auditors.

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District Responsibility

The district office will request an MPO’s audit report if the MPO has not submitted it within a reasonable period (90 days) after completion of the audit, and should simultaneously forward a copy of the report to TPP.

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Available Assistance

If an AUD report includes recommendations, findings, or questions, the district and TPP will coordinate a response. Any district with questions about the audit procedures is encouraged to contact TPP or AUD.

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