Monitoring of Single-Audit Findings

As required in Title 2 of the Code of Federal Regulations (CFR), 2 CFR §200.501(b), a non-Federal entity that expends $750,000 or more in federal grant funds during their fiscal year must have a single-audit conducted in accordance with 2 CFR §200.514.

The Texas Education Agency (TEA), as a pass-through entity, monitors and reviews the single-audit reports of federal grant recipients. The Federal Grant Compliance Officer in the Department of Grant Compliance and Administration (GCA) reviews sub-recipient single-audit reports to ensure that federal grants are in compliance with the authorized purposes, federal statutes, and regulations. The Associate Commissioner of Grant Compliance and Administration and the Federal Compliance Officer review all applicable auditor Federal findings to sustain or not sustain the auditor findings and determine the issuance of Management Decision letters pursuant to 2 CFR §200.521 and 2 CFR §200.332(d).

Federal Submission of Single-Audit Reports

The U.S. Department of Education has recently moved the Federal Audit Clearing House (FAC) from the U.S. Census Bureau to the General Services Administration (GSA). LEA sub-recipients, which include school districts and open-enrollment charter schools, must submit their single-audit report to the new Federal Audit Clearinghouse beginning on October 1st. You can explore and become familiar with updated key information regarding this FAC transition at fac.gov/welcome.

Department of Grant Compliance and Administration Review of Single-Audit Findings

The Associate Commissioner of Grant Compliance and Administration and the Federal Compliance Officer will sustain a finding unless they determine that:

1. The independent auditor misinterpreted the federal statue.
2. There is new guidance that would mitigate the auditor's findings.

Once a determination has been made for the sustention of the auditor's findings, the Federal Compliance Officer will issue a Management Decision to the superintendent and other contacts as appropriate, which will give the reasons for this determination by TEA. The management decision will include any required Non-Compliance Resolution actions to address the sustaining findings.

If TEA determines it does not sustain the auditor's findings, the sub-receipt will receive a letter from the Federal Compliance Officer communicating this determination.

Submission of an Annual Financial and Compliance Report (AFR)

As required by Texas Education Code (TEC) §44.008, LEAs, which include school districts and open-enrollment charter schools and education services (ESCs) must have their annual financial and compliance reports (AFRs) audited by an independent auditor. The AFR includes the federal single-audit information required.

For more information about TEA Financial Compliance requirements and submission process of AFRs, go to the Annual Financial and Compliance Report webpage.