1. (a) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Affiliate--Shall have the meaning assigned by the specific program or programs described in this title.
   2. (2) Department--The Texas Department of Housing and Community Affairs.
   3. (3) Single Audit--An audit report required by Office of Management and Budget (OMB) Circular A-133 or Texas Government Code, Chapter 738, Uniform Grant and Contract Management.
   4. (4) Single Audit Certification Form--A form that lists the source(s) and amount(s) of Federal funds and/or State funds received by the Subrecipient.
   5. (5) Subrecipient--Includes any entity receiving funds or awards from the Department.
2. (b) Subrecipients and Affiliates are required to submit a Single Audit Certification form within two (2) months after the end of their fiscal year indicating whether they exceeded the expenditure threshold of $500,000 for their respective fiscal year.
3. (c) Subrecipients and Affiliates that expend $500,000 or more in federal and/or state awards must have a Single Audit or program-specific audit conducted and submit the audit to the Department the earlier of thirty (30) days after receipt of the auditor's report or nine (9) months after the end of its respective fiscal year.
4. (d) In accordance with OMB Circular A-133 §.225 and the State of Texas Single Audit Circular §.225 the Department may suspend and cease payments under all active contracts and/or not renew or enter into a new contract with a Subrecipient or Affiliate until receipt of the required Single Audit Certification form or Single Audit.
5. (e) In accordance with §1.5 of this subchapter (relating to Previous Participation Reviews), if a Subrecipient or Affiliate applies for funding or an award from the Department, the failure to timely submit a Single Audit Certification Form or Single Audit will be reported to the Executive Award Review Advisory Committee.

Source Note:The provisions of this §1.3 adopted to be effective February 29, 1996, 21 TexReg 1393; amended to be effective January 2, 2014, 38 TexReg 9489.