1. (a) Written reports.

   1. (1) Financial report. Except as provided in paragraph (4) of this subsection, a corporation shall submit a quarterly financial report after the end of each of the state's fiscal quarters. The quarterly financial report must include a balance sheet as of the end of the quarter and a fiscal year-to-date statement of revenues, expenditures, and changes in fund balance prepared in accordance with generally accepted accounting practices.

   2. (2) Project status report. Except as provided in paragraph (4) of this subsection, for each transportation project, the corporation shall submit a semi-annual project status report after the end of the mid-point of the state's fiscal year and after the end of the state's fiscal year, that must include, at a minimum:

      1. (A) the scope of work authorized by the commission;
      2. (B) the work that has been accomplished in that quarter;
      3. (C) the anticipated completion date of the project, as well as anticipated completion dates for various segments of the project, if applicable;
      4. (D) the status of coordinating activities with other governmental entities and with railroads, utilities and others;
      5. (E) project fiscal data, including funds received, expended, available, and projected completion costs; and
      6. (F) comments on significant accomplishments, problems, and concerns of the corporation.
   3. (3) Certification. Reports submitted under this subsection must be approved by official action of the board and certified as correct by the president of the Corporation.
   4. (4) Inactivity. If no financial activity has taken place or the project status has not changed in the preceding period, the corporation may submit, in lieu of the quarterly financial report and semi-annual project status report, a certification stating that no activity has taken place.
   5. (5) Submission dates. Reports or the certification required by this subsection must be submitted to the executive director within 60 days after the end of each of the state's fiscal quarter.
2. (b) Annual commission report. Every 12 months, the corporation shall appear before the commission to report on its current condition, status of projects, and activities undertaken the preceding 12 months.

3. (c) Annual audits. The Corporation shall submit reports of an annual financial audit in accordance with this subsection.

   1. (1) Submission date. The annual audit shall be submitted to the executive director within 90 days after the end of the state's fiscal year (August 31).
   2. (2) Certification. The audit must be conducted by an independent certified public accountant in accordance with generally accepted auditing standards. The accompanying financial report shall be prepared according to pronouncements by the Government Accounting Standards Board.

   3. (3) Content. The audit shall include, at a minimum:

      1. (A) an evaluation of the corporation's internal accounting system and controls;
      2. (B) a statement regarding the corporation's compliance with the guidelines established by the commission for its operation, including both the positive and negative compliance (summary of all instances of noncompliance, if any, must be included);
      3. (C) a complete recapitulation of the corporation's income and expenditures as well as assets and liabilities; and
      4. (D) an unqualified certification by the certified public accountant.
   4. (4) Paperwork retention period. All work papers and reports shall be retained for a minimum of four years from the date of the audit report, unless the certified public accountant is notified by the department in writing, to extend the retention period.
   5. (5) Availability of audit work papers. If requested by the department, audit work papers shall be made available to the executive director at the completion of the audit.
4. (d) Other reports. The corporation will provide other reports and information regarding the corporation promptly when requested by the executive director.

Source Note:The provisions of this §15.90 adopted to be effective January 1, 1997, 21 TexReg 11828.