The Texas State Auditor’s Office published an audit report on public assistance disaster grants related to Hurricane Harvey which noted, the Texas Division of Emergency Management (TDEM) complied with most federal and state requirements but should strengthen its processes related to:
- Reviewing supporting documentation for large projects (those with total eligible costs greater than or equal to $123,100) to ensure that subrecipients are not overpaid and they comply with applicable requirements.
- Allocating expenditures to the appropriate cost reimbursement rate of 90 percent, recording transactions in its accounting system, and accounting for equipment related to its emergency work project.
- Ensuring that subrecipients with small projects (those with total eligible costs less than $123,100) retain documentation for the expenditures and procurement used to support the projects.