Part 1. OFFICE OF THE GOVERNOR
Chapter 5. BUDGET AND PLANNING OFFICE
Subchapter A. FEDERAL AND INTERGOVERNMENTAL COORDINATION
Division 3. STATE PLANNING ASSISTANCE GRANTS
The Office of the Governor proposes the amendment of Subchapter A, §§5.83, 5.85, and 5.87.
The proposed amendment to §5.83 updates the language of this section to conform it to the requirements of §391.0095 of the Local Government Code by requiring a regional planning commission ("commission") to provide copies of its annual audit to the State Auditor, the Comptroller of Public Accounts, and the Legislative Budget Board; allowing the Office of the Governor to request the State Auditor or an external auditor to review a commission's annual audit; requiring the State Auditor to report any findings and recommendations to the Legislative Audit Committee and the Office of the Governor; requiring an external auditor to report any findings and recommendations to the Office of the Governor, the State Auditor, and the appropriate legislative oversight committee; and clarifying that an annual audit must be paid for from commission funds. The proposed amendment also uses the name "the Office of the Governor" in a consistent manner throughout the section.
The proposed amendment to §5.85 updates the language of this section to conform it to the requirements of §391.0117 of the Local Government Code by requiring a commission to submit its salary schedule to the State Auditor and clarifying the responsibilities of the Office of the Governor and the State Auditor regarding a commission's salary schedules. The proposed amendment also uses the name "the State Auditor" in a consistent manner throughout the section.
The proposed amendment to §5.87 updates the language of this section to conform it to the requirements of §391.0095 of the Local Government Code, and to satisfy recommendations made by State Auditor's Office in its Review of Regional Planning Commissions' Financial and Performance Reports (SAO Report No. 03-013; Released 12/30/02), by requiring a commission to submit its reports to the State Auditor, the Office of the Governor, the Legislative Budget Board, and the Comptroller of Public Accounts and requiring the State Auditor to report to the Office of the Governor any failure of a regional planning commission to submit a required report. The proposed amendment also specifies the types of information that must be included in commission reports. In addition, the proposed amendment uses the name "the Office of the Governor" in a consistent manner throughout the section.
The proposed amendment of §§5.83, 5.85, and 5.87 is intended to improve the accountability of the commissions in the use of state and federal funds and to assist in promoting more effective oversight of the commissions.
Denise S. Francis, Single Point of Contact, has determined that, for the first five-year period the amended sections as proposed are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the amended sections.
Ms. Francis has also determined that, for the first five-year period that the sections are in effect, the public benefit anticipated as a result of enforcing the amended sections as proposed will be more efficient processes and procedures and the current rules will be more easily understood. There will be no anticipated economic cost to persons or businesses for complying with the proposed rule amendments.
Comments on the proposed amendment of §§5.83, 5.85, and 5.87 may be submitted to Denise S. Francis, Single Point of Contact, Governor's Office of Budget, Planning and Policy, P. O. Box 12428, Austin, Texas 78711, (512) 463-8465, dfrancis@governor.state.tx.us. Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register.
The proposed amendment of §§5.83, 5.85, and 5.87 is proposed under §391.009 of the Local Government Code, which provides the Office of the Governor with the authority to adopt rules regarding the operation and oversight of commissions, the receipt and expenditure of funds by commissions, the annual reporting requirements of commissions, the audit requirements on funds received or expended by commissions, the establishment and the use of standards by which the productivity and performance of commissions can be evaluated, and the guidelines that commissions and governmental units must follow in carrying out the review and comment procedures for loans and grants-in-aid.
The proposed amendment of §5.83 and §5.87 implements §391.0095 of the Local Government Code regarding reporting and audit requirements for commissions.
The proposed amendment of §5.85 implements §391.0117 of the Local Government Code regarding salary schedules for commissions.
No other statutes, articles, or codes are affected by the proposed amendment of these rules.
§5.83.Financial Audit Requirements.
(a) Not later than nine months after the close of each regional planning commission's fiscal year, each regional planning commission shall submit to the Office of the Governor a complete financial audit prepared by a certified public accountant, in accordance with generally accepted financial auditing procedures and the provisions of OMB Circular A-133 and the State Single Audit Circular, if applicable. A copy of the annual audit shall be submitted to the State Auditor, the Comptroller of Public Accounts, and the Legislative Budget Board.
(b) The annual audit will be commissioned by the governing
body of the regional planning commission unless the
Office of
the Governor
[
governor
] notifies each affected regional
planning commission in writing at least 120 days prior to the end
of the regional planning commission's fiscal year for which the audit
would be performed that the [
Governor's
] Office
of
the Governor
intends to commission the audit.
(c)
The
[
In lieu of commissioning the
audit, the
] Office of the Governor
will place primary reliance
upon state single
[
may require specific elements to be
included in the annual
] audit
coordinating agencies to
review regional planning commission audits. However, the Office of
the Governor may request that regional planning commission audits
be reviewed by the State Auditor or by an external auditor. The State
Auditor may review the audits, subject to approval by the Legislative
Audit Committee for inclusion in the audit plan under §321.013,
Government Code. If an audit is reviewed by the State Auditor, any
findings and recommendations shall be reported to the Legislative
Audit Committee and the Office of the Governor. If an audit is reviewed
by an external auditor, any findings and recommendations shall be
reported to the Office of the Governor, the State Auditor, and the
appropriate legislative oversight committees.
(d)
The
annual
[
governor will place
primary reliance upon state single
] audit
shall include:
[
coordinating agencies to review regional planning commission audits.
However, the governor may require planning commission audits to be
reviewed by Office of the Governor auditors or by a third party or
parties.
]
(1) the amount and source of funds received by the regional planning commission;
(2) the amount and source of funds expended by the regional planning commission;
(3) an explanation of any method used by the regional planning commission to compute an expense of the regional planning commission, including computation of any indirect cost of the regional planning commission;
(4) a statement of indirect costs which compares actual indirect cost allocations with the proposed indirect cost allocation plan used to establish an indirect cost rate; and
(5) any other information required by the Office of the Governor.
(e)
The Office of the Governor may, by rule, establish
standards and guidelines which regional planning commissions must
use in selecting independent auditors.
[
The audit shall
include:
]
[
(1)
the amount and source
of funds received by the regional planning commission;]
[
(2)
the amount and source
of funds expended by the regional planning commission;]
[
(3)
an explanation of
any method used by the regional planning commission to compute an
expense of the regional planning commission, including computation
of any indirect cost of the regional planning commission; and]
[
(4)
a statement of indirect
costs which compares actual indirect cost allocations with the proposed
indirect cost allocation plan used to establish an indirect cost rate.]
(f)
Audit costs are allowable costs as identified
in the Uniform Grant Management Standards (Chapter 783, Government
Code) and are allocable to the various programs administered by a
[
The Office of the Governor may, by rule, establish standards and guidelines
which
] regional planning
commission
[
commissions must use in selecting independent auditors
].
(g)
The annual audit, whether commissioned by
the governing body of the
[
Audit costs are allowable costs
as identified in the Uniform Grant Management Standards (Chapter 783,
Texas Government Code) and are allocable to the various programs administered
by a
] regional planning commission
or the Office of the
Governor, shall be paid for from the funds of the regional planning
commission
.
§5.85.Required Prior Approval of Salaries.
(a) - (b) (No change.)
(c) A salary for a position classified under the regional
planning commission's salary schedule may not exceed the state salary
as prescribed in the General Appropriations Act
[
that has been approved by the state auditor's office
] for comparable
work.
(d) A position may only be exempted from the classification
salary schedule adopted by the regional planning commission if the
exemption and the salary paid for the exempt position is within the
range
prescribed by the General Appropriations Act
[
determined
appropriate for state exempt positions by the state auditor
].
(e) Salaries charged to state grant funds, directly
or indirectly, will be considered reasonable to the extent that they
are comparable to salaries paid for similar positions in the labor
market in which the employing
regional
planning commission
competes for the kinds of positions involved. Wage and salary comparability
will be determined from the [
State Auditor's
] state classification
plan, positions exempt from the state classification plan,
the
State Auditor's
biennial reports on state classification and
pay
,
and
State Auditor's
reports on benefits
as a percentage of salary, as well as the U.S. Department of Labor's
Employment Cost index and other appropriate sources, including documentation
provided by the regional planning commission.
(f)
Not later than the 45th day before the date
of the beginning of each regional planning commission's fiscal year,
a
[
A
] regional planning commission shall [
annually
]
submit
to the State Auditor
[
, as approved by its governing
board,
] its salary schedule,
as approved by its governing
board,
including the salaries of all exempt positions[
,
to the director of the Office of the Governor's Budget and Planning
Division not later than the 45th day before the date of the beginning
of the regional planning commission's fiscal year
].
[
(1)
If, within 30 days
of the submission, the Office of the Governor has not responded in
writing disapproving the schedule, the salaries shall be deemed to
have been accepted.]
[
(2)
If the governor objects
to a regional planning commission's salary schedule, or a portion
thereof, the regional planning commission shall be so notified in
writing within 30 days of receipt of the schedule, and the portion
of the schedule that the governor objects to may not go into effect
until revisions or explanations are given that are satisfactory to
the governor and the governor approves that portion of the schedule.]
[
(3)
A disapproved portion
of a salary schedule may not be paid directly or indirectly from state-appropriated
funds.]
[
(4)
Actual salary rates
paid to employees in either classified or exempt positions may be
adjusted from time to time during the commission's fiscal year so
long as the resultant actual salary rate does not exceed the applicable
maximum rate established in the schedule submitted in accordance with
this subsection.]
(g)
If the State Auditor, subject to the Legislative
Audit Committee's approval for inclusion in the audit plan under §321.013,
Government Code, has recommendations to improve a regional planning
commission's salary schedule or a portion of the schedule, the State
Auditor shall report the recommendations to the Office of the Governor
[
This section does not apply to a regional planning commission if the
most populous county that is a member of the regional planning commission
has an actual average weekly wage that exceeds the state actual average
weekly wage by 20% or more for the previous year as determined by
the Texas Workforce Commission in its County Employment and Wage Information
Report
].
[
(1)
A regional planning
commission exempted from the salary provisions by this subsection
shall annually file an exemption notice with the director of the Office
of the Governor, Budget and Planning Division.]
[
(2)
The exemption notice
shall contain supporting information from the Texas Work Force Commission's
County Employment and Wage Information Report for the applicable period.]
(h) The Office of the Governor may not allow the portion of the schedule for which the State Auditor has recommendations to go into effect until revisions or explanations are given that are satisfactory to the Office of the Governor based on recommendations from the State Auditor.
(i) This section does not apply to a regional planning commission if the most populous county that is a member of the regional planning commission has an actual average weekly wage that exceeds the state actual average weekly wage by 20% or more for the previous year as determined by the Texas Workforce Commission in its County Employment and Wage Information Report.
(1) A regional planning commission exempted from the salary provisions by this subsection shall annually file an exemption notice with the State Auditor.
(2) The exemption notice shall contain supporting information from the Texas Work Force Commission's County Employment and Wage Information Report for the applicable period.
§5.87.Reports.
(a)
Not later than 90 days following the end of
each regional planning commission's fiscal year, each
[
Each
]
regional planning commission shall
submit
[
provide
annually
] to the
State Auditor,
[
director of
]
the Office of the
Governor, the Legislative Budget Board, and
the Comptroller of Public Accounts
[
Governor's Budget and
Planning Division, not later than 90 days following the end of the
regional planning commission's fiscal year
]:
(1) a report of the regional planning commission's
productivity and performance during the annual reporting period, based
upon the annual work program required by §5.90 of this
chapter. The report shall include:
[
title (relating to Annual Work
Program);
]
(A) the results of the program's activities at the most detailed level reported to each program's sponsoring agency, including outcome and output measures;
(B) a comparison of planned performance and actual results; and
(C) an analysis of progress made toward achieving goals and objectives required by §5.90 of this chapter relating to the annual work program;
(2)
a projection of the regional planning commission's
productivity and performance during the next annual reporting period
based upon the annual work program required by §5.90 of this
chapter
[
title
];
(3) a report of any assets disposed of by the regional planning commission. The report shall include:
(A) a summary of the activities performed to dispose of the assets;
(B) an itemized list describing each asset disposed of;
(C) the acquisition date of each asset disposed of;
(D) the purchase price of each asset disposed of;
(E) the reason for disposing of each asset;
(F) the disposition date of each asset disposed of; and
(G) the final disposition price for each asset disposed of.
(b)
If a
[
A
] regional planning
commission
fails to submit any
[
shall send to the
governor, the state auditor, the comptroller, and the Legislative
Budget Board a copy of each
] report [
or audit
] required
under
this section, the State Auditor shall report the failure
to the Office of the Governor.
[
these rules. If the governor
determines that there is a question about the appropriateness of an
expenditure or other action of a regional planning commission, the
governor shall report the expenditure or other action to the state
auditor for review.
]
(c)
A regional planning commission
[
An
entity required to file an audit or a report under these rules
]
shall
submit any other report or
[
file the initial
]
audit
required by the Office of the Governor
[
or report
not later than September 1, 2000
].
[
(d)
A regional planning
commission shall submit any other report or audit required by the
governor.]
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 8, 2007.
TRD-200703470
David Zimmerman
Assistant General Counsel
Office of the Governor
Earliest possible date of adoption: September 23, 2007
For further information, please call: (512) 936-0181