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Honorable Joe Resweber Opinion No. M- 887 

County Attorney 

Harris County Courthouse Re: County Auditor's responsibility 

Houston, Texas 77002 under a contract between the 

commissioners court and the 

United States government for 

a Concentrated Employment 

Project under the MDTA and 

Dear Mr. Resweber: the ECA. 

Your request for an opinion on the above subject matter 

asks the following questions: 

" 1 . Does the County Auditor have the responsibility under State statutes to specify the 

accounting method to be used for these funds and 

have the responsibility to audit these funds? 

” 2 . If the first question is answered in 

the affirmative, should the CEP funds be deposited 

with the County Treasurer? 

“3. If the first question is answered in the 

affirmative, should the County Auditor follow the 

accounting methods and auditing procedures specified in the federal contract whenever they conflict with county accounting methods and auditing 

procedures? 

“4 . If the first question is answered in the 

affirmative, should the County Auditor follow the 

accounting methods and auditing procedures specified 

in the federal laws and regulations whenever they 

conflict with county accounting methods and auditing procedures? 

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Honorable Joe Resweber, page 2 (M-887) 

"5 . If the first question is answered in the 

affirmative, should the grant monies be placed in 

the County depository in conformance with applicable 

state statutes and the County's depository contracts 

or does the Commissioners Court have the option of 

depositing these funds in another bank? If so, 

should that bank qualify in conformance with the 

County depository laws? 

"6 . Various actions by the Harris County commissioners Court have been taken in regard to the 

C.E.P. Grant program and these actions have been 

entered on the minutes of the Commissioners Court. 

If the first question is answered in the affirmative, 

should the County Auditor audit and approve a claim 

based upon an entry in the Commissioners Court's 

minutes concerning a requisition relating to the 

Concentrated Employment Program in question, inasmuch 

as there is some doubt as to whether these items are 

proper to be included in the minutes of the Harris 

County Commissioners Court?" 

In Attorney General's Opinion M-605 (1970) it was held: 

"Under the provisions of Paragraph 11 of 

Article 2351, V.C.S., the Commissioners Court 

may enter into a contract with the United States 

gwernment to administer the Concentrated Employment Project under the Manpower Development 

and Training Act (MDTA) and the Economic Opportunity Act (EOA)." 

In view of Attorney General's Opinion M-605 (1970), the 

commissioners court entered into a contract with the United States 

government to administer the Concentrated Employment Project under 

the Manpower Development and Training Act (MDTA) and the Economic 

Opportunity Act (EOA). 

Pursuant to this contract the commissioners court has 

agreed to be responsible for the task set forth in the "statement 

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Honorable Joe Resweber, page 3 (M-887) 

of work to be performed under this contract.” The commissioners 

court has agreed to "use accounting procedures which shall accurately allocate each expenditure incurred in the performance of 

this project.* 

The commissioners court has further agreed that it 

"will employ qualified accountants to keep the Fiscal records 

under this contract. All Fiscal records will conform to the requirements specified in the Department of Labor HA - Manual Transmittal Sheet No. 65 - dated Sept., 1969 

"Title 2500 Accounting 

Chapter 2510 Accounting for Redelegated Funding of MA 

Programs 

Section 2511 Contractors/Sponsor apcru cost reporting 

procedure"; 

and that it "will maintain records on, and properly document, all 

'In-Kind' contributions to the cost of the contract.” 

Article 1651, Vernon's Civil Statutes, requires that 

the County Auditor shall have, general oversight of all books and 

records of all officers of the county. Article 1653, Vernon's 

Civil Statutes, provides that the County Auditor shall examine 

the books and accounts of any officer relating to the finances of 

the county, and Article 1656 provides that the County Auditor shall 

prescribe the forms to be used in the accounting of revenues and 

other funds and fees belonging to the county. 

In answer to your first question you are advised that 

the County Auditor does not have the responsibility for specifying the accounting method to be used for funds disbursed pursuant 

to the contract in question, as such accounting methods are spelled 

out in the contract itself. 

Answering your second question you are likewise advised 

that the c&P grant monies prwided for in the contract are not to 

be deposited in the County Treasury, but are to be deposited in 

a special bank account specifically provided for in the contract 

documents. 

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Honorable Joe Resweber, page 4 (M-887) 

In answer to your third question you are advised that 

the accounting procedtires specified, in the contract control the 

disbursement of federal monies specified in the contract. 

In view of our affirmative answer to the first question, 

we answer your fourth question by stating that the auditing procedures specified in the contract control Over any county accounting methods and auditing procedures. 

It also follows, in answer to your fifth question, that 

the provisions of Paragraph (c) of Section 23 of the general provisions for cost reimbursement do not require the special bank 

account to be a county depository. 

In reply to .your sixth question, we have con.cluded that 

the County Auditor is not required to audit and apprwe claims relating to the employment program prwided for in the contract in 

accordance with its terms. 

Summarizing our answers to your questions, we express 

the opinion that the commissioners court, in entering the contract with the federal government, becomes a sponsoring agent 

for the United States government in carrying out the Concentrated 

Employment Project under the Manpower Development and Training 

Act and the Economic Opportunity Act: and consequently, such 

CEP funds do not become county funds subject to the various 

statutory provisions relating to the handling of county monies. 

Such funds are not deposited tis state or county funds but are 

dealt with as trust funds pursuant to the federal contract. See 

Attorney General's Opinion No. C-530 (1965). 

SUMMARY 

Under the provisions of a contract between the 

commissioners court and the United States government 

to administer the Concentrated Employment Project 

under the Manpower Development a,nd Training Act 

(MDTA) and the Economic Opportunity Act (EOA); CEP 

funds do not become county monies a~nd are therefore 

not subject to the auditing procedures applicable to 

county funds. 

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. * 

Honorable Joe Resweber, page 5 (M-887) 

,C 

yerp truly yyyrs, 

Atto hey General of Texas 

if 

Prepared by John Reeves 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Co-Chairman 

Sam L. Jones, Jr. 

Gordon Cass 

John Banks 

James Quick 

MEADE F. GRIFFIN 

Staff Legal~Assistant 

ALFREDWALKER 

Executive Assistant 

NOLA WHITE 

First Assistant 

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