Texas Administrative Code › Title 43 - TRANSPORTATION › Part 1 - TEXAS DEPARTMENT OF TRANSPORTATION › Chapter 27 - TOLL PROJECTS › Subchapter E - FINANCIAL ASSISTANCE FOR TOLL FACILITIES › Section 27.55 - Financial Assistance Agreement

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Executive Director. The executive director will negotiate the terms of
				  agreements deemed necessary to comply with any requirements of preliminary
				  approval, to protect the public's safety, and to prudently provide for the
				  protection of public funds while furthering the purposes of this subchapter.
				  These agreements shall include, but not be limited to, terms provided for in
				  this section, as applicable to a particular project. The department shall
				  provide in an agreement such assurances as are reasonably and customarily
				  required by the requestor that are necessary for the purpose of obtaining
				  financial assistance for, developing, or operating a particular project,
				  provided that such assurances are, in the department's reasonable judgment,
				  consistent with the provisions of the agreement.
(b) Performance of work.
(1) The requestor shall comply with
				  applicable state and federal law, and with all terms and conditions of any
				  agreements. If approval or concurrence of the Federal Highway Administration,
				  the Federal Transit Administration, or any other federal agency is required,
				  the department may require that the requestor seek approval or concurrence
				  through the department. Upon request and, to the extent applicable and
				  permitted by federal law, after reasonable advance notice and opportunity to
				  cure from the department, the requestor shall reimburse the department for any
				  federal funds that are applied by the requestor to pay costs not incurred in
				  conformity with applicable state and federal law.
(2) The requestor shall maintain its books
				  and records in accordance with generally accepted accounting principles in the
				  United States, as promulgated by the Governmental Accounting Standards Board,
				  the Financial Accounting Standards Board, or pursuant to applicable federal or
				  state laws or regulations, and with all other applicable federal and state
				  requirements, subject to any exceptions required by existing bond indentures of
				  the requestor that are applicable to the project, and any exceptions the
				  requestor has historically implemented that have been acceptable to the public
				  debt markets.
(3) The requestor
				  shall, at the requestor's cost, have a full audit performed annually of its
				  books and records by an independent certified public accountant selected by the
				  requestor and reasonably acceptable to the department. The audit must be
				  conducted in accordance with generally accepted auditing standards promulgated
				  by the Financial Accounting Standards Board, the Governmental Accounting
				  Standards Board, or the standards of the Office of Management and Budget
				  Circular A-133, Audits of States, Local Governments and Non-profit
				  Organizations, as applicable, and with all other applicable federal and state
				  requirements. The requestor shall cause the auditor to provide a full copy of
				  the audit report and any other management letters or auditor's comments
				  directly to the department within a reasonable period of time after they have
				  been provided to the governing body of the requestor.
(4) The requestor shall retain all work
				  papers and reports for a minimum of four years from the date of the audit
				  report, unless the department notifies the requestor in writing to extend the
				  retention period. If requested by the department, audit work papers shall be
				  made available to the department, within 30 days of request, at any time during
				  the retention period.
(5) The
				  requestor shall retain all original project files, records, accounts, and
				  supporting documents until project completion or until all financial assistance
				  under this subchapter has been repaid, if applicable, or for the period of time
				  required by applicable federal and state law, if longer, unless relieved of
				  this requirement by the department in writing.
(6) Prior to the department assuming
				  jurisdiction of the project, if applicable, the requestor shall ensure that the
				  project, including all its components and appurtenances, is in a condition that
				  complies with §
											27.57 of
				  this subchapter. All design data, surveys, construction plans, right of way
				  maps, utility permits, and agreements with other entities relating to the
				  project shall be transferred to the department once the department assumes
				  jurisdiction of the project. This paragraph applies to projects that will
				  become a part of the state highway system.