Section 6.45 - Financial and Credit Requirements(a) An applicant receiving financial assistance under this chapter shall:(1) repay the financial assistance at the specified interest rate over a specified period as provided in the financial assistance agreement;(2) submit to the department within 30 days of the date of their adoption the annual operating and capital budgets adopted by the applicant each fiscal year under a trust agreement or indenture or equivalent document securing bonds issued for a project, and any amended or supplemental operating or capital budget, approved by the governing body of the applicant and certified as correct by its chief administrative officer or chief financial officer;(3) 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 applicant that are applicable to the project, and any exceptions the applicant has historically implemented that have been acceptable to the public debt markets;(4) at the applicant's cost, have a full audit of its books and records that is performed annually by an independent certified public accountant selected by the applicant and reasonably acceptable to the department and that is 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;(5) retain, or cause the auditor to retain, all work papers and reports until the fourth anniversary of the date of the audit report, unless the department notifies the applicant in writing of a later date for the end of the retention period and during the retention period, shall make audit work papers available to the department within 30 days of the date that the department requests those papers;(6) for all debt payable from the same revenue that is to repay the financial assistance, within 30 days after the date of submission to the Electronic Municipal Market Access System (EMMA) of the Municipal Securities Rulemaking Board of annual financial information and notices of material events required to be disclosed under Rule 15c2-12 of the United States Securities and Exchange Commission (17 C.F.R. §240.15c2-12), submit the information or notice to the department or advise the department in writing that the submission to EMMA has been made and provide in that writing the associated CUSIP number; and(7) abide by provisions governing default.(b) The applicant shall cause the auditor to provide a full copy of the audit report required under subsection (a)(4) of this section and any other management letters or auditor's comments directly to the department within a reasonable period after they have been provided to the governing body of the applicant.43 Tex. Admin. Code § 6.45
The provisions of this §6.45 adopted to be effective June 21, 2012, 37 TexReg 4433; Amended by Texas Register, Volume 49, Number 41, October 11, 2024, TexReg 8404, eff. 10/16/2024