Texas Dept. of Transportation - Austin District

The meeting addressed multiple critical items including a safety briefing and opening commissioner remarks. Key actions involved the approval of contracts for highway construction, maintenance, and building rehabilitation, including minute orders detailing awards and rejections based on competitive bids. The commission also approved the award of federal funding for Transportation Alternatives Set-Aside projects, totaling significant amounts for bicycle and pedestrian infrastructure. Furthermore, federal and state funding was awarded for various airport improvement projects following a public hearing. The agenda included an approval to adjust the location of a Seaport Connectivity Program project in Brazoria County, and adoption of amendments to administrative rules concerning Advisory Committees and Uniform Traffic Control Devices. The commission authorized the initiation of condemnation proceedings for property acquisition via eminent domain for both controlled and non-controlled access highways across numerous counties. Several real estate dispositions were approved, including the sale of right of way in Anderson County and Tom Green County, the rescission of prior easement release authorizations in Bee County and Kendall County due to non-payment, and the transfer of right of way jurisdiction to De Witt County. Additionally, the commission approved an exchange of drainage easements in Travis County. Finally, the commission addressed the amendment of its free passage policy for toll projects to include vehicles used by nonprofit disaster relief organizations and vehicles owned by disabled peace officers, and approved resolutions authorizing short-term borrowings through the issuance of State Highway Fund Revenue Flexible Rate Revolving Notes. The commission also concurred with the Regional Transportation Council's funding allocations for projects under the SH 121 and SH 161 Toll Project Agreements.

The Audit Subcommittee meeting featured a review of the Greer Building Safety Video. Key agenda items included the presentation of the Independent Auditor's Report by CLA for the fiscal year ended August 31, 2025. The auditor confirmed unmodified opinions for the TxDOT ACFR, Texas Mobility Fund, Central Texas Turnpike System, and Grand Parkway Transportation Corporation, with no internal control findings identified. Discussions covered required communications regarding accounting policies, estimates (notably Net OPEB and Net Pension Liabilities), and significant risks such as management override of controls and revenue recognition related to toll revenue transition. Significant unusual transactions involved a 2024 Toll Services Agreement with HCTRA and a $1.7 billion buyout of the SH 288 agreement. The committee also reviewed the Management Action Plan follow-up status, internal audit reports concerning Design-Build Project Payments and Procurement Process timeliness, and a summary of Compliance Division investigations. External audit summaries for Public Transportation Division subrecipients (GCRPC and SETRPC) were presented.

The Audit Subcommittee meeting included a safety briefing. Key discussions focused on the Financial Management Division's annual update on Sarbanes-Oxley (SOX) Act Compliance, noting that 10 of 11 key controls tested were effective, with a plan to enhance one control in the next fiscal year. The committee approved revisions to the Audit and Compliance Charter to align with updated Global Internal Auditing Standards, emphasizing independent risk-based assurance and ethical commitment. The Subcommittee also discussed the Audit and Compliance Strategic Plan for fiscal years 2026 through 2028, which shifts focus to advancing professional competence, advancing data analytic programs using sophisticated tools, and improving stakeholder communication. Finally, the committee approved the Internal Audit and Compliance Performance Measures and the External Quality Assessment (EQA) Plan, which mandates an independent review every three years. The Compliance Division provided an update on Fiscal Year 2025 investigations, noting a substantiated rate of 52% and a decrease in the number of entities referred to the sanction committee. The Compliance Division also presented the Fiscal Year 2026 Compliance Work Plan, focusing on fraud, compliance, and third-party risks, including external audits of several authorities and subrecipients. The Internal Audit Division presented a summary of District Audits completed across eight districts and detailed the proposed FY26 Audit Plan consisting of 24 risk-based engagements covering themes like project delivery, financial management, and cybersecurity.

The meeting commenced with the Chairman calling the session to order and a safety briefing. The primary agenda involved the independent auditor's report for the fiscal year ending August 31st, 2025, which resulted in unmodified (clean) opinions for all deliverables, including the ACFR, Texas Mobility Fund, Central Texas Turnpike System, and Grand Parkway Transportation Corporation financial statements, with no internal control findings reported. Key discussions during the audit presentation covered adopted accounting pronouncements (GASB 101 and 102), evaluation of accounting estimates, and final identification of significant risks, including management overriding controls and revenue recognition related to business type activities involving HCTRA. The committee also heard updates on internal audit matters, including the status of past-due Management Action Plans (MAPs), specifically noting progress on meter identification for district operations, and findings from a design-build projects payment audit related to materials on hand and supplier invoice support. Furthermore, an audit on procurement timeliness revealed findings related to communication between buyers and requisitioners, underutilization of vendor performance reports for procurements under $25,000, and issues with unrealistic due dates provided by requisitioners. The Compliance Division presented its quarterly summary of investigations for FY 2026, noting 173 allegations received and a 69% substantiation rate, with increases observed in misuse of state resources and third-party violations. Results from external audits of two PTN subrecipients were also reviewed, identifying questioned costs for both. Finally, updates were provided on the status of open audit findings tracked by the compliance division.

The Texas Transportation Commission held a meeting to discuss various topics, including highway construction contracts, routine maintenance, and building rehabilitation. They considered awarding federal and state funding for airport improvement projects and a State Infrastructure Bank loan for utility relocation. The commission also discussed municipal utility relocation reimbursement, eminent domain proceedings, and donations to the department. Additionally, they covered real estate dispositions, compliance division reports, letting allocation reports, cash reports, toll rate escalation reports, designation of access control, and speed zones.