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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 re-
sponsibility 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 speci-
fied in the federal contract whenever they con-
flict 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 audit-
ing 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 com-
missioners 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 Em-
ployment Project under the Manpower Development
and Training Act (MDTA) and the Economic Oppor-
tunity 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 accu-
rately 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 re-
quirements specified in the Department of Labor HA - Manual Trans-
mittal 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 specify-
ing 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 procedtiresspecified,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 pro-
cedures specified in the contract control Over any county account-
ing 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 pro-
visions for cost reimbursement do not require the special bank
account to be a county depository.
In reply to .your sixth question, we have con.cludedthat
the County Auditor is not required to audit and apprwe claims re-
lating 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 con-
tract 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 tisstate 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,ndTraining Act
(MDTA) and the Economic Opportunity Act (EOA); CEP
funds do not become county monies a~ndare 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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