Part I. Office of the Governor

Chapter 3. Criminal Justice Division

The Office of the Governor proposes amendments to Chapter 3, Subchapter B §3.605, §3.635, Chapter 3 Subchapter C §3.3045, §3.3050, §3.3055, §3.3060, §3.4075, §3.6030, §3.7015 Subchapter B concerns Fund Specific Grant Policies. Subchapter C concerns General Eligibility Requirements. This Chapter clearly identifies, defines, and provides other information on important policies, community planning, application submission guidelines, budget information, grant administration guidelines, program monitoring and auditing, funding sources, advisory boards, governing directives, and other relevant statutes.

Tom Jones, Director of Accounting for the Criminal Justice Division has determined that in general for the first five year period the rules are in effect there will be no fiscal impact on the state. The funds remain stable and the method for allocating funds on a regional basis has not changed.

Mr. Jones also has determined that for the first five year period the proposed rules are in effect the public benefit will be clarification of funding sources. There will be no anticipated economic cost to persons or small businesses.

Comments on the proposed chapters may be submitted to Pamela Brown at the Criminal Justice Division of the Governor's Office, P. O. Box 12428, Austin, Texas 78711.

Subchapter B. Fund Specific Grant Policies

6. Crime Stoppers Assistance Fund

1 TAC §3.605, §3.635

The amended rules are proposed under Texas Government Code, Title 7, §772.006 (a) (11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code.

No other statutes, articles or codes are affected by these amended rules.

§3.605.Eligible Projects.

(a)

Certified programs may apply for CJD funds to provide operational costs, promotional and publicity material, equipment, and special innovative projects that will enhance the objectives of the program and directly increase productivity. Innovative concepts should increase the public awareness of Crime Stoppers, promote donations to the reward and operating funds, increase tips, and enhance the overall effectiveness of the program.

(b)

There are several ineligible projects and activities. Projects or expenses not eligible for grant funding include, but are not limited to: [ travel expenses; ] paid promotional advertisements of any kind; office space rental; extended equipment services arrangements; contributions; subscription fees or dues; entertainment or refreshments; purchase or improvement of real estate; rewards; lobbying for the passage or defeat of any legislation, elections, or administrative reform; and attorney fees[ ; and personnel ].

§3.635.Funding Levels.

The minimum amount that may be applied for in grant funds is $1,000. There is no maximum award amount. [ The maximum amount that may be applied for is $15,000. ]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 12, 1999.

TRD-9901506

James Hines

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: April 25, 1999

For further information, please call: (512) 475-2594

2. General Grant Budget Requirements

1 TAC §§3.3045, 3.3050, 3.3055, 3.3060

The amended rules are proposed under Texas Government Code, Title 7, §772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code.

No other statutes, articles or codes are affected by these amended rules.

§3.3045.Personnel.

The following policies apply to all grant-funded, cash match-funded, or in-kind personnel.

(1)

Salaries for CJD-funded positions must comply with the grantee's classification schedule and be deemed reasonable by CJD. If the grantee does not have such a schedule, then an applicant must demonstrate in the application that the proposed salary is commensurate with others paid in the geographic area for similar work and experience. In any event, CJD will determine whether or not a salary is reasonable and deserves the right to limit the CJD financed portion of any salary.

[ (2)

Applicants must provide a copy of relevant licenses or certifications of staff members paid by the grant and of in-kind match personnel, if they are currently on staff. Where staff is not currently hired, the grantee may provide copies of these documents as soon as the staff member is hired. Peace officer certifications are exempt from this policy.]

[ (3)

All grant-paid peace officers must maintain a current TCLEOSE certification.]

(2)

[ (4) ] The grantee must document all grant funded and in-kind positions with time and attendance records. These records must indicate the number of hours worked each day on the project, the signature of the employee, and the signature of the supervisor. For law enforcement and prosecution grants, these time sheets must also indicate the actual time, for example, 7:00 AM to 3:00 PM, and the case or cause numbers or other indicators of assignments for audit and monitoring purposes.

(3)

[ (5) ] CJD will not fund staff positions for less than 25% of full-time. Additionally, if a staff member is paid partially from CJD funds, then explain from what sources the remainder of the salary is paid in the application. Grants to the regional councils of government for planning or law enforcement academy grants are exempt from this rule.

(4)

[ (6) ] CJD will not approve any salary increase from year-to-year unless the grantee provides adequate justification in the grant application to show the basis for the increase as well as to demonstrate that the increase is reasonable. CJD will determine whether the justification provided is sufficient and the increase is reasonable. This rule does not affect an employer's decision to provide a salary increase to any employee; it only limits the amount that may be paid from CJD funds, matching funds, and program income.

(5)

[ (7) ] The grantee cannot provide overtime pay for any personnel from grant funds or matching funds, including program income used to match.

(6)

[ (8) ] [ Except as otherwise indicated in this chapter, ] Staff positions that existed prior to the grant are ineligible for CJD funds. (See the exception under §3.545 of this title (relating to Personnel)

(7)

[ (9) ] If the grantee agency transfers an existing employee to a grant position, then the agency must fill that person's original position within 120 days. The grantee's number of non-grant staff members, therefore, cannot decrease because of the grant award.

(8)

[ (10) ]CJD will not allow grantees to reallocate personnel funds that are not expended because of a vacancy of more than 90 days to other budget line items, either within the personnel category or in other categories.

(9)

Grant-paid positions that are paid under a personal services or consultant contract must be listed in the application under Schedule B, Professional and Contractual Services.

(10)

If approved by CJD and in accordance with local or grantee agency policy, grantees may use CJD grant funds to pay staff members leaving employment for accrued compensatory time under certain circumstances. CJD funds may not be used to pay for any compensatory time accrued while the person was not paid from a CJD grant. Additionally, if CJD funds paid for only a portion of the person's salary, then the CJD portion of payment for compensatory time may not exceed the CJD portion of the salary.

(11)

On call hours may not be paid from CJD funds, cash match, or included as in-kind volunteer hours. In some circumstances, CJD may waive this policy in rural areas of the state.

§3.3050.Professional and Contractual Services.

(a)-(c)

(No change.)

(d)

The grantee must limit travel expenses to the grantee agency's established mileage and subsistence policies. Mileage reimbursement rates, however, are subject to federal limitations. Current federal limitations can be found on the Internet at www.policyworks.govorgmainmthomepagemttpov.htm. If a grantee does not have an established policy, it must use state travel guidelines. [ Transportation and subsistence costs for travel by consultants must be at an identified rate consistent with the CJD travel policy. ]

(e)-(g)

(No change.)

(h)

A grantee may not expend more than the amount listed for any service included in the CJD maximum rate schedule using CJD funds, matching funds, or program income.

(i)

Any person or vendor that participates directly in writing an invitation for proposal or a grant application cannot benefit financially from that contract or any CJD grant award unless the vendor is the sole source for such a contract and this agreement is approved in advance by CJD.

(j)

Grantees must disclose related party transactions, such a transaction occurs when a grantee enters into the contract with an individual or an organization to which a member of the grantee organization has a personal or business relationship. The applicant must include an explanation of any such arrangement must be included in the grant application. CJD will determine if such an agreement is appropriate.

(k)

(No change.)

(l)

Stated below are the maximum allowable rates of payment, or valuation of in-kind contributions, for selected types of personal services that may require purchase from a source external to the grantee. All professional and contractual services must be within the CJD maximum rate schedule below:

(1)

Individual consultants. Generally may not exceed $450 per day or $56.25 per hour. Under unusual circumstances, CJD will approve an additional amount per day for individual consultants. Such approval must be in advance. Before CJD gives approval, the approval of the Office of Justice Programs is required if federal funds are involved. The rate must be based on the prevailing market rate for the type of work being performed. The payment may include actual time for preparation, evaluation, and travel, in addition to the time for the presentation. The grantee may also pay for travel and subsistence costs. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, Texas Narcotics Control Program, Crime Stoppers Assistance Fund, [ and ] Safe and Drug-Free Schools and Communities , and Violence Against Women Act Fund.

(2)

Consultants associated with educational institutions. The maximum daily rate, which is the consultant's annual academic salary, divided by 260. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, Texas Narcotics Control Program, Crime Stoppers Assistance Fund, [ and ] Safe and Drug-Free Schools and Communities and Violence Against Women Act Fund.

(3)

Consultants employed by state and local governments. CJD will approve compensation for these consultants only when the unit of government cannot provide these services without cost. In such cases, the rate of compensation is not to exceed the daily salary rate paid by the unit of government. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, Texas Narcotics Control Program, Crime Stoppers Assistance Fund, [ and ] Safe and Drug-Free Schools and Communities ,and Violence Against Women Act Fund.

(4)

For profit and nonprofit corporations. The grantee must procure consultants employed by these organizations through competitive bidding. These costs are not subject to any maximum rate. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, Texas Narcotics Control Program, Crime Stoppers Assistance Fund, [ and ] Safe and Drug-Free Schools and Communities , and Violence Against Women Act Fund.

(5)

A full battery psychological evaluation includes a diagnostic interview and history; an individual intelligence test; an organicity-perceptual test; a wide-range achievement test; a projective and objective test; a vocational test; an aptitude test; or a review and evaluation with written narrative report by a licensed psychologist. The maximum cost per evaluation is $212. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund [ only, ] and Safe and Drug-Free Schools and Communities.

(6)

Individual or family psychological counseling must be directly performed by a licensed psychologist, licensed counselor, licensed social worker (advanced clinical practitioner). Administrative expenses and communications with family or other agencies are part of the cost per counseling hour. The provider may not bill as a separate and additional cost. The maximum cost per hour is $66. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, and Safe and Drug-Free Schools and Communities and Violence Against Women Act Fund.

(7)

Group psychological counseling for children must have a maximum of eight members in group and session must be 1.5 hours per session. Services must be performed by a licensed psychologist, licensed counselor, licensed social worker (advanced clinical practitioner). Administrative expenses and communication with family, referral source, or other agencies are part of the cost per counseling hour. The provider may not bill as a separate and additional cost. The maximum cost per individual per session is $28. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, [ and ] Safe and Drug-Free Schools and Communities, and Violence Against Women Act Fund.

(8)-(10)

(No change.)

(11)

Individual medical psychotherapy must be performed directly by a licensed psychiatrist. The maximum cost per hour is $90. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, [ and ] Safe and Drug-Free Schools and Communities and Violence Against Women Act Fund.

(12)

Group medical psychotherapy (maximum of eight persons per group) must be one to one and one half hours per person per session. The maximum cost per hour per person is $40. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, and Safe and Drug-Free Schools and Communities and Violence Against Women Act Fund.

(13)-(27)

(No change.)

(28)

Auditing. If an established organization provides auditing, the grantee may accept the most [ lowest ] responsive bid. If auditing is provided by an independent individual, the maximum rate per hour is $56.25. Eligible under all funds, however, grantee agencies that receive less than $300,000 in combined federal funds are not eligible to use federal grant dollars to purchase an annual audit.

(29)

Licensed attorney. The grantee may engage an attorney on a fee basis to provide training to staff and volunteers of the project engaged in delivering victim assistance. The grantee may also hire an attorney to secure protective orders if free services are not available, elder abuse petitions, and child abuse petitions. Where the grantee hires an attorney under the latter arrangement, the grantee must consult CJD for additional documentation required. The grantee must maintain audit records that account for the attorney's time on a case-by-case basis for services to victims. The time reflected in these records must amount to 100% of the time paid. No other attorney services are allowable as expenses of the grant project without prior CJD approval. The maximum rate per hour is $90.00. Eligible under Victims of Crime Act Fund [ only ] and Violence Against Women Act Fund.

(30)

(No change.)

(31)

Temporary child care. A grantee may provide temporary child care to accommodate those parents needing it as a direct result of project activities. Maximum cost per hour per child is $3 with a limit of $15 per day. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, [ and ] Safe and Drug-Free Schools and Communities ,and Violence Against Women Act Fund.

§3.3055.Transportation, Travel, and Training.

(a)

The grantee must limit travel expenses to the grantee agency's established mileage and subsistence policies. Mileage reimbursement rates, however, are subject to federal limitations. Current federal limitations can be found on the Internet at www.policyworks.govorgmainmthomepagemttpov.htm. If a grantee does not have an established policy, it must use state travel guidelines. [ The grantee must limit mileage reimbursement for the use of a personal car to $.28 per mile and in-state per diem to $25 per day, unless the grantee's travel policy provides a lesser reimbursement. Hotel, car rental, airfare, and out-of-state per diem expenses must be according to the grantee agency's established policies. If the grantee does not have an established policy, it must use state travel guidelines for all travel and subsistence expenses as provided in the current state appropriations act. For more information on the state travel guidelines, contact the General Services Commission, Travel Management System, P. O. Box 13047, Austin, Texas 78711-3047, (512-463-3559). ]

(b)

(No change.)

[ (c)

The grantee must travel only for the purposes described in the original grant application or approved in advance by CJD through grant adjustment notices. ]

[ (d)

CJD will approve travel expenses only for persons assigned to the grant project and listed in the approved budget. CJD may take into consideration unusual circumstances and may approve travel requested in exception to this policy. CJD must approve such exceptions in advance. In juvenile court programs only, travel expenses incurred to return juvenile runaways to their homes are an exception.]

[ (e)

CJD defines local travel as travel within the service area of the grant.]

[ (f)

CJD defines in-state travel as travel within Texas for purposes related to the grant project and may include reimbursement for meals, lodging, and transportation costs.]

(c)

[ (g) ] Travel to points outside the state requires approval in advance by CJD through the original grant award or through a grant adjustment. CJD will make exceptions for law enforcement agencies actively involved in an investigation where out-of-state travel is immediately crucial to the investigation. In these cases, grantees should notify CJD of their action upon return and request a grant adjustment in writing.

(d)

[ (h) ] All travel must be adequately justified in the budget narrative.

(e)

[ (i) ] Grants to develop and provide training through conferences or academies may not use CJD funds or matching funds to pay for travel and subsistence for participants.

(f)

[ (j) ] Travel outside of the project's service area for training must directly relate to the delivery of services or to the central focus of the grant project. Travel for administrative training is not allowable if it is outside of the geographical boundaries of the regional council of governments that represents the county where the project is based.

(g)

[ (k) ] Registration fees for training conferences should be reflected in the travel and training budget schedule.

(h)

[ (l) ] A person attending training funded by the grant must complete the course. If the person does not complete the course, the grantee must submit a reason in writing. If CJD does not approve the reason, the individual or the program represented is liable for repayment of expenses such as the registration fee and travel paid by grant funds. Grantees must maintain records in the project file, including training certificates and other records that show completion of training.

(i)

[ (m) ] The applicant must document in the application all in-state and out-of-state travel expenses by trip with destinations and purposes for the travel. This documentation must include budget detail showing how requested amounts were determined.

§3.3060. Equipment.

(a)-(b)

(No change.)

(c)

Equipment is an eligible expense only if it is part of a project that includes personnel assigned to the project. CJD may make exceptions in the cases of grants for innovative, cutting edge technology used in the investigation of crime. Such equipment does not include general office equipment. The CJD executive director may waive this policy under State Criminal Justice Planning Fund and allow for a one-time equipment-only grant under unusual circumstances. In these cases, a governing board of a regional council of governments may request such a grant in situations where there is no other eligible use for funds allocated to the region, the equipment is in the best interest of the region, and the purpose for and items of equipment are eligible under CJD rules and other applicable laws and regulations.

(d)-(f)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 12, 1999.

TRD-9901505

James Hines

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: April 25, 1999

For further information, please call: (512) 475-2594

1 TAC §3.4075

The amended rule is proposed under Texas Government Code, Title 7, §772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code.

No other statutes, articles or codes are affected by this amended rule.

§3.4075. Confidential Funds Certification.

(a)-(e)

(No change.)

(f)

Special accounting and control procedures should govern the use and handling of confidential expenditures, as described below:

(1)-(5)

(No change.)

(6)

For security reasons, there should be a limit on the amount of time that funds advanced for PE/PI/PS expenditures may be held outstanding. The time limit for settlement of PE/PI/PS expenditures will be based upon the level of approval. All advanced funds require specific justification and signed authorization by an approval official. The time limit and approval levels for official advance of funds are as follows: up to 2 days advance requires the Field Supervisor's approval, 3 to 7 days advance requires the Commander's approval, 8 to 30 days requires the Project Director's approval, and 31 to 60 days requires the Director, TNCP's approval. Approval beyond seven calendar days should be limited to special operations such as Mobile Enforcement Teams, special deployments and other exceptional situations. Factors to consider in approving these requests and extensions are the amount of funds involved, and the security under which the funds are being held. Funds should be stored in a locked, fireproof container (e.g. safe or vault) and safeguarded until needed.

[ (6)

For security purposes, there should be a 48-hour limit on the amount of time funds advanced for PE/PI/PS expenditure may be held outstanding. If it becomes apparent at any point during the 48-hour period that the expenditure will not materialize, then the funds should be returned to the advancing cashier as soon as possible. An extension to the 48-hour limit may be granted by the level of management that approved the advance. Factors to consider in granting such an extension are the amount of funds involved, the degree of security under which the funds are being held, how long the extension is required, and the significance of the expenditure. Such extensions should be limited to 48 hours. Beyond this, the funds should be returned and readvanced, if necessary. Regardless of circumstances, within 48 hours of the advance, the fund cashier should be presented with either the unexpended funds, an executed voucher for payment for information or purchase of evidence or written notification by management that an extension has been granted.]

(7)

Regardless of the circumstances, the fund cashier should be presented with either

(A)

the unexpended funds,

(B)

an executed voucher for payment of confidential expenditures, or

(C)

written notification by management that a specific level of extension has been granted and signed by the authorization level of approving authority.

(8)

[ (7) ] Purchase of services expenditures, when not endangering the safety of the officer or informant, need to be supported by canceled tickets, receipts, lease agreements, mileage logs which indicate the destination and purpose of travel, etc. If not available, the office head, or his/her immediate subordinate, must certify that the expenditures were necessary and justify why supporting documents were not obtained.

(g)-(i)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 12, 1999.

TRD-9901504

James Hines

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: April 25, 1999

For further information, please call: (512) 475-2594

1 TAC §3.6030

The new rule is proposed under Texas Government Code, Title 7, §772.006 (a) (11). which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code.

No other statutes, articles or codes are affected by these new rules.

§3.6030. Grant Adjustments.

(a)

(No change.)

(b)

CJD will not consider more than four grant adjustments each grant year where the request is to alter the approved or previously amended budget. This allotment does not include changes in the names of officials, addresses, or phone numbers. [ CJD will only consider additional budget adjustments if CJD expressly requests the budget amendment for reasons other than to resolve deficiencies found during monitoring visits or other examinations of grantee records. ]

(c)-(d)

(No change.)

(e)

The grantee shall notify CJD in writing of any change of the designated project director, financial officer, or authorized official within five days following the change. When such notification records a change of the financial officer, the letter must include a sample signature of the new official. When the change is of the authorized official, the governing body, such as the board, city council, or commissioners' court, must submit the request.

(f)

Each grantee is responsible for initiating a grant adjustment. The request is usually accomplished through a letter, although any information that clarifies the request may be included. The grantee must secure CJD approval, through a grant adjustment notice, in advance and each request must include a detailed justification for any:

(1)

(No change.)

(2)

changes in the need, objectives, methodology, scope, or geographical location of the grant; transfers of funds among approved budget categories [ direct cost categories ] exceeding ten [ five ] percent of the total grant award [ budget ] over the grant year;

[ (3)

changes in the number or job descriptions of personnel specified in the grant;]

[ (4)

changes in equipment amounts, types, or methods of acquisition;]

(3)

[ (5) ] changes in the grant period or in the period for liquidating all encumbered funds;

(4)

[ (6) ] decrease in the grantee cash contribution;

(5)

[ (7) ] expenditure of program income not allocated in the approved budget;

(6)

[ (8) ] new line items to be included in the budget; [ or changes to existing line items; ]

(7)

[ (9) ] cost-of-living and merit increases for a budgeted salary (grantees should include approval by the governing body citing the effective date of the increases);

(8)

[ (10) ] payments to confidential informants exceeding $2,500; or payments of liens on forfeited vehicles or real estate.

(9)

payments of liens on forfeited assets.

(g)-(i)

(No change.)

(j)

Over the course of the funding year, grantees may transfer funds or within approved between [ direct cost line items in different ] budget categories not to exceed a cumulative total of ten [ five ] percent of the grant award [ budget ] during that year. All such budget transfers must comply with all relevant policies in this chapter. Adjustments must occur before funds are expended or were scheduled to be expended in the approved budget. [ Total transfers during a grant year that exceed five percent of the CJD portion of the grant budget require a grant adjustment. ]

(k)

Grantees must send written requests for grant adjustments to CJD to the attention of the appropriate program director.

(l)

A grantee may request a grant adjustment to correct a negative finding in a CJD monitoring report. CJD will approve funding for those adjustments only as of the date on the approved Grant Adjustment Notice, which is mailed from CJD to the grantee. No funding will be approved to correct retroactively ineligible or unapproved expenses.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 12, 1999.

TRD-9901503

James Hines

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: April 25, 1999

For further information, please call: (512) 475-2594

1 TAC §3.7015

The new rule is proposed under Texas Government Code, Title 7, §772.006 (a) (11). which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code.

No other statutes, articles or codes are affected by these new rules.

§3.7015. Independent Annual Audit.

(a)

CJD requires audits of grants, including subgrants passed through from CJD grantees, based on federal audit requirements. OMB Circular A-133, which sets audit requirements, has been revised. All federally funded CJD grants are now subject to this circular. All state funded grants are also subject to the requirements of this circular as indicated in UGMS on page 98. Please ensure your auditor is using the revision dated June 24, 1997 to determine your audit need and reports required. To determine the audit requirement that is relevant to the grantee agency, choose the applicable requirement from the options listed .

(b)-(c)

(No change.)

(d)

Grantee agencies expending less than a total of $300,000 in federal funds, regardless of the source, are not required to submit a single audit. CJD may require, however, such a grantee to undergo a limited scope audit as defined in OMB Circular A-133 and will inform the grantee of such a requirement. CJD will notify grantees selected for limited scope audits in advance and will provide funding for such audit procedures. Provisions for such costs should not be included in an application's budget.

(e)

There are no audit requirements for grantees expending less than $300,000 in federal funds or less than $50,000 in state funds. If, however, a grantee in this category has an audit conducted for any reason, a copy of the audit must be submitted to CJD.

[ (e)

Grantee agencies expending less than a total of $300,000 but $50,000 or more in state funds, regardless of the source, must submit a program-specific audit.]

[ (f)

Grantee agencies expending less than a total of $50,000 in state funds, regardless of the source, must submit financial statements audited in accordance with Generally Accepted Auditing Standards (GAAS).]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 12, 1999.

TRD-9901502

James Hines

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: April 25, 1999

For further information, please call: (512) 475-2594