Part 3.
OFFICE OF THE ATTORNEY GENERAL
Chapter 66.
FAMILY TRUST FUND DISBURSEMENT PROCEDURES
The Office of the Attorney General (OAG) proposes new Chapter 66,
Family Trust Fund Disbursement Procedures, Subchapter A,§§66.1,
66.3, 66.5, 66.7, and 66.9; Subchapter B, §§66.15, 66.17, 66.19,
66.21, and 66.23; Subchapter C, §§66.31, 66.33, 66.35, 66.37, 66.39,
66.41, 66.43, 66.45, and 66.47; Subchapter D, §§66.55, 66.57, and
66.59; Subchapter E, §§66.67, 66.69, 66.71, 66.73, 66.75, 66.77,
66.79, 66.81, 66.83, 66.85, 66.87, 66.89, 66.91, 66.93, 66.95, 66.97, 66.99,
66.101, 66.103, 66.105, 66.107, 66.109, and 66.111; and Subchapter F, §§66.119,
66.121, and 66.123 relating to rules for disbursement of funds and administration
of grants and contracts under the Family Trust Fund. This chapter proposes
implementation of new rules necessary to carry out the provisions of the Texas
Family Code, Chapter 2, The Marriage Relationship, §2.014, Family Trust
Fund (West 1999), which provides funds for programs that assist families.
Texas Family Code, §2.014 reflects the 76
th
Legislature's intent to provide public funds for the following purposes: (1)
the development and distribution of a premarital education handbook; (2) grants
to institutions of higher learning that conduct research on marriage and divorce
to strengthen families and assist children whose parents are divorcing; (3)
support for counties to create or administer free or low- cost premarital
education courses; (4) programs that intend to reduce the amount of delinquent
child support; and (5) other programs the OAG determines will assist families.
Pursuant to Texas Local Government Code §118.013(c) each county clerk
shall remit $3 of the fee for a marriage license to the comptroller for deposit
in the Family Trust Fund. Pursuant to Texas Family Code §2.014 the OAG
shall administer the funds for the statutory beneficiaries; therefore, it
is necessary for the OAG to adopt rules outlining the procedure for disbursement
of the funds in a fair and accurate manner. The rules will also cover the
application process; the manner of awarding funding; the administration of
the fund; individual program monitoring; and audits. This proposed chapter
establishes procedures by which entities may apply for and receive grants,
or contracts as appropriate, and implement programs which meet the statutory
requirements of Texas Family Code §2.014. The rules are also intended
to advise the public of the independent functions the OAG has regarding administration
of the Family Trust Fund.
Proposed Chapter 66 is organized into six subchapters. Proposed Subchapter
A (General Provisions and Eligibility, §§66.1, 66.3, 66.5, 66.7,
and 66.9) contains general provisions of Chapter 66, including definitions,
statutory authority for the trust fund, source of the trust fund, prohibitions
related to the use of the trust fund, and eligibility requirements. Proposed §66.1
provides the definitions of terms. Proposed §66.3 states the statutory
authority for the creation of the trust fund and recognizes the authority
of the OAG to administer the trust fund. Proposed §66.5 relates the purpose
of the trust fund. Proposed §66.7 describes eligible projects for which
the trust fund may be used. Proposed §66.9 defines the class of persons
and entities eligible to apply for the trust fund.
Proposed Subchapter B (Grant Application, Scope of Grant, Approval, and
Funding, §§66.15, 66.17, 66.19, 66.21, and 66.23) describes the
application process, including the requirement of a timely-filed application,
OAG review criteria, discretionary determination of funding by the OAG, and
nonstandard funding. This subchapter also declares that the actual funding
of approved new and existing grant projects is contingent upon the availability
of funds. Proposed §66.15 provides that applicants must complete and
submit an application package to the OAG Grant Coordinator. Proposed §66.17
discusses the OAG's approval process in determining how to disburse the trust
fund. Proposed §66.19 defines the grant or contract funding period and
criteria for awarding second-year funding. Proposed §66.21 provides for
approval of nonstandard grant funding outside the annual grant cycle based
on the availability of funds. Proposed §66.23 declares that actual funding
of approved new and existing grant projects is contingent upon availability
of funds.
Proposed Subchapter C (Special Conditions and Required Documents, §§66.31,
66.33, 66.35, 66.37, 66.39, 66.41, 66.43, 66.45, and 66.47) addresses documents
that applicants are required to submit to the OAG to demonstrate that they
will follow operating procedures consistent with state and federal law. Proposed §66.31
relates to an Equal Employment Opportunity Program Certification. Proposed §66.33
relates to a Certification Regarding Lobbying. Proposed §66.35 relates
to a Nonprocurement Debarment Certification. Proposed §66.37 relates
to a Drug-Free Workplace Certification. Proposed §66.39 relates to a
Uniform Grants Management Standards Certification. Proposed §66.41 relates
to a Certified Assurances Certification. Proposed §66.43 discusses that
pre-approval of the OAG is required for grantees to use grant funds to purchase
equipment with a cost exceeding $25,000 and establishes the process and documentation
necessary for such pre-approval. Proposed §66.45 advises that prior to
execution of any contract in excess of $25,000, a grantee must submit said
contract and required documentation along with the criteria and process the
grantee is considering for entering into contracts. Proposed §66.47 requires
that governmental entities and nonprofit organizations who designate someone
other than the executive officer of the governmental entity in the grant application
must obtain a resolution from its governing body that gives the authorized
official the power to accept, reject, or amend a grant. The resolution must
state that a security bond will be obtained and in the event grant funds are
misused, the grant funds will be returned in full. In addition, the resolution
must contain non-supplanting language.
Proposed Subchapter D (Award and Grant Acceptance, §§66.55, 66.57,
and 66.59) sets forth the process for the award and acceptance of grants.
Proposed §66.55 announces the process for notification of an award of
grant funds. This section also sets forth the OAG's full discretion in approving
project funding and determining grantee compliance with OAG policies. Proposed §66.57
outlines procedures for an applicant's response to deficiencies in a filed
application. Proposed §66.59 describes the process an applicant may pursue
in the event that the OAG denies all or part of an application and sets forth
the final decision-making authority of the OAG.
Proposed Subchapter E (Administering Grants, §§66.67, 66.69,
66.71, 66.73, 66.75, 66.77, 66.79, 66.81, 66.83, 66.85, 66.87, 66.89, 66.91,
66.93, 66.95, 66.97, 66.99, 66.101, 66.103, 66.105, 66.107, 66.109, and 66.111)
proposes rules for the administration of the grants. The rules establish duties
and responsibilities for grant officials, requirements regarding records,
procedures to requests funds, grant adjustments, copyrights, procurement procedures,
and rules relating to property management, bonding, and insurance. This proposed
subchapter addresses OAG authority to withhold funds or terminate a grant
under certain conditions and a grantee's ability to request a reconsideration
of a decision to withhold funds or determinate a grant project. This proposed
subchapter also contains procedures for grantee self-evaluation of a project,
submission of regular progress reports to the OAG, evaluation of third party
contracts, if any, and winding up a grant administration.
Proposed §66.67 requires that each grantee designate three grant officials
whose duties are described in the section. Proposed §66.69 advises that
OAG approval is required if grant funds are obligated prior to the start date
or later than the end date of the grant period. Proposed §66.71 sets
forth grant records retention requirements and provides for availability of
the records in an electronic format for purposes of audit. Proposed §66.73
specifies that the grantee must file financial expenditure reports each calendar
quarter on forms promulgated by the OAG and sets forth the consequences for
failing to file a timely report. Proposed §66.75 mandates that the grantee
maintain an inventory report on file in the principal office of the grantee.
Proposed §66.77 establishes time limits for filing a final request for
funds and the consequences for failure to submit accurate reports in a timely
manner. Proposed §66.79 describes procedures for submitting a request
for a grant adjustment. Proposed §66.81 establishes the OAG's claim to
a license to use copyrighted material where the purchase of such copyright
was funded in any part by OAG funds. Proposed §66.83 governs procurement
procedures, including OAG review and approval, to be used by a grantee who
purchases equipment or professional or consultant services in excess of $25,000.
Proposed §66.85 establishes the Uniform Grant Management Standards
published by the Governor's Office of Budget and Planning as the governing
property management standard for a grantee. Proposed §66.87 provides
guidance regarding equipment disposition methods where a grantee who has purchased
equipment in whole or in part with OAG funds is no longer funded by the OAG.
Proposed §66.89 provides guidance regarding the transfer of title to
equipment and nonexpendable personal property acquired with grant funds. Proposed §66.91
sets forth a grantee's bonding and insurance requirements.
Proposed §66.93 addresses the OAG's authority and discretion to withhold
funds from a specific project or from all projects operated by a grantee if
any of the enumerated conditions or situations occur and a describes a grantee's
ability to request a reconsideration of an OAG decision to withhold funds.
Proposed §66.95 outlines the procedure regarding cancellation or termination
of a grant, the consequences of such action, and a grantee's ability to request
a reconsideration of an OAG decision to terminate a grant project.
Proposed §66.97 sets forth the requirements for de-obligation of grant
funds at the end of the funding period and provides for final expenditure
reports to be submitted within a certain time limit. Proposed §66.99
requires the grantee to obligate and expend all outstanding liabilities within
certain specified time frames. Proposed §66.101 requires the grantee
and its personnel to report immediately to the OAG and the local prosecuting
attorney's office upon discovery of any violation of the law pertaining to
the use and expenditure of grant funds. Proposed §66.103 contains a prohibition
against behavior constituting a conflict of interest on the part of any person
affiliated with the grant project. Proposed §66.105 imposes contract
monitoring and self-evaluation requirements on a grantee. In this section,
the OAG seeks to ensure that a grantee takes a sustained, active role in assessing
actual delivery of service to victims of crime through the grant project.
Proposed §66.107 imposes the requirement for filing timely complete progress
reports. Proposed §66.109 requires that a grantee who uses grant funds
to contract with a third party must maintain proper records to ensure that
requirements of the contract are met. Proposed §66.111 establishes the
requirement for accuracy of grant records and sets forth the consequences
for providing false information.
Proposed Subchapter F ( Program Monitoring and Audits, §§66.119,
66.121, and 66.123) contains provisions concerning OAG monitoring activities,
compliance reviews, and auditing authority and standards, as well as procedures
for appealing OAG decisions relating to audit findings.
Proposed §66.119 explains that OAG monitoring will attempt to ensure
that a grantee is achieving grant performance goals and that grant awards
are used in accordance with applicable laws, rules, and grant agreements.
Proposed §66.121 requires a grantee to file independent annual audits
in accordance with Uniform Grant Management Standards and Generally Accepted
Auditing Standards. Proposed §66.123 contains guidance as to the substance
of OAG reviews and the substance of required annual audits.
Beth Page, Assistant Attorney General, General Counsel Division, has determined
that for each year of the first five years that the proposed rules are in
effect:
A. the additional estimated cost to the state expected as a result of enforcing
or administering the rules will be zero because the rules impose no additional
burden on anyone;
B. the estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the rules will be zero because the
rules impose no additional burden on anyone; and
C. the estimated loss or increase in revenue to the state or to local governments
as a result of enforcing or administering the rules will be zero because the
rules impose no additional burden on anyone.
Ms. Page has determined that for the first five-year period in which the
proposed rules are in effect, the anticipated public benefit will be the administration
of the Family Trust Fund program by the OAG, as mandated by the Texas Legislature,
without increased costs to the state. The proposed rules will enable direct
service providers of programs that assist families to apply for and receive
trust fund monies to provide those services.
Ms. Page has also determined there will be no direct adverse effect on
small businesses or micro-businesses because these rules apply neither to
single businesses nor to micro-businesses.
Ms. Page further determined there will be no economic cost to persons required
to comply with the rule.
Comments may be submitted, in writing, no later than 30 days from the date
of this publication to Beth Page, Assistant Attorney General, General Counsel
Division, OAG, (512) 463-0286, P.O. Box 12548, Austin, Texas 78711-2548 or
by e-mail to beth.page@oag.state.tx.us.
Subchapter A. GENERAL PROVISIONS AND ELIGIBILITY
1 TAC §§66.1, 66.3, 66.5, 66.7, 66.9
Chapter 66 is proposed under the Texas Family Code §2.014,
which the OAG interprets as authorizing the OAG to adopt rules reasonable
and necessary to implement §2.014, in order to provide funds for grants
or contracts that support services that assist families.
The proposed new chapter affects Texas Family Code §2.014.
§66.1.Definitions.
The following words and terms, when used in this chapter, shall have
the following meanings, unless the context clearly indicates otherwise.
(1)
GAAS--Generally Accepted Auditing Standards;
(2)
OAG--Office of the Attorney General;
(3)
UGMS--Uniform Grant Management Standards published by the
Governor's Office of Budget and Planning;
(4)
FTFG--Family Trust Fund Grant;
(5)
RFP--Request for Proposal;
(6)
IFB--Invitation for Bid;
(7)
HUB--Historically Underutilized Businesses.
§66.3.Source of Funds.
The Family Trust Fund was created by Texas Family Code §2.014
as a trust fund with the state comptroller to be administered by the OAG for
the beneficiaries of the fund. Each county clerk of Texas is required to collect
$30 of each marriage license issued and to remit $3 of that fee to the comptroller
for deposit in the Family Trust Fund. The funds shall be deposited with the
State Comptroller's Office in the Family Trust Fund.
§66.5.Purpose of Funds.
The purpose of the Family Trust Fund is to provide funds for programs
that provide premarital education, strengthen families, reduce the amount
of delinquent child support, and assist families.
§66.7.Eligible Projects.
Grants or contracts awarded under this chapter may be used to fund:
(1)
projects that will assist in the development and distribution
of a premarital education handbook;
(2)
projects in institutions of higher education that will
assist in developing programs, courses, and policies to help strengthen families
and assist children whose parents are divorcing;
(3)
projects in counties that will administer free or low-cost
premarital education courses;
(4)
programs that are intended to reduce the amount of delinquent
child support; and
(5)
any other program that the OAG determines will assist families
in this state.
§66.9.Eligible Applicants.
The entities that are eligible to apply for Family Trust Fund monies
are :
(1)
institutions of higher education having academic departments
that are capable of research on marriage and divorce that will assist in determining
programs, courses, and policies to help strengthen families and assist children
whose parents are divorcing;
(2)
counties that are creating and administering free or low
cost premarital education courses;
(3)
programs that are intended to reduce the amount of delinquent
child support; and
(4)
any other programs that the OAG determines will assist
families in this state.
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 April 12, 2001.
TRD-200102109
Susan D. Gusky
Assistant Attorney General
Office of the Attorney General
Earliest possible date of adoption: May 27, 2001
For further information, please call: (512) 463-2110
1 TAC §§66.15, 66.17, 66.19, 66.21, 66.23
Chapter 66 is proposed under the Texas Family Code §2.014,
which the OAG interprets as authorizing the OAG to adopt rules reasonable
and necessary to implement §2.014, in order to provide funds for grants
or contracts that support services that assist families.
The proposed new chapter affects Texas Family Code §2.014.
§66.15.Grant or Contract Application.
(a)
An applicant for a grant under this chapter must complete
and submit a grant application package to the OAG Grant Coordinator, 300 West
15th Street, 15th Floor, P.O. Box 12548, Austin, Texas 78711-2548. An applicant
may contact the OAG by telephone (512-463-0192) or in writing for information
about application requirements and for application packages.
(b)
The original and one copy of the application package must
be received by the OAG by the first business day in May of each year. Applications
received after the deadline for submission will not be considered. This deadline
does not apply to applications received in the FY 2001.
(c)
An applicant for a contract under this chapter must submit
a request in writing to the OAG Grant Coordinator, 300 West 15th Street, 15th
Floor, P.O. Box 12548, Austin, Texas 78711-2548. An applicant may contact
the OAG by telephone (512-463-0192) or in writing for information about the
application process.
§66.17.Approval of Grants or Contracts.
The OAG will review and evaluate each timely application. The OAG has
full discretion in making all funding decisions. The OAG will base award decisions
on an applicant's eligibility, cost effectiveness of the proposed grant or
contract, and the service needs within the geographic area of an applicant.
Award decisions by the OAG are final and not subject to judicial review.
§66.19.Grant or Contract Period.
(a)
A project will be funded for a 12-month period, beginning
no earlier than September 1 of each year, and ending August 31 of each year.
This funding period does not apply to applications received for projects in
the FY 2001.
(b)
The maximum number of years that a project may be funded
is two years.
(c)
An applicant may submit a single application for funding
for a two year period. If the application is approved, the project will be
funded for the first year and will receive automatic consideration for second
year funding. No additional application will be required for the second year,
but the OAG may require a grantee to submit updated attachments, contracts,
bonds, resolutions, and other information as necessary. The OAG will base
its final decision on second year funding on first year performance, including
the timeliness and thoroughness of reporting, the success of the project in
meeting its goals, and the outcome of OAG on-site visits.
§66.21.Nonstandard Funding.
The OAG may fund projects, upon application, outside of the annual
grant or contract cycle or at amounts higher or lower than provided for in
this chapter based on availability of funds and a particularized need, consistent
with the Texas Family Code, §2.014.
§66.23.Continuation of Funding.
There is no commitment by the OAG that a grant, once funded, will receive
subsequent funding, or that a contract, once funded, will receive subsequent
renewal. To qualify for continuation of funding for existing projects, applicants
must meet all requirements of this chapter and have a history of timely submission
of progress and financial reports. Continuation of funding of new and existing
projects is also contingent upon the availability of funds.
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 April 12, 2001.
TRD-200102110
Susan D. Gusky
Assistant Attorney General
Office of the Attorney General
Earliest possible date of adoption: May 27, 2001
For further information, please call: (512) 463-2110
1 TAC §§66.31, 66.33, 66.35, 66.37, 66.39, 66.41, 66.43, 66.45, 66.47
Chapter 66 is proposed under the Texas Family Code §2.014,
which the OAG interprets as authorizing the OAG to adopt rules reasonable
and necessary to implement §2.014, in order to provide funds for grants
or contracts that support services that assist families.
The proposed new chapter affects Texas Family Code §2.014.
§66.31.Equal Employment Opportunity Program Certification.
An application for funds in excess of $25,000 must include a signed
copy of an Equal Employment Opportunity Program certification. Such certification
verifies that an agency employing 50 or more people that has applied to the
OAG Grants Coordinator for funds in excess of $25,000 has implemented an equal
employment opportunity program in accordance with 28 CFR 42.301, et seq.,
Subpart E.
§66.33.Certification Regarding Lobbying.
(a)
An application must include a signed copy of a Certification
Regarding Lobbying in which the applicant certifies that "No Family Trust
Fund funds have been paid or will be paid to any person for influencing or
attempting to influence an officer or employee of an agency, a member of the
Texas Legislature, and officer or employee of the Texas Legislature, or an
employee of a member of the Texas Legislature in connection with this grant."
The applicant shall complete and submit the standard form, "Disclosure Form
to Report Lobbying," in accordance with its instructions.
(b)
A grantee must file the most current edition of this certification
and disclosure form, if applicable, with each submission that initiates agency
consideration for an award of a contract or grant.
(c)
The certification required by this section is a material
representation of fact upon which reliance is placed when a transaction is
made or entered into.
§66.35.Nonprocurement Debarment Certification.
An application must include a signed copy of the Nonprocurement Debarment
Certification. It certifies that neither the applicant nor its principals
are presently debarred, suspended, proposed for debarment, declared ineligible,
or voluntarily excluded from participation in this transaction by a federal
or state department or agency.
§66.37.Drug-free Workplace Certification.
An application must include a signed copy of the Drug-free Workplace
Certification.
§66.39.Uniform Grants Management Standards Certification.
(a)
An application must include a signed copy of the Uniform
Grants Management Standards Certification.
(b)
A grantee shall, within 60 days following the date of the
grant award, furnish the following information to the OAG:
(1)
identity of the organization conducting the audit;
(2)
approximate time the audit will be conducted; and
(3)
audit coverage to be provided.
§66.41.Certified Assurances.
An application must include a signed copy of the Certified Assurances
Certification.
§66.43.Equipment Review and Approval.
(a)
Prior to obligating or expending grant funds for equipment
purchases in excess of $25,000, a grantee shall submit the following documentation
to the OAG for review and approval:
(1)
a brief narrative description of the procurement procedures
used;
(2)
an unequivocal statement of the low compliant bid that
was selected;
(3)
a list of vendors requested to bid or respond;
(4)
a copy of the public advertisement;
(5)
a copy of the RFP or the IFB with bid specifications;
(6)
a copy of the awarded bid;
(7)
a bid tabulation sheet;
(8)
a description of the selection process used to select the
successful bidder when a grantee does not accept the apparent low bid, along
with a copy of the evaluation of all proposals and a transmittal letter stating
the reasons why such bid was selected;
(9)
a copy of the sales or purchase contract, if applicable;
and
(10)
a letter signed by the authorized person named in the
grant or by the person designated in the "Grantee Acceptance Notice" to initiate
grant adjustments.
(b)
A grantee must, at a minimum, comply with its own procurement
procedures and the Local Government Code, if applicable.
(c)
Grantees must provide notice in their RFPs or IFBs to prospective
bidders that contractors who develop or draft specifications, requirements,
statements of work and/or RFPs for a proposed procurement shall be excluded
from bidding or submitting a proposal to compete for the award of such procurement
in order to avoid an OAG organizational conflict of interest.
(d)
State agencies using the purchasing services of the General
Services Commission are exempt from the requirement of submitting bidding
documentation to the OAG for review and approval prior to purchasing equipment.
§66.45.Contract Review and Approval.
(a)
All contracts or groups of contracts with a single vendor
that total more than $25,000 must be submitted to and approved by the OAG
prior to a grantee obligating or expending any grant funds for contractual
services. Each contract must be transmitted by a letter signed by the authorized
person named in the grant or by the person designated to initiate grant adjustments
and be accompanied by the following:
(1)
a brief narrative description of the procurement procedures
used and an unequivocal statement describing the low compliant bid that was
selected;
(2)
a list of vendors requested to bid or respond;. An RFP
or IFB issued by a grantee to implement the grant project must provide notice
to prospective bidders that the OAG organizational conflict of interest provision
is applicable in that contractors who develop or draft specification, requirements,
statements of work, and/or RFPs for proposed procurement shall be excluded
from bidding or submitting a proposal to compete for the award of such contract
or order;
(3)
a copy of the public advertisement;
(4)
a copy of the RFP or the IFB, with specifications;
(5)
a copy of the awarded response;
(6)
a description of the selection process used to select the
successful bidder, with a copy of the evaluation of all proposals;
(7)
an explanation of why only one response was received, if
applicable; and
(8)
an explanation justifying the selection of the sole source
contractor if sole source procurement is necessary (i.e., contract is awarded
to any organization without conducting a formal advertising and competitive
bidding process or without soliciting proposals from potentially qualified
contractors, or if only one bid was received.) The explanation must be presented
in a format prescribed by the OAG in the application package.
(b)
State agencies using the purchasing service of the State
Purchasing and General Services Commission are not exempt from the requirements
of this paragraph.
§66.47.Resolutions.
(a)
Governmental entities whose authorized official designated
in the grant application is not the executive officer of the governmental
entity must submit a resolution from their governing body that gives the authorized
official the power to accept, reject or amend a grant. The resolution must
state that the governing body will secure a fidelity bond covering the full
amount of the OAG funds upon acceptance of any grant award as provided in §66.91
of this title and that in the event of loss or misuse of OAG funds, the governing
body assures that the grant funds will be returned to the OAG in full. The
resolution from the governing body shall contain a statement that the governing
body of the governmental entity may not use the existence of a grant award
to offset or decrease total salaries, expenses, and allowances that the applicant
receives from the governing body at or after the time the grant is awarded.
(b)
A nonprofit organization whose authorized official designated
in the grant application is not the executive officer of the organization
must submit a resolution from its governing body that gives the authorized
official the power to accept, reject or amend a grant. The resolution must
state that the governing body will secure a fidelity bond covering the full
amount of the OAG funds upon acceptance of any grant award as provided in §66.91
of this title and that in the event of loss or misuse of OAG funds, the governing
body assures that the grant funds will be returned to the OAG in full. The
resolution from the governing body shall contain a statement that the governing
body of the organization may not use the existence of a grant award to offset
or decrease total salaries, expenses, and allowances that the applicant receives
from the governing body at or after the time the grant is awarded.
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 April 12, 2001.
TRD-200102111
Susan D. Gusky
Assistant Attorney General
Office of the Attorney General
Earliest possible date of adoption: May 27, 2001
For further information, please call: (512) 463-2110
1 TAC §§66.55, 66.57, 66.59
Chapter 66 is proposed under the Texas Family Code §2.014,
which the OAG interprets as authorizing the OAG to adopt rules reasonable
and necessary to implement §2.014, in order to provide funds for grants
or contracts that support services that assist families.
The proposed new chapter affects Texas Family Code §2.014.
§66.55.Application Deficiencies and Application Process.
(a)
If the OAG finds deficiencies in an application upon initial
review, the OAG will send a deficiency report to the applicant. The applicant
may file a response with a correction in the application. Deficiency reports
are preliminary assessments only and do not represent a final action or determination
by the OAG. A deficiency report is not a commitment by the OAG to fund any
portion of the project. Additional deficiencies may be identified after the
date of a deficiency report.
(b)
An application for funding will go through many reviews
and at any point during the review a process a decision to approve or deny
project funding may be made by the OAG, and such decision is within the sole
discretion of the OAG. Once an award is made, the OAG has discretion to determine
whether or not a grantee is complying with OAG policies and may, upon a negative
determination, deobligate the grant and require reimbursement to the OAG of
grant funds already disbursed.
(c)
The OAG will inform the applicant of its decision regarding
a grant award through either a Statement of Grant Award or a denial letter
signed by the Attorney General or his designee.
(d)
Applicants may not contact staff members of the OAG to
seek support of an application. Additionally, under no circumstances may a
grantee use grant-funded equipment, supplies, personnel, or indirect costs
to influence or encourage others to influence the outcome of a grant funding
decision by the OAG except as allowed under the OAG review process provided
in §66.59 of this title. A decision to award a grant or not will be based
only on the application package and OAG records.
§66.57.Notification of Award.
An applicant must accept or reject a grant award in writing and forward
the notice to the OAG so that the notice is received by the OAG within 45
days of the grant award. Failure by the applicant to execute the grantee acceptance
notice within this time period and promptly forward that notice to the OAG
shall be construed as a rejection of the grant award, and the funds will be
deobligated. In addition, each applicant who accepts a grant award must implement
the grant within 60 days of the designated start date indicated on the statement
of grant award. Failure to do so will be construed by the OAG as relinquishment
by the applicant of the grant award. Any exception to this paragraph will
require the review and written approval of the OAG Grants Coordinator.
§66.59.Review of Denial.
(a)
If the OAG denies an application or any part of an application,
an applicant may request a review of the decision by writing to the OAG, Grants
Coordinator within 10 days from the date of denial notification. Review requests
must be based on a verifiable error made during the review process, and the
applicant must be able to show that the error actually caused the application
or portion of the application not to be funded. The applicant may submit written
documentation in support of the review request.
(b)
Letters and phone calls of support will not be considered
as part of the review. The Attorney General or his designee will consider
only documentation submitted by the applicant that meets the criteria as outlined
in this section. The decision concerning a review is final and not subject
to judicial review.
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 April 12, 2001.
TRD-200102112
Susan D. Gusky
Assistant Attorney Genera
Office of the Attorney General
Earliest possible date of adoption: May 27, 2001
For further information, please call: (512) 463-2110
1 TAC §§66.67, 66.69, 66.71, 66.73, 66.75, 66.77, 66.79, 66.81, 66.83, 66.85, 66.87, 66.89, 66.91, 66.93, 66.95, 66.97, 66.99, 66.101, 66.103, 66.105, 66.107, 66.109, 66.111
Chapter 66 is proposed under the Texas Family Code §2.014,
which the OAG interprets as authorizing the OAG to adopt rules reasonable
and necessary to implement §2.014, in order to provide funds for grants
or contracts that support services that assist families.
The proposed new chapter affects Texas Family Code §2.014.
§66.67.Grant Officials.
A grantee must have three persons designated to serve as grant officials
as follows:
(1)
The project director must be an employee of the grantee
who will be responsible for operation or monitoring of the project and be
able to readily answer questions about its day-to-day operations.
(2)
The financial officer must be the chief financial officer
of the grantee. Such officer might be, for example, the county auditor, city
treasurer, comptroller, or treasurer of a nonprofit corporation's board. The
financial officer may not serve as the project director or the authorized
official.
(3)
The authorized person is the person authorized to apply
for, accept, decline, or cancel the grant for the applicant agency. This person
may be, for example, the executive director of the state agency, county judge,
mayor, city manager, assistant city manager, or designee if authorized by
the governing body. The name must be consistent with the signature on application
page FTFG-1.
§66.69.Obligating Funds.
Grant funds may not, without advance written approval by the OAG Grants
Coordinator, be obligated prior to the start date or after the ending date
of the grant period. Obligated funds must relate only to approved budget items
and purposes. Grant-funded personnel may use grant funds only for project
activities stated in the approved FTFG application.
§66.71.Retention of Report Records.
(a)
Except as provided in subsections (b) and (c) of this section,
a grantee must maintain all financial records, supporting documents, statistical
records and all other records relating to the grant for at least five years
following the closure of the most recent audit report. Retention is required
for the purposes of federal and state examination and audit. Records may be
retained in an electronic format. All of the retained records are subject
to audit or monitoring during the entire retention period.
(b)
Records for equipment purchased, non-expendable personal
property, and real property shall be retained for a period of three years
from the date of the disposition or replacement or transfer at the discretion
of the OAG.
(c)
If any litigation, claim, or audit is initiated before
the expiration of the three-year period, the records shall be retained until
all litigation, claims, or audit findings involving the records have been
resolved. All of these records are subject to audit or monitoring during the
entire retention period.
§66.73.Financial Reports.
A grantee must submit financial expenditure reports each calendar quarter.
The OAG will provide the appropriate forms and instructions to each grantee
along with deadlines for submission. The financial officer designated for
the grant must sign and submit such reports. Failure to submit such reports
on a timely basis will result in the OAG placing a grantee on financial hold
and may affect future funding requests.
§66.75.Inventory Reports.
A grantee must maintain an inventory report on file at its principal
office of all equipment purchased as part of the grant project. This report
must be consistent with the final financial expenditure report. The grantee
must submit the report to the OAG with the final progress report. The grantee
must complete and submit to the OAG an inventory of grant property at least
once every two years.
§66.77.Requests for Funds.
A grantee must ensure that its final Request for Funds is postmarked
no later than the 90th calendar day (liquidation date as defined in the application
package) after the end of the grant period. If this date falls on a weekend
or federal holiday, then the OAG will honor a postmark on the next business
day. On the liquidation date, if grant funds are on hold for any reason, the
funds will lapse and cannot be recovered by the grantee. Under no circumstances
will the OAG make payments to a grantee who submits its Request for Funds
with a postmark after the above deadlines.
§66.79.Grant Adjustments.
(a)
When it becomes necessary to change any significant program
or budget element of a grant, a grantee may request a grant adjustment. This
adjustment, if approved by the OAG in writing, will allow the grantee to move
funds between budget categories, change officials, revise the scope or target
of the program, or alter project activities. The person designated in the
grantee acceptance notice to request grant adjustments or the authorized official
must sign all requests. The OAG must approve an adjustment in advance through
a grant adjustment notice mailed to the project director and the financial
officer for the grant.
(b)
The OAG 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. The OAG will consider additional budget adjustments
only if the OAG expressly requests the budget amendment for reasons other
than to resolve deficiencies found during monitoring visits or other examinations
of grantee records.
(c)
Personnel funds not expended because of a vacancy may not
be reallocated to other budget line items, either within the personnel category
or to another budget category.
(d)
The OAG will record grant adjustments that request changes
other than those to the budget or the activities of the program. Such changes
of basic information will not be acknowledged in writing by the OAG.
(e)
A grantee shall notify the OAG in writing of any change
of the designated project director, financial officer, or authorized official
within five business 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.
(f)
A grantee is responsible for initiating a grant adjustment.
The request for adjustment must be made in writing, and may include any information
that clarifies the request. A grantee must secure OAG approval, through a
grant adjustment notice, in advance and each request must include a detailed
justification for:
(1)
out-of-state travel that was not included by individual
trip in the approved budget;
(2)
changes in the need, objectives, methodology, scope, or
geographic location of the grant;
(3)
transfers of funds among direct cost categories exceeding
five percent of the total grant budget over the grant year;
(4)
changes in the number or job descriptions of personnel
specified in the grant;
(5)
changes in equipment amounts, types, or methods of acquisition;
(6)
changes in the grant period or in the period for liquidating
all encumbered funds;
(7)
new line items to be included in the budget or changes
to existing line items; and
(8)
cost-of-living and merit increases for a budgeted salary
(include documentation of approval by the governing body and effective date
of the increases).
(g)
A grantee must submit a request for a grant extension in
writing. The OAG Grants Coordinator may approve such requests in extraordinary
circumstances. The OAG will not extend a grant for more than 12 months.
(h)
The OAG will not honor facsimile copies of grant adjustment
requests and will not give verbal approvals.
(i)
No budgetary grant adjustment requests will be honored
within 30 days prior to the end of the grant period.
(j)
Over the course of the funding year, a grantee may transfer
funds between direct cost line items in different budget categories not to
exceed a cumulative total of five percent of the grant 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 OAG portion of the grant budget also require
a grant adjustment.
§66.81.Copyrights.
If a grantee uses any OAG funds to purchase or receive a copyright
or for a subcontractor to purchase or receive a copyright, the OAG reserves
a royalty-free and irrevocable license to reproduce, publish, use, or authorize
others to use the copyrighted material.
§66.83.Procurement Procedures.
(a)
Prior to obligating grant funds for equipment purchases
or professional or consultant services in excess of $25,000, a grantee must
submit all documents to the OAG for review and approval, except as provided
by subsection (d) of this section. A grantee is not exempt from this policy
if the actual amount is lower than $25,000 because of a trade-in allowance.
A grantee must submit documents with a letter signed by the authorized person
named in the grant or by the person designated to initiate grant adjustments.
The documents must contain:
(1)
a brief narrative description of the procurement procedures
used and a statement of which low compliant bid was selected;
(2)
a list of vendors requested to bid or respond. State agencies
using the purchasing service of the General Services Commission of Texas are
not exempt. RFPs or IFBs issued by a grantee to implement the grant project
must provide notice to prospective bidders that the OAG organizational conflict-of-interest
provision is applicable. This provision states that contractors that develop
or draft specifications, requirements, statements of work, and RFPs for proposed
procurement shall be excluded from bidding or submitting a proposal to compete
for the award of such a contract;
(3)
a copy of the public advertisement;
(4)
a copy of the RFP or the IFB, with specifications;
(5)
a copy of the acknowledgment of contract receipt;
(6)
a description of the selection process used to select the
successful bidder, with a copy of the evaluation of all proposals;
(7)
if sole-source procurement is necessary or if only one
response is received, a justification for selecting the sole source or an
explanation of why only one response was received a long with a description
of the program, what is being contracted for, and why it is necessary to contract
non-competitively, such as expertise of the contractor, responsiveness and
knowledge of the program, time constraints, and uniqueness; and
(8)
a copy of the proposed contract.
(b)
Each state agency grantee must comply with the Government
Code, Chapter 2254, when securing consultant services.
(c)
Cities and counties must comply with the requirements governing
advertising for bids, in the Local Government Code, chapters 252 and 262,
for cities and counties respectively.
(d)
State agencies contracting for professional or consultant
services in excess of $15,000 are not required to submit to the OAG a copy
of the contract for approval, but shall provide the OAG a copy for its records.
State law requires that state agencies must submit such contracts to the General
Services Commission for approval.
(e)
A grantee must make a good-faith effort to encourage HUBs
to bid on services for grant-funded projects and report the amount of grant
dollars contractually awarded to HUBs. A HUB is defined as a corporation formed
for profit in which at least 51% of the equity is owned by one or more Black,
Hispanic, Asian, Pacific Islander, Native American, or female person; a sole
proprietorship 100% owned, operated, and controlled by such a person; a partnership
in which such person(s) owns at least 51% of assets and interest and has proportionate
control of partnership affairs; a joint venture of HUBs; or a supplier contract
between a HUB and a prime contractor under which the HUB manufactures, distributes,
or warehouses and ships the supplies. A grantee must report this information
on the Historically Underutilized Business Progress Assessment Report (HUB-PAR)
form with the quarterly financial expenditure report. A copy of the (HUB-PAR)
is in the application package.
(f)
Any lease-purchase in excess of $15,000 must be the result
of competitive procurement. The OAG will not approve lease-purchase agreements
or leasing of computer systems (computer hardware and software) unless the
applicant demonstrates that the lease-purchase is cost effective. An applicant
requesting a lease-purchase must reflect the items in budget schedule D of
the grant application form and must attach justification for requesting the
lease-purchase method. Any interest charges resulting from such a purchase
are not allowable as expenditures under the grant. If approved, lease-purchase
is subject to the same requirements for grantee contributions as equipment
purchases.
(g)
A grantee must retain ultimate control of and responsibility
for the grant project, and any contractor shall be bound by grant agreements,
grant conditions, and any other requirements applicable to a grantee.
(h)
A grantee may make purchases of up to $2,000 on a spot
purchase basis, without comparative pricing.
(i)
Purchases between $2,000.01 and $5,000 will require a minimum
of three verbal bids based on identical specifications. A grantee is required
to maintain records for audit that show the name, telephone number, date,
and bid amount of each source contacted. A grantee must select the lowest
compliant bid.
(j)
Purchases between $5,000.01 and $15,000 require a grantee
to issue written invitations for bids, using identical specifications, to
a minimum of three prospective suppliers. Such invitations must clearly state
the deadline for receipt of written bids. A grantee is required to maintain
records for audit that include copies of all invitations and all written responses,
including original signatures. A grantee must select the lowest compliant
bid.
(k)
Purchases above $15,000 require formal newspaper advertising
soliciting bids. A grantee must maintain records for audit that include copies
of the advertisement(s) and all written responses, including original signatures.
A grantee must select the lowest compliant bid.
(l)
When the required services, supplies, or skills are so
unique that the purchaser cannot identify a minimum of three prospective sources
and the cost exceeds $2,000, a grantee must request guidance from the OAG.
In such cases, a grantee must provide to the OAG a letter containing all relevant
facts and a proposed course of action.
(m)
Audit organizations and individual independent auditors
typically will not respond to an invitation for bid, without precise specifications
stipulated by the purchaser. In such cases, the purchaser must extend an invitation
for proposal that permits the prospective supplier to develop specifications
and to quote a relevant cost. A grantee must select the most responsive proposal
that meets its needs.
(n)
In all instances, prior to the delivery of services, a
written contract must be executed to secure professional or consultant services.
§66.85.Property Management Standards.
A grantee shall use the property management standards set forth in
the UGMS . The UGMS are incorporated in this chapter for all appropriate purposes.
A grantee must comply with the UGMS and all applicable state and local laws
and regulations.
§66.87.Disposition of Property.
(a)
If a grantee no longer funded by the OAG purchases equipment
in whole or in part with OAG funds, a grantee must write to the OAG for instructions
on the disposition of any piece of equipment with a current per-unit fair
market value of $1,000 or more. A grantee may use equipment with a current
per-unit fair market value of less than $1,000 for other activities without
reimbursement to the OAG, or sell the equipment and retain the proceeds, without
OAG approval.
(b)
The request for disposition of property must include an
explanation of a grantee's preferred disposition. Disposition is subject to
OAG approval as follows:
(1)
If a grantee wishes to continue to use the equipment for
the project or for activities similar to those of the original project, the
OAG may approve such action and transfer title of the equipment to the grantee.
(2)
If a grantee wishes to use the equipment for activities
that are not a part of the project or for activities not similar to those
of the original project, the OAG may approve transfer of the equipment, provided
that the grantee makes compensation to the OAG. The compensation to the OAG
is the percentage of the current per-unit fair market value of the equipment
equal to the percentage of the OAG share of the original purchase price.
(3)
If a grantee no longer needs the equipment, the OAG may
approve sale of the property. If a grantee sells the property, it must then
reimburse the OAG for a percentage of the sale in an amount equal to the percentage
of the OAG share in the original purchase price. The sale of the property
shall be a bona fide, arms-length sale. The grantee shall reimburse the OAG
its pro rata share upon receipt of the purchase monies.
(4)
The OAG may instruct a grantee to transfer the equipment
to another agency needing the property. If so instructed, the benefitting
agency shall reimburse the grantee for the percentage of the current per unit
fair market value equal to the percentage of the grantee's share in the original
purchase price.
(5)
If the OAG instructs a grantee to dispose of the property
in a manner other than that stipulated in paragraphs (1) - (4) of this subsection,
the OAG will reimburse the grantee for costs incurred in the disposition.
§66.89.Transfer of Title of Equipment and Nonexpendable Personal Property.
(a)
The OAG may transfer title of grant-acquired property having
a unit cost of $1,000 or more to the federal government or to an eligible
third party as provided by law.
(b)
Property to be transferred pursuant to subsection (a) of
this section must be identified in the grant or otherwise made known to the
grantee in writing.
(c)
The OAG will issue disposition instructions within 120
calendar days after the end of grant.
(d)
When title to property is transferred, the grantee will
be paid an amount calculated by applying the percentage of participation in
the purchase to the current fair market value of the property.
§66.91.Bonding and Insurance.
Each nonprofit organization receiving funds from the OAG must obtain
and submit with the grant application a fidelity bond on any employee administering
Grant funds. The bond must indemnify the OAG against the loss and theft of
the entire amount of Grant funds. The cost of such a bond is an eligible expense
of the grant. Two-year funding projects must submit a copy of the bond on
or before September 1 of the second year of the grant. If a grantee is self-insured,
it must submit documentation of self-insurance with the grant application.
An applicant, other than a nonprofit organization, must include in the resolution
from its governing body a statement that in the event of loss or misuse of
OAG funds, the governing body assures that funds will be returned to the OAG
in full.
§66.93.Withholding Funds.
(a)
The OAG may withhold funds from a grantee if a grantee
fails to comply with established guidelines, grant conditions, or contractual
agreements, or when funds are depleted or insufficient to fund allocations.
The OAG may withhold funds from a specific project for reasons that include,
but are not limited to:
(1)
failure to comply with any applicable federal or state
law, rule, regulation, policy, or guideline, or with the terms of any grant
agreements;
(2)
failure to submit reports of expenditures and status of
funds, grantee progress reports, or special required reports at the time and
in the form established for such reporting;
(3)
failure to maintain proper records as required by these
rules;
(4)
failure to conduct the grant project according to the terms
of the application for a grant, the statement of grant award, the grantee
acceptance notice, or a grant adjustment notice;
(5)
failure to comply with any condition that has been made
a part of the statement of grant award by reference or inclusion therein or
through the issuance of a grant adjustment notice;
(6)
failure to commence project operations within 60 days of
the project start date;
(7)
failure to submit audit reports, including management letters
and responses to audit findings;
(8)
failure to provide timely and adequate responses to audit
or monitoring report findings; or
(9)
failure to provide accurate information in a grant application,
in grantee records, or in reports to the OAG.
(b)
The OAG may withhold funds from all projects operated by
a grantee for reasons that include, but are not limited to:
(1)
failure to respond to any deficiency listed in this section;
(2)
failure to return to the OAG within the required time unused
grant funds remaining in the expired grant; or
(3)
refusal to return to the OAG any grant funds improperly
accounted for or expended for ineligible purposes under a grant that has expired.
(c)
The OAG will not give advance notice that a grantee may
be placed on financial hold. It is the responsibility of a grantee to submit
all reports and other required information in a timely fashion and to comply
with OAG grant guidelines.
(d)
The OAG will notify a grantee when a grant is placed on
financial hold. A grantee may, within 10 days of receiving notification, request
in writing a reconsideration of the determination to withhold funds. A grantee
should send this request to the OAG Grants Coordinator, together with any
documentation in support of the reconsideration. The grants coordinator will
review the determination to withhold funds based on the documentation submitted.
The OAG will send the final determination to the grantee in writing.
(e)
The OAG will release funds if the grantee has provided
evidence satisfactory to the OAG that the deficient conditions have been corrected,
unless the OAG has terminated the grant as provided in §66.95 of this
title.
§66.95.Grant Termination.
(a)
A grantee shall notify the OAG, in writing, of the cancellation
of any Grant funded project immediately upon the decision to cancel the project.
(b)
The OAG may terminate a grant for failure to comply with
applicable federal or state laws, rules, regulations, policies, or guidelines,
or any OAG grant agreement with the grantee.
(c)
The OAG may terminate a grant if:
(1)
deficient conditions make it unlikely that the grant's
objectives will be accomplished;
(2)
deficient conditions cannot be corrected within a period
of time judged acceptable by the OAG;
(3)
a grantee provided inaccurate information in a grant application,
in grantee records, or in reports to the OAG; or
(4)
a grantee has acted in bad faith.
(d)
The OAG will notify a grantee of deficient conditions and
grounds for termination. When a grant is terminated all unexpended or unobligated
funds awarded to a grantee will revert to the OAG. The OAG may consider a
grantee ineligible for any future grant award if the OAG has terminated a
grant for cause.
(e)
In lieu of termination a grant project, the OAG may require
the transfer of the grant project by moving the administration of the project
to a different agency.
(f)
A grantee may ask for a review of the termination of a
grant by writing to the First Assistant of the OAG. The request for review
must be received by the OAG within ten days from the date of the suspension
or termination notification. A grantee may submit written documentation in
support of its request. The First Assistant of the OAG will consider any documentation
submitted by a grantee in support of an appeal. The decision of the First
Assistant of the OAG concerning termination is final and not subject to judicial
review.
§66.97.De-Obligation of Grant Funds.
A grantee must liquidate all properly incurred obligations under the
award no later than 90 days after the end of the funding period. Final expenditure
reports must be submitted at that time or on the following expenditure report
if the end of the liquidation period does not fall at the end of a calendar
quarter. In addition, a grantee must submit any unexpended funds and cash
match shortages with the final expenditure report.
§66.99.Payment of Outstanding Liabilities.
A grantee must properly obligate and expend funds to satisfy all outstanding
liabilities no later than 90 days after the end of the grant period. The OAG
will not make any reimbursements to a grantee unless the final request for
funds is postmarked by the 90th day after the end of the grant period. If
the 90th day falls on a weekend or federal holiday, the OAG will honor receipt
or a postmark on the next business day. All payments made after the completion
of the grant period must relate to obligations encumbered prior to the end
of the grant period.
§66.101.Violations of Laws.
A grantee and its personnel must immediately notify in writing the
OAG and, if applicable, the local prosecutor's office, upon discovery of any
evidence, knowledge or suspicion of a violation of the law encountered by
a grantee or discovered during monitoring visits, including, but not limited
to, misappropriation of funds, fraud, theft, embezzlement, forgery, or any
serious irregularity or noncompliance with the requirements of this chapter.
§66.103.Conflict of Interest.
Failure to comply with this section shall result in termination of
the grant award and may affect future funding decisions. No grantee personnel,
member of a grantee board or governing body, or other person affiliated with
the grant project may participate in any proceeding or action where grant
funds personally benefit, directly or indirectly, the individual or any relative.
Grant personnel and officials must avoid any action that might result in or
create the appearance of using their official positions for private gain;
giving preferential treatment to any person; losing complete independence
or impartiality; making an official decision outside of official channels;
or affecting adversely the confidence of the public in the integrity of the
program or the OAG.
§66.105.Evaluating Project Effectiveness.
A grantee must regularly evaluate the effectiveness of its project.
This evaluation includes reassessment of individual project activities and
services to determine if they remain relevant and effective. A grantee must
be able to show that grant activities are well thought out and provide actual
services that directly impact an identified problem statement and bring the
project closer to accomplishing its goals. The OAG will assess project effectiveness
through review of required progress reports, on-site visits, and desk reviews.
Information relating to project evaluations must be maintained in the project's
files and must be available for review by OAG staff.
§66.107.Progress Reports.
(a)
A grantee must submit progress reports in accordance with
the instructions provided by the OAG and as outlined for each specific program
area. To remain eligible for funding, a grantee must be able to show not only
the number of services provided, but the impact and quality of those services.
(b)
A grantee must submit reports only for those activities
supported by OAG grant funds, grantee match, and program income.
(c)
The OAG may prescribe forms for such reports, which a grantee
must use.
(d)
The project director must sign all progress reports.
(e)
The OAG will automatically place projects on financial
hold for failure to submit complete and correct progress reports by the specified
deadline. The OAG will not send reminder notices or make reminder telephone
calls prior to placing funds on hold. A history of delinquent reports may
affect future funding decisions.
(f)
The OAG will not make a grant award for second-year funding
projects unless all progress reports due by the award date are complete, correct,
and on file at the OAG.
§66.109.Oversight of Contracts.
A grantee that uses any portion of Grant funds to contract with a third
party must maintain records in a grantee project file showing the specific
steps taken to ensure that the terms of the contract are met and that the
services provided are evaluated by a grantee annually.
§66.111.Accuracy of Grant Records.
Providing false information, knowingly or unknowingly, on a grant application,
in grantee records, or in reports to the OAG may cause an application to be
denied or a grant to be terminated and the grant funds deobligated. In some
circumstances, such action may also be considered tampering with government
records, which is a criminal offense.
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 April 12, 2001.
TRD-200102113
Susan D. Gusky
Assistant Attorney General
Office of the Attorney General
Earliest possible date of adoption: May 27, 2001
For further information, please call: (512) 463-2110
1 TAC §§66.119, 66.121, 66.123
Chapter 66 is proposed under the Texas Family Code §2.014,
which the OAG interprets as authorizing the OAG to adopt rules reasonable
and necessary to implement §2.014, in order to provide funds for grants
or contracts that support services that assist families.
The proposed new chapter affects Texas Family Code §2.014.
§66.119.Monitoring.
(a)
The OAG will monitor grants throughout their existence.
A grantee must make all grant-related records available to OAG representatives
unless the information is sealed by law.
(b)
The OAG will monitor both financial and program aspects
of a grant project to evaluate progress and determine compliance. Monitoring
will include both on-site and desk reviews and may involve any information
that the OAG deems relevant to the project. The purpose of the monitoring
is to ensure that a grantee is meeting performance goals and that grant funds
are expended in compliance with applicable laws, rules, grant agreements and
other contracts. On-site monitoring includes, but is not limited to the review
of:
(1)
adequacy of the accounting systems, files, equipment and
property management, and administration;
(2)
relationship of actual expenditures and match requirements
compared to approved budgets;
(3)
accuracy of financial information, reasonableness of cost
allocation plans, and expenditure documentation;
(4)
timeliness of submission of financial expenditure and progress
reports;
(5)
need for, reasonableness of, and authorization for costs;
(6)
charges to cost pools used in calculating indirect cost
rates;
(7)
adherence to federal, state, and OAG guidelines and program
requirements;
(8)
accuracy of statistics on project activities and goal achievement
indicators; and
(9)
documentation of and progress toward achieving the project's
output and outcome goals.
(c)
A grantee must maintain current files. The OAG may make
unannounced visits at any time.
(d)
The OAG reserves the right to conduct its own audit, or
contract with another to audit any grant.
(e)
A grantee must provide access to project records to all
OAG representatives and properly designated monitors or auditors.
(f)
A grantee must, within 30 business days of the date of
an audit monitoring report, submit documentation to the OAG responding to
findings and questioned costs contained in an audit or monitoring report.
Documentation may be submitted to the OAG, at 300 W. 15th Street, William
P. Clements Building, 15th Floor, Austin, Texas 78701 or by mail to the OAG,
Grants Coordinator, Post Office Box 12548, Austin, Texas 78711-2548. The OAG
will review the documentation for legal, financial, and program acceptability
under state, federal and OAG rules.
(g)
A grantee may request a review of a decision by the OAG
after submission of responses to OAG findings, by writing to the OAG, Grants
Coordinator. A review board will make recommendations to the First Assistant
of the OAG for approval, disapproval, or approval with modifications of audit
or monitoring exceptions. The OAG will send the written determination by the
First Assistant of the OAG to the grantee within 30 calendar days of a decision.
A grantee must, within 30 calendar days, refund all funds due after a final
determination. Failure to comply with this provision will subject a grantee
to the provisions of this plan relating to the conditions for withholding
funds from a grantee. The determination of the First Assistant of the OAG
is final and not subject to judicial review.
§66.121.Independent Annual Audit.
The OAG will require an audit of a grant, including subgrants passed
through from a Grant grantee, based on state audit requirements, as follows:
(1)
A grantee expending a total of $300,000 or more in state
funds, regardless of the source, must submit an annual single audit in accordance
with the UGMS;
(2)
A grantee expending less than $300,000 but more than $50,000
in state funds, regardless of the source, must submit a program-specific audit.
(3)
A grantee expending less than a total of $50,000 in state
funds, regardless of the source, must submit financial statements audited
in accordance with GAAS.
§66.123.Audit Standards.
(a)
A grantee must submit to the OAG copies of all audit reports,
including audits as required in the Independent Annual Audit and all other
audits that a grantee undergoes, regardless of the purpose.
(b)
A grantee must ensure that required audits are completed
and submitted to the OAG on or before 30 days after the issuance of an auditor's
report.
(c)
A grantee will bear its fair and reasonable share of audit
costs required by the OAG in accordance with applicable federal and state
cost principles governing allowability and allocation.
(d)
A grantee, regardless of level of funding, is subject to
random, periodic on-site reviews and audits by the OAG. These reviews are
designed to complement, not duplicate, any single audit performed.
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 April 12, 2001.
TRD-200102114
Susan D. Gusky
Assistant Attorney General
Office of the Attorney General
Earliest possible date of adoption: May 27, 2001
For further information, please call: (512) 463-2110
Chapter 371.
MEDICAID FRAUD AND ABUSE PROGRAM INTEGRITY
Subchapter C. UTILIZATION REVIEW
Subchapter B. GRANT APPLICATION, SCOPE OF GRANT, APPROVAL AND FUNDING
Subchapter C. SPECIAL CONDITIONS AND REQUIRED DOCUMENTS
Subchapter D. AWARD AND GRANT ACCEPTANCE
Subchapter E. ADMINISTERING GRANTS
Subchapter F. PROGRAM MONITORING AND AUDITS
Part 15.
TEXAS HEALTH AND HUMAN SERVICES COMMISSION