1 TAC §5.141, §5.144
The Governor's Office adopts amendments by reference, with
changes, to §5.141 and §5.144 of the Uniform Grant Management Standards
(UGMS) proposed October 16, 1998 (23 TexReg 10589). These changes clarify
provisions in the cost principles and state single audit circular adopted
by reference, respectively, from OMB Circular A-87 and OMB Circular A-133.
The changes to UGMS appear in the "Tables and Graphics" section of this issue
of the
Texas Register.
Figure: 1 TAC Chapter 5, Preamble
Thirty-eight pages of written comments were received from state agencies,
local governments, councils of governments and from the Texas Association
of Regional Councils (TARC), as well as comments received orally from these
same entities in a public hearing held December 2, 1998. The majority of the
parties providing written comments and testimony questioned the need for additional
revisions to UGMS at this time, contending that there has not been sufficient
time to evaluate the major changes to the standards published in February
of this year. There were also numerous concerns voiced about perceived state
agency "micromanagement" and potential delays in indirect cost plan approval
under the proposed rule changes. In addition, commenting parties expressed
concern over changes in definitions of "reasonableness" and new, explicit
documentation requirements associated with indirect cost proposals.
In response to the public comments and a recommendation by the UGMS work
group, comprised of representatives of state and local government, local workforce
boards and regional councils, the Governor's Office agreed to hold the bulk
of the proposed rule changes back, and to publish as final only those amendments
required to clarify existing provisions of UGMS and to respond to specific
changes to the state single audit circular requested by the audit community.
The work group also requested that the Governor's Office re-examine the grant
standards within the next twelve months to determine, based on experience
under the existing rules, if changes are needed.
Tom Adams, the State Single Point of Contact in the Governor's Office of
Budget and Planning, has determined that for each year of the first five years
the rule is in effect there should be savings through reduced costs to auditees
and no new net costs to individuals required to comply with the rule as adopted.
Questions concerning the adopted rule may be submitted in writing to Tom
Adams, Governor's Budget and Planning Office, P. O. Box 12428, Austin, Texas
78711 or may be sent by e-mail to tadams@governor.texas.gov. A printed copy
of the final rule may be reviewed at the Governor's Office of Budget and Planning,
Old Insurance Building, Room 2.122, 1100 San Jacinto, Austin, Texas. Alternatively,
the full text of the final rule is available on the internet at http://www.governor.state.tx.us/Budget/budget_guidelines.html.
The amendments are adopted under Chapter 783, Texas Government
Code, which directs the Governor's Office to develop uniform grant and contract
management standards to promote the efficient use of public funds.
There are no other statutes, articles or codes affected by this proposal.
§5.141.Introduction.
The Governor's Office of Budget and Planning adopts amendments to §5.141
and §5.144 to the Uniform Grant Management Standards adopted effective
February 12, 1998 (23 TexReg 953). These rules modify the rules adopted in
February 1998 to clarify provisions in the cost principles adopted by reference
from OMB Circular A-87 and audit requirements adopted by reference from OMB
Circular A-133 in the state single audit circular. To reduce confusion as
to the applicability of the standards, they have been renamed "The Uniform
Grant Management Standards" (UGMS). The Uniform Grant Management Standards
were developed under the authority of Chapter 783 of the Texas Government
Code, which codifies the Uniform Grant and Contract Management Standards Act
of 1981. The federal circulars have been renamed and extensively modified
to reflect state law, policies and practice. Pursuant to the Act and Chapter
2105, Texas Government Code, the prescribed standard financial management
conditions and uniform assurances are applicable to all grants and grant agreements
executed between state agencies, local governments and other affected entities,
as described in §5.142(b) of this title (relating to Purpose, Applicability,
and Scope).
§5.144.Adoption by Reference.
As directed by the Act, the Governor's Office of Budget and Planning
adopts by reference Office of Management and Budget Circular A-87, as annotated
and revised; the Common Rule of OMB Circular A- 102, as annotated and revised;
and OMB Circular A-133, as annotated and revised. These circulars have been
renamed, respectively, "Cost Principles for State and Local Governments and
Other Affected Entities", "State Uniform Administrative Requirements for Grants
and Cooperative Agreements", and "State of Texas Single Audit Circular". These
circulars, adopted effective February 12, 1998, have been further annotated
and revised for clarity and to reduce audit costs.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January
6, 1999.
TRD-9900022
Kevin Van Oort
Assistant General Counsel
Office of the Governor
Effective date: January 26, 1999
Proposal publication date: October 16, 1998
For further information, please call: (512) 463-1788