| (a) If the Coordinating Board determines after closing
out a fiscal year pursuant to subchapter P, §13.477, of this
chapter (relating to Close Out), or any close-out or settle-up provisions
contained in subchapter S of this chapter, that a data reporting error
or any other error resulted in an overallocation of funds to the institution,
the Coordinating Board shall use any method authorized under statute
or this rule to make a funding adjustment necessary to correct the
over-allocation.
(b) The Coordinating Board shall notify the institution
not later than 30 business days after the Commissioner of Higher Education
makes a determination of a data reporting error under §13.525
of this subchapter (relating to Commissioner Review of Required Reporting;
Data Reporting Errors) or otherwise identifies an error requiring
a funding adjustment to recover an overallocation. This notification
must contain the amount of the overallocation and the basis for the
determination.
(c) The institution may submit a written appeal to
the Commissioner of Higher Education within 30 business days of receiving
notification of an overallocation. The institution may attach any
data or other written documentation that supports its appeal. The
Commissioner of Higher Education shall review the appeal and determine
in his or her sole discretion whether to affirm, deny, or modify the
determination of overallocation within 30 business days of receipt.
The Commissioner of Higher Education or Chief Audit Executive shall
make an annual report of overallocation determinations to the Board.
(d) If the institution does not appeal or the Commissioner
of Higher Education affirms the determination that an overallocation
requiring a funding adjustment has occurred, the Coordinating Board
shall recover an amount equal to the amount overallocated to the public
junior college through one of the following methods:
(1) The Coordinating Board shall:
(A) withhold an amount equivalent to the overallocation
by withholding from subsequent allocations of state funds for the
current fiscal year as part of the close out of the current fiscal
year; or
(B) request and obtain a refund from the public junior
college during the current fiscal year an amount equivalent to the
amount of the overallocation; or
(C) If the Commissioner of Higher Education in his
or her sole discretion determines that the recovery of an overallocation
in the current or subsequent fiscal year will have a substantial negative
impact on the operations of the institution or the education of students,
the Commissioner of Higher Education may instead recover the overallocation
pursuant to subsection (d)(2) of this section.
(2) If the Commissioner of Higher Education in his
or her sole discretion determines that an overallocation pursuant
to paragraphs (1) or (2) of this section was the result of exceptional
circumstances reasonably caused by statutory changes to Texas Education
Code, Chapters 130 or 130A, and related reporting requirements, the
Coordinating Board may recover the overallocation over a period not
to exceed the subsequent five fiscal years.
(e) In addition to the recovery of an over-allocation
under this section, the Commissioner of Higher Education may establish
a corrective action plan for a public junior college that has received
an overallocation of funds.
(f) If the public junior college fails to comply with
an agreement to submit a refund established under this section, the
Coordinating Board must report to the Comptroller of Public Accounts
for recovery pursuant to Texas Education Code, Section 130A.009.
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