| (a) Subrecipients shall comply with the cost principles
and uniform administrative requirements set forth as applicable in
TxGMS or UGMS provided, however, that all references therein to "local
government" shall be construed to mean Subrecipient. A Subrecipient
that is administering a housing Program under Chapters 24 or 26 of
this Title, may receive a fixed amount of administrative funds. Private
Nonprofit Subrecipients of Emergency Solutions Grant (ESG), HOME Investments
Partnership Program (HOME), Neighborhood Stabilization Program (NSP),
National Housing Trust Fund (NHTF), Low Income Household Water and
Wastewater Program (LIHWAP) and Department of Energy Weatherization
Assistance Program (DOE WAP) do not have to comply with TxGMS unless
otherwise required by Notice of Funding Availability (NOFA) or Contract.
For federal funds, Subrecipients will also follow 2 CFR Part 200,
as interpreted by the federal funding agency.
(b) In order to maintain adequate separation of duties,
the Subrecipient shall ensure that no individual has the ability to
perform more than one of the functions described in paragraphs (1)
- (5) of this subsection that might result in a release of funds without
appropriate controls:
(1) Requisition authorization;
(2) Encumbrance into software;
(3) Check creation and/or automated payment disbursement;
(4) Authorized signature/electronic signature; and
(5) Distribution of paper check.
(c) For Subrecipients with fewer than five paid employees,
demonstration of sufficient controls to similarly satisfy the separation
of duties required by subsection (b) of this section, must be provided
at the time that funds are applied for.
(d) Subrecipient will sign a Contract with the applicable
Assurances in Appendix 6 of TxGMS as required by and in the form and
substance acceptable to the Department's Legal Division.
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