| (a) When a Contract is terminated or voluntarily relinquished,
the procedures described in this section will be implemented.
(b) The terminology of a "terminated" Subrecipient
is intended to include the Subrecipient that is voluntarily or involuntarily
terminating their Contract, but does not include Contracts that expire
without being sent a termination letter.
(1) The Department will issue a termination letter
to the Subrecipient no less than 30 calendar days prior to terminating
the Contract. The Department may determine to take any of the following
actions: suspend funds immediately or allow a temporary transfer to
another Subrecipient; or provide instructions to the Subrecipient
to prepare a proposed budget and written plan of action that supports
the closeout of the Contract. The plan must identify the name and
current titles of staff that will perform the closeout and an estimated
dollar amount to be incurred. The plan must identify the CPA or firm
which will perform the Single Audit. The Department will issue an
official termination date to allow all parties to calculate deadlines
which are based on such date.
(2) No later than 30 calendar days after the Contract
is terminated, the Subrecipient will take a physical inventory of
Program Participant files, including case management files.
(3) The terminated Subrecipient will have 30 calendar
days from the date of the physical inventory to make available to
the Department all Program Participant files. Current and active case
management files also must be inventoried.
(4) The terminated Subrecipient will prepare and submit,
no later than 30 calendar days from the date the Department retrieves
the files, a final report containing a full accounting of all funds
expended under the Contract.
(5) A Monthly Expenditure Report and a Monthly Performance
Report for all remaining expenditures incurred during the closeout
period must be received by the Department no later than 45 calendar
days from the date the Department determines that the closeout of
the program and the period of transition are complete.
(6) The Subrecipient will submit to the Department
no later than 45 calendar days after the termination of the Contract,
an inventory of the non-expendable personal property acquired in whole
or in part with funds received under the Contract.
(7) The Department may require transfer of Equipment
title to the Department or to any other entity receiving funds under
the program in question. The Department will make arrangements to
remove Equipment covered by this paragraph within 90 calendar days
following termination of the Contract.
(8) A current year Single Audit must be performed for
all entities that have exceeded the federal expenditure threshold
under 2 CFR Part 200, Subpart F or the State expenditure threshold
under TXGMS, as applicable. The Department will allow a proportionate
share of program funds to pay for accrued audit costs, when an audit
is required, for a Single Audit that covers the date up to the closeout
of the Contract. To be reimbursed for a Single Audit, the terminated
Subrecipient must have a binding contract with a CPA firm on or before
the termination date of the Contract. The actual costs of the Single
Audit and accrued audit costs including support documentation must
be submitted to the Department no later than 45 calendar days from
the date the Department determines the closeout is complete. See §1.403
of this title (relating to Single Audit Requirements) for more information.
(9) Subrecipient shall submit within 45 calendar days
after the date of the closeout process all financial, performance,
and other applicable reports to the Department. The Department may
approve extensions when requested by the Subrecipient. However, unless
the Department authorizes an extension, the Subrecipient must abide
by the 45 calendar day requirement of submitting all referenced reports
and documentation to the Department.
|
