(a) The termination date of a Grant Contract shall
be the date stated in the Grant Contract, except:
(1) The Chief Executive Officer may elect to terminate
the Grant Contract earlier because the Grant Recipient has failed
to fulfill contractual obligations, including timely submission of
required reports or certifications;
(2) The Institute terminates the Grant Contract because
funds allocated to the Grant Award are reduced, depleted, or unavailable
during the award period, and the Institute is unable to obtain additional
funds for such purposes; or
(3) The Institute and the Grant Recipient mutually
agree to terminate the Grant Contract earlier.
(b) If the Institute elects to terminate the Grant
Contract pursuant to subsection (a)(1) or (2) of this section, then
the Chief Executive Officer shall notify the Grant Recipient in writing
of the intent to terminate funding at least thirty (30) days before
the intended termination date. The notice shall state the reasons
for termination, and the procedure and time period for seeking reconsideration
of the decision to terminate. Nothing herein restricts the Institute's
ability to terminate the Grant Contract immediately or to seek additional
remedies if justified by the circumstances of the event leading to
early termination.
(c) The Institute may approve the Grant Recipient's
written request to extend the termination date of the Grant Contract
to permit the Grant Recipient additional time to complete the work
of the project.
(1) A no cost extension may be granted if the Grant
Recipient is in good fiscal and programmatic standing.
(A) If a Grant Recipient is not in good fiscal and
programmatic standing, the Grant Recipient may petition the Chief
Executive Officer in writing to consider the no cost extension. The
Grant Recipient's petition must show good cause for failing to be
in good fiscal and programmatic standing.
(B) Upon a finding of good cause, the Chief Executive
Officer may consider the request. If a no cost extension is approved
under this subsection, the Chief Executive Officer must notify the
Oversight Committee in writing and provide justification for the approval.
(2) The Grant Recipient may request a no cost extension
no earlier than 180 days and no later than thirty (30) days prior
to the termination date of the Grant Contract.
(A) If a Grant Recipient fails to request a no cost
extension within the required timeframe, the Grant Recipient may petition
the Chief Executive Officer in writing to consider the no cost extension.
The Grant Recipient's petition must show good cause for failing to
submit the request within the timeframe specified in subsection (c)
of this section.
(B) Upon a finding of good cause, the Chief Executive
Officer may consider the request. If a no cost extension request is
approved under this subsection, the Chief Executive Officer must notify
the Oversight Committee in writing and provide justification for the
approval.
(3) The Institute may approve one or more no cost extensions.
The duration of each no cost extension may be no longer than six months
from the termination date of the Grant Contract, unless the Institute
finds that special circumstances justify authorizing additional time
to complete the work of the project. If a grant recipient requests
a second no cost extension or requests a no cost extension greater
than six months, the grantee must provide good cause for approving
the request.
(4) If the Institute approves the request to extend
the termination date of the Grant Contract, then the termination date
shall be amended to reflect the change.
(5) Nothing herein prohibits the Institute and the
Grant Recipient from taking action more than 180 days prior to the
termination date of the Grant contract to extend the termination date
of the Grant Contract. Approval of an extension must be supported
by a finding of good cause and the Grant Contract shall be amended
to reflect the change.
(6) The Institute's decision to approve or deny a no
cost extension request is final.
(d) The Grant Recipient must submit a final Financial
Status Report and final Grant Progress Report as well as any other
required reports as specified in the Grant Contract. For purposes
of this rule, the final Grant Progress Report and other required reports
shall be collectively referred to as "close out documents."
(1) The final Financial Status Report shall be submitted
to the Institute within ninety (90) days of the end of the state fiscal
quarter that includes the termination date of the Grant Contract.
The Grant Recipient's failure to submit the Financial Status report
within thirty (30) days following the due date specified in this subsection
will waive reimbursement of project costs incurred during the reporting
period. The Institute may approve additional time to submit the final
Financial Status Report if the Grant Recipient can show good cause
for failing to timely submit the final Financial Status Report.
(2) Close out documents must be submitted within ninety
(90) days of the termination date of the Grant Contract. The final
reimbursement payment shall not be made until all close out documents
have been submitted and approved by the Institute. Failure to submit
one or more close out documents within 180 days of the Grant Contract
termination date shall result in the Grant Recipient being ineligible
to receive new Grant Awards or continuation Grant Awards until such
time that the close out documents are submitted unless the Institute
waives the final submission of close out documents by the Grant Recipient.
(A) Approval of the Grant Recipient's request to waive
the submission of close out documents is at the discretion of the
Institute. Such approval must be granted by the Chief Executive Officer.
(B) The Oversight Committee shall be notified in writing
of the Grant Recipient's waiver request and the Chief Executive Officer's
decision to approve or reject the waiver request.
(C) Unless the Oversight Committee votes by a simple
majority of members present and able to vote to overturn the Chief
Executive Officer's decision regarding the waiver, the Chief Executive
Officer's decision shall be considered final.
(e) The Institute may make upward or downward adjustments
to the Allowable Costs requested by the Grant Recipient within ninety
(90) days following the approval of the close out reports or the final
Financial Status Report, whichever is later.
(f) Nothing herein shall affect the Institute's right
to disallow costs and recover Grant Award funds on the basis of a
later audit or other review or the Grant Recipient's obligation to
return Grant Award funds owed as a result of a later refund, correction,
or other transaction.
(g) Any Grant Award funds paid to the Grant Recipient
in excess of the amount to which the Grant Recipient is finally determined
to be entitled under the terms of the Grant Contract constitute a
debt to the state. If not paid within a reasonable period after demand,
the Institute may reduce the debt owed by:
(1) Making an administrative offset against other requests
for reimbursements;
(2) Withholding advance payments otherwise due to the
Grant Recipient; or
(3) Other action permitted by law.
(h) Grant Award funds approved by the Oversight Committee
and specified in the Grant Contract but not spent by the Grant Recipient
at the time that the Grant Contract is terminated are considered de-obligated
for the purposes of calculating the maximum amount of annual Grant
Awards and the total amount authorized by Section 67, Article III,
Texas Constitution. Such de-obligated funds are available for all
purposes authorized by the statute.
(i) If a deadline set by this rule falls on a Saturday,
Sunday, or federal holiday as designated by the U.S. Office of Personnel
Management, the required filing may be submitted on the next business
day. The Institute will not consider a required filing delinquent
if the Grant Recipient complies with this subsection.
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Source Note: The provisions of this §703.14 adopted to be effective December 21, 2009, 34 TexReg 9213; amended to be effective March 2, 2014, 39 TexReg 1386; amended to be effective September 17, 2014, 39 TexReg 7342; amended to be effective March 9, 2016, 41 TexReg 1694; amended to be effective December 7, 2016, 41 TexReg 9527; amended to be effective December 18, 2018, 43 TexReg 8123; amended to be effective September 11, 2019, 44 TexReg 4873; amended to be effective December 11, 2019, 44 TexReg 7549 |