| (a) The Grant Recipient shall report expenditures to
be reimbursed with Grant Award funds on the quarterly Financial Status
Report form. The Grant Recipient must report all expenses for which
it seeks reimbursement that the Grant Recipient paid during the fiscal
quarter indicated on the quarterly Financial Status Report form.
(1) Expenditures shall be reported by budget category
consistent with the Grant Recipient's Approved Budget.
(2) If the Grant Recipient seeks reimbursement for
an expense it paid prior to the period covered by the current quarterly
Financial Status Report but did not previously report to the Institute,
the Grant Recipient must provide a written explanation for failing
to claim the prior payment in the appropriate period.
(A) The Grant Recipient must submit the written explanation
with any supporting documentation at the time that the Grant Recipient
files its current Financial Status Report.
(B) The Institute shall consider the explanation and
may approve reimbursement for the otherwise eligible expense. The
Institute's decision whether to reimburse the expense is final.
(3) All expenditures must be supported with appropriate
documentation showing that the costs were incurred and paid. A Grant
Recipient that is a public or private institution of higher education
as defined by §61.003, Texas Education Code is not required to
submit supporting documentation for an individual expense totaling
less than $750 in the "supplies" or "other" budget categories.
(4) The Financial Status Report and supporting documentation
must be submitted via the Grant Management System, unless the Grant
Recipient is specifically directed in writing by the Institute to
submit or provide it in another manner.
(5) The Institute may request in writing that a Grant
Recipient provide more information or correct a deficiency in the
supporting documentation for a Financial Status Report. If a Grant
Recipient does not submit the requested information within five (5)
business days after the request is submitted, the Financial Status
Report may be disapproved by the Institute.
(A) Nothing herein restricts the Institute from disapproving
the FSR without asking for additional information or prior to the
submission of additional information.
(B) Nothing herein extends the FSR due date.
(6) The requirement to report and timely submit quarterly
Financial Status Reports applies to all Grant Recipients, regardless
of whether Grant Award funds are disbursed by reimbursement or in
advance of incurring costs.
(b) Quarterly Financial Status Reports shall be submitted
to the Institute within ninety (90) days of the end of the state fiscal
quarter (based upon a September 1 - August 31 fiscal year). The Institute
shall review expenditures and supporting documents to determine whether
expenses charged to the Grant Award are:
(1) Allowable, allocable, reasonable, necessary, and
consistently applied regardless of the source of funds; and
(2) Adequately supported with documentation such as
cost reports, receipts, third party invoices for expenses, or payroll
information.
(c) A Grant Award with a Grant Contract effective date
within the last quarter of a state fiscal year (June 1 - August 31)
will have an initial financial reporting period beginning September
1 of the following state fiscal year.
(1) A Grant Recipient that incurs Authorized Expenses
after the Grant Contract effective date but before the beginning of
the next state fiscal year may request reimbursement for those Authorized
Expenses.
(2) The Authorized Expenses described in paragraph
(1) of this subsection must be reported in the Financial Status Report
reflecting Authorized Expenses for the initial financial reporting
period beginning September 1.
(d) Except as provided herein, the Grant Recipient
waives the right to reimbursement of project costs incurred during
the reporting period if the Financial Status Report for that quarter
is not submitted to the Institute within thirty (30) days of the Financial
Status Report due date. Waiver of reimbursement of project costs incurred
during the reporting period also applies to Grant Recipients that
have received advancement of Grant Award funds.
(1) For purposes of this rule, the "Financial Status
Report due date" is ninety (90) days following the end of the state
fiscal quarter.
(2) The Chief Executive Officer may approve a Grant
Recipient's request to defer submission of the reimbursement request
for the current fiscal quarter until the next fiscal quarter if, on
or before the original Financial Status Report due date, the Grant
Recipient submits a written explanation for the Grant Recipient's
inability to complete a timely submission of the Financial Status
Report.
(3) A Grant Recipient may appeal the waiver of its
right to reimbursement of project costs.
(A) The appeal shall be in writing, provide good cause
for failing to submit the Financial Status Report within thirty (30)
days of the Financial Status Report due date, and be submitted via
the Grant Management System.
(B) The Chief Executive Officer may approve the appeal
for good cause. The decision by the Chief Executive Officer to approve
or deny the grant recipient's appeal shall be in writing and available
to the Grant Recipient via the Grant Management System.
(C) The Chief Executive Officer's decision to approve
or deny the Grant Recipient's appeal is final, unless the Grant Recipient
timely seeks reconsideration of the Chief Executive Officer's decision
by the Oversight Committee.
(D) The Grant Recipient may request that the Oversight
Committee reconsider the Chief Executive Officer's decision regarding
the Grant Recipient's appeal. The request for reconsideration shall
be in writing and submitted to the Chief Executive Officer within
10 days of the date that the Chief Executive Officer notifies the
Grant Recipient of the decision regarding the appeal as noted in subparagraph
(C) of this paragraph.
(E) The Chief Executive Officer shall notify the Oversight
Committee in writing of the decision to approve or deny the Grant
Recipient's appeal. The notice should provide justification for the
Chief Executive Officer's decision. In the event that the Grant Recipient
timely seeks reconsideration of the Chief Executive Officer's decision,
the Chief Executive Officer shall provide the Grant Recipient's written
request to the Oversight Committee at the same time.
(F) The Grant Recipient's request for reconsideration
is deemed denied unless three or more Oversight Committee members
request that the Chief Executive Officer add the Grant Recipient's
request for reconsideration to the agenda for action at the next regular
Oversight Committee meeting. The decision made by the Oversight Committee
is final.
(G) If the Grant Recipient's appeal is approved by
the Chief Executive Officer or the Oversight Committee, the Grant
Recipient shall report the project costs and provide supporting documentation
for the costs incurred during the reporting period covered by the
appeal on the next available financial status report to be filed by
the Grant Recipient.
(H) Approval of the waiver appeal does not connote
approval of the expenditures; the expenditures and supporting documentation
shall be reviewed according to subsection (b) of this section.
(I) This subsection applies to any waivers of the Grant
Recipient's reimbursement decided by the Institute on or after September
1, 2015.
(4) Notwithstanding subsection (c) of this section,
in the event that the Grant Recipient and Institute execute the Grant
Contract after the effective date of the Grant Contract, the Chief
Program Officer may approve additional time for the Grant Recipient
to prepare and submit the outstanding Financial Status Report(s).
The approval shall be in writing and maintained in the Grants Management
System. The Chief Program Officer's approval may cover more than
one Financial Status Report and more than one fiscal quarter.
(5) In order to receive disbursement of grant funds,
the most recently due Financial Status Report must be approved by
the Institute.
(e) 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.
|
| Source Note: The provisions of this §703.24 adopted to be effective December 7, 2016, 41 TexReg 9527; amended to be effective June 8, 2017, 42 TexReg 2937; amended to be effective September 6, 2017, 42 TexReg 4467; amended to be effective December 18, 2018, 43 TexReg 8123; amended to be effective December 11, 2019, 44 TexReg 7549; amended to be effective December 8, 2022, 47 TexReg 8042 |
