Texas Register, Volume 46, Number 38, Pages 5983-6306, September 17, 2021 Page: 6,024
This periodical is part of the collection entitled: Texas Register and was provided to The Portal to Texas History by the UNT Libraries Government Documents Department.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
balance of any loans made with federal or state funds if there are con-
tinuing compliance requirements other than repayment of the loan.
(8) Subrecipient--Includes an entity receiving or applying
for federal or state funds from the Department under Chapters 6, 7,
or 20, or as identified by Contract or in this subchapter. Except as
otherwise noted in this subchapter or by Contract, the definition does
not include Applicants/Owners who have applied for and/or received
funds under a program administered by the Multifamily Finance Di-
vision, except for CHDO Operating funds, a grant made to a unit of
government or nonprofit organization, or Affiliate, or TCAP-RF grants
or loans when made to a unit of government or nonprofit organization
or Affiliate. A Subrecipient may also be referred to as Administrator.
(9) Supplies--means tangible personal property other than
"Equipment" in this section.
(10) Texas Grant Management Standards (TxGMS)--The
standardized set of financial management procedures and definitions
established by Tex. Gov't Code, chapter 783 regarding Uniform Grant
and Contract Management to promote the efficient use of public funds
by requiring consistency among grantor agencies in their dealings with
grantees, and by ensuring accountability for the expenditure of public
funds. State agencies are required to adhere to these standards when
administering grants and other financial assistance agreements with
cities, counties and other political subdivisions of the state. This in-
cludes all Public Organizations including public housing and housing
finance agencies. In addition, Tex. Gov't Code Chapter 2105, regard-
ing Administration of Block Grants, subjects subrecipients of federal
block grants (as defined therein) to TxGMS.
(11) Uniform Grant Management Standards (UGMS)--the
standardized set of financial management procedures used by the De-
partment in Contracts that began before January 1, 2022.
1.402. Cost Principles and Administrative Requirements.
(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 Sub-
recipient shall ensure that no individual has the ability to perform more
than one of the functions described in paragraphs (1) - (5) of this sub-
section that might result in a release of funds without appropriate con-
trols:
(1) Requisition authorization;
(2) Encumbrance into software;
(3) Check creation and/or automated payment disburse-
ment;
(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 As-
surances in Appendix 6 of TxGMS as required by and in the form and
substance acceptable to the Department's Legal Division.
1.403. Single Audit Requirements.
(a) For this section, the word Subrecipient also includes Mul-
tifamily Development Owners who have applied for or received Direct
Loan Funds, grants or 811 PRA funds from the Department who are or
have an Affiliate that is required to submit a Single Audit, i.e. units of
government, nonprofit organizations.
(b) Procurement of a Single Auditor. A Subrecipient or Affil-
iate must procure their single auditor in the following manner unless
subject to a different requirement in the Local Government Code:
(1) Competitive Proposal procedures whereby competitors'
qualifications are evaluated and a contract awarded to the most qual-
ified competitor. Proposals should be advertised broadly, which may
include going outside the entity's service area, and solicited from an
adequate number (usually two or more) of qualified sources. Procure-
ments must be conducted in a manner that prohibits the use of in-state
or local geographical preferences in the evaluation of bids or proposals;
(2) A Subrecipient may not use the sealed bid method for
procurement of the Single Auditor. There is no requirement that the
selected audit firm be geographically located near the Subrecipient. If
a Subrecipient does not receive proposals from firms with appropriate
experience or responses with a price that is not reasonable compared to
the cost price analysis, the submissions must be rejected and procure-
ment must be re-performed.
(c) A Subrecipient or Affiliate must confirm that it is contract-
ing with an audit firm that is properly licensed to perform the Single
Audit and is not on a limited scope status or under any other sanction,
reprimand or violation with the Texas State Board of Public Accoun-
tancy. The Subrecipient must ensure that the Single Audit is performed
in accordance with the limitations on the auditor's license.
(d) A Subrecipient is required to submit a Single Audit Cer-
tification form within two (2) months after the end of its fiscal year
indicating the amount they expended in Federal and State funds during
the fiscal year and the outstanding balance of any loans made with fed-
eral funds if there are continuing compliance requirements other than
repayment of the loan.
(e) Subrecipients that expend $750,000 or more in federal
and/or state awards or have an outstanding loan balance associated
with a federal or state resource of $750,000 or more with continuing
compliance requirements, or a combination thereof must have a Single
Audit or program-specific audit conducted. If the Subrecipient's
Single Audit is required by 2 CFR 200, subpart F, the report must
be submitted to the Federal Audit Clearinghouse the earlier of 30
days after receipt of the auditor's report or nine (9) months after the
end of its respective fiscal year. If a Single Audit is required but not
under 2 CFR Part 200, subpart F, the report must be submitted to the
Department the earlier of 30 days after receipt of the auditor's report
or nine months after the end of its respective fiscal year.
(f) Subrecipients are required to submit a notification to the
Department within five business days of submission to the Federal Au-
dit Clearinghouse. Along with the notice, the Subrecipient must indi-
cate if the auditor issued a management letter. If a management letter
was issued by the auditor, a copy must be sent to the Department.46 TexReg 6024 September 17, 2021 Texas Register
Upcoming Pages
Here’s what’s next.
Search Inside
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Periodical.
Texas. Secretary of State. Texas Register, Volume 46, Number 38, Pages 5983-6306, September 17, 2021, periodical, September 17, 2021; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1385246/m1/42/?rotate=90: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.