Texas Register, Volume 46, Number 38, Pages 5983-6306, September 17, 2021 Page: 6,038
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those programs with monitoring of Community Affairs Division funds
under this subchapter.
(3) Any entity administering any or all of the programs pro-
vided for in subsection (a) of this section as part of a Memorandum of
Understanding (MOU), contract, or other legal agreement with a Sub-
recipient is a Subgrantee.
(b) Frequency of Reviews, Notification, and Information Col-
lection.
(1) In general, a Subrecipient will be scheduled for moni-
toring based on state or federal monitoring requirements and/or a risk
assessment. Factors to be included in the risk assessment include but
are not limited to: the number of Contracts administered by the Subre-
cipient, the amount of funds awarded and expended, the length of time
since the last monitoring, findings identified during previous monitor-
ing, issues identified through the submission or lack of submission of
a single audit, complaints received by the Department, and reports of
fraud, waste and/or abuse. The risk assessment will also be used to
determine which Subrecipients will have an onsite review and which
may have a desk review.
(2) The Department will provide a Subrecipient with writ-
ten notice of any upcoming onsite or desk monitoring review, and such
notice will be given to the Subrecipient and Subgrantee by email to
the Subrecipient's chief executive officer at the email address most re-
cently provided to the Department by the Subrecipient. In general, a 30
day notice will be provided. However, if a credible complaint of fraud
or other egregious noncompliance is received the Department reserves
the right to conduct unannounced monitoring visits. It is the respon-
sibility of the Subrecipient to provide to the Department the current
contact information for the organization and the Board in accordance
with 6.6 of this chapter (relating to Subrecipient Contact Information
and Required Notifications) and 1.22 of this title (relating to Provid-
ing Contact Information to the Department).
(3) Upon request, a Subrecipient must make available to
the Department all books and records that the Department determines
are reasonably relevant to the scope of the Department's review. Typi-
cally, these records may include (but are not limited to):
(A) Minutes of the governing board and any commit-
tees thereof, together with all supporting materials;
(B) Copies of all internal operating procedures or other
documents governing the Subrecipient's operations;
(C) The Subrecipient's Board approved operating bud-
get and reports on execution of that budget;
(D) The Subrecipient's strategic plan or comparable
document if applicable and any reports on the achievement of that
plan;
(E) Correspondence to or from any independent audi-
tor;
(F) Contracts with any third parties for goods or ser-
vices and files documenting compliance with any applicable procure-
ment and property disposition requirements;
(G) All general ledgers and other records of financial
operations (including copies of checks and other supporting docu-
ments)'
(H) Applicable customer files with all required docu-
mentation;
(I) Applicable human resources records;
(J) Monitoring reports from other funding entities;(K) Customer files regarding complaints, appeals and
termination of services; and
(L) Documentation to substantiate compliance with any
other applicable Department contract provisions and state or federal
requirements including, but not limited to UGMS, TxGMS, 2 CFR
Part 200 Uniform Administrative Requirements, Cost Principles, Au-
dit Requirements for Federal Awards, Lead Based Paint, the Personal
Responsibility and Work Opportunity Act, and limited English profi-
ciency requirements.
(c) Post Monitoring Procedures.
(1) In general, within 30 calendar days of the last day of
the monitoring visit, a written monitoring report will be prepared for
the Subrecipient describing the monitoring assessment and any correc-
tive actions, if applicable. The monitoring report will be emailed to the
Board Chair and the Subrecipient's Executive Director. For a Private
Nonprofit Organization, all Department monitoring reports and Subre-
cipient responses to monitoring reports must be provided to the govern-
ing body of the Subrecipient within the next two regularly scheduled
meetings. For a Public Organization all Department monitoring reports
and Subrecipient responses to monitoring reports must be provided to
the governing body of the Subrecipient, and for a CSBG Subrecipient
to the advisory board within the next two regularly scheduled meet-
ings. Issues of concern over which there is uncertainty or ambiguity
may be discussed by the Department with the staff of cognizant agen-
cies overseeing federal funding. Certain types of suspected or observed
improper conduct may trigger requirements to make reports to other
oversight authorities, state and federal, including but not limited to the
State Auditor's Office and applicable Inspectors General.
(2) Subrecipient Response. If there are any findings of non-
compliance requiring corrective action, the Subrecipient will be pro-
vided 30 calendar days, from the date of the email, to respond which
may be extended by the Department for good cause. In order to re-
ceive an extension, the Subrecipient must submit a written request to
the Director of Compliance within the corrective action period, stating
the basis for good cause that justifies the extension. The Department
will approve or deny the extension request within five calendar days.
(3) Monitoring Close Out. Within 45 calendar days after
the end of the corrective action period, a close out letter will be issued
to the Subrecipient. If the Subrecipient supplies evidence establishing
continual compliance that negates the finding of noncompliance, the
issue of noncompliance will be rescinded. If the Subrecipient's timely
response satisfies all findings and concerns noted in the monitoring let-
ter, the issue of noncompliance will be noted as corrected. In some cir-
cumstances, the Subrecipient may be unable to secure documentation
to correct a finding. In those instances, if there are mitigating circum-
stances, the Department may note the finding is not corrected but close
the issue with no further action required. If the Subrecipient's response
does not correct all findings noted, the close out letter will identify the
documentation that must be submitted to correct the issue.
(4) Options for Review. If, following the submission of
corrective action documentation, Compliance staff continues to find
the Subrecipient in noncompliance, and the Subrecipient disagrees, the
Subrecipient may request or initiate review of the matter using the fol-
lowing options, where applicable:
(A) If the issue is related to a program requirement or
prohibition of a federal program, the Subrecipient may contact the ap-
plicable federal program officer for guidance or request that the Depart-
ment contact applicable federal program officer for guidance without
identifying the Subrecipient.46 TexReg 6038 September 17, 2021 Texas Register
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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/m1/56/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.