Section 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), Community Service Block Grant (CSBG) discretionary awards to non-eligible entities, 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 Subrecipient shall ensure that no individual has the ability to perform more than one of the functions described in paragraphs (1) - (5) of this subsection that might result in a release of funds without appropriate controls: (1) Requisition authorization;(2) Encumbrance into software;(3) Check creation and/or automated payment disbursement;(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 and continue to be implemented through the term of the Contract.(d) Subrecipient will sign a Contract with the applicable Assurances in Appendix 6 of TxGMS as required by and in the form and substance acceptable to the Department's Legal Division.10 Tex. Admin. Code § 1.402
Adopted by Texas Register, Volume 41, Number 48, November 25, 2016, TexReg 9266, eff. 12/4/2016; Amended by Texas Register, Volume 41, Number 50, December 9, 2016, TexReg 9699, eff. 12/4/2016; Adopted by Texas Register, Volume 45, Number 47, November 20, 2020, TexReg 8311, eff. 11/26/2020; Adopted by Texas Register, Volume 46, Number 48, November 26, 2021, TexReg 8009, eff. 12/2/2021; Adopted by Texas Register, Volume 49, Number 38, September 20, 2024, TexReg 7634, eff. 9/26/2024