Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 7 - HOMELESSNESS PROGRAMS › Subchapter A - GENERAL POLICIES AND PROCEDURES › Section 7.9 - Contract Termination and Deobligation

Current through Reg. 49, No. 28; July 12, 2024
(a) When a
				  Contract is terminated or voluntarily relinquished, the procedures described in
				  this subsection will be implemented.
(b) The terminology of a "terminated"
				  Subrecipient is intended to include the Subrecipient that is voluntarily or
				  involuntarily terminating their Contract, but does not include Contracts that
				  expire without being sent a termination letter.
(1) The Department will issue a termination
				  letter to the Subrecipient no less than 30 calendar days prior to terminating
				  the Contract. The Department may determine to take any of the following
				  actions: suspend funds immediately or allow a temporary transfer to another
				  Subrecipient; or provide instructions to the Subrecipient to prepare a proposed
				  budget and written plan of action that supports the closeout of the Contract.
				  The plan must identify the name and current titles of staff that will perform
				  the closeout and an estimated dollar amount to be incurred. The plan must
				  identify the CPA or firm which will perform the Single Audit. The Department
				  will issue an official termination date to allow all parties to calculate
				  deadlines which are based on such date.
(2) No later than 30 calendar days after the
				  Contract is terminated, the Subrecipient will take a physical inventory of
				  Program Participant files, including case management files.
(3) The terminated Subrecipient will have 30
				  calendar days from the date of the physical inventory to make available to the
				  Department all Program Participant files. Current and active case management
				  files also must be inventoried.
(4)
				  The terminated Subrecipient will prepare and submit no later than 30 calendar
				  days from the date the Department retrieves the files, a final report
				  containing a full accounting of all funds expended under the
				  Contract.
(5) A Monthly Expenditure
				  Report and a Monthly Performance Report for all remaining expenditures incurred
				  during the closeout period must be received by the Department no later than 45
				  calendar days from the date the Department determines that the closeout of the
				  program and the period of transition are complete.
(6) The Subrecipient will submit to the
				  Department no later than 45 calendar days after the termination of the
				  Contract, an inventory of the non-expendable personal property acquired in
				  whole or in part with funds received under the Contract.
(7) The Department may require transfer of
				  Equipment title to the Department or to any other entity receiving funds under
				  the program in question. The Department will make arrangements to remove
				  Equipment covered by this paragraph within 90 calendar days following
				  termination of the Contract.
(8) A
				  current year Single Audit must be performed for all entities that have exceeded
				  the federal expenditure threshold under 2 CFR Part 200, Subpart F or the State
				  expenditure threshold under TXGMS, as applicable. The Department will allow a
				  proportionate share of program funds to pay for accrued audit costs, when an
				  audit is required, for a Single Audit that covers the date up to the closeout
				  of the Contract. To be reimbursed for a Single Audit, the terminated
				  Subrecipient must have a binding contract with a CPA firm on or before the
				  termination date of the Contract. The actual costs of the Single Audit and
				  accrued audit costs including support documentation must be submitted to the
				  Department no later than 45 calendar days from the date the Department
				  determines the closeout is complete. See §
											1.403 of this title (relating to
				  Single Audit Requirements) for more information.
(9) Subrecipient shall submit within 45
				  calendar days after the date of the closeout process all financial,
				  performance, and other applicable reports to the Department. The Department may
				  approve extensions when requested by the Subrecipient. However, unless the
				  Department authorizes an extension, the Subrecipient must abide by the 45
				  calendar day requirement of submitting all referenced reports and documentation
				  to the Department.