1. (a) The OAG requires a grantee to conduct or undergo an annual audit of a grant, including subgrants, based on federal or state audit requirements and following audit standards set forth in UGMS and all applicable federal circulars.
2. (b) A grantee must submit to the OAG copies of all audit reports, including audits as required in UGMS and all other audits that a grantee undergoes, regardless of the purpose. Such reports must be submitted to the OAG within 30 calendar days of completion.
3. (c) OAG grant funds may only be used for the fair and reasonable share of audit costs required by the OAG, in accordance with applicable federal and state cost principles governing allowability and allocation.

Source Note:The provisions of this §60.503 adopted to be effective July 15, 2003, 28 TexReg 5523.