1. (a) The Task Force or its designees will monitor the activities of grantees as necessary to ensure that Task Force grant funds are used for authorized purposes in compliance with laws, regulations, and the provisions of grant agreements.
2. (b) The monitoring program may consist of formal audits, monitoring reviews, and technical assistance. The Task Force or its designees may implement monitoring through on-site review at the grantee location or through a desk review based on grantee reports. In addition, the Task Force or its designees may require grantees to submit relevant information to the Task Force to support any monitoring review. The Task Force may contract with an outside provider to conduct the monitoring.
3. (c) Grantees must make available to the Task Force or its designees all requested records relevant to a monitoring review. The Task Force or its designees may make unannounced monitoring visits at any time. Failure to provide adequate documentation upon request may result in disallowed costs or other remedies for noncompliance as detailed under §173.307 of this chapter (relating to Remedies for Noncompliance).
4. (d) After a monitoring review, the grantee will be notified in writing of any noncompliance identified by the Task Force or its designees in the form of a draft report.
5. (e) The grantee will respond to the draft report and the deficiencies, if any, and submit a plan of corrective action, if necessary, within a time frame specified by the Task Force or its designees.

6. (f) The corrective action plan will include the:

   1. (1) titles of the persons responsible for implementing the corrective action plan;
   2. (2) corrective action to be taken; and
   3. (3) anticipated completion date.
7. (g) If the grantee believes corrective action is not required for a noted deficiency, the response will include an explanation, specific reasons, and supporting documentation.
8. (h) The Task Force or its designees will approve the corrective action plan and may require modifications prior to approval. The grantee's replies and the approved corrective action plan, if any, will become part of the final report.
9. (i) The grantee will correct deficiencies identified in the final report within the time frame specified in the corrective action plan.

Source Note:The provisions of this §173.401 adopted to be effective July 23, 2009, 34 TexReg 4730.