(a) Modified cost reimbursement may be in the form of Full or Partial cost reimbursement.
- (1) Full cost reimbursement requires that the Department, acting through or by oversight of the Compliance Division, review any item and supporting documentation and backup before approving it for payment.
- (2) Partial cost reimbursement enables the Department, acting through or by oversight of the Compliance Division, to establish a tailored protocol to review only a portion of requests for reimbursement and, based on that review, to allow for advances subject to reasonable and appropriate limitations.
- (b) The Department through its Compliance Division may place on Modified Cost Reimbursement any entity administering a Department program allowing for funds to be advanced prior to documentation of expenditure where there has been identified a significant pattern of compliance violations indicating a material failure to adopt and adhere to policies and procedures to ensure compliant activity.
- (c) An entity placed on Modified Cost Reimbursement must, within ninety (90) days of written notice by the Department, unless extended as provided for herein, either be restored to advance status or have proceedings for termination of their contract and/or eligible entity status and/or debarment commenced. Restoration to advance status will require the entity to develop a comprehensive plan, which, if the entity is an eligible entity under the CSBG Act, will constitute a Quality Improvement Plan as provided for in the CSBG Act, to address its issues. The plan must be reviewed and acceptable to the Department after a review by the Compliance Division and the Community Affairs Division. Extensions of up to an additional ninety (90) days may be approved by the Executive Director for good cause including but not limited to additional time to comply with procurement requirements or additional time for the Department to review submittals.
Source Note:The provisions of this §2.201 adopted to be effective November 19, 2014, 39 TexReg 8976.