1. (a) Unless otherwise prohibited by state law, the Commissioner has the right to reject all applications and cancel a grant solicitation.
2. (b) If the Coordinating Board determines that a data reporting error or any other error resulted in an overallocation of grant funds to the grantee, the Coordinating Board shall use any method authorized under statute or Board rules to make a funding adjustment necessary to correct the over-allocation.
3. (c) If the Coordinating Board determines that a grantee obligated or expended grants funds on costs prohibited or unauthorized by law, regulations or the terms and conditions of the grant award, the Coordinating Board shall notify the grantee not later than sixty (60) business days from the grant termination date. This notification must contain the amount of the prohibited obligation or expenditure and the basis for the determination.
4. (d) The grantee may submit a written appeal to the Commissioner within thirty (30) business days of receiving notification of the prohibited or unauthorized expenditures. The grantee may attach any data or other written documentation that supports its appeal. The Commissioner shall review the appeal and determine in his or her sole discretion whether to affirm, deny, or modify the determination of prohibited or unauthorized obligation or expenditure within thirty (30) business days of receipt.
5. (e) If the grantee does not appeal or the Commissioner affirms the determination that prohibited or unauthorized grant obligations or expenditures occurred, the grantee shall reimburse the Coordinating Board in an amount equal to the prohibited or unauthorized obligation or expenditure.

Source Note:The provisions of this §10.8 adopted to be effective May 15, 2025, 50 TexReg 2785.