1. (a) Funding. Funds awarded through a program described in this chapter may not exceed the amount appropriated for that purpose, plus institutions' matching funds.
2. (b) Allocations and Reallocations. Unless otherwise indicated, institutions will have until a date specified by the Coordinating Board to certify all funds allocated to their students. As of that date, uncertified funds are available for reallocation to students at other institutions on a first come/first served basis. If necessary for ensuring the full use of funds, a second reallocation deadline will be set by the Board, after which time reallocations are continuous until all funds are awarded and disbursed. Reallocation dates are to be announced prior to the start of each year to enable institutions to plan accordingly.
3. (c) Certification and Disbursement Procedures. Unless otherwise indicated, on receipt of certification by the program officer of the amount of the grant or scholarship for which the student is eligible, the commissioner or another designated member of the staff of the board shall request such funds from the state comptroller's office and forward the funds to the institution for disbursement to the student or for crediting to the student's account. Institutions approved to administer a grant program as a campus-based program shall periodically be disbursed funds in lump-sum amounts based on receipt of certification by the Program Officer of the amounts required to meet recent disbursements to students, or to cover disbursements to be made within three days of the receipt of the state funds.
4. (d) Use of Grant or Scholarship Funds. No grant or scholarship disbursed to a student may be used for any purpose other than for meeting the cost of attending the institution of higher education.

5. (e) Refunds.

   1. (1) All refund accounts should be cleared as soon as possible or not later than 60 days after the date of issue.
   2. (2) Except in the Tuition Equalization Grant Program and Scholarship Programs for Professional Nurses, which have their own refund schedules, institutions are to follow their general institutional refund policies in making refunds to the grant and scholarship programs described in this chapter.
   3. (3) After March 15, the board may deny an institution reuse of funds from refunds if replacement applications are not submitted with the returned funds.

6. (f) Cancellations.

   1. (1) In those cases in which a state warrant is not promptly received by a student or deposited into the student's account, the warrant should be voided and returned to the board.
   2. (2) No warrants should be held by the institution for more than 60 days after the date of issue.
   3. (3) When a state grant or scholarship warrant is held by the State Comptroller's Office, an institution will have 30 days from the date of notification by the board to accomplish a warrant release. If the warrant is still on hold after 30 days, it will be canceled automatically by the board.
   4. (4) After March 15, the board may deny an institution reuse of funds from warrant cancellations if replacement applications are not submitted with the returned funds.

7. (g) Late Disbursements. For a student to receive a disbursement after the end of his/her period of enrollment, the program officer must submit a Late Disbursement Certification Form to the board which confirms that

   1. (1) the student has completed the award period with satisfactory academic progress;
   2. (2) the student has an outstanding balance at the school, or on a student loan or other education-related debt for the qualifying award period; and
   3. (3) the institution will apply the award toward that outstanding balance or debt.
8. (h) Over Awards. At the time an award is made through a grant or scholarship program described in this chapter, no award may exceed a student's financial need. No adjustment is required, however, if subsequent awards during the student's period of enrollment cause an over award of $300 or less.

Source Note:The provisions of this §22.6 adopted to be effective September 8, 1997, 22 TexReg 8541; amended to be effective August 19, 2001, 26 TexReg 6019.