1. (a) Probation Notice. If the institution is placed on probation by its accrediting agency, the institution shall immediately notify the Coordinating Board and advise state financial aid recipients of this condition and maintain evidence to demonstrate that state financial aid program recipients were so informed.

2. (b) Disbursements to Students.

   1. (1) Documentation. Each institution shall maintain records to prove the crediting of state financial aid program funds to the student's school account.
   2. (2) Procedures in Case of Unauthorized Disbursements. If an institution receives an audit or compliance monitoring finding or otherwise determines that the institution has disbursed state financial aid program funds for unauthorized purposes, whether over-allocated, misused, or misallocated, the Program Officer shall notify the Coordinating Board within five business days.
   3. (3) If the Commissioner determines that the institution has made an unauthorized disbursement, the Commissioner will notify the Program Officer of this determination in writing.
   4. (4) The Commissioner may demand, in writing, that the institution return the funds to the Coordinating Board. The institution may comply with this demand and return the funds to the Coordinating Board within thirty calendar days of receipt, unless the Commissioner specifically permits a later deadline. If the institution elects not to comply with this demand, the Coordinating Board may utilize additional tools of recovery, as permitted by law, including any means of recovery authorized by Texas Education Code, §61.035.
   5. (5) In addition, the Commissioner may subject the institution to compliance monitoring.
   6. (6) The Coordinating Board shall not disburse further funds from the program in question to the institution until the funds have been repaid.
3. (c) Reporting Requirements/Deadlines. Each institution shall submit such reports and information as the Coordinating Board may require in connection with the administration or evaluation of the state financial aid programs. These materials must be submitted within the time allotted by the Coordinating Board for each such report or information request. The Program Officer shall ensure that all reports and information provided to the Coordinating Board properly reflect the facts and certify that those reports may be relied upon as being complete and accurate.
4. (d) Compliance Monitoring. If selected for such by the Board, Commissioner, or Internal Auditor, a participating institution shall submit to reviews of activities related to state financial aid programs.

Source Note:The provisions of this §22.9 adopted to be effective December 5, 2019, 44 TexReg 7380; amended to be effective May 15, 2025, 50 TexReg 2786.