It is the Institute's policy to disburse Grant Award funds on a reimbursement basis; however, the nature and circumstances of the Grant Mechanism or a particular Grant Award may justify advance payment of funds by the Institute pursuant to the Grant Contract.

1. (1) The Chief Executive Officer shall seek approval from the Oversight Committee to disburse Grant Award funds by advance payment. The Chief Executive Officer's advance payment recommendation for the Grant Award must be approved by a simple majority of Oversight Committee Members present and voting. Unless specifically stated, the Oversight Committee's approval to disburse Grant Award funds by advance payment is effective for the term of the project.
2. (2) The Grant Contract must specify the amount, schedule, and requirements for advance payment of Grant Award funds.
3. (3) The Grant Recipient receiving advance payment of Grant Award funds must maintain or demonstrate the willingness and ability to maintain procedures to minimize the time elapsing between the transfer of the Grant Award funds and disbursement by the Grant Recipient.
4. (4) Grant Recipient must comply with all financial reporting requirements regarding use of Grant Award funds.
5. (5) Nothing herein creates an entitlement to advance payment of Grant Award funds; the Institute may determine in its sole discretion that circumstances justify limiting the amount of Grant Award funds eligible for advance payment, may restrict the period that advance payment of Grant Award funds will be made, or may revert to payment on a reimbursement-basis.

Source Note:The provisions of this §701.19 adopted to be effective March 2, 2014, 39 TexReg 1380.