1. (a) The termination date of a Grant Contract shall be the date stated in the Grant Contract, except:

   1. (1) The Chief Executive Officer may elect to terminate the Grant Contract earlier because the Grant Recipient has failed to fulfill contractual obligations, including timely submission of required reports or certifications;
   2. (2) The Institute terminates the Grant Contract because funds allocated to the Grant Award are reduced, depleted, or unavailable during the award period, and the Institute is unable to obtain additional funds for such purposes; or
   3. (3) The Institute and the Grant Recipient mutually agree to terminate the Grant Contract earlier.
2. (b) If the Institute elects to terminate the Grant Contract pursuant to subsection (a)(1) or (2) of this section, then the Chief Executive Officer shall notify the Grant Recipient in writing of the intent to terminate funding at least 30 days before the intended termination date. The notice shall state the reasons for termination, and the procedure and time period for seeking reconsideration of the decision to terminate. Nothing herein restricts the Institute's ability to terminate the Grant Contract immediately or to seek additional remedies if justified by the circumstances of the event leading to early termination.

3. (c) The Institute may approve the Grant Recipient's written request to extend the termination date of the Grant Contract to permit the Grant Recipient additional time to complete the work of the project.

   1. (1) A no cost extension may be granted only if the Grant Recipient is in good fiscal and programmatic standing.
   2. (2) The Grant Recipient may request a no cost extension no earlier than 180 days and no later than 30 days prior to the termination date of the Grant Contract.
   3. (3) The Institute may approve one no cost extension, the duration of which may be no longer than six months from the termination date of the Grant Contract, unless the Institute finds that special circumstances justify authorizing additional time to complete the work of the project.
   4. (4) If the Institute approves the request to extend the termination date of the Grant Contract, then the termination date shall be amended to reflect the change.
4. (d) Within ninety (90) days after the termination of the Grant Contract, the Grant Recipient must submit a final Financial Status Report and final Grant Progress Report as well as any other required reports as specified in the Grant Contract. The final reimbursement payment shall not be made until such close out documents have been submitted and approved by the Institute. Failure to submit close out documents within 180 days of the Grant Contract termination date may result in the Grant Recipient being ineligible for other Institute Grant Awards until such time that the close out documents are submitted.
5. (e) The Institute may make upward or downward adjustments to the Allowable Costs requested by the Grant Recipient within ninety (90) days following the receipt of the close out reports.
6. (f) Nothing herein shall affect the Institute's right to disallow costs and recover Grant Award funds on the basis of a later audit or other review or the Grant Recipient's obligation to return Grant Award funds owed as a result of a later refund, correction, or other transaction.

7. (g) Any Grant Award funds paid to the Grant Recipient in excess of the amount to which the Grant Recipient is finally determined to be entitled under the terms of the Grant Contract constitute a debt to the state. If not paid within a reasonable period after demand, the Institute may reduce the debt owed by:

   1. (1) Making an administrative offset against other requests for reimbursements;
   2. (2) Withholding advance payments otherwise due to the Grant Recipient; or
   3. (3) Other action permitted by law.

Source Note:The provisions of this §703.14 adopted to be effective December 21, 2009, 34 TexReg 9213; amended to be effective March 2, 2014, 39 TexReg 1386.