1 Texas Administrative Code § 3.2601 – Monitoring
(a) PSO and OCM shall monitor the activities of grantees as necessary to ensure that grant funds are used for authorized purposes and that grantees achieve grant purposes.
(b) The monitoring program may consist of formal audits, monitoring reviews, and technical assistance. PSO or OCM may implement monitoring through on-site review at the grantee or sub-grantee location or through a desk review. PSO or OCM may request that grantees submit information to PSO or OCM to support any monitoring review.
(c) Grantees must make all records relevant to a monitoring review available. Failure to provide adequate documentation may result in disallowed costs or other remedies for noncompliance.
(d) After a monitoring review, the grantee shall be notified in writing through a preliminary report of any identified noncompliance. The preliminary report shall enumerate deficiencies and provide recommendations to cure the deficiencies.
(e) The grantee shall respond to the preliminary report and the deficiencies or recommendations, and submit to PSO or OCM a corrective action plan or, if the grantee believes correction action is not required in response to a deficiency or recommendation, an explanation under subsection (g) of this section within a time specified by PSO or OCM.
(f) The corrective action plan shall include:
(1) the titles of the persons responsible for implementing the corrective action plan;
(2) the corrective action to be taken; and
(3) the anticipated completion date.
(g) If the grantee believes corrective action is not required in response to a deficiency or recommendation, the response shall include an explanation and specific reasons. PSO or OCM shall determine whether the response is adequate to resolve the deficiency or recommendation.
(h) The grantee’s response and the approved corrective action plan shall become part of the final report.
(i) The grantee shall resolve all identified findings within the time specified.
(j) PSO shall issue a final report:
(1) when PSO or OCM observes no deficiencies during the monitoring review; or
(2) after receiving the response by a grantee to the preliminary report.
