8-0005
A DARS grant award provides financial assistance or
material support that enables an organization to operate a program of services
to consumers.
Specific authorizing federal or state laws or regulations define the purpose
and scope of each program. DARS expects the grantee to achieve the expected
outcomes defined in the grant work plan.
8-0010
Compliance
Grants are awarded to an organization, not an individual. Each organization manages a grant
differently.
When accepting a grant, the recipient (grantee) agrees to administer the project in accordance
with
- federal, state, and DARS regulations and policies in effect at the time of award; and
- applicable chapters of the DARS DRS Standards for Providers, a policy and procedure manual.
Grantee Responsibilities
The grantee must
- accept full legal responsibility for the program, including fulfilling grant
requirements; and
- direct and control all program and administrative aspects through effective and
sound management practices and policies.
The grantee is accountable for
- fiscal and programmatic management of the grant, and
- completion of any special conditions specified in
- applicable general administration regulations, and
- DARS DRS guidelines.
8-0015
Grantee Responsibilities
The grantee informs the DARS grant manager when the following conditions (not inclusive) occur
- problems, delays, or adverse conditions that materially impair the grantee's
ability to meet the grant objectives; this disclosure must include a
statement of
- the action taken or contemplated, and
- any assistance needed to resolve the situation;
- favorable developments that enable the grantee to
- meet time schedules and objectives sooner, or at a lesser cost than anticipated; or
- produce more beneficial results than originally planned;
- legal or financial difficulties (for example, lawsuit, IRS problems)
that could affect the program;
- change in location; the grantee must notify the DARS grant manager in writing of any proposed change in
physical location for grant-related work at least 30 days in advance of the
change; or
- any changes in key grant personnel.
8-0020
Grantee Responsibilities
The grantee must mention DARS involvement in all
publications and news releases related to activities funded solely or partially
by the grant.
8-0025
Grantee Performance, Compliance
DARS may impose special grant conditions if the grantee demonstrates
- poor performance in the conduct of grant requirements, or
- noncompliance with grant requirements according to the
- DARS DRS Standards for Providers,
- current grant application, or
- applicable state and federal rules, regulations, or laws.
8-0030
Policies, Procedures
Organizational policies and procedures must be
- written,
- approved by the board at least once a year,
- published and distributed or made available to all staff members,
- in compliance with the
- applicable standards in the DARS DRS Standards for Providers,
- current grant application, and
- applicable state and federal rules, regulations, or laws.
Any changes or revisions during the year must have
- board approval before the policy or procedure becomes effective, and
- board approval date noted on each page of the policy and procedure manual.
Records
Records must include
- written policy and procedure statements, and
- date of board approval for
- changes,
- annual review, and/or
- revisions.
8-0035
Board Duties
The board, as outlined in state and federal guidelines must
- in the board organization, outline responsibilities of
each position and each member,
- adhere to the terms, conditions, and responsibilities
of each office,
- meet at least quarterly, and
- at least annually, review and approve all written
policies and procedures.
When funds are available, board
members must receive training to better direct the organization.
At all board meetings
- the board president presides, and
- the board secretary takes the minutes.
Records
Records must include
- board organization,
- board member responsibilities and responsibilities acceptance statement,
- board meeting minutes including
- dates and location of meetings held,
- names of all attendees and visitors,
- agenda,
- progress made on grant goals and objectives,
- discussion items,
- all items voted upon,
- results of the vote, and
- date of board-approved minutes.
8-0040
Board Responsibilities
he organization must be chartered by
the State of Texas as a non-profit organization. The board of directors
officially adopts or passes a resolution, motion, or similar action that
authorizes
- filing the application for corporate status, and
- official representative(s) of the organization to
- act in connection with the application, and
- provide any additional information required.
The grantee must
- maintain the Articles of Incorporation, 501(c)3 Certificate and IRS Form 990 titled
"Return of Organization Exempt from Income Tax", and
- before filing with the IRS, present IRS Form 990 to the board for approval.
Records
Records must include
- a copy of the Articles of Incorporation,
- 501(c)3 Certificate,
- and
- notation of board approval in board minutes.
8-0045
Requirements
Grantee must
- maintain an organizational chart outlining the current structure of the grantee organization,
- identify all staff and volunteer positions, and
- define the reporting relationships among the positions, which must be approved by the board.
Records
Records must include a current organizational chart identifying
- the date of board approval,
- all staff and volunteer positions by job title, and
- supervisory positions.
8-0050
When Used
DARS grant-funded equipment, space, or services must be used only
- for purposes specified in the grant award statement, and
- with the written consent of DARS.
Records
Records must include
- notice to the staff concerning restrictions on use, and
- adjustments to grant funds, when not used according to above policy.
8-0055
Securing
The grantee must observe sound business practices in
securing bonding and insurance to provide adequate coverage for DARS-funded
projects.
When Required
Board members and staff members must be insured or bonded when required
- by the organization's by-laws;
- by law;
- by regulations; or
- as a condition of the grant award, to protect DARS grant interests.
Records
Records must include
- an insurance or bonding policy,
- a board-approved list of positions that must be insured or bonded, and
- invoices and canceled checks.
8-0060
Record Retention
Grantee records and accounts must be retained for a period of not less than three years after
- DARS has made final payments, and
- all other pending matters are closed.
The records must be made available for review or audit by
- DARS, and
- others authorized by law or regulations to conduct such review or audit.
Grantee staff members must
- maintain the security and confidentiality of grant records, and
- develop a retention schedule for these records:
- general administrative,
- program and consumer, and
- financial.
Records
Records must include
- a list identifying staff positions permitted to access each type of grant record,
- a record retention schedule, and
- documents on file in accordance with the retention schedule.
8-0065
Requirement
Grantee must maintain and file all financial reports and
source documents for easy retrieval and review.
Records
Records must include all documents required by the
records management policy.
8-0070
Requirement
Grantee must
- maintain accurate records of all costs incurred in the performance of the grant,
- agree to allow DARS access to its records to verify the validity of expenses reimbursable under the grant, and
- provide DARS the right to review or examine grant-related
records for programmatic or fiscal purposes during the grant budget and
retention period.
Records
Records must be available for DARS review when requested.
8-0075
Lobbying Prohibition
Grantee must
- prohibit the use of grant funds for lobbying, per the
Federal Lobbying Disclosure Act, (defined in the grant document titled
"Certification Regarding Lobbying, Disbarment, Suspension, and Other
Responsibility Matters"), and
- notify all employees of the grantee lobbying policy.
Records
Records must include
- a signed "Certification Regarding Lobbying,
Disbarment, Suspension, and Other Responsibility Matters",
- documentation showing that all staff were notified of the
lobbying restrictions, and
- a notice posted on the employee bulletin board reflecting
the grantee prohibition on lobbying.
8-0080
Requirement
Grantee must
- prohibit the use of grant funds for fund-raising, and
- separately account for fund-raising related revenues and
expenditures.
Records
Records must include
- accounting entries for receipts and disbursements,
- receipts or logs for revenues received,
- invoices for expenditures, and
- separate account numbers on the chart of accounts for monies
- raised and received, and
- raised and expended.
8-0085
Requirement
The following may be furnished to a
grantee
- donated or volunteer services by
- professional and technical personnel,
- consultants, and
- other skilled and unskilled labor, and
- donated goods, e.g.,
- expendable personal property or supplies, and
- use of space.
The value of the goods, services, and space is not reimbursable either as a direct or indirect cost.
Grantee must
- issue of a receipt for all donations,
- assess value of
- donated time,
- equipment, space, or
- other items, and
- report all donations to the board of directors.
Records
Records must include
- copy of receipt provided to donor,
- copy of time sheets signed by volunteers,
- documentation of how valuation is determined, and
- inventory records.
Program Income
8-0090
Requirement
The grantee must ensure that
- program income is used to offset approved program costs during the current fiscal year or subsequent fiscal year, and
- program income is accounted for separately for each fiscal year.
Procedure
Grantee must prepare
- a statement describing resources used in generating program income,
- a declaration of the alternative method to be used (for example,
Deduction Alternative, Cost Sharing or Matching Alternative, or Addition
Alternative),
- a statement that earned and used program income is
accounted for separately in the chart of accounts, and
- a statement describing how program income is carried forward.
Records
Records must include
8-0095
Requirement
Unless expressly provided, statutes
authorizing grant programs state that grantees must not profit from grant
programs other than in the manner and to the extent provided by law.
Grantee must ensure that no more than $250.00 earned in interest is retained for
administrative expenses over the grant year.
Records
Records must include accounting records verifying policy.
8-0100
Requirement
Grantee must address the following supply issues
- purchasing procedures,
- stockpiling, and
- maximum amount of supplies to be inventoried.
Procedure
Grantee must
- ensure that supplies are approved by authorized staff,
- purchase supplies competitively,
- disallow stockpiling of supplies, and
- not dispose of supplies whose average fair market value
exceeds $5,000 without prior approval from DARS DRS.
Records
Records must include
- purchase orders with grant number and account codes,
- invoices stamped "paid" with grant number and accounting codes,
- canceled checks, and
- inventory listing.
8-0105
Requirement
Grantee must address the following issues concerning computer use
- staff access and restrictions on the use of computer hardware and software,
- board prohibition on the use of "pirated" software,
- assignment of a staff position to back up data, and
- frequency of data backup.
Records
Records must include
- documentation that staff is informed of computer use policy,
- record of adherence to computer use policy, and
- a back-up copy of electronic data.
Only with the prior written approval of DARS, grantees may
transfer, pledge, or otherwise assign a grant or any interest therein, or any
claim arising thereunder, to any
- party,
- bank,
- trust company, or
- other financial institution.
Performance under funds awarded may not be transferred
between programs without prior formal approval from DARS.
If DARS determines that it is due a refund of money paid to
the grantee, the grantee must pay DARS within 30 days of the grantee's receipt
of written notice of refund due. If the grantee fails to make timely
payment, DARS may obtain the money from the grantee by any lawful means,
including but not limited to counterclaim against any money otherwise due to the
grantee by DARS.
8-0210
Financial Management System Development
Grantees must develop a financial management system that
- discloses financial results,
- maintains accurate and complete records of
- outcomes,
- sources, and
- uses of all grant funds,
- complies with grant rules and regulations,
- makes maximum use of resources,
- prepares reports required by the
- board,
- executive director,
- funding agencies,
- taxing agencies, etc.,
- relates financial information to performance data, including unit cost
when required by grant,
- evaluates progress toward objectives, and
- has an internal control structure which
- segregates funds,
- authorizes expenditures,
- records financial transactions, and
- limits access to assets.
8-0215
Financial Information
The grantee's accounting system must provide financial information that
- separately identifies
- receipts,
- disbursements,
- assets,
- liabilities, and
- fund balance for each grant, and
- provides information for reports required by the grant.
Requirements
Grantee must ensure that
- all reports have assigned due dates,
- the bookkeeper makes accounting entries within a set time (e.g.,
disbursements posted daily),
- the basis for accounting is defined (e.g., accrual), and
- management approves all adjusting journal entries.
Records
Records must include
- up-to-date ledgers and journals,
- log of management-approved adjusting journal entries, and
- supporting documentation for all journal entries.
8-0220
Financial Administration Authority
A financial administration authority must be appointed to
- request,
- receive, and
- manage grant funds.
The appointment must be approved by the grantee official
who signed the award or contract, usually the president or chairperson of the
controlling board or the grantee's chief executive officer.
Responsibilities
The financial administration authority must
- have sufficient experience in grant expenditures, for example,
- keeping financial records,
- preparing financial statements,
- budgeting,
- anticipating financial needs,
- safeguarding and managing financial assets,
- complying with federal and state reporting requirements, and
- establishing and monitoring a system of internal controls;
- participate in long-range planning to secure permanent funding for
projects that provide services; and
- sign all financial documents to certify their accuracy and validity,
including
- DARS3152, Equipment Inventory List,
- DARS3153, Request for Advance or Reimbursement (RAR),
- DARS3155, Budget
Revision Request,
- DARS3156, Quarterly Program Income Report,
- DARS3157, Quarterly Financial
Report and Analysis, and
- DARS3159, Final Report of Expenditures.
8-0225
Requirements
Any commitment or expenditure of grant funds must be based on the signed
Statement of Grant Award.
Records
Records must show that
- reports match amount shown in accounting records, and
- Statement of Grant Award was approved before the obligation of grant
funds.
8-0230
Fund Accounting
The chart of accounts must be carefully structured, especially when using
fund accounting. Fund accounting has separate accounting entities, each of which
must be integrated into the chart of accounts. Fund groupings must have similar
account structures.
Requirements
The chart of accounts must
- separately identify each funding source, and
- provide each source with its own subset of
- assets,
- liabilities,
- revenues,
- expenditures, and
- fund balance account codes.
The grantee must define
- circumstances under which the chart of accounts may be revised, and
- frequency of board approval.
Records
Records must include
- a current copy of the chart of accounts,
- a copy of each prior revision, and
- documentation of board approval.
8-0235
Process
The budget process
- records, in monetary terms, the organizational goals and objectives
for the coming year;
- provides a tool to monitor financial activities for the year; and
- determines if goals and objectives are being met in accordance with
projected budget requirements.
Budget Requirements
The grantee must maintain an organizational budget that
- is prepared at least annually,
- is approved by the board,
- identifies all anticipated funding sources, and
- lists expected uses of all financial resources.
Records
Records must include
- current budget,
- any approved budget revisions (DARS3155,
Budget Revision Request)
- comparisons of budget to actual expenses throughout the grant year, and
- board approval of budget.
8-0240
Plan
A cost allocation plan, based on documented evidence, must be used to
determine percent of charges to a grant or funding source.
Documentation
Grantee must
- before charging cost to a grant, verify that cost
supports goals and objectives set in the grant award,
- define direct and indirect costs,
- describe cost allocation methods,
- base rationale for allocation on
- logic,
- relevance to the program, and
- documentation,
- require development of an annual cost allocation plan
which allocates costs among funding sources,
- require board approval of cost allocation plan, and
- through documentation, ensure that costs are
supportable.
Program costs are allowable only with acceptable
documentation that
- is written,
- is independently generated or verified by a
disinterested third party,
- is generated at the time of transaction,
- supports the amounts in accounting records, and
- is easily retrievable.
Documentation of costs charged to the budget must be relevant to the program and
may include
- invoices,
- sales receipts,
- payroll stubs,
- mileage logs,
- postal or photocopy logs,
- activity reports or timesheets,
- contracts, and
- other documents, as required.
Records
Records must include
- current cost allocation plan, including detailed documentation of
calculations supporting cost,
- regulations used in developing plan, and
- documentation of board approval.
8-0245
Authorization
Before obligating grant funds, the grantee must
- use the Office of Management and Budget (OMB) OMB
Circular A-122 when determining cost allowability, or
- obtain DARS approval if allowability is questionable.
Records
Records must include approval of the obligations of grant funds.
8-0250
Documentation
Cash receipts must be promptly deposited, recorded, and documented to track
cash received from
- grantor agencies,
- local matching contributions,
- public or private donations, or
- other sources.
Records
Records must include
- cash receipts log,
- cash receipts journal,
- deposit slips,
- accounting entries, and
- bank reconciliations.
8-0255
Recordkeeping
The grantee record-keeping system must contain data concerning funds
management of the grant program including information necessary to complete a
DARS3153,
Request for Advance or Reimbursement (RAR), ensure funds are being spent and
used per the grant award.
Funds
Grantee may request operating funds for no more than 30 days in advance.
Any funds received that exceed the 30-day request must be adjusted on the next
RAR.
Records
Records must include
- report from accounting office to executive director showing balances of
- cash, and
- accounts payable and receivable, and
- documentation of actions taken upon an excess or shortage of funds.
8-0260
Requirements
Petty cash disbursements must be
- for defined and approved purposes,
- adequately safeguarded, and
- properly recorded.
Petty cash fund operations must have
- one person responsible for fund management,
- a maximum amount for fund, and
- a monthly reconciliation by supervisor.
Records
Records must include
- signed petty cash receipts,
- invoice or receiving reports (if appropriate),
- monthly reconciliation, and
- monthly accounting entries.
8-0265
Requirement
Upon receipt, cash disbursements are verified and entered into accounting
records.
Procedure, Responsibilities
Grantee must maintain a list of positions with authority to
delegate disbursement approval.
Disbursements must be
- properly authorized by a manager,
- made by check (except petty cash),
- made only for valid business purposes,
- properly recorded, and
- within the current approved budget.
No one person should have any two of these responsibilities
- authorizing expenditures,
- recording transactions, and
- access to funds.
Specific positions must have the authority to
- expend funds, and
- enter into obligations on behalf of the grantee.
Records
Records must include
- purchase orders and obligations,
- invoices,
- receiving reports,
- disbursement journal transactions,
- general ledger entries,
- account reconciliation, and
- documentation of delegated authority.
8-0270
Financial Controls
Grantee policy must address bank reconciliation to ensure adequate financial
controls.
Procedure
Bank accounts are reconciled monthly by someone who does
not
- disburse funds,
- receive funds, or
- record receipt of funds.
All adjusting entries must be promptly recorded by
appropriate staff.
Records
Records must include
- initialed and dated monthly reconciliation,
- bank statement,
- check register,
- canceled and voided checks, and
- accounting records.
8-0275
Requirements
Voided or damaged pre-numbered documents must be
- retained for review, and
- stored per grantee retention policy.
Records
Records must include voided
- checks,
- purchase orders,
- receiving reports, and
- records that must be tracked.
8-0280
Payment Schedule
All applicable taxes must be collected and paid in accordance with law (e.g., social security, sales tax, and
worker's compensation).
A schedule must be in place to allocate these costs among funding sources.
Delinquent Taxes
Tax rules and laws must be adhered
to as required by law. Under
§403.055 of the Texas Government Code, any payments under the grant are applied towards the debt or
delinquent taxes if the grantee
- is indebted to the state,
- owes delinquent taxes to the state, or
- owes delinquent taxes the comptroller administers or normally collects.
Payments made to the grantee are applied to the debt or delinquent taxes until paid in full.
Records
Records must include verification of payment of federal, state, and local
taxes.
(Revised 12/09)
8-0305
Grantee must submit financial reports to DARS as required by
grant award.
8-0310
Requirement
DARS3153,
Request for Advance or Reimbursement (RAR), must be completed. No more than
30 days of operating funds must be requested in advance.
Records
Records must include evidence that all requests are justified,
and where required, DARS DRS' prior approval was obtained.
8-0315
Fund Transfers
When fund transfers among approved budget categories are
expected to exceed 10 percent of the total grant award,
DARS3155,
Budget Revision Request, must be completed.
Records
Records must include evidence that reports match the amounts in
accounting records, and were approved by DARS DRS before implementing new budget.
8-0320
Income Data
Program income data must be submitted to the DARS grant manager within
30 days of the end of quarters 1, 2, and 3, and within 45 days of the
end of quarter 4 (end of grant year). Program income must be reported on
DARS3156,
Quarterly Program Income Report.
Records
Records must show that
- the use of program income complies with the grant award, and
- amounts reported match those in accounting records.
8-0325
Requirement
Accurate, timely quarterly financial reports (DARS3157,
Quarterly Financial Report and Analysis) must be submitted to the DARS
grant manager within 30 days of the end of quarters 1, 2, and 3, and
within 45 days of the end of quarter 4 (end of grant year).
Records
Records must include evidence that report amounts match
accounting records, reports were based on an approved budget, and upon a
reported variance of 10 percent or more, a plan was developed to bring expenditure rate
back on schedule.
8-0330
Requirement
An accurate, timely final report (DARS3159,
Final Report of Expenditures) must be submitted to DARS DRS within 90 days of the end of the grant period(s).
Records
Report must include evidence that the report agrees with accounting records.
Copies of audited financial statements must include budgeted and expended
amounts, or beginning and ending balances, for all budget categories for the
grants reported. These statements must be submitted with the
DARS3159, Final Report of Expenditures.
If the grantee's fiscal year does not coincide with the DARS DRS grand
period, a reconciliation of the audit report to the
DARS3159, Final Report of Expenditures, may be required. If so, this
reconciliation must be submitted with an attestation from an independent CPA.
8-0335
Requirement
Management is required to prepare financial statements per
accepted accounting principles. The statements must include
- a balance sheet,
- statement of
- revenues,
- expenditures,
- changes in fund balance, and
- changes in equity,
- statement of cash flows, and
- explanatory notes to the financial statements.
All grantee financial statements must be audited annually, regardless of
grant size. All financial audits are conducted by an independent auditor in
compliance with generally accepted auditing standards (GAAS), as published by
the American Institute of Certified Public Accountants.
The final audit report must be submitted to DARS within the earlier of
- 30 days after receipt of the auditor’s report, or
- nine months after the end of the grantee’s fiscal year.
Records
Records must include a complete set of the audited financial statements.
8-0340
Requirements
(Revised 09/08)
If a grantee expends $500,000 or more in DARS grant funds in the grantee’s
fiscal year, the grantee must have a single audit conducted in compliance
with OMB
Circular A-133 or the State of Texas Single Audit Circular.
The resulting single audit report must be approved by the grantee board, and
if necessary, a corrective action plan must be developed. This single audit
report must be
- in compliance with
OMB
Circular A-133, or the State of Texas Single Audit
Circular, and
- submitted to both addresses below within the earlier of
- 30 days after receipt of the auditor's report, or
- nine months after the end of the grantee's fiscal year.
Texas Department of Assistive and Rehabilitative Services
Contract Oversight and Support Services (1410)
4800 North Lamar Blvd., Suite 300
Austin, Texas 78756
and
Texas Health and Human Services Commission
Office of Inspector General
Compliance/Audit (Mail Code 1326)
PO Box 85200
Austin, Texas 78708-5200
An extension may be granted in response to a written request received by DARS DRS within the 90-day period.
All grantee financial statements must be audited annually to comply with
Standard 8-0330, regardless of grant size. All financial
audits are conducted by an independent auditor in compliance with generally
accepted auditing standards (GAAS), as published by the American Institute of
Certified Public Accountants.
Records
Records must include
- an engagement letter,
- financial statements,
- auditor's reports on financial statements as required by OMB
Circular A-133 with modifications noted above,
- management letter, and
- a Corrective Action Plan.
(Added 09/11)
The following table is a summary of all financial reports required in this
chapter and all program reports required by
Chapter 7: Program Standards for Centers for Independent Living.
| Form # |
Name |
Cycle |
Due Date |
Submit To |
| DARS3161 |
Consumer Demographic Information |
Monthly |
By the 8th of the following month |
Grant Manager |
| DARS3153 |
Request for Advance or Reimbursement (RAR) |
Monthly |
As needed |
Grant Manager |
| DARS3160 |
Quarterly Program Performance Report |
Quarterly |
Within 30 calendar days of the end of the quarter |
Grant Manager |
| DARS3156 |
Quarterly Program Income Report |
Quarterly |
Qtrs. 1, 2, & 3—within 30 days after the close of the quarter
Qtr. 4—within 45 days of the end of the budget period |
Grant Manager |
| DARS3157 |
Quarterly Financial Report and Analysis |
Quarterly |
Qtrs. 1, 2, & 3—within 30 days after the close of the quarter
Qtr. 4—within 45 days of the end of the budget period |
Grant Manager |
| DARS3155 |
Budget Revision Request |
As needed |
As needed |
Grant Manager |
| DARS3159 |
Final Report of Expenditures |
Annual |
Within 90 days of the end of the grant period |
Grant Manager |
| |
Audited Financial Statements |
Annual |
Within 90 days of the end of the grantee fiscal year |
Grant Manager |
| |
Single Audit (as applicable—see 8-0340) |
Annual |
The earlier of
- 30 days after receipt of the auditor's report, or
- nine months after the end of the grantee's fiscal year
|
- Grant Manager
- DARS Contract Oversight and Support Services
- Texas Health and Human Services Commission Office of Inspector General
|
| |
Annual Performance Report for the State Independent Living Services Program, (RSA 704 Part II) |
Annual |
By December 31 |
Grant Manager |
| |
Consumer Satisfaction survey results |
Annual |
30 days after the end of the grant period, beginning with the grant period ending August 31, 2012 |
Grant Manager |
8-0405
Compliance with Laws
Grantees must comply with federal and state employment laws in developing and
maintaining human resource policies.
Standards
The following standards are addressed in Chapter 1:
Basic Standards, and must be incorporated into grantee policies and
procedures:
- accessibility of services;
- safety program, including any state, county, or city requirements;
- reporting of emergency incidents;
- compliance with local fire codes, building codes, and occupancy
codes;
- warning signals;
- fire extinguishers;
- fire escapes;
- fire drills;
- emergency evacuation plans;
- provision of reasonable accommodations for staff members and
consumers;
and
- designated smoking areas.
8-0410
Requirements
Each grant-affiliated position requires
- employee job classification,
- job description, and
- compensation system.
Grantee policies must address
- Fair Labor Standards Act (FLSA) (minimum wage and maximum hours
provisions);
- definitions of full-time, part-time, and temporary positions;
- wage and salary schedule; and
- approved job descriptions including
- duties and functions of each position;
- minimum knowledge, skills, and abilities to perform the job; and
- requirements of the grant.
Records
Records must include
- all past and present job descriptions, and
- list of full time, part time, and temporary positions.
8-0415
Requirement
A volunteer program is considered cost sharing or matching when the service
is necessary to the approved program. The grantee must provide
- an approved job description,
- time sheets, and
- valuation of the hourly rate assigned to the volunteer's time.
Records
Records must include
- volunteer job description,
- time sheet signed by the volunteer and supervisor,
- a statement of the amount of time donated by volunteers in the board
meeting minutes,
- accounting entry for the value donated by volunteers, if appropriate, and
- documentation of valuation of volunteer's time.
8-0420
Requirement
Grantee must
- prepare job postings,
- obtain employee references,
- document employee's right to work in the United States,
- define length of probationary period,
- require employees to sign job descriptions, and
- describe the frequency and content of employee performance reviews.
Records
Records must substantiate information in policies.
8-0425
Types of Benefits
The following are considered benefits, provided such costs are absorbed by
all organizational activities in proportion to the amount of time or effort
devoted to each
- regular compensation paid to employees for authorized absences such as
vacation leave, sick leave, etc., and
- employer contributions to social security, workman's compensation,
insurance, pension plan, etc.
Requirement
Grantee must address
- accrual, balance, and carryover of leave, including
- vacation,
- sick,
- emergency,
- military,
- family, and
- maternity or paternity leave;
- holidays;
- health and dental insurance;
- retirement;
- deferred compensation;
- savings bonds;
- worker's compensation;
- unemployment compensation; and
- educational assistance including
- on-the-job training, conferences, workshops, etc.; and
- professional/formal training (college, etc.).
Records
Records must substantiate information required by policy.
8-0430
Procedures
Time reporting must be based on documented evidence
approved by a responsible official(s) of the organization. The
allocation of salaries and wages to the grant must be supported by identified
and approved time reporting procedures.
Policy must address
- work hours,
- attendance,
- leave reporting, and
- time sheet or management and personnel activity reports, which include
- coding or description of time charges to various grants,
projects, etc.;
- time spent on projects, period covered; and
- signature of employee and supervisor.
Records
Records must substantiate information required in policies.
8-0435
Requirements
Travel policy for local, in-state, and out-of-state travel must address
- allowable travel,
- required documentation,
- reimbursement rates (not to exceed current State of Texas Travel Guide
rates), and
- circumstances under which an advance may be received and reported.
Records
Records must include
- travel report signed by traveler;
- receipts for air fare, hotel, and rental car;
- a canceled check or other documentation that indicates the amount
reimbursed for travel;
- a staff member's signature verifying the purpose of travel;
- dates of travel;
- documentation of authenticity on all supporting receipts and documents;
and
- accounting system entries detailing amount of travel paid.
8-0440
The performance appraisal system must apply to all positions. A
performance appraisal is an official communication that becomes a part of an
employee's permanent record. Comments must be supported by concrete
examples of behavior.
Requirements
The performance appraisal must
- document the employee's performance,
- identify
- job functions and performance standards,
- employee development needs, and
- objective method for making personnel decisions,
- provide
- a development plan,
- guidelines to improve performance, and
- a basis for personnel management decisions, e.g. promotions, salary
increases, etc.,
- facilitate open communication, and
- be accomplished annually.
Records
Records must substantiate information required in policies.
8-0445
Requirements
Grantee must document employee
- resignation,
- involuntary termination,
- grievance and appeal rights related to termination,
- payment of salary, leave, severance pay, retirement benefits, etc.,
- death on or off the job, and
- exit interview.
Records
Records must substantiate information in policies.
8-0450
Records
The following records must be maintained in the employee file
- current application and/or resume,
- documentation of job references,
- proof of social security number,
- current rate of pay,
- documents that support payroll deductions (W4, court orders, etc.),
- payroll information (unless maintained in payroll file),
- current job description (signed by employee),
- proof of citizenship or right to work in United States (Form I-9 or other
state or federally recognized form),
- documentation of employee's job performance (performance reviews signed
by employee and supervisor, and other personnel issues if applicable),
- proof of professional credentials (if applicable),
- proof of driver's license,
- automobile insurance, etc. (if applicable),
- any on the job injury reports, and
- notes from exit interview, if applicable.
8-0505
To provide opportunities to businesses classified as historically
underutilized businesses (HUB), grantees must
- provide equal treatment to all prospective sources of items or services to
be purchased, and
- regardless of the dollar value of the purchase, seek maximum open and free
competition.
Variations from these principles are limited.
An "arms-length" business relationship between the purchaser and the
contractor must
- clarify the rights of both parties,
- permit both parties the right to remedy a situation, and
- follow a strict code of conduct that prohibits, for example,
- favors from contractors, or
- special treatment of persons who have financial or personal interests
involving procuring officials.
8-0510
Requirements
Planning ensures that there is adequate time to
- process procurement requests,
- identify the requirements to be fulfilled, and
- complete the procurement process.
Plan
A plan must outline
- procurement methods, e.g.
- contracts and/or purchase orders, and
- small purchases, sealed bids, competitive proposals, and
noncompetitive proposals,
- types of purchase contracts, e.g.
- fixed rate, and
- fixed fee,
- guidelines for evaluation criteria, and
- mechanisms to settle all procurement-related contractual and
administrative issues, e.g.
- source evaluation,
- protests,
- disputes, and
- claims.
Records
Records must include
- documentation that supports rationale for the selected procurement method,
- approval documents, and
- any other document that supports the significant history of the
procurement.
8-0515
Requirements
When bids are taken for purchases, grantee must use the following criteria
- a review of
- bidder's ability to perform successfully under the terms and
conditions of the proposed procurement,
- past performance record, if available,
- financial and technical resources of each vendor,
- a written code of conduct governing the performance of employees engaged
in the award process, and
- written justification for the selected vendor.
Records
Records must include all documents reflecting the significant history of a
procurement, including
- all received bids,
- the bid tabulation worksheet,
- management approval of the selected vendor, and
- correspondence with bidders.
8-0520
Requirements
To prevent unnecessary or duplicative purchases, purchase orders for all
supplies and equipment are
- prepared by a designated staff member, and
- approved by an authorized management level staff member.
Responsibilities
A management-level staff person must be authorized to ensure
- funds are available,
- purchases are within approved budget, and pre-approved by DARS DRS if over
$5,000,
- supplies are not stockpiled,
- purchase order is completed and approved,
- check requests are issued and approved by the executive director,
- invoices are checked for accuracy, and
- purchase order and contract logs are maintained.
Records
Records must include
- purchase orders with grant number and account codes,
- purchase order and contract logs, and
- accounting entries.
8-0605
Grantee must ensure compliance with all contract terms and conditions. Procurement standards require a contract administration oversight system.
8-0610
Contract Contents
Contract must contain
- clause requiring that as part of the project, the contractor does not
subcontract with another individual or organization,
- rights and responsibilities of both parties,
- delivery date(s) of services or goods,
- description of deliverable goods or services,
- purpose of the contract,
- amount and method of payment,
- appropriate pass-through regulations, e.g. Davis-Bacon, civil rights,
other rights identified in the DARS DRS Standards for Providers, and
- signatures of authorized parties.
Conflict of Interest Documentation
The contract must include a clause providing assurance of no conflict of interest
with the grantee or DARS that includes the following:
- appropriate OMB
Circular A-110 or OMB
Circular A-122, or
- revisions or replacements of the Circular as implemented by 34 CFR Parts
74 or 80, or
- replacements of the Circular with these modifications:
- all references to federal awarding agency(ies) are expanded to read
federal awarding agency(ies) or DARS, and
- all references to federal awards are expanded to read federal or DARS
awards.
Records
Records must include the final contract signed by both parties.
8-0615
Documentation
All grant-funded contracts must be monitored and monitoring activities must
be documented, including
- name of staff position responsible for ensuring receipt of services under
each contract,
- notes from monitoring visits and phone calls,
- all procurement-related contractual and administrative issues e.g.
- source evaluation,
- protests,
- disputes, and
- claims,
- name of person authorized to receive goods,
- whether a receiving report or packing slip is an acceptable proof of
receipt,
- written code of conduct governing the performance of employees engaged in
monitoring contracts, and
- a list of all contracts, including maintenance and service contracts, kept
per record retention schedule.
Records
Records must substantiate contract requirements.
8-0620
Requirement
When a contract expires, grantee sends a closeout letter to each contractor
documenting the reason for termination.
Records
Records must substantiate reason for termination.
8-0705
Equipment is an article of nonexpendable, tangible personal property with
- a useful life of more than one year; and
- an acquisition cost of $5,000 or more per unit; lower cost limits may be
set in accordance with grantee policy.
Requirements
Grantee must
- define equipment as stated in the applicable law, regulation, or
condition of grant award;
- require that all purchases (covered by the above definition) be
capitalized; and
- specify requirement for insurance coverage.
Records
Records must include a capitalization and depreciation schedule.
8-0710
Acquisition standards and rules apply to property or
equipment
- provided by DARS, or
- acquired under a grant.
DARS retains residual title to any equipment that DARS
provides to the grantee or that is purchased with DARS funds.
Grant-funded equipment
- must be competitively purchased;
- must not to be used as collateral for loans; and
- before purchase, must have DARS' prior approval.
Grantee
management must sign the purchase order to approve grant-funded purchases.
8-0715
Grantee must comply with state and federal standards for equipment management
by filing a completed financing statement with the Secretary of State.
Filing Forms
Upon purchase, each grantee promptly files the applicable
Property or Inventory Records
Grantee must retain property or inventory records that provide
- description,
- manufacturer's serial number and model, or other identification number,
- source of the property, grant, or agreement number,
- approved purchase order,
- invoice,
- receiving report,
- acquisition date and cost (individually and collectively),
- percentage of state participation in the purchase,
- reported location, use, condition and the date,
- replacement value in case of loss or damage,
- date of disposal, sale price, or method used to determine fair market
value, and
- where grantee compensates DARS DRS for its share.
Safety Precaution
Grantee management must take all necessary actions to guard against loss,
damage, or theft e.g.
- controlling keys, and
- securing computers.
Balance and Inventory
Grantee management must approve
- adjustments to the equipment balance, and
- explanation for the adjustments.
At least every two years, grantee management must
- conduct an equipment inventory,
- reconcile results with property records, and
- record and approve all discrepancies noted during the inventory.
Repairs and Maintenance
Grantee must document all repairs and maintenance, and capitalize costs when
equipment's value increases.
Records
Records must substantiate all equipment management requirements.
8-0720
Requirements
Equipment may be disposed of that
- is not necessary, and
- does not serve any useful purpose.
Grantee must
- not dispose of any DARS-funded equipment without prior DARS
approval;
- explain to DARS the reason for proposed disposition;
- recognize DARS' right to transfer any DARS-funded equipment; and
- when notified of such a transfer, promptly surrender the equipment to DARS.
Records
Records must substantiate equipment disposition.