actions can be imposed by the Department of Grants and Federal Fiscal
Compliance when organizations fail to comply with the terms and conditions of
federal grant programs. The purpose of the corrective action is to ensure that
the organization corrects the noncompliant activity.
identify you as noncompliant because of findings in a single audit, a federal
monitoring review, or because of concerns identified through other means. Once
identified, you will receive a letter notifying you that you are required to
complete a corrective action. The letter describes the areas of noncompliance;
the required corrective action, including any enforcement actions; and the
required completion date.
Types of Noncompliance
noncompliance may include, but are not limited to, the following:
- Expenditure of funds or conducting
activities that are not in accordance with the grant’s authorizing
statute, regulations, guidelines, or approved application.
- Failure to account for funds in
accordance with financial management standards or with the Financial
Accountability Resource (FAR) guide of TEA's Financial
Accountability System Resource Guide (FASRG).
- Findings in a single audit
conducted by an independent auditor.
- Failure to comply with federal
maintenance of effort requirements under the Individuals with Disabilities
Education Act (IDEA) or the No Child Left Behind Act of 2001 (NCLB).
- Failure to comply with federal
comparability requirements under Title I of NCLB.
- Failure to comply with:
- One or more of the provisions and
assurances in the grant application
- Programmatic or fiscal reporting
- Previous required corrective
actions, refund requests, or special conditions
TEA may impose
an enforcement action as part of a corrective action or for noncompliance with
a previous corrective action. Title 2 of the Code of Federal Regulations (CFR),
Part 200.338, authorizes TEA to impose enforcement actions. Enforcement
actions may include the following:
- Temporarily withhold cash payments pending
correction of the deficiency or more severe enforcement action.
- Disallow all or part of the cost
of the activity or action not in compliance.
- Wholly or partly suspend or
terminate the federal award.
- Initiate suspension or debarment
- Withhold further federal awards
for the grant.
- Take other remedies that may be
TEA may deny your grant application for
federal funding as an enforcement action.
Opportunity for a Hearing
157.1082 of Title 19 of the Texas Administrative Code entitles organizations
that have enforcement actions imposed upon them to request a hearing.
Applicants for federal grant funds that have their applications disapproved by
TEA are also entitled to request a hearing as described in 34 CFR 76.401.
How to Request a Hearing
must be requested within 30 calendar days of the date of your notification
letter and must be requested in accordance with the procedures specified in the
authorizing statute. The opportunity to request a hearing will be void 31
calendar days after the date of the notification letter.
enforcement action imposed upon your organization relates to refunds of over
$1,000,000, TEA will include information about your right to a hearing in the
If you request
a hearing, you must specify all of the following:
- The action or proposed action that
is the subject of the requested hearing
- The statutory or regulatory
authority identifying and supporting a finding that a violation occurred
by TEA in enforcing the decision
- Specific facts supporting a
finding that the action taken by TEA is in error
Please use one
of the following methods to submit a request for hearing:
- Send the request certified mail
with a return receipt request;
- Fax the request to: (512)
- Hand deliver the request to:
Texas Education Agency
1701 N. Congress Ave., Suite 2-150
Austin, TX 78701-1494
The request for
hearing will be considered filed at the time it is received by the Director of
Hearings or the designated docket clerk in the TEA
How to Complete a Corrective Action
To complete a
corrective action, your organization must demonstrate that it has corrected the
activity that caused the noncompliance. Your organization must do this by
providing specific documentation that supports the completion of the corrective
required documentation to the TEA federal fiscal compliance officer at
email@example.com. You can also use this email address if you have
questions about your corrective action, or you can call (512) 463-9918.
Where to Send Refunds
corrective action requires repayment of federal funds, a refund form will be
included in your notification letter. Complete the shaded fields of the
form and submit the form and refund to:
PO Box 13717
Austin, TX 78711-3717
Potential Consequences of Failing to Comply
complete the corrective actions in a timely and adequate manner (by the
deadline given in the notification letter) can result in TEA taking further
enforcement actions against your organization. See 2 CFR 200.338 for more
Notice of Agency Policy
federal fiscal grant subrecipient monitoring and compliance reviews and
implements related enforcement actions in accordance with its established
policies and procedures. These policies and procedures incorporate best
practices and standards that may be similar to common auditing standards, but
the agency does not apply a specific set of external standards, such as the US
Government Accountability Office’s Generally Accepted Government Auditing
Standards (Yellow Book), nor is it required to do so. For more information,
contact the Federal Fiscal Compliance Division.