Grants Administration

 

 

The Non-Compliance Resolution Process is housed in the Department of Grant Compliance and Administration (GCA) to ensure collaboration, alignment, transparency, and consistent implementation from divisional referral through closure. Each agency division follows its internal division policies and procedures for the identification of grantees that will be referred to the Federal Compliance Officer. The Federal Compliance Officer maintains a centralized tracking system of all GCA and agency divisional referral through closure.

Non-Compliance resolution actions can be imposed by the Department of Grant Compliance and Administration when local educational agencies (LEAs), which include both school districts and open-enrollment charter schools, education service centers (ESCs), and non-profits fail to comply with the terms and conditions of federal grant programs. The purpose of the non-compliance resolution required actions is to ensure that LEAs, ESCs, and non-profits correct the identified non-compliant activities to become compliant with all federal statutes and requirements. 

Once the Federal Compliance Officer receives the non-compliance referral, a non-compliance letter and report will be sent to the superintendent and other LEA contacts as appropriate. The Federal Compliance Officer will contact the superintendent as determined on a case-by-case basis. The Federal Compliance Officer is the designated point of contact throughout the non-compliance process to ensure prompt completion and closure of non-compliance referrals. Once the Department of Grants Compliance and Administration has received and reviewed all the required non-compliance resolution action items, a closure letter will be provided indicating that all non-compliance actions are resolved and closed, with no further action needed. 

Non-Compliance Referrals

Non-Compliance referrals can be submitted for LEAs, ESCs, and non-profits by any division across the agency at any time of the year for:

  • Audit findings
  • Program compliance
  • Fiscal compliance
  • Charter school closures
  • School district closure or consolidation
  • Federal high-risk designation
  • Potential misuse of federal funds
  • Another reason preapproved by the Associate Commissioner of the Department of Grant Compliance and Administration

Completion of Non-Compliance Resolution Required Actions

LEAs, ESCs, and non-profits will receive a Non-Compliance Resolution email, letter, report, and superintendent call as appropriate that will provide the required Non-Compliance actions that must be completed in 30 calendar days. Examples of required Non-Compliance Resolution actions may include:

  1. Submitting a refund for the identified disallowed cost to TEA.
  2. Submitting documentation of Non-Compliance Resolution Actions to TEA.
  3. Submitting documentation that would demonstrate program or fiscal compliance.

Notice of refund and submission of required Non-Compliance Resolution documentation must be submitted to Cal Lopez, the TEA Federal Compliance Officer, at noncompresolution@tea.texas.gov or 512-463-9017.

Submitting a Refund

If your organization has identified the disallowed costs and chooses not to appeal the decision, proceed with submitting the amount of the total disallowed costs to TEA within 30 calendar days of the date of the letter. You can submit your refund by wire transfer or mailing in a check.

Refund Wire Option: Contact Cal Lopez, the TEA Federal Compliance Officer, at noncompresolution@tea.texas.gov or (512) 463-9017.

Refund Check Option: Submit your check made payable to Texas Education Agency for the total refund amount due. Include the following information on your check:

  • NOGA or Project ID
  • Grant Name
  • Refund Code 7 Other: (Insert Grant or Project Name) Non-Compliance

Include your noncompliance resolution letter with your refund check to ensure your payment is posted to the appropriate grant or program.

Mail your refund check and copy of your noncompliance letter to the address below:

Texas Education Agency-MSC
P.O. Box 13717
Austin, Texas 78711-3717

In accordance with 2 CFR §200.399(a) and (e), TEA may withhold all further cash payments to your organization related to the grant awards listed above and withhold further awards for those programs if the full amount of the refund is not submitted to TEA within 30 calendar days of the date of this letter. This refund must be made using state and/or local funds; federal funds cannot be used.

Deadline for Appeal

Please be advised that your organization may request a hearing concerning this non-compliance resolution action under the provisions in the Texas Administrative Code (TAC), 19 TAC §157.1083. The hearing must be requested within 30 calendar days of the date of this letter and must be requested in accordance with the procedures specified in 19 TAC §157.1083. If you must request a hearing, your request must specify:

  1. The action or proposed action that is the subject of the requested hearing.
  2. The statutory or regulatory identifying and supporting a finding that a violation occurred by TEA in enforcing this decision, and 
  3. Specific facts supporting a finding that the action taken by TEA is in error.

Hearing Request by E-filing System: The division of hearings and appeals does accept electronic filing through the TEA Hearings and Appeals Electronic Filing Portal on our TEA website.

Hearing Request by Mail: The request for hearing must be mailed by certified mail, return receipt requested; transmitted by facsimile to (512) 475-3662, or hand delivered to:

Director of Hearings
Texas Education Agency
1701 N. Congress Ave., Ste 2-150
Austin, TX 78701-1494

The request for a hearing shall be deemed filed at the time it is received by the director of hearings or the designated docket clerk in the TEA Division of Hearings. The opportunity to request a hearing will be void 31 calendar days after the date of this letter.

Potential Consequences of Failing to Comply 

Failure to complete the Non-Compliance Resolution action within 30 calendar days from the date of this letter may result in TEA taking further non-compliance actions against your organization. TEA is authorized by 2 CFR §200.339 to take one or more of the following non-compliance resolution actions related to federal grants as appropriate.

  • Temporarily withhold cash payments pending correction of the deficiency or more severe enforcement action.
  • Refund 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 proceedings.
  • Withhold further federal awards for the grant.
  • Take other remedies that may be legally available.

Contact Information

Non-Compliance Resolution Resources

Subgrantees in good standing are required to use the expenditure reporting (ER) system to record expenditures and request payment. Subgrantees may enter total expenditures by class/object code into the ER system.

All individuals reporting and certifying expenditures are required to have a TEA Login (TEAL) account and access to the ER application. For security purposes, do not share a TEAL username and password with any other user.

Expenditure Reporting System (ER) Guidance

Step-by-Step Instructions

Expenditure Reporting (ER) System Quick Reference Guide 

Expenditure Reporting Deadlines

Final expenditure reporting deadlines for grants are listed on the TEA Grant Opportunities page. From the Application Name dropdown list, select the name of the grant. Scroll down to the Critical Events section to find the due dates for all expenditure reports for the grant. On occasion, an errata notice will be posted to correct the date of an expenditure reporting deadline. Therefore, grantees should also check errata notices for their particular grant.

Extension Requests

A subrecipient has 90 days after the ending date of the grant to submit a final or revised final expenditure report. In order for TEA to comply with close-out requirements, no extensions to the expenditure reporting deadline will be provided to the subrecipient.

Refund Information

Prior to the expenditure reporting deadline, if the subgrantee discovers expenditures are less than the amount initially reported, it must immediately submit an expenditure report in ER and submit a refund to TEA within 30 days. If the expenditure reporting deadline has passed, submit the refund to TEA, and the cumulative expenditures will be adjusted on the appropriate NOGA when the refund is processed by TEA.

The subgrantee must submit a refund check to the following address:

Texas Education Agency-MSC 
P. O. Box 13717 
Austin TX 78711-3717 

Write the name of the grant program, NOGA ID number, and Reason for Refund ID (selected from list below) on the refund check.

The refund will be credited to the NOGA ID from which the excess funds were drawn down.

Reason for Refund

  • R.1. Correction of an administrative error
  • R.2. Correction of an unallowable cost
  • R.3. Correction for a cost incurred outside the period of availability
  • R.4. Return of funds associated with an excessive drawdown
  • R.5. Return of funds associated with termination (voluntary or involuntary)
  • R.6. Return associated with a failure to meet maintenance of effort
  • R.7. Other (provide brief explanation on separate page) 

Need Assistance?

For assistance with expenditure reporting items, contact an ER fiscal coordinator or email TEAExpenditures@tea.texas.gov.

For assistance with grant refunds, email TEAGrantRefunds@tea.texas.gov.