CHAPTER 783. UNIFORM GRANT AND CONTRACT MANAGEMENT
GOVERNMENT CODE
TITLE 7. INTERGOVERNMENTAL RELATIONS
CHAPTER 783. UNIFORM GRANT AND CONTRACT MANAGEMENT
Sec. 783.001. SHORT TITLE. This chapter may be cited as the
Uniform Grant and Contract Management Act.
Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,
1991.
Sec. 783.002. POLICY. It is the policy of the state to promote
the efficient use of public funds in local government and in
programs requiring cooperation among local, state, and federal
agencies.
Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,
1991.
Sec. 783.003. DEFINITIONS. In this chapter:
(1) "Assurance" means a statement of compliance with federal or
state law that is required of a local government as a condition
for the receipt of grant or contract funds.
(2) "Financial management conditions" means generally applicable
policies and procedures for the accounting, reporting, and
management of funds that state agencies require local governments
to follow in the administration of grants and contracts.
(3) "Local government" means a municipality, county, or other
political subdivision of the state, but does not include a school
district or other special-purpose district.
(4) "State agency" means a state board, commission, or
department, or office having statewide jurisdiction, but does not
include a state college or university.
Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,
1991.
Sec. 783.004. GOVERNOR'S OFFICE. The governor's office is the
state agency for uniform grant and contract management.
Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,
1991.
Sec. 783.005. UNIFORM ASSURANCES. (a) The governor's office
shall develop uniform and concise language for any assurances
that a local government is required to make to a state agency.
(b) The governor's office may:
(1) categorize assurances according to the type of grant or
contract;
(2) designate programs to which the assurances are applicable;
and
(3) revise the assurances.
(c) The standards for assurances developed under this chapter
may not affect methods of distribution or amounts of federal
funds received by a state agency or a local government.
Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,
1991.
Sec. 783.006. STANDARD FINANCIAL MANAGEMENT CONDITIONS. (a)
The governor's office shall compile and distribute to each state
agency an official compilation of standard financial management
conditions.
(b) The governor's office shall develop the compilation from
Federal Management Circular A-102 or from a revision of that
circular and from other applicable statutes and regulations.
(c) The governor's office shall include in the compilation
official commentary regarding administrative or judicial
interpretations that affect the application of financial
management standards.
(d) The governor's office may:
(1) categorize the financial management conditions according to
the type of grant or contract;
(2) designate programs to which the conditions are applicable;
and
(3) revise the conditions.
Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,
1991.
Sec. 783.007. UNIFORM ASSURANCES AND STANDARD CONDITIONS
REQUIRED; VARIATIONS. (a) A state agency shall use the uniform
assurances developed under Section 783.005 and the standard
financial management conditions developed under Section 783.006
applicable to a local government receiving financial assistance
from the agency unless a federal statute or regulation or a state
statute requires or specifically authorizes a variation in the
assurances or conditions.
(b) An agency may establish a variation from uniform assurances
or standard conditions only by rule in accordance with Chapter
2001.
(c) The agency shall state a reason for the variation along with
the proposed rule, and the reason must be based on the applicable
federal statute or regulation or state statute.
(d) The agency shall file a notice of each proposed rule that
establishes a variation from uniform assurances or standard
conditions with the governor's office.
Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(50),
eff. Sept. 1, 1995.
Sec. 783.008. AUDIT COORDINATION. (a) A local government
receiving state-administered financial assistance may request by
action of its governing body a single audit or coordinated audits
by all state agencies from which it receives funds.
(b) On receipt of a request for a single audit or audit
coordination, the governor's office in consultation with the
state auditor shall not later than the 30th day after the date of
the request designate a single state agency to coordinate state
audits of the local government.
(c) The designated agency shall, to the extent practicable,
assure single or coordinated state audits of the local government
for as long as the designation remains in effect or until the
local government by action of its governing body withdraws its
request for audit coordination.
(d) This section does not apply to an audit performed by the
comptroller or state auditor.
Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,
1991.
Sec. 783.009. MATCHING FUND WAIVER FOR ECONOMICALLY
DISADVANTAGED COUNTY OR CENSUS TRACT. (a) In this section,
"economically disadvantaged county" means a county that has a per
capita taxable property tax value that is less than one-half the
average per capita taxable property value of counties in the
state or, in comparison to other counties in the state, has:
(1) below average per capita taxable property value;
(2) below average per capita income; and
(3) above average unemployment.
(b) In this section, "economically disadvantaged census tract"
means a census tract delineated by the U.S. Bureau of the Census
in the most recent decennial census in which the median family
income is reported by the U.S. Bureau of the Census to be less
than 80 percent of the area median family income.
(c) Except as provided by Subsection (d), a state agency may,
for an economically disadvantaged county or economically
disadvantaged census tract, adjust any matching funds requirement
that is otherwise a condition for a county to receive a grant or
other form of financial assistance from the agency.
(d) This section does not apply to the Texas Transportation
Commission or to waivers or adjustments of matching funds
requirements granted by the Texas Department of Transportation or
governed by Section 222.053(a), Transportation Code.
(e) Each agency shall include information about its use of
waivers or adjustments to matching funds requirements in its
annual report. The information shall include the disposition of
each instance where a waiver or adjustment is requested or
considered.
(f) Each agency that adjusts a matching funds requirement under
this section shall prepare and submit an annual report describing
each adjustment made by the agency during the preceding state
fiscal year and the effects of each adjustment on the agency's
programs. The agency shall state the amount of each adjustment,
the program under which the adjustment was made, and the name of
each county or the location of each census tract, as appropriate,
that benefited from the adjustment. The agency shall send a copy
of the annual report to the governor, lieutenant governor,
speaker of the house of representatives, Legislative Budget
Board, and to each member of the legislature who requests a copy.
The agency may include the annual report in the annual financial
report submitted under Section 2101.011.
Added by Acts 1999, 76th Leg., ch. 1486, Sec. 1, eff. June 19,
1999. Amended by Acts 2001, 77th Leg., ch. 101, Sec. 1, eff.
Sept. 1, 2001.
Sec. 783.010. STATE AGENCY REPORTING AND AUDITING COORDINATION.
(a) A state agency that requires reports of local governments
shall, during the second year of each state biennium, conduct a
zero-based review of reporting requirements imposed on local
governments and shall simplify the reporting requirements and
determine and eliminate unnecessary, duplicative, or overly
burdensome reporting requirements.
(b) Based on the results of these reviews, the state agency
shall recommend to the legislature statutory changes to minimize
cost, duplication, and paperwork and to maximize the efficient
and effective use of public funds.
(c) A state agency may not require local governments to submit
reports on items not required by law, rule, or performance
measures.
(d) To achieve greater efficiency in the use of governmental
funds expended on governmental audits, a state agency, except as
shown necessary to further protect public funds, shall:
(1) accept, and not duplicate with state resources, an
independent audit of a local government if it is performed by a
certified public accountant in accordance with generally accepted
governmental auditing standards and the standards of the
Governmental Accounting Standards Board;
(2) at the time of approval of a contract with or a grant to a
local government, specify any special or unique auditing
requirements that must be performed by the local government's
independent auditors; and
(3) as may be allowed by law or rule, provide in the contract or
grant award for the payment of costs incurred by the local
government in complying with any special or unique auditing
requirements not required by generally accepted governmental
auditing standards or the standards of the Governmental
Accounting Standards Board.
(e) Nothing in this section shall be construed to limit the
authority of a state agency to monitor or audit a local
government's expenditure of state or federal funds received via
contract or grant.
(f) The state auditor may audit for compliance with these
provisions.
Added by Acts 2003, 78th Leg., ch. 723, Sec. 1, eff. June 20,
2003.