Section 802.65 - Agency Monitoring Reports and Resolution(a) Monitoring Report. The Agency's monitoring department shall issue a monitoring report summarizing the results of monitoring activities. The report shall include the observations, findings, questioned costs identified, and recommendations of the monitoring team to the Board, AEL grant recipient, or Agency grantees or contractors. If there are no administrative findings or questioned costs identified as a result of the monitoring review, a management letter will be issued. A monitoring report or management letter issued to a Board will be provided to the following: (2) Board executive director(3) Designated representatives of the US Department of Health and Human Services(4) Designated representatives of the US Department of Labor(5) Texas Workforce Commissioners(6) Agency executive staff(b) Initial Resolution Notification. Based on the monitoring report, the Agency's audit resolution department shall issue an initial resolution notification, which notifies a Board, AEL grant recipient, or Agency grantee or contractor of administrative findings and questioned costs. The recipient of an initial resolution notification shall have 45 calendar days from the date the notification is mailed to respond. (1) Administrative Findings. (A) If the administrative findings set forth in the initial resolution notification are resolved, a closure letter is issued.(B) If the administrative findings set forth in the initial resolution notification are not resolved, the findings remain open and the Agency's audit resolution department continues to coordinate with the entity until the following year's audit to ensure follow-up.(2) Questioned Costs. (A) If the questioned costs set forth in the initial resolution notification are resolved, a closure letter is issued.(B) If the questioned costs set forth in the initial resolution notification are not resolved, an initial determination is issued.(3) Corrective Actions. The Agency may also impose corrective actions under Subchapter G of this chapter at any time during the resolution process.(c) Initial Determination. The Agency's audit resolution department shall issue an initial determination notifying a Board, AEL grant recipient, or Agency grantee or contractor of the following: (1) The unresolved questioned costs; and(2) The 60-day period, from issuance of the initial determination, to submit a response, including providing evidence or documentation of the appropriate actions taken.(d) Final Determination. If the questioned costs remain unresolved at the end of the 60-day period, the Agency' s audit resolution department shall issue a final determination to notify a Board, AEL grant recipient, or Agency grantee or contractor of allowed or disallowed costs and to establish debts.(e) If the administrative findings or questioned costs remain unresolved, the Agency's Regulatory Integrity Division may request a sanction, as set forth in § 802.125 of this chapter (relating to Sanction Determination).(f) Appeal Process (1) Only final determinations regarding questioned costs issued by the Agency may be appealed, pursuant to § 802.142 of this chapter (relating to Appeal).(2) Failure by a Board, workforce service provider, AEL grant recipient, AEL service provider, or Agency grantee to timely request a hearing waives the right to a hearing. The final determination shall constitute final Agency action and is not subject to further review.(3) If an appeal is requested and approved, a hearing officer is designated and the collection of debt is pending until final decision of the hearing.40 Tex. Admin. Code § 802.65
The provisions of this §802.65 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201; Amended by Texas Register, Volume 42, Number 40, October 6, 2017, TexReg 5524 , eff. 10/11/2017