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Introduction
*Note: The Office of Management and Budget (OMB) “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” (UG) (2 C.F.R. Part 200) replaced and superseded OMB Circulars A-102 and A-110; A-21, A-87, and A-122; and A-133, effective December 26, 2014. Updates to this Manual are in progress to replace OMB Circular references with UG references. In the meantime, Contractors who receive TWC grant awards that require compliance with the UG are reminded that in the event that UG establishes requirements that are more restrictive than the requirements in this Manual, the UG prevails.
Purpose
The Texas Workforce Commission’s (TWC) Financial Manual for Grants and Contracts (FMGC) is established to set forth the financial requirements for TWC funds that are contracted through grants, contracts, and other agreements (see note).
Scope
The manual covers the federal, state and agency administrative and cost requirements that are applicable to TWC funds (see note). It also includes specific requirements for the following programs and funds:
- Apprenticeship
- Child Care
- Choices
- Employment Services
- Supplemental Nutrition Assistance Program Employment and Training
- Self Sufficiency
- Skills Development
- Trade Act Services
- Wagner-Peyser 7(b)
- Workforce Innovation and Opportunity Act (formerly Workforce Investment Act)
While the FMGC includes information relating to applicable federal, state, and agency requirements, this manual does not supersede or replace those requirements. Any omission of an applicable federal or state requirement from this manual does not waive a Contractor’s (or subcontractor’s) responsibility to comply with that requirement. In the event of a conflict between an applicable federal or state requirements and this manual, the federal or state requirement will apply. In the event that a conflict appears to exist between a provision of the FMGC and a TWC contract, TWC should be contacted to determine which, if either, provision will prevail. Requests should be made to fiscal.ta@twc.texas.gov.
Applicability
The FMGC compiles federal, state, and agency requirements that apply to recipients and subrecipients of TWC funds (see note). Recipients and subrecipients of TWC funds are referred to throughout the manual as Contractors. Unless stated otherwise, this term includes both Workforce Development Boards (Boards), as well as, Agency Grantees. The requirements also apply when a Contractor subcontracts TWC funds to a lower tier subrecipient/subgrantee. These entities are also subject to the requirements that are applicable to TWC funds and are referred to throughout the manual as subcontractors.
Effective Date
The FMGC rescinded and replaced all earlier versions of the FMGC effective July 1, 2005, except as specifically provided in this version. Unless otherwise specified, any changes occurring to this manual thereafter will take effect on the date those changes are posted in this manual.
Distribution of Manual
The FMGC is made available to TWC Contractors (and subcontractors) as a publication on the TWC Internet Website. Hard copies of the manual are only distributed in instances where the information is needed to carry out the terms of a contract and there is no means to send the document electronically.
Request for Fiscal Technical Assistance
Contractors may request clarification on the requirements of this manual by emailing fiscal.ta@twc.texas.gov. Subcontractors should request clarifications from Contractors. A Contractor may forward a subcontractor's question to fiscal.ta@twc.texas.gov at the Contractor's discretion.
Resources
The specific resources used in the revision of this manual are identified in the respective sections of each chapter, and appendices, where applicable. These generally include references to:
- Office of Management and Budget (OMB) Circulars (see note)
- Grants Management Common Rule (see note)
- Uniform Grant Management Standards
- Program statutes and regulations
- State statutes, including Texas Government Code, Texas Labor Code, etc.
- Federal Guides, including those for One-Stops and Indirect Costs
- TWC Rules and systems
Organization
Each chapter is organized into sections that are structured by a policy statement, supporting requirements, program or entity specific considerations, and the cited resources. Hyperlinks are used throughout the manual to link to source documents, other chapters or sections, and appendices, including the glossary, where key terms are defined.
Updates
Updates to the FMGC will be made as needed. When possible, changes will be made annually to coincide with the beginning of the state’s fiscal year, September 1. However, updates may be made more frequently when significant changes require more timely revisions.
Archives
Requirements that are replaced or updated will be described in Appendix L to this manual. Please refer to Appendix L to this manual for instructions for accessing or requesting archived material.
Chapters
- Introduction
- 1 - Agency & Board Responsibilities
- 2 - Internal Controls
- 3 - Insurance
- 4 - Cost Sharing & Matching
- 5 - Program Income
- 6 - Budget
- 7 - Cash Management
- 8 - Cost Principles
- 9 - Travel
- 10 - Personnel
- 11 - Cost Allocation & Resource Sharing
- 12 - Indirect Cost Rates
- 13 - Property
- 14 - Procurement
- 15 - Contracts
- 16 - Allocation, Deobligation & Reallocation
- 17 - Financial Reporting
- 18 - Contract Closeout
- 19 - Monitoring
- 20 - Single Audit
- 21 - Enforcement, Appeals & Termination
