TDHCA announces a rule action relating to 10 TAC Chapter 1, Subchapter D, Uniform Guidance for Recipients of Federal and State Funds, Section 1.401, Effective Date and Definitions, Section 1.404, Purchase and Procurement Standards, and Section 1.407, Inventory Report, that was approved by the TDHCA Governing Board on January 16, 2025. This rule will be released for public comment and returned to the Board for final adoption. 

The published version will constitute the official version for purposes of public comment and can be found when published at the following link: https://www.sos.texas.gov/texreg/index.shtml.

The purpose of this action: 10 TAC Chapter 1, Subchapter D, Uniform Guidance for Recipients of Federal and State Funds, has been identified by staff as needing revisions. The Comptroller published the Texas Grant Management Standards (TxGMS), Version 2.0 in October 2024. This document replaces the TxGMS, Version 1.1. Agencies have a crossover period until the end of state fiscal 2025 to apply either the rules in TxGMS Version 1.1 or TxGMS Version 2.0 to a specific grant program. Beginning Sept. 1, 2025 (the start of state fiscal year 2026), TxGMS Version 2.0 will be required. Staff is making the rule changes associated with Version 2.0 at this time. Changes relate to equipment, inventory, procurement, and audit report thresholds.

Section 1.401. Effective Date and Definitions:  revises the definition for Equipment to bring it into alignment with TxGMS 2.0.

Section 1.403. Single Audit Requirements: raises the Single Audit Threshold for Subrecipient Fiscal Years Starting on or after October 1, 2024.

Section 1.404. Purchase and Procurement Standards: Makes revisions to the category of micro-purchases.

Section 1.407. Inventory Report: Adjusts the amount of supplies that must be reported in the inventory from $5,000 to $10,000.

The proposed rule action can be found on the TDHCA Public Comment Center at https://www.tdhca.texas.gov/tdhca-public-comment-center.

Written comments may be submitted to the Texas Department of Housing and Community Affairs, Brooke Boston, via email to brooke.boston@tdhca.texas.gov.

ALL COMMENTS MUST BE RECEIVED BY 5 p.m., Central Time, on March 4, 2025.