Texas Attorney General Opinion: MW-416 Page: 2 of 4
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Mr. Vernon M. Arrell - Page 2
district. Your question raises the issue of whether an independent
school district in the capacity of fiscal agent for nonprofit
rehabilitation entity that has received an establishment grant becomes
"indebted" to the state when financial audit exceptions are taken
thereunder by the Texas Rehabilitation Commission. To resolve this
issue, initially we turn to the language of the agreement accompanying
your request. This agreement is the document entitled "Application
for an Establishment Grant...," which provides the following terms and
conditions:
(1) Grant funds will be utilized to develop
rehabilitation services for handicapped
individuals.
(2) Programs and procedures will be
initiated to enable the applicant organization to
make substantial progress toward meeting the
standards developed by the Texas Rehabilitation
Commission.
(3) Appropriate, complete and detailed
administrative and financial records will be
maintained in accordance with instructions from
the Texas Rehabilitation Commission. Such records
will be made available for audit at the
commissioner's request.
(4) The Assurance of Compliance (Form
HEW-441) previously filed or attached hereto,
applies to this project.
(5) If staff is involved, salaries and
qualifications will be commensurate with the
duties performed.
(6) Matching funds made available by the
applicant will not be used to obtain any other
Federal funds.
The foregoing, including agreement to comply with all guidelines,
rules, and other appropriate regulatory matter provided by the Texas
Rehabilitation and Service Administration, is subscribed to by the
independent school district and would appear to represent its complete
undertaking. Clearly, no express statement with respect to financial
liability is present in the application.
Over the years, this office has addressed a number of questions
on the scope of article 4350, V.T.C.S. In a fairly recent Letter
Advisory, this office stated that for a warrant to be validlyp. 1419
(MW-416)
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Texas. Attorney-General's Office. Texas Attorney General Opinion: MW-416, text, December 22, 1981; (https://texashistory.unt.edu/ark:/67531/metapth272261/m1/2/: accessed April 24, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.