(a) Purpose. The purpose of this rule is to establish the contract monitoring roles and responsibilities of the Texas Juvenile Justice Department (TJJD) staff, including the monitoring system used to ensure service providers' compliance with contract and service delivery requirements.
(b) Applicability. This rule applies to all contracts between TJJD and public or private entities.
(c) General Provisions.
  (1) TJJD periodically monitors all public and private entities that contract with TJJD.
  (2) TJJD establishes a monitoring schedule based on a risk assessment methodology. Higher-risk contracts are monitored more frequently and more comprehensively than lower-risk contracts.
  (3) For residential program-related client services contracts, TJJD obtains and evaluates program cost information to ensure that each cost, including an administrative cost, is reasonable and necessary to achieve program objectives.
(d) Contract Monitoring Roles and Responsibilities.
  (1) The TJJD Internal Audit Department audits contracted services and monitoring oversight activities in accordance with Texas Human Resources Code §203.013 and based on the results of an annual risk assessment conducted by the TJJD Internal Audit Department.
  (2) The TJJD division responsible for monitoring and inspections conducts program reviews of all residential facilities and parole programs operated under contract with TJJD to ensure operations comply with applicable statutes, rules, policies, and procedures.
  (3) Individual program areas within TJJD:
    (A) conduct day-to-day monitoring activities regarding financial and performance requirements;
    (B) provide technical assistance to service providers; and
    (C) initiate corrective action and/or sanctions for non-compliance when appropriate.

Source Note: The provisions of this §385.1105 adopted to be effective July 15, 2011, 36 TexReg 4416; transferred effective June 4, 2012, as published in the Texas Register June 22, 2012, 37 TexReg 4639; amended to be effective July 15, 2014, 39 TexReg 5440