(a) Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees shall cooperate with the Agency's program and fiscal monitoring activities, site visits, reviews of documentation, and requests for information. The Agency is committed to ensuring the accountability of Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees. Therefore, monitoring activities have been developed to:      
        (1) ensure programs achieve intended results;       
        (2) ensure resources are efficiently and effectively used for authorized purposes and are protected from waste, fraud, and abuse; and       
        (3) ensure reliable and timely information is captured and reported to serve as the basis to improve decision-making.       
      (b) The Agency shall conduct comprehensive monitoring activities to assess the following for Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees:      
        (1) Progress in achieving program goals and maintaining fiscal accountability. Program and fiscal monitoring activities include site visits, desk reviews, and analyses of both financial and program outcomes to help identify potential weaknesses before such weaknesses result in substandard performance or questioned costs;       
        (2) Compliance with applicable laws, regulations, provisions of contracts and Board plans, and official directives and circulars including, but not limited to, U.S. Department of Labor (DOL) Training and Employment Guidance Letters, DOL Training and Employment Notices, U.S. Department of Health and Human Services guidance letters, U.S. Department of Education, Office of Vocational and Adult Education guidance, Commission rules contained in Part 20 of this title (relating to the Texas Workforce Commission), Texas Workforce Commission Workforce Development (WD) Letters and AEL Letters, the Agency's Financial Manual for Grants and Contracts, and other Agency guidance; and       
        (3) Compliance with the appropriate uniform administrative requirements for grants and agreements applicable to the type of entity receiving funds, as promulgated in the OMB circulars or rules. Monitoring activities shall encompass both financial and programmatic monitoring and shall be evaluated on a periodic basis. Monitoring reviews result in recommendations that provide practical solutions used to take immediate corrective action.       
      (c) Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees are subject to audit and review by the Agency. The Agency may audit and review all relevant records or a sample of the records as needed to determine Board, workforce service provider, AEL grant recipient, AEL service provider, and Agency grantee performance.     
      (d) Failure to comply with this subchapter shall result in corrective action and possible sanctions pursuant to Subchapter G of this chapter (relating to Corrective Actions).     
     Source Note:        The provisions of this §802.62 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201