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Section 3: Grant Agreement

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Introduction

The Traffic Safety Program Grant Agreement is a legally binding document when fully executed by both parties. The Traffic Safety Program Grant Agreement consists of the document and all attachments such as the terms and conditions, detailed objectives, performance measures and activities, and the approved budget.

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Grant Agreement Purpose

The purposes for developing formal grant agreements are to:

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Grant Agreement

The grant agreement is typically used when the beneficiary of a project is a state agency other than TxDOT, a local jurisdiction (such as a city or county), or a non-governmental entity (such as Bike Texas or the Texas District and County Attorney’s Association). Any amendment to the grant agreement must be in writing and fully executed by all parties in accordance with signature delegation authority.

Traffic safety grant agreements and amendments are executed by the Traffic Safety Division (TRF) Director, who may delegate according to TxDOT policy. The TRF-BTS Director can also approve a grant agreement of any dollar amount in the absence of the Deputy Division Director and Division Director.

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Grant Period

The grant period is the time during which the subgrantee may incur reimbursable costs to carry out the project. The grant period should be long enough to allow the project to be completed. Traffic safety grant agreements are usually executed on October 1 (or upon approval, if after October 1) and end on September 30.

NOTE: Project activity begins and costs can be incurred on the effective day of the grant.

Currently, the annual Traffic Safety Program Request for Proposals (RFP) is for a yearlong (one-year) grant agreement.

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Grant Agreement General Terms and Conditions

The Grant Agreement General Terms and Conditions will be included in all grant agreements. It provides the terms and conditions governing the grant and certifies that a subgrantee will comply with the applicable regulations, policies, guidelines, and requirements contained in 2 C.F.R. Part 200 (Uniform Guidance), as they relate to the application, acceptance, and use of federal or state funds for the project. The General Terms and Conditions further explain other federal and state acts and laws that a subgrantee must adhere to with the awarding of federal and state moneys for grant expenditure.

NOTE: Potential subgrantees are required to become familiar with the contents of the Grant Agreement General Terms and Conditions, because failure to do so will not excuse nonperformance or noncompliance once a grant has been awarded.

Click on the following link to view the Grant Agreement General Terms and Conditions.

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Reimbursement

Reimbursement will be made only for costs incurred during the grant period. The incurrence of costs depends on the accounting system used.

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If...

Then cost is incurred when...

an accrual accounting system is used

a recorded liability exists (Examples include invoices, bills of lading, vouchers of individual travel performed, and cash receipts of expenses incurred. Advances for anticipated costs are prohibited.).

a cash accounting system is used

a cash disbursement has been made.



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Legal Authority

For local grants, the agreement must be made with the unit of local government or political subdivision of the state, not with an operating division or function of the local governmental unit or political subdivision of the state. Likewise, for statewide grants, the agreement is made with the parent agency, not a bureau or division. Please ensure that the organization, when entered into the Traffic Safety Electronic Grant Management System (eGrants), adheres to the following examples.

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Incorrect

Correct

Austin Police Department

The City of Austin

County Health Department

Travis County

Statewide Grants

Incorrect

Correct

Emergency Medical Services Division

Texas Department of State Health Services

DPS Highway Patrol Division

Texas Department of Public Safety



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Attachments

A document that is incorporated into the agreement by reference must be identified and retained in an accessible location. Merely attaching a document does not necessarily make it a part of the agreement. If an attached document is treated as material to the agreement, it must be referenced and incorporated.

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Electronic Signatures

TRF-BTS created an electronic signature format to allow subgrantees to sign grant agreements, amendments, etc. electronically. All grants are processed by electronic signature. Electronic Signature Instructions can be found on the eGrants Help Page.

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Process Overview

An overview of the eGrants proposal process can be found in the eGrants Proposal Process Workflow.

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