SECTION 22.236. Allocation and Disbursement of Funds

(a) Allocations for Fiscal Year 2017 and Later.

(1) The share of funds for each institution eligible to make both initial and continuation awards will equal:

(A) the number of Initial Award TEXAS Grant recipients at the institution in the Prior-Prior Year multiplied by the percentage of Initial Award TEXAS Grant recipients in the year prior to the Prior-Prior Year who received a Renewal Award in the Prior-Prior Year; plus the number of Renewal Award TEXAS Grant recipients at the institution in the Prior-Prior Year multiplied by the percentage of Renewal Award TEXAS Grant recipients in the year prior to the Prior-Prior Year who received a Renewal Award in the Prior-Prior Year, multiplied by the institution's average TEXAS Grant award in the Prior-Prior Year, up to the amount of the Target Award for the fiscal year for which allocations are occurring; plus

(B) the institution's proportions of the remaining appropriation is based on the sum of the number of students who were reported as a first time enrolling freshman; or an entering undergraduate transfer student who completed an associate's degree within the prior 12 months to enrolling; or an entering undergraduate transfer student who received an Initial TEOG award for the Fall 2014 semester or later, has completed at least 24 semester credit hours, and has earned an overall GPA of at least 2.5 on a four-point scale on all course work previously attempted, and:

(i) were enrolled as undergraduate students and had not yet received a Bachelor's degree;

(ii) were identified as Texas residents;

(iii) were enrolled at least 3/4-time; and

(iv) had a 9-month Expected Family Contribution, calculated using federal methodology, that was less than or equal to the cap established for TEXAS Grant in the Prior-Prior Year.

(2) Institutions who are only eligible to make continuation awards will not receive a specific allocation. Those schools will have until August 1, or the first working day thereafter if it falls on a weekend or holiday, to submit for reimbursement any award for a student who is identified as eligible and is awarded a TEXAS Grant. Those awards will be funded through any unencumbered program funds.

(3) The TEXAS Grant allocation spreadsheet will be provided to the institutions for review and the institutions will be given 10 working days, beginning the day of the notice's distribution and excluding State holidays, to confirm that the spreadsheet accurately reflects the data they submitted or to advise Board staff of any inaccuracies.

(b) Disbursement of Funds to Institutions. As requested by institutions throughout the academic year, the Board shall forward to each participating institution a portion of its allocation of funds for timely disbursement to students. Institutions will have until the close of business on August 1, or the first working day thereafter if it falls on a weekend or holiday, to encumber program funds from their allocation. After that date, institutions lose claim to any funds in the current fiscal year not yet drawn down from the Board for timely disbursement to students. Funds released in this manner in the first year of the biennium become available to the institution for use in the second year of the biennium. Funds released in this manner in the second year of the biennium become available to the Board for utilization in grant processing. Should these unspent funds result in additional funding available for the next biennium's program, revised allocations, calculated according to the allocation methodology outlined in this rule, will be issued to participating institutions during the fall semester.

(c) Reductions in Funding.

(1) If annual funding for the program is reduced after the start of a fiscal year, the Board may take steps to help distribute the impact of reduced funding across all participating institutions by an across-the-board percentage decrease in all institutions' allocations.

(2) If annual funding is reduced prior to the start of a fiscal year, the Board may recalculate the allocations according to the allocation methodology outlined in this rule for the affected fiscal year based on available dollars.

Source Note: The provisions of this §22.236 adopted to be effective November 28, 2005, 30 TexReg 7870; amended to be effective May 21, 2008, 33 TexReg 3952; amended to be effective February 26, 2013, 38 TexReg 1161; amended to be effective February 26, 2014, 39 TexReg 1143; amended to be effective November 26, 2014, 39 TexReg 9204; amended to be effective June 6, 2016, 41 TexReg 4006; amended to be effective August 27, 2018, 43 TexReg 5510