SECTION 371.73. Disbursement of Funds

(a) Escrow of funds. The executive administrator may deposit funds into an escrow account at the time of closing of the financial assistance. Releases from an escrow account must occur sequentially as described in subsection (c) of this section or in accordance with phasing required for the applicable project. The Applicant must submit outlays for all expenses incurred.

(b) Reimbursement method of accessing funds. DWSRF financial assistance is available for disbursement under a reimbursement method unless the executive administrator approves the deposit of funds into an escrow account at the closing of the financial assistance, as appropriate. The executive administrator will reimburse the Applicant's expenditures upon the receipt of an outlay report supported by detailed invoices of expenditures, or the executive administrator may issue a written authorization for the release of funds from an escrow account based on the receipt of outlay reports supported by detailed invoices of expenditures. The outlays and releases from an escrow account must be consistent with the approved project schedule.

(c) Sequence of availability of funds. Financial assistance is available for disbursement in the following sequence:

(1) for planning and permitting costs, after receipt of executed contracts for the planning or permitting phase, and after approval of a water conservation plan;

(2) for design costs, after receipt of executed contracts for design, after approval of an engineering feasibility report, and after completion of the environmental review; and

(3) for construction costs, after issuance of any applicable permits, after acquisition documents and contract documents (including plans and specifications) are approved and executed, and after the executive administrator has approved the issuance of a Notice to Proceed.

(d) Outlay reports. Applicant's outlay reports must be supported by detailed invoices for incurred costs as the project progresses in accordance with the project schedule. Outlay reports must be submitted in a form determined by the executive administrator, and on the following schedule:

(1) for financial assistance for planning, acquisition, and design, quarterly; and

(2) for financial assistance for construction, monthly.

(e) Consistency for project schedules and outlays. Projects must proceed in accordance with approved project schedules as closely as possible.

Source Note: The provisions of this §371.73 adopted to be effective June 10, 2020, 45 TexReg 3863