Administrative Draw request. Administrative Draw requests are
funded out of the portion of the Contract budget specified for administrative
cost (administration line item of the Contract budget). These costs
are not directly associated with an Activity. The administration line
item will be disbursed as described in paragraphs (1) - (8) of this
section:
  (1) Threshold 1. The initial administrative Draw request
allows up to 10 percent of the administration line item to be drawn
down prior to the start of any project Activity included in the Performance
Statement of the Contract (provided that all Pre-Draw requirements,
as described in the Contract, for administration have been met). Subsequent
administrative funds will be reimbursed in proportion to the percentage
of the work that has been completed as identified in paragraphs (2)
- (8) of this section.
  (2) Threshold 2. Allows up to an additional fifteen
(15) percent (twenty-five (25) percent of the total) of the administration
line item to be drawn down after a start of project Activity has been
demonstrated. For the purposes of this threshold, if Davis-Bacon labor
standards are required for a given Program Activity, the "start of
project Activity" is evidenced by the submission of a start of construction
form. If labor standards are not required on a given project Activity
that has commenced (and for which reimbursement is being sought),
the submission of a Draw request that includes sufficient back-up
documentation for expenses of non-administrative project Activities
evidences a start of project Activity. Direct Delivery Costs charges
will not constitute a start of project Activity.
  (3) Threshold 3. Allows up to an additional twenty-five
(25) percent (fifty (50) percent of the total) of the administration
line item to be drawn down after compliance with the eighteen (18)
month threshold requirement has been demonstrated as described in §25.9
of this chapter (relating to Expenditure Thresholds and Closeout Requirements).

  (4) Threshold 4. Allows up to an additional twenty-five
(25) percent (seventy-five (75) percent of the total) of the administration
line item to be drawn down after compliance with the thirty (30) month
threshold requirement has been demonstrated as described in this chapter.

  (5) Threshold 5. Allows up to an additional fifteen
(15) percent (ninety (90) percent of the total) of the administration
line item to be drawn down after compliance with the forty-two (42)
month threshold requirement has been demonstrated as described in
this chapter.
  (6) Threshold 6. Allows an additional five (5) percent
(ninety-five (95) percent of the total) of the administration line
item to be drawn down upon receipt of all required close-out documentation.

  (7) Threshold 7. Allows the final five (5) percent
(one-hundred (100) percent of the total), less any administrative
funds reserved for audit costs as noted on the Project Completion
Report of the administration line item to be drawn down following
receipt of the programmatic close-out letter issued by Department.
  (8) Threshold 8. Any funds reserved for audit costs
will be released upon completion and submission of an acceptable audit.
Only the portion of audit expenses reasonably attributable to the
Contract is eligible.


Source Note: The provisions of this §25.8 adopted to be effective November 1, 2012, 37 TexReg 8500; amended to be effective August 3, 2014, 39 TexReg 5740