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Financial Manual for Grants and Contracts

The Texas Workforce Commission's (TWC) Financial Manual for Grants and Contracts (FMGC) compiles federal, state and agency requirements that apply to recipients and subrecipients of TWC funds. Since the manual is periodically updated to reflect changes to these requirements, users should always refer to this web site for the most current version of the manual.

The FMGC is offered on this web site in Microsoft Word. Use the links in the Table of Contents below to navigate through the FMGC. This table of contents is also available with page numbers in Microsoft Word format by clicking on the Table of Contents link below. Please contact Financial Initiatives at (512) 463-5388 or if you have difficulty accessing these files.

This manual was last updated on July 1, 2005. When changes occur, the changes will be listed in Appendix L. The replaced files will be made available upon written request to

Table of Contents

Accessible FMGC

Table of Contents
Part I -- Agency and Board Responsibilities
Chapter 1   Agency and Board Responsibilities
Part II -- Financial Management Standards
Chapter 2   Internal Control
Chapter 3   Insurance
Chapter 4   Cost Sharing and Matching
Chapter 5   Program Income
Chapter 6   Budget
Chapter 7   Cash Management
Part III -- Cost Standards
Chapter 8   Cost Principles
Chapter 9   Travel
Chapter 10   Personnel
Chapter 11   Cost Allocation and Resource Sharing
Chapter 12   Indirect Cost Rates
Part IV -- Property, Procurement, and Contract Standards
Chapter 13   Property
Chapter 14   Procurement
Chapter 15   Contracts
Part V -- Funding and Reporting
Chapter 16   Allocation, Deobligation and Reallocation
Chapter 17   Financial Reporting
Chapter 18   Contract Closeout
Part VI -- Monitoring, Audit and Enforcement
Chapter 19   Monitoring
Chapter 20   Single Audit
Chapter 21   Enforcement, Appeals and Termination
Appendix A   Glossary
Appendix B   Index
Appendix C   Policy Statements
Appendix D   Forms
Appendix E   Contacts
Appendix F   Matrix of Federal/State Cost Principles
Appendix G   Matrix of Federal/State Administrative Requirements
Appendix H   Indirect Cost Rates Matrix
Appendix I   Internal Control Matrix
Appendix J   Subrecipient vs. Vendor Guide
Appendix K   Access to Records and Record Retention
Appendix L   Changes


Last Verified: May 12, 2014

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Last Revision: May 12, 2014