1 Texas Administrative Code § 54.31 – Personnel

(a) The personnel budget category may include salaries of employees only, and not compensation paid to independent contractors. “Employee” is defined as a person under the direction and supervision of the grantee, who is on the payroll of the grantee and for whom the grantee is required to pay applicable income withholding taxes; or a person who will be on the grantee’s payroll and for whom the grantee will pay applicable income withholding taxes once the grant is awarded.

(b) A salary for a grant-funded position must be reasonable and may not exceed the salary paid to a person performing comparable work in a position that is not funded by the grant. The OAG will determine whether a salary is reasonable and may limit the grant-funded portion of any salary.

(c) The OAG may set minimum restrictions on the percentage of salary that may be funded.

(d) A grantee may not use grant funds to pay overtime.

(e) Any changes to the job duties or employment status of a grant-funded position must be reported to the OAG promptly.

(f) A grantee may not use grant funds to pay any portion of the salary or any other compensation for an elected government official.