| (a) Prior to the disbursement of Grant Award funds,
the Grant Recipient of a Cancer Research Grant Award shall demonstrate
that the Grant Recipient has an amount of Encumbered Funds equal to
at least one-half of the Grant Award available and not yet expended
that are dedicated to the research that is the subject of the Grant
Award.
(1) The Grant Recipient's written certification of
Matching Funds, as described in this section, shall be included in
the Grant Contract.
(2) A Grant Recipient of a multiyear Grant Award may
certify Matching Funds on a year-by-year basis for the amount of Award
Funds to be distributed for the Project Year based upon the Approved
Budget.
(3) A Grant Recipient receiving multiple Grant Awards
may provide certification at the institutional level.
(4) Nothing herein restricts the Institute from requiring
the Grant Recipient to demonstrate an amount of Encumbered Funds greater
than one-half of the Grant Award available and not yet expended that
are dedicated to the research that is the subject of the Grant Award.
To the extent that a greater Matching Funds amount will be required,
the Institute shall include the requirement in the Request for Applications
and in the Grant Contract.
(b) For purposes of the certification required by subsection
(a) of this section, a Grant Recipient that is a public or private
institution of higher education, as defined by §61.003, Texas
Education Code, may credit toward the Grant Recipient's Matching Funds
obligation the dollar amount equivalent to the difference between
the indirect cost rate authorized by the federal government for research
grants awarded to the Grant Recipient and the five percent (5%) Indirect
Cost limit imposed by §102.203(c), Texas Health and Safety Code,
subject to the following requirements:
(1) The Grant Recipient shall file certification with
the Institute documenting the federal indirect cost rate authorized
for research grants awarded to the Grant Recipient;
(2) To the extent that the Grant Recipient's Matching
Funds credit does not equal or exceed one-half of the Grant Award
funds to be distributed for the Project Year, then the Grant Recipient's
Matching Funds certification shall demonstrate that a combination
of the dollar amount equivalent credit and the funds to be dedicated
to the Grant Award project as described in subsection (c) of this
section is available and sufficient to meet or exceed the Matching
Fund requirement;
(3) Calculation of the portion of federal indirect
cost rate credit associated with subcontracted work performed for
the Grant Recipient shall be in accordance with the Grant Recipient's
established internal policy; and
(4) If the Grant Recipient's federal indirect cost
rate changes six months or less following the anniversary of the Effective
Date of the Grant Contract, then the Grant Recipient may use the new
federal indirect cost rate for the purpose of calculating the Grant
Recipient's Matching Funds credit for the entirety of the Project
Year.
(c) For purposes of the certification required by subsection
(a) of this section, Encumbered Funds must be spent directly on the
Grant Project or spent on closely related work that supports, extends,
or facilitates the Grant Project and may include:
(1) Federal funds, including, but not limited to, American
Recovery and Reinvestment Act of 2009 funds, and the fair market value
of drug development support provided to the recipient by the National
Cancer Institute or other similar programs;
(2) State of Texas funds;
(3) funds of other states;
(4) Non-governmental funds, including private funds,
foundation grants, gifts and donations;
(5) Unrecovered Indirect Costs not to exceed ten percent
(10%) of the Grant Award amount, subject to the following conditions:
(A) These costs are not otherwise charged against the
Grant Award as the five percent (5%) indirect funds amount allowed
under §703.12(c) of this chapter (relating to Limitation on Use
of Funds);
(B) The Grant Recipient must have a documented federal
indirect cost rate or an indirect cost rate certified by an independent
accounting firm; and
(C) The Grant Recipient is not a public or private
institution of higher education as defined by §61.003 of the
Texas Education Code.
(6) Funds contributed by a subcontractor or subawardee
and spent on the Grant Project, so long as the subcontractor's or
subawardee's portion of otherwise allowable Matching Funds for a Project
Year may not exceed the percentage of the total Grant Funds paid to
the subcontractor or subawardee for the same Project Year.
(7) Costs incurred by the Grant Recipient to relocate
the Grant Recipient's operations and/or personnel to Texas.
(d) For purposes of the certification required by subsection
(a) of this section, the following items do not qualify as Encumbered
Funds:
(1) In-kind costs;
(2) Volunteer services furnished to the Grant Recipient;
(3) Noncash contributions;
(4) Income earned by the Grant Recipient that is not
available at the time of Grant Award;
(5) Pre-existing real estate of the Grant Recipient
including building, facilities and land;
(6) Deferred giving such as a charitable remainder
annuity trust, a charitable remainder unitrust, or a pooled income
fund; or
(7) Other items as may be determined by the Oversight
Committee.
(e) To the extent that a Grant Recipient of a multiyear
Grant Award elects to certify Matching Funds on a Project Year basis,
the failure to provide certification of Encumbered Funds at the appropriate
time for each Project Year may serve as grounds for suspending reimbursement
or advancement of Grant Funds for project costs or terminating the
Grant Contract.
(f) In no event shall Grant Award funds for a Project
Year be advanced or reimbursed, as may be appropriate for the Grant
Award and specified in the Grant Contract, until the certification
required by subsection (a) of this section is filed and approved by
the Institute.
(g) No later than thirty (30) days following the due
date of the FSR reflecting expenses incurred during the last quarter
of the Grant Recipient's Project Year, the Grant Recipient shall file
a form with the Institute reporting the amount of Matching Funds spent
for the preceding Project Year.
(1) The Grant Recipient must provide all documentation,
including proof of payment, showing that the Grant Recipient expended
the required amount of Matching Funds on the CPRIT project for the
preceding Project Year. The Institute will accept a general ledger
from public or private institutions of higher education as proof of
payment.
(2) The Institute will not review or approve the Grant
Recipient's Matching Funds form until the Grant Recipient submits
the form and all required documentation.
(h) If the Grant Recipient failed to expend Matching
Funds equal to one-half of the actual amount of Grant Award funds
distributed to the Grant Recipient for the same Project Year the Institute
shall:
(1) Carry forward and add to the Matching Fund requirement
for the next Project Year the dollar amount equal to the deficiency
between the actual amount of Grant Award funds distributed and the
actual Matching Funds expended, so long as the deficiency is equal
to or less than twenty percent (20%) of the total Matching Funds required
for the same period and the Grant Recipient has not previously had
a Matching Funds deficiency for the project;
(2) Suspend distributing Grant Award funds for the
project to the Grant Recipient if the deficiency between the actual
amount of Grant Funds distributed and the Matching Funds expended
is greater than twenty percent (20%) but less than fifty percent (50%)
of the total Matching Funds required for the period;
(A) The Grant Recipient will have no less than eight
months from the anniversary of the Grant Contract's effective date
to demonstrate that it has expended Encumbered Funds sufficient to
fulfill the Matching Funds deficiency for the project.
(B) If the Grant Recipient fails to fulfill the Matching
Funds deficiency within the specified period, then the Grant Contract
shall be considered in default and the Institute may proceed with
terminating the Grant Award pursuant to the process established in
the Grant Contract.
(3) Declare the Grant Contract in default if the deficiency
between the actual amount of Grant Award funds distributed and the
Matching Funds expended is greater than fifty percent (50%) of the
total Matching Funds required for the period. The Institute may proceed
with terminating the Grant Award pursuant to the process established
in the Grant Contract; or
(4) Take appropriate action, including withholding
reimbursement, requiring repayment of the deficiency, or terminating
the Grant Contract if a deficiency exists between the actual amount
of Grant Award funds distributed and the Matching Funds expended and
it is the last year of the Grant Contract.
(i) Nothing herein shall preclude the Institute from
taking action other than described in subsection (h) of this section
based upon the specific reasons for the deficiency. To the extent
that other action not described herein is taken by the Institute,
such action shall be documented in writing and included in Grant Contract
records. The options described in subsection (h)(1) and (2) of this
section may be used by the Grant Recipient only one time for the particular
project. A second deficiency of any amount shall be considered an
event of default and the Institute may proceed with terminating the
Grant Award pursuant to the process established in the Grant Contract.
(j) The Grant Recipient shall maintain adequate documentation
supporting the source and use of the Matching Funds reported in the
certification required by subsection (a) of this section. The Institute
shall conduct an annual review of the documentation supporting the
source and use of Matching Funds reported in the required certification
for a risk-identified sample of Grant Recipients. Based upon the results
of the sample, the Institute may elect to expand the review of supporting
documentation to other Grant Recipients. Nothing herein restricts
the authority of the Institute to review supporting documentation
for one or more Grant Recipients or to conduct a review of Matching
Funds documentation more frequently.
(k) If a deadline set by this rule falls on a Saturday,
Sunday, or federal holiday as designated by the U.S. Office of Personnel
Management, the required filing may be submitted on the next business
day. The Institute will not consider a required filing delinquent
if the Grant Recipient complies with this subsection.
|
| Source Note: The provisions of this §703.11 adopted to be effective December 21, 2009, 34 TexReg 9213; amended to be effective March 2, 2014, 39 TexReg 1386; amended to be effective September 17, 2014, 39 TexReg 7342; amended to be effective December 10, 2014, 39 TexReg 9565; amended to be effective March 11, 2015, 40 TexReg 1092; amended to be effective June 10, 2015, 40 TexReg 3569; amended to be effective March 9, 2016, 41 TexReg 1694; amended to be effective December 7, 2016, 41 TexReg 9527; amended to be effective June 8, 2017, 42 TexReg 2937; amended to be effective September 13, 2018, 43 TexReg5807;amended to be effective December 18, 2018, 43 TexReg 8123; amended to be effective June 10, 2020, 45 TexReg 3773; amended to be effective December 8, 2022, 47 TexReg 8042 |
