| (a) The Institute disburses Grant Award funds by reimbursing
the Grant Recipient for allowable costs already expended; however,
the nature and circumstances of the Grant Mechanism or a particular
Grant Award may justify advance payment of funds by the Institute
pursuant to the Grant Contract.
(1) The Chief Executive Officer shall seek authorization
from the Oversight Committee to disburse Grant Award funds by advance
payment.
(A) A simple majority of Oversight Committee Members
present and voting must approve the Chief Executive Officer's advance
payment recommendation for the Grant Award.
(B) Unless specifically stated at the time of the Oversight
Committee's vote, the Oversight Committee's approval to disburse Grant
Award funds by advance payment is effective for the term of the Grant
Award.
(2) Unless otherwise specified in the Grant Contract,
the amount of Grant Award funds advanced in any particular tranche
may not exceed the budget amount for the corresponding Project Year.
(3) The Grant Recipient receiving advance payment of
Grant Award funds must maintain or demonstrate the willingness and
ability to maintain procedures to minimize the time elapsing between
the transfer of the Grant Award funds and disbursement by the Grant
Recipient.
(4) The Grant Recipient must comply with all financial
reporting requirements regarding use of Grant Award funds, including
timely submission of quarterly Financial Status Reports.
(5) The Grant Recipient must expend at least 90% of
the Grant Award funds in a tranche before Institute will advance additional
grant funds or reimburse additional costs. To the extent possible,
the Institute will work with the Grant Recipient to coordinate the
advancement of Grant Award fund tranches in such a way as to avoid
affecting work in progress or project planning.
(6) Nothing herein creates an entitlement to advance
payment of Grant Award funds; the Institute may determine in its sole
discretion that circumstances justify limiting the amount of Grant
Award funds eligible for advance payment, may restrict the period
for the advance payment of Grant Award funds, or may revert to payment
on a reimbursement-basis. Unless specifically stated in the Grant
Contract, the Institute will disburse the last ten percent (10%) of
the total Grant Award funds using the reimbursement method of funding,
and will withhold payment until the Grant Recipient has closed its
Grant Contract and the Institute has approved the Grant Recipient's
final reports pursuant to §703.14 of this chapter relating to
Termination, Extension, Close Out of Grant Contracts, and De-Obligation
of Grant Award funds.
(A) A Grant Recipient receiving advance payment may
request in writing that the Institute withhold less than ten percent
(10%) of the total Grant Award funds. The Grant Recipient must submit
the request and reasonable justification to the Institute no sooner
than the start of the final year and no later than the start of the
final financial status reporting period of the grant project.
(B) The Chief Executive Officer may approve or deny
the request. If approved, the Chief Executive Officer will provide
written notification to the Oversight Committee. The Chief Executive
Officer's decision to approve or deny a request is final.
(b) The Institute will disburse Grant Award funds for
actual cash expenditures reported on the Grant Recipient's quarterly
Financial Status Report.
(1) Only expenses that are allowable and supported
by adequate documentation are eligible to be paid with Grant Award
funds.
(2) A Grant Recipient must pay their vendors and subcontractors
prior to requesting reimbursement from CPRIT.
(c) The Institute may withhold disbursing Grant Award
funds if the Grant Recipient has not submitted required reports, including
quarterly Financial Status Reports, Grant Progress Reports, Matching
Fund Reports, audits and other financial reports. Unless otherwise
specified for the particular Grant Award, Institute approval of the
required report(s) is necessary for disbursement of Grant Award funds.
(d) All Grant Award funds are disbursed pursuant to
a fully executed Grant Contract. Grant Award funds shall not be disbursed
prior to the effective date of the Grant Contract.
|
