| (a) The Institute, under the direction of the Chief
Compliance Officer, shall monitor Grant Awards to ensure that Grant
Recipients comply with applicable financial, administrative, and programmatic
terms and conditions and exercise proper stewardship over Grant Award
funds. Such terms and conditions include requirements set forth in
statute, administrative rules, and the Grant Contract.
(b) Methods used by the Institute to monitor a Grant
Recipient's performance and expenditures may include:
(1) Financial Status Reports Review--The Institute
shall review Grant Award expenditures reported by Grant Recipients
on the quarterly Financial Status Reports and supporting documents
to determine whether expenses charged to the Grant Award are:
(A) Allowable, allocable, reasonable, necessary, and
consistently applied regardless of the source of funds; and
(B) Adequately supported with documentation such as
cost reports, receipts, third party invoices for expenses, or payroll
information.
(2) Timely submission of Grant Award Reports--The Institute
shall monitor the submission of all required reports and implement
a process to ensure that Grant Award funds are not disbursed to a
Grant Recipient with one or more delinquent reports.
(3) Grant Progress Reports--The Institute shall review
Grant Progress Reports to determine whether sufficient progress is
made consistent with the scope of work and timeline set forth in the
Grant Contract.
(A) The Grant Progress Reports shall be submitted at
least annually, but may be required more frequently pursuant to Grant
Contract terms or upon request and reasonable notice of the Institute.
(B) Unless specifically stated otherwise herein, the
annual Grant Progress Report shall be submitted within sixty (60)
days after the anniversary of the effective date of the Grant Contract.
The annual Grant Progress Report shall include at least the following
information:
(i) An affirmative verification by the Grant Recipient
of compliance with the terms and conditions of the Grant Contract;
(ii) A description of the Grant Recipient's progress
made toward completing the scope of work specified by the Grant Contract,
including information, data, and program metrics regarding the achievement
of project goals and timelines;
(iii) The number of new jobs created and the number
of jobs maintained for the preceding twelve month period as a result
of Grant Award funds awarded to the Grant Recipient for the project;
(iv) An inventory of the equipment purchased for the
project in the preceding twelve month period using Grant Award funds;
(v) A verification of the Grant Recipient's efforts
to purchase from suppliers in this state more than 50 percent goods
and services purchased for the project with grant funds;
(vi) A Historically Underutilized Businesses report;
(vii) Scholarly articles, presentations, and educational
materials produced for the public addressing the project funded by
the Institute;
(viii) The number of patents applied for or issued
addressing discoveries resulting from the research project funded
by the Institute;
(ix) A statement of the identities of the funding sources,
including amounts and dates for all funding sources supporting the
project;
(x) A verification of the amounts of Matching Funds
dedicated to the research that is the subject of the Grant Award for
the period covered by the annual report, which shall be submitted
pursuant to the timeline in §703.11 of this title (relating to
Requirement to Demonstrate Available Funds for Cancer Research Grants).
In order to receive disbursement of grant funds, the most recently
due verification of the amount of Matching Funds must be approved
by CPRIT;
(xi) All financial information necessary to support
the calculation of the Institute's share of revenues, if any, received
by the Grant Recipient resulting from the project; and
(xii) A single audit determination form, which shall
be submitted pursuant to the timeline in §703.13 of this title
(relating to Audits and Investigations).
(C) Notwithstanding subparagraph (B) of this paragraph,
in the event that the Grant Recipient and Institute execute the Grant
Contract after the effective date of the Grant Contract, the Chief
Program Officer may approve additional time for the Grant Recipient
to prepare and submit the outstanding reports. The approval shall
be in writing and maintained in the Institute's electronic Grants
Management System. The Chief Program Officer's approval may cover
more than one report and more than one fiscal quarter.
(D) In addition to annual Grant Progress Reports, a
final Grant Progress Report shall be filed no more than ninety (90)
days after the termination date of the Grant Contract. The final Grant
Progress Report shall include a comprehensive description of the Grant
Recipient's progress made toward completing the scope of work specified
by the Grant Contract, as well as other information specified by the
Institute.
(E) The Grant Progress Report will be evaluated pursuant
to criteria established by the Institute. The evaluation shall be
conducted under the direction of the Chief Prevention Officer, the
Chief Product Development Officer, or the Chief Scientific Officer,
as may be appropriate. Required financial reports associated with
the Grant Progress Report will be reviewed by the Institute's financial
staff. In order to receive disbursement of grant funds, the final
progress report must be approved by CPRIT.
(F) If the Grant Progress Report evaluation indicates
that the Grant Recipient has not demonstrated progress in accordance
with the Grant Contract, then the Chief Program Officer shall notify
the Chief Executive Officer and the General Counsel for further action.
(i) The Chief Program Officer shall submit written
recommendations to the Chief Executive Officer and General Counsel
for actions to be taken, if any, to address the issue.
(ii) The recommended action may include termination
of the Grant Award pursuant to the process described in §703.14
of this chapter (relating to Termination, Extension, and Close Out
of Grant Contracts, and De-Obligation of Grant Award Funds).
(G) If the Grant Recipient fails to submit required
financial reports associated with the Grant Progress Report, then
the Institute financial staff shall notify the Chief Executive Officer
and the General Counsel for further action.
(H) In order to receive disbursement of grant funds,
the most recently due progress report must be approved by CPRIT.
(I) If a Grant Recipient fails to submit the Grant
Progress Report within 60 days of the anniversary of the effective
date of the Grant Contract, then the Institute shall not disburse
any Grant Award funds as reimbursement or advancement of Grant Award
funds until such time that the delinquent Grant Progress Report is
approved.
(J) In addition to annual Grant Progress Reports, Product
Development Grant Recipients shall submit a Grant Progress Report
at the completion of specific tranches of funding specified in the
Award Contract. For the purpose of this subsection, a Grant Progress
Report submitted at the completion of a tranche of funding shall be
known as "Tranche Grant Progress Report."
(i) The Institute may specify other required reports,
if any, that are required to be submitted at the time of the Tranche
Grant Progress Report.
(ii) Grant Funds for the next tranche of funding specified
in the Grant Contract shall not be disbursed until the Tranche Grant
Progress Report has been reviewed and approved pursuant to the process
described in this section.
(K) A Grant Award in the prevention program with a
Grant Contract effective date within the last quarter of a state fiscal
year (June 1-August 31) will have an initial reporting period beginning
September 1 of the following state fiscal year.
(4) Desk Reviews--The Institute may conduct a desk
review for a Grant Award to review and compare individual source documentation
and materials to summary data provided during the Financial Status
Report review for compliance with financial requirements set forth
in the statute, administrative rules, and the Grant Contract.
(5) Site Visits and Inspection Reviews--The Institute
may conduct a scheduled site visit to a Grant Recipient's place of
business to review Grant Contract compliance and Grant Award performance
issues. Such site visits may be comprehensive or limited in scope.
(6) Audit Reports--The Institute shall review audit
reports submitted pursuant to §703.13 of this chapter (relating
to Audits and Investigations).
(A) If the audit report findings indicate action to
be taken related to the Grant Award funds expended by the Grant Recipient
or for the Grant Recipient's fiscal processes that may impact Grant
Award expenditures, the Institute and the Grant Recipient shall develop
a written plan and timeline to address identified deficiencies, including
any necessary Grant Contract amendments.
(B) The written plan shall be retained by the Institute
as part of the Grant Contract record.
(c) All required Grant Recipient reports and submissions
described in this section shall be made via an electronic grant portal
designated by the Institute, unless specifically directed to the contrary
in writing by the Institute.
(d) The Institute shall document the actions taken
to monitor Grant Award performance and expenditures, including the
review, approvals, and necessary remedial steps, if any.
(1) To the extent that the methods described in subsection
(b) of this section are applied to a sample of the Grant Recipients
or Grant Awards, then the Institute shall document the Grant Contracts
reviewed and the selection criteria for the sample reviewed.
(2) Records will be maintained in the electronic Grant
Management System as described in §703.4 of this chapter (relating
to Grants Management System).
(e) The Chief Compliance Officer shall be engaged in
the Institute's Grant Award monitoring activities and shall notify
the General Counsel and Oversight Committee if a Grant Recipient fails
to meaningfully comply with the Grant Contract reporting requirements
and deadlines, including Matching Funds requirements.
(f) The Chief Executive Officer shall report to the
Oversight Committee at least annually on the progress and continued
merit of each Grant Program funded by the Institute. The written report
shall also be included in the Annual Public Report. The report should
be presented to the Oversight Committee at the first meeting following
the publication of the Annual Public Report.
(g) The Institute may rely upon third parties to conduct
Grant Award monitoring services independently or in conjunction with
Institute staff.
(h) 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.
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| Source Note: The provisions of this §703.21 adopted to be effective March 2, 2014, 39 TexReg 1386; amended to be effective September 17, 2014, 39 TexReg 7342; amended to be effective March 9, 2016, 41 TexReg 1694; amended to be effective June 12, 2016, 41 TexReg 4027; amended to be effective December 7, 2016, 41 TexReg 9527; amended to be effective June 7, 2018, 43 TexReg 3595; amended to be effective December 18, 2018, 43 TexReg 8123; amended to be effective March 14, 2019, 44 TexReg 1346 |
