(a)At the time the [of] award contract is executed and for each year thereafter as may be appropriate, a cancer research grant recipient must certify in writing that encumbered funds equal to one-half of the amount of the total grant are available and not yet expended for research that is the subject of the grant. The written certification shall be included in the grant award contract. Recipients receiving multiple grant awards may provide certification at the institutional level. A grant award contract shall not be executed without such certification of encumbered funds for at least the first year of the project. Failure to provide certification of encumbered funds at the appropriate time for each year of the project thereafter shall serve as grounds for terminating the award contract. (b)For purposes of the certification required by subsection (a) of this section, a recipient may use the following categories to classify encumbered funds that are dedicated to cancer research: (1)Cancer biology and genetics, including oncogenesis and collection and characterization of tumors (genomics, proteomics, and other "omics"); (2)Cancer immunology, including vaccines; (3)Cancer imaging and diagnostics; (4)Population based research [Cancer epidemiology] and outcomes research; and (5)Cancer treatment, including drug discovery and development and clinical trials. (c)For purposes of the certification required by subsection (a) of this section, encumbered funds may include but are not necessarily limited to: (1)Federal funds (including 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 (NCI) or other similar programs); (2)State of Texas funds; (3)Other States' funds; (4)Non-governmental funds (including private funds, foundation grants, gifts and donations); and (5)Unrecovered indirect costs not to exceed 10 percent of the grant award amount, subject to the following conditions: (A)These costs are not otherwise charged against the grant as the five percent indirect funds amount allowed under §703.12(c) of this chapter (relating to Limitation on Use of Funds); (B)The Institution or recipient must have a documented federal indirect cost rate or an indirect cost rate certified by an independent accounting firm; and (C)The allowance for unrecovered indirect costs must be specifically approved by the Executive Director. (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 not available at the time of award; (5)Pre-existing real estate 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)For awards to investigators representing more than one institution or organization, the certification required by subsection (a) of this section may be made on a grant-award level by one or more of the participating institutions or organizations. (f)The recipient of a multiyear grant award may demonstrate available funds on a year-by-year basis. In no event shall grant funds for an award year be advanced or reimbursed, as may be appropriate for the grant award, until the certification required by subsection (a) of this section is filed and accepted by the Institute for the advanced or reimbursed funds. (g)No later than 60 days from the anniversary of the effective date of the award contract, the grant recipient shall file a form with the Institute reporting how encumbered funds reported in the certification required by subsection (a) of this section were spent. (h)The grant recipient shall maintain adequate documentation supporting the source and use of the encumbered funds reported in the certification required by subsection (a) of this section and shall provide such information to the Institute upon request. (i)The Institute shall conduct an annual review of the documentation supporting the source and use of encumbered funds reported in the required certification for a statistically significant sample of grant recipients. Based upon the results of the statistical sample, the Institute may expand the review of supporting documentation to other grant recipients. Nothing in this rule prohibits the Institute from reviewing supporting documentation for all grant recipients.
This agency hereby certifies that the proposal has
been reviewed by legal counsel and found to be within the agency's
legal authority to
adopt.
Filed with the Office
of the Secretary of State on March 4, 2013
TRD-201300953 Wayne Roberts
Executive Director
Cancer Prevention and Research Institute of Texas
Earliest possible date of adoption: April 14, 2013
For further information, please call: (512) 305-8422
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