The Cancer Prevention and Research Institute of Texas (Institute) proposes amendments to §703.11 and §703.13, regarding matching fund and audit requirements.

BACKGROUND AND JUSTIFICATION

The Institute permits a grant recipient that is a public or private institution of higher education, as defined by §61.003, Texas Education Code, to 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. The proposed amendment to §703.11(b) provides guidance for calculating the federal indirect cost rate applicable for subcontracted work on the grant project.

The Institute requires grant recipients that expend $500,000 or more in state awards during its fiscal year to obtain an annual audit as a condition of the grant award. The purpose of the proposed amendment to §703.13 is to clarify that an agreed upon procedures engagement, as defined by the American Institute of Certified Public Accountants, fulfills the audit requirement. This amendment is proposed pursuant to and in satisfaction of the provisions Texas Health and Safety Code, Chapter 102, and other relevant statutes.

FISCAL NOTE

Kristen Pauling Doyle, General Counsel for the Cancer Prevention and Research Institute of Texas has determined that for the first five-year period the rules are in effect there will be no foreseeable implications relating to costs or revenues for state or local government as a result of enforcing or administering the rules.

PUBLIC BENEFIT AND COSTS

Ms. Doyle has determined that for each year of the first five years the rules are in effect the public benefit anticipated as a result of enforcing the rules will be clarification of policies and procedures the Institute will follow to implement its statutory duties. Probable economic cost to persons required to comply with the rule will be for the institutions of higher education expending $500,000 or more in state grants to avoid incurring costs for a single audit.

SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALYSIS

Ms. Doyle has determined that the rule shall not have an effect on small businesses or on micro businesses.

Written comments on the rules may be submitted to Ms. Kristen Pauling Doyle, General Counsel, Cancer Prevention and Research Institute of Texas, P.O. Box 12097, Austin, Texas 78711 no later than November 2, 2014. Parties filing comments are asked to indicate whether or not they support the rule revisions proposed by the Institute and, if a change is requested, to provide specific text proposed to be included in the rule. Comments may be submitted electronically to kdoyle@cprit.state.tx.us. Comments may be submitted by facsimile transmission to (512) 475-2563.

STATUTORY AUTHORITY

The rules are proposed under the authority of the Texas Health and Safety Code Annotated, §102.8, which provides the Institute with broad rule-making authority to administer the chapter. Kristen Pauling Doyle, the Institute's General Counsel, has reviewed the proposed amendment and certifies the proposal to be within the Institute's authority to adopt.

There is no other statute, article, or code that is affected by these rules.