The Cancer Prevention and Research Institute of Texas (Institute) adopts amendments to §703.11 and §703.13 without changes to the proposed text as published in the October 3, 2014, issue of the Texas Register (39 TexReg 7874). The rules will not be republished.

Reasoned 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 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 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 adopted pursuant to and in satisfaction of the provisions Texas Health and Safety Code, Chapter 102, and other relevant statutes.

The Institute accepted public comments in writing and by fax through November 3, 2014. No comments were received concerning the proposed amendments for Chapter 703.

The Oversight Committee approved the final order adopting the amendments to Chapter 703 rules on November 19, 2014.

Statutory Authority

The rules are amended under the authority of the Texas Health and Safety Code Annotated, §102.108, which provides the Institute with broad rulemaking authority to administer the chapter.