TITLE 25. HEALTH SERVICES

PART 11. CANCER PREVENTION AND RESEARCH INSTITUTE OF TEXAS

CHAPTER 701. POLICIES AND PROCEDURES

25 TAC §701.37

The Cancer Prevention and Research Institute of Texas (Institute) proposes a new rule §701.37. The proposed new rule outlines travel policy requirements for grant recipients.

Background and Justification

The proposed new rule §701.37 requires grant recipients to follow the requirements of the State of Texas travel policy administered by the Texas Comptroller of Public Accounts for travel expenses to be reimbursed with CPRIT grant award funds. The new rule also describes the appropriate documentation that must be submitted to support travel expense reimbursement requests and provides guidance regarding special requirements for international travel expenses to be reimbursed with CPRIT grant funds.

Fiscal Note

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

Public Benefit and Costs

Ms. Doyle has determined that for each year of the first five years the new rule is in effect the public benefit anticipated due to enforcing the rule will be the clarification of what the Institute considers appropriate travel expenses reimbursed with grant funds and the required supporting documentation.

Small Business and Micro-Business Impact Analysis

Ms. Doyle has determined that the rule change will not affect small businesses or micro businesses.

Government Growth Impact Statement

The Institute, in accordance with 34 Texas Administrative Code §11.1, has determined that during the first five years that the sections will be in effect:

(1) the proposed rule will not create or eliminate a government program;

(2) implementation of the proposed rule will not affect the number of employee positions;

(3) implementation of the proposed rule will not require an increase or decrease in future legislative appropriations;

(4) the proposed rule will not affect fees paid to the agency;

(5) the proposed rule will create a new rule;

(6) the proposed rule will not expand existing rules;

(7) the proposed rule will not change the number of individuals subject to the rules; and

(8) The rule is unlikely to have a significant impact on the state's economy. Although this rule is likely to have neutral impact on the state's economy, the Institute lacks sufficient data to predict the impact with certainty.

Submit written comments on the proposed new rule to Ms. Kristen Pauling Doyle, General Counsel, Cancer Prevention and Research Institute of Texas, P.O. Box 12097, Austin, Texas 78711, no later than January 15, 2018. The Institute asks parties filing comments to indicate whether they support the proposed rule revision 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.texas.gov. Comments may be submitted by facsimile transmission to (512) 475-2563.

Statutory Authority

The new rule is proposed under the authority of the Texas Health and Safety Code Annotated §102.108, which provides the Institute with broad rule-making authority to administer the chapter. Ms. Doyle 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 affected by this rule.

§701.37.Grant Recipient Travel Policy.

(a) Travel costs for Grant Recipients are allowable based on the State of Texas travel policy, administered by the Texas Comptroller of Public Accounts, provided that costs are deemed by the Institute to be reasonable and necessary. The Institute will not reimburse a Grant Recipient for travel expenses in an amount that exceeds the standards in the State of Texas travel policy.

(b) Grant Recipients must provide adequate supporting documentation when requesting reimbursement for travel expenses on a Financial Status Report pursuant to §703.24.

(1) A separate travel expense report should be submitted for each trip taken.

(2) Meal costs may be charged on an actual cost basis or on a per diem, provided that one method is used uniformly on an entire trip.

(3) Lodging expenses must be supported with either a receipt or, if a receipt is unavailable, the canceled check or credit card slip used to pay the lodging expense, the credit card billing on which the lodging charges appear, or a copy of the check, slip or billing.

(4) Mileage must be supported with a detailed record of actual point-to-point mileage with odometer readings or copies of mapping website mileage. Mileage should not be rounded to the nearest decimal point.

(5) Transportation expenses must be supported with a receipt or itinerary. If neither is available then a Grant recipient should provide the canceled check or credit card slip used to pay for the transportation, the credit card billing on which the transportation charges appear, or a copy of the receipt, check, slip or billing.

(6) Rental of motor vehicles must be supported by a receipt and/or rental contract.

(7) Incidental expenses must be supported by an itemization of the expenses incurred.

(c) International travel must either be part of the Grant Recipient's approved budget in the Grant Contract, or the Grant Recipient must receive prior approval from CPRIT for the international travel if the international travel is added to the budget subsequently.

(1) International travel costs may be reimbursed according to the United States Department of State rates, if the costs are deemed by CPRIT to be reasonable and necessary.

(2) Grant Recipients should submit requests for reimbursement in United States dollar amounts. If the original cost is in a foreign currency, the Grant Recipient must convert the cost to a dollar amount and provide documentation of the exchange rate used for the conversion.

(d) Nothing herein prohibits a Grant Recipient from having more restrictive internal travel policy requirements.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 1, 2017.

TRD-201704872

Heidi McConnell

Chief Operating Officer

Cancer Prevention and Research Institute of Texas

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 305-8487


CHAPTER 703. GRANTS FOR CANCER PREVENTION AND RESEARCH

25 TAC §703.26

The Cancer Prevention and Research Institute of Texas (Institute) proposes an amendment to §703.26, concerning Allowable Costs. The proposed change expands the list of unallowable costs to include payments by a grant recipient to a subcontractor that employs a relative of the grant recipient's key personnel working on the same project.

Background and Justification

The proposed change to §703.26(e) prohibits payment by a grant recipient to a subcontractor if the subcontractor employs an individual who is a relative, as defined by Texas Administrative Code §701.3(57), of key personnel employed by the grant recipient and working on the same grant project. The expense is unallowable if the grant recipient uses grant funds to pay the subcontractor for any portion of the relative's salary or the relative is responsible for submitting on behalf of the subcontractor expenses for payment by the grant recipient. The grant recipient may request that the Institute's Chief Executive Officer allow an exception to allow payment to a subcontractor that employs a relative. If the Chief Executive Officer grants an exception, he must notify the Oversight Committee in writing. If a grant recipient has stricter internal policies concerning this issue then this proposed amendment will not supersede those policies. The purpose of this proposed rule change is to reduce potential conflicts of interest between a grant recipient and a subcontractor.

Fiscal Note

Kristen Pauling Doyle, Deputy Executive Officer and General Counsel for the Cancer Prevention and Research Institute of Texas, has determined that for the first five-year period the rule change is in effect, there will be no foreseeable implications relating to costs or revenues for state or local government due to enforcing or administering the rules.

Public Benefit and Costs

Ms. Doyle has determined that for each year of the first five years the rule change is in effect the public benefit anticipated due to enforcing the rule will be the clarification of what the Institute will consider unallowable expenses and the reduction of potential conflicts of interest in the payment of grant funds.

Small Business and Micro-Business Impact Analysis

Ms. Doyle has determined that the rule change will not affect small businesses or on micro businesses.

Government Growth Impact Statement

The Institute, in accordance with 34 Texas Administrative Code §11.1, has determined that during the first five years that the section will be in effect:

(1) the proposed rule change will not create or eliminate a government program;

(2) implementation of the proposed rule change will not affect the number of employee positions;

(3) implementation of the proposed rule change will not require an increase or decrease in future legislative appropriations;

(4) the proposed rule change will not affect fees paid to the agency;

(5) the proposed rule change will not create new rules;

(6) the proposed rule change will expand existing rules;

(7) the proposed rule change will not change the number of individuals subject to the rules; and

(8) The rule change is unlikely to have a significant impact on the state's economy. Although this change is likely to have neutral impact on the state's economy, the Institute lacks sufficient data to predict the impact with certainty.

Submit written comments on the proposed rule change to Ms. Kristen Pauling Doyle, General Counsel, Cancer Prevention and Research Institute of Texas, P.O. Box 12097, Austin, Texas 78711, no later than January 15, 2018. The Institute asks parties filing comments to indicate whether they support the rule revision 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.texas.gov. Comments may be submitted by facsimile transmission to (512) 475-2563.

Statutory Authority

The amendment is proposed under the authority of the Texas Health and Safety Code Annotated, §102.108, 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 affected by these rules.

§703.26.Allowable Costs.

(a) A cost is an Allowable Cost and may be charged to the Grant Award if it is reasonable, allocable, and adequately documented.

(1) A cost is reasonable if the cost does not exceed that which would be incurred by a prudent individual or organization under the circumstances prevailing at the time the decision was made to incur the cost; and is necessary for the performance of the Grant Award defined in the Scope of Work in the Grant Contract.

(2) A cost is allocable if the cost:

(A) Benefits the Grant Award either directly or indirectly, subject to Indirect Cost limits stated in the Grant Contract;

(B) Is assigned the Grant Award in accordance with the relative benefit received;

(C) Is allowed or not prohibited by state laws, administrative rules, contractual terms, or applicable regulations;

(D) Is not included as a cost or used to meet Matching Fund requirements for any other Grant Award in either the current or a prior period; and

(E) Conforms to any limitations or exclusions set forth in the applicable cost principles, administrative rules, state laws, and terms of the Grant Contract.

(3) A cost is adequately documented if the cost is supported by the organization's accounting records and documented consistent with §703.24.

(b) Grant Award funds must be used for Allowable Costs as provided by the terms of the Grant Contract, Chapter 102, Texas Health and Safety Code, the Institute's administrative rules, and the Uniform Grant Management Standards (UGMS) adopted by the Comptroller's Office. If guidance from the Uniform Grant Management Standards on a particular issue conflicts with a specific provision of the Grant Contract, Chapter 102, Texas Health and Safety Code or the Institute's administrative rules, then the Grant Contract, statute, or Institute administrative rule shall prevail.

(c) An otherwise Allowable Cost will not be eligible for reimbursement if the Grant Recipient incurred the expense outside of the Grant Contract term, unless the Grant Recipient has received written approval from Institute's Chief Executive Officer to receive reimbursement for expenses incurred prior to the effective date of the Grant Contract.

(d) An otherwise Allowable Cost will not be eligible for reimbursement if the benefit from the cost of goods or services charged to the Grant Award is not realized within the applicable term of the Grant Award. The Grant Award should not be charged for the cost of goods or services that benefit another Grant Award or benefit a period prior to the Grant Contract effective date or after the termination of the Grant Contract.

(e) Grant Award funds shall not be used to reimburse unallowable expenses, including, but not limited to:

(1) Bad debt, such as losses arising from uncollectible accounts and other claims and related costs.

(2) Contributions to a contingency reserve or any similar provision for unforeseen events.

(3) Contributions and donations made to any individual or organization.

(4) Costs of entertainment, amusements, social activities, and incidental costs relating thereto, including tickets to shows or sports events, meals, alcoholic beverages, lodging, rentals, transportation and gratuities.

(5) Costs relating to food and beverage items, unless the food item is related to the issue studied by the project that is the subject of the Grant Award.

(6) Fines, penalties, or other costs resulting from violations of or failure to comply with federal, state, local or Indian tribal laws and regulations.

(7) An honorary gift or a gratuitous payment.

(8) Interest and other financial costs related to borrowing and the cost of financing.

(9) Legislative expenses such as salaries and other expenses associated with lobbying the state or federal legislature or similar local governmental bodies, whether incurred for purposes of legislation or executive direction.

(10) Liability insurance coverage.

(11) Benefit replacement pay or legislatively-mandated pay increases for eligible general revenue-funded state employees at Grant Recipient state agencies or universities.

(12) Professional association fees or dues for the Grant Recipient or an individual.

(13) Promotional items and costs relating to items such as T-shirts, coffee mugs, buttons, pencils, and candy that advertise or promote the project or Grant Recipient.

(14) Fees for visa services.

(15) Payments to a subcontractor if the subcontractor working on a Grant Award project employs an individual who is a Relative of the Principal Investigator, Program Director, Company Representative, Authorized Signing Official, or any person designated as Key Personnel for the same Grant Award project (collectively referred to as "affected Relative"), and:

(A) the Grant Recipient will be paying the subcontractor with Grant Award funds for any portion of the affected Relative's salary; or

(B) the Relative submits payment requests on behalf of the subcontractor to the Grant Recipient for payment with Grant Award funds.

(C) For exceptional circumstances, the Institute's Chief Executive Office may grant an exception to allow payment of Grant Award funds if the Grant Recipient notifies the Institute prior to finalizing the subcontract. The Chief Executive Officer must notify the Oversight Committee in writing of the decision to allow reimbursement for the otherwise unallowable expense.

(D) Nothing herein is intended to supersede a Grant Recipient's internal policies, to the extent that such policies are stricter.

(f) The Institute is responsible for making the final determination regarding whether an expense shall be considered an Allowable Cost.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 1, 2017.

TRD-201704873

Heidi McConnell

Chief Operating Officer

Cancer Prevention and Research Institute of Texas

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 305-8487