TITLE 25. HEALTH SERVICES

PART 11. CANCER PREVENTION AND RESEARCH INSTITUTE OF TEXAS

CHAPTER 703. GRANTS FOR CANCER PREVENTION AND RESEARCH

25 TAC §703.24

The Cancer Prevention and Research Institute of Texas ("CPRIT" or "the Institute") adopts the amendment to §703.24 without changes to the proposed text as published in the June 23, 2017, issue of the Texas Register (42 TexReg 3248). The proposed change would allow grant awards with contract initiation dates in the last quarter of the state fiscal year to have an initial financial reporting period beginning the following fiscal year.

Reasoned Justification

The proposed amendment addresses a procedural issue for Institute grant contracts with an effective date in the fourth quarter of the state fiscal year, typically August 31. Oversight Committee action on grant awards recommended by a Review Council Chair in a particular fiscal year must have a contract effective date in the same fiscal year to be funded with general obligation bond proceeds appropriated in that fiscal year. For awards approved by the Oversight Committee in the last quarter of a fiscal year, the contract effective date results in a partial quarter, often only one day. The Institute's electronic grant management system generates a financial status report that covers the partial fiscal quarter. The system maintains the partial financial status report filing requirement for the remainder of the grant. As a result, these grants appear to have five quarters in the Institute's electronic grant management system for financial reporting purposes. This "fifth quarter" issue creates confusion and imposes a logistical burden on grantees. The proposed rule change addresses the fifth quarter issue by allowing grant awards with a contract effective date in the last quarter of a state fiscal year to have an initial financial reporting period beginning September 1 of the following state fiscal year. Grantees may submit any expenses for the partial quarter in the initial reporting period beginning September 1.

Summary of Public Comments and Staff Recommendation

CPRIT received no public comments regarding the proposed amendments.

The amendments are adopted under the authority of the Texas Health and Safety Code Annotated, §102.108 and §102.251, which provides the Institute with broad rule-making authority to administer the chapter, including rules for awarding grants.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 17, 2017.

TRD-201703186

Heidi McConnell

Chief Operating Officer

Cancer Prevention and Research Institute of Texas

Effective date: September 6, 2017

Proposal publication date: June 23, 2017

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