It’s the latest challenge facing the Cancer Prevention and Research Institute of Texas, or CPRIT.
The grant was awarded to Peloton Therapeutics in June 2010, making it one of CPRIT's first grants.
The cancer research institute says the oversight was discovered during an internal review.
"CPRIT must have the trust of our fellow Texans that we are not only doing great work but that we are doing everything the right way," said executive director Bill Gimson in a statement. "We proactively initiated this comprehensive review to be transparent and ensure good stewardship."
CPRIT says it is “committed to continuing quality improvement in the agency’s processes and procedures.” CPRIT says Peloton’s funding has been put on hold and the company is reapplying.