(b) Grants. (1) After the grant agreement has been formaly signed, payments of grant funds to the grantee will be made on public vouchers prepared, signed, and submitted by the grantee in three copies to the Director. Such vouchers will provide for amounts to be paid to the grantee as funds are required for the liquidation of liabilities the grantee expects to incur pursuant to the terms of the grant.

(2) In support of each such voucher the grantee will relate it to the approved financial plan.

(3) In the case of matching grants, the grantee will also submit evidence that a proper relationship is being maintained between expenditures of grant and non-Federal funds.

(c) Contracts and other arrangements. Individuals and organizations that conduct research under contracts or other arrangements pursuant to section 200 of the Act will submit to the Director, not more frequently than monthly, public vouchers in three copies, claiming payment or reimbursement as called for by the terms of the contract or other arrangement. Such vouchers shall detail deliveries, performance, expenditure or such other criteria for payment as are required by or are apropriate under the contract or other arrangement. Educational institutions and nonprofit organizations may obtain advance payments of initial expenses upon submission of a voucher in three copies when, in the opinion of the Director, such payment is necessary to facilitate the work being done under contracts or other arrangements pursuant to the Act. § 505.2 Cost computation principles.

(a) Applicability to allotments and grants. The cost-computation principles prescribed in this section shall be utilized in the cost accounting required with respect to allotments and grants under the Act to provide evidence that the recipient has discharged the obligation it assumed, when accepting these funds, to expend them solely for costs necessary for the accomplishment of the work for which they were received. These principles will also be applied in accounting for funds from other sources to the extent that such funds are applied to meet the requirement that grants be matched with non-Federal funds.

(b) Applicability to contracts. Computation of costs in accordance with the

principles prescribed in this section is a prerequisite of payments from funds provided under the Act to a contractor under cost-reimbursement-type contracts. Such cost computation is also necessary for fixed-price contracts if they are terminated prior to completion or contain price-redetermination, renegotiation, or similar clauses.

(c) Basic cost formulas. Costs will be computed:

(1) By institutes and educational institutions, in accordance with Bureau of the Budget Circular A-21, as revised, except as provided in section 505.3.

(2) By all entities other than educational institutions and institutes, in accordance with the Federal Procurement Regulations (second edition) (Title 41, Code of Federal Regulations, Subpart 1-15.2) (29 F.R. 10288), except as provided in § 505.3.

§ 505.3 Capital and related expendi

tures.

(a) In no instance shall the Director approve payments pursuant to the Act which include any amounts representing, either directly or indirectly, the cost of permanent buildings. In no instance shall recipients of funds pursuant to the Act use such funds either directly or indirectly to pay the cost of permanent buildings.

(b) Payments received pursuant to the Act may be applied to capital expenditures, other than for permanent buildings, to the extent that such expenditures are provided for in plans for projects and other activities that have been approved by the Director. § 505.4

Credits against cost and repayments to the Government.

(a) Incidental income resulting from operation: (1) Income resulting from the work financed by allotments, grants, contracts, and other arrangements under the Act may be added to the funds in the hands of the allottee, grantee, or contractor and used for expenses of water resources research activities. Examples of such income are: Proceeds from the sale of scrap, water and other material produced as a by-product of, or remaining after use in, research activities; sale of, or royalties on, publications, etc. It is a responsibility of those receiving Federal funds under the Act to realize such incidental income to the maximum extent possible consistent with the purposes of the Act.

(2) In instances in which such incidental income results from joint expenditures of funds provided by the Act and of funds from other sources, such income shall be credited to their various sources in the ratio in which each contributed to the generation of the incidental income.

(b) Any interest earned on any funds received as allotments or grants under the Act shall accrue to the benefit of the United States and each institute or grantee shall submit as a part of its annual report a statement showing the amount of such interest earned during the period covered by the report.

(c) In the event an institute is dissolved or a research project conducted under a grant is completed or terminated prior to completion, all funds provided under the Act that remain in the hands of the allottee or grantee after liquidation of the costs chargeable to the allotment or grant will be returned to the Director.

(d) Similarly, any supplies and equipment or other assets that were purchased with funds provided under the Act as allotments may be disposed of by the Director at his discretion upon dissolution of an institute or, if purchased with grant funds, upon completion or termination of the project for which the funds were furnished.

§ 505.5 Title to property.

(a) Title to property purchased with Federal funds allotted to institutes pursuant to section 100 of the Act shall be in the name of the institute and not that of the State or the college or university with which the institute is identified. However, in instances in which a formal document evidencing title is prepared, and State law precludes its issuance in the name of the institute, titles such as the following will be satisfactory: University [or

for the use and benefit of the Water Resources Research Institute.

State]

(b) Title to property purchased with funds from non-Federal sources used to match grants under section 101 of the Act, shall, similarly, be vested in, or held for the use and benefit of, the institute. In the case of property purchased with non-Federal funds that is applied to meet matching requirements for grants under section 200 of the Act, title shall be vested in the grantee.

(c) In the case of reimbursement-type contracts, the title of property shall pass to and vest in the Government.

(1) Upon its delivery to the contractor if its purchase is paid for with funds supplied under the Act or the cost is reimbursable to the contractor from such funds, or

(2) Upon issuance of such property for use in the performance of the contract, or commencement of processing or use of such property in the performance of the contract, or reimbursement of the cost thereof by the Government, whichever first occurs.

(d) Title to property purchased with grant funds made available either under section 101 or under section 200 of the Act shall vest in the Government when acquired by the grantee, unless the grantee is a non-profit institution of higher education or a non-profit organization whose primary purpose is the conduct of scientific research and the Director determines that vesting title in such grantee would further the objectives of the Act.

§ 505.6 Accounting records.

(a) The officers of institutes appointed in compliance with section 102 of the Act, and appropriate officials of entities other than institutes, that receive funds under the Act, shall be responsible for maintaining books of account that clearly, accurately, and currently reflect the financial transactions involving allotments, grants, contracts, and other arrangements financed under the Act and also transactions financed with matching funds from sources other than the Federal Government. In addition, they shall maintain files of all papers necessary to explain and prove the validity of the transactions recorded.

(b) Such records, with all supporting and related documents shall, at all reasonable times, be made available, upon request, for inspection and audit by representatives of the Director and of the Comptroller General of the United States.

(c) Records relating to each allotment and each grant shall be retained and made available until the expiration of three years after the allottee's or grantee's last disbursement of such funds. Records with respect to contracts shall be retained and made available until the expiration of three years after the last payment thereunder was received by the contractor.

(d) The books and records maintained shall include a record of all property

(1) Received from the Federal Government,

(2) Charged as a cost of activities filnanced with funds provided by the Act, (3) Included in costs paid with nonFederal funds to match grant funds, and (4) Included in reimbursable costs under cost-reimbursement-type contracts.

(e) An accountability record shall be maintained for all items of such property that are nonexpendable and have an acquisition cost of $100 or more.

(f) Institutes, grantees, and contractors shall include the following provision in any contract or subcontract for services, equipment, or supplies they make that requires payments exceeding $2,500 from funds furnished under the Act or non-Federal funds used to match such Federal funds:

Representatives of the Director of the Office of Water Resources Research or of the Comptroller General of the United States shall, until the expiration of three years after final payment under this contract, have access to and the right to examine any directly pertinent books, documents, papers, and records relating to this contract.

For the purposes of this requirement, contracts or subcontracts for public utility services at rates established for uniform applicability to the general public are excluded.

PART 506-PROGRESS AND ACCOMPLISHMENT REPORTS

Sec.

506.1 Project completion or termination reports.

506.2 Annual reports by institutes. 506.3

Annual reports by entities other than institutes.

506.4 Special reports.

506.5 Annual reports to the Congress. 506.6 Acknowledgment of Federal Government participation.

AUTHORITY: The provisions of this Part 506 issued under sec. 104, 78 Stat. 331; 42 U.S.C. 1961a-4.

SOURCE: The provisions of this Part 506 appear at 29 F.R. 16192, Dec. 3, 1964, unless otherwise noted.

473

§ 506.1 Project completion or termination reports.

(a) Recipients of funds under the provisions of sections 100, 101, and 200 of the Act are encouraged to publish, as technical literature, the findings, results, and conclusions relating to separately identifiable research projects undertaken pursuant to the Act. Fifty copies of such documents shall be furnished to the Director, together with supplementary information suitable for project documentation purposes.

(b) If a publication such as is described in paragraph (a) of this section has not been prepared with respect to a specific research project, recipients of funds under the provisions of sections 100, 101, and 200 of the Act shall, in conjunction with the completion or termination of the project, prepare a report which sets forth the findings, results, and conclusions relating to such project. Fifty copies of the report shall be furnished to the Director, together with supplementary information suitable for project documentation purposes.

§ 506.2

Annual reports by institutes.

(a) On or before September 1 of each year, each institute shall make an annual report relating to its program and activities conducted pursuant to sections 100 and 101 of the Act, for the year ending June 30, to the Director, in fifteen copies, which provides information as indicated in paragraph (b), (c), and (d) of this section.

(b) Relating to the institute's program conducted pursuant to an allotment of funds and section 100 of the Act, the report shall provide

(1) For each separately identified research project that was included as a part of the institute's annual program—

(1) A description of research performed and any findings, results, or conclusions relating thereto,

(ii) Supplementary information suitable for project documentation purposes, (iii) A listing of any project-related publications or reports issued and papers prepared (with copies of such publications, reports, or papers being attached to each copy of the annual report),

(iv) In lieu of the information requested in subdivisions (i), (ii), and (iii) of this subparagraph (1), an appropriate reference to a project completion or termination report which contains similar information and which was sub

mitted to the Director in accordance with the provisions of § 506.1, and

(v) Statements of project work remaining to be accomplished,

(2) A description of any other activities or work accomplished or remaining to be accomplished by the institute, including reports or publications issued and presented but not previously covered in subparagraph (1) of this paragraph (b),

(3) A record of training of scientists, and

(4) The nature and extent of activities conducted in cooperation with other institutes and research organizations.

(c) Relating to projects carried on pursuant to matching-fund grants and section 101 of the Act, the report shall provide, separately, for each project

(1) Information similar to that prescribed in paragraph (b) of this section, and

(2) Other information relating to the project, as deemed appropriate by the institute.

(d) Relating to funds, the report shall provide detailed statements of the amounts received under the Act, and the disbursements thereof, on schedules prescribed by the Director

(1) For the institute's annual program carried on pursuant to an allotment of funds under section 100 of the Act, and

(2) For each project carried on pursuant to a matching-fund grant under section 101 of the Act.

(e) In addition to information proIvided in their annual reports as prescribed above, institutes are encouraged to add a report section which provides general accounts of other significant or interesting water resources research developments and prospects, and analyses of local, State, regional or national water needs in relation to the program of the institute.

§ 506.3 Annual reports by entities other than institutes.

(a) On or before September 1 of each year each entity that has received funds under section 200 of the Act shall make a report relating to its activity for the year ending June 30 and submit such report to the Director, in fifteen copies. If there was more than one grant, contract, matching, or other arrangement in effect with the entity during the year

covering more than one specific research project, the annual report shall be made up of separate sections, one for each such project, which provide

(1) A description of research accomplished and the findings, results, and conclusions relating thereto.

(2) Supplementary information suitable for project documentation purposes,

(3) A listing of project-related publications or reports issued and papers presented (with copies of such publications being attached to each copy of the annual report),

(4) Statements of project work remaining to be accomplished,

(5) The nature and extent of activities conducted in cooperation with institutes or other research organizations, and

the

(6) A detailed statement of amounts received during the year under grant, contract, matching, or other arrangement, and disbursements thereof, on schedules prescribed by the Director.

(b) If the entity has submitted to the Director a project completion or termination report in accordance with the provisions of section 506.1 of this chapter, the entity may make, in lieu of providing the information requested in subparagraphs (1), (2), and (3) of paragraph (a) of this section, an appropriate reference to such project completion or termination report.

§ 506.4 Special reports.

All organizations and individuals receiving funds under grants, contracts, or other arrangements pursuant to the Act shall submit such reasonable special or interim reports as may from time to time be specifically requested by the Director.

§ 506.5 Annual reports to the Congress.

Each year the Director shall prepare a recommended report suitable for transmission by the Secretary to the Congress, which report shall

(a) Summarize the receipts and expenditures and work of the institutes in all States and of others that have received funds under the provisions of the Act,

(b) Indicate whether any portion of an appropriation available for allotment to any State has been withheld and, if so, the reasons therefor, and

The Director shall consult with and obtain the continuing advice and cooperation of all agencies of the Federal Government concerned with water problems, of State and local governments, and of private institutions and individuals, to

(a) Assure that the programs authorized by the Act will not duplicate established water research programs,

(b) Stimulate research in otherwise neglected areas,

(c) Contribute to a comprehensive, nationwide program of water and related resources research, and

(d) Obtain assistance in evaluating programs of the institutes, proposals for grants, contracts or other arrangements, reports of work, and the activities carried on pursuant to the Act. § 507.4 Cooperation

center.

with cataloging