Audits conducted at the direction or on behalf of the Director will extend to a determination and appropriate finding of fact concerning compliance with the provisions of the Act, the regularity and accuracy of financial transactions and recording, adequacy of property accountability and internal control, and reliability of financial reporting. As a part of such audits, examinations will be made on a selective basis to determine that matching funds (as defined in section 503.1 of this chapter) have been received and properly expended by recipients of matching-fund grants under the Act and that grantees maintain a proper relationship between costs paid with funds from non-Federal sources and with matching grant funds provided under the Act.

It is the purpose of the Water Resources Council to effectuate the policy of the United States in the Water Resources Planning Act (hereinafter the Act) to encourage the conservation, development, and utilization of water and related land resources of the United States on a comprehensive and coordinated basis by the Federal Government, States, localities, and private enterprise with the cooperation of all affected Federal agencies, States, local governments, individuals, corporations, business enterprises, and others concerned, within the limitations set forth in section 3 of the Act (42 U.S.C. 1962-1).

The functions of the Water Resources Council are:

(a) To maintain a continuing study and prepare periodically an assessment of the adequacy of supplies of water necessary to meet the water requirements in each water resource region in the United States and of the national interest therein.

(b) To maintain a continuing study of the relation of regional or river basin plans and programs to the requirements of larger regions of the Nation.

(c) To appraise the adequacy of administrative and statutory means for coordination and implementation of the water and related land resources policies and programs of the several Federal agencies and to make recommendations to the President with respect to Federal policies and programs.

(d) To establish, after consultation with appropriate interested Federal and non-Federal entities, and with the approval of the President, principles, standards, and procedures for Federal participation in the preparation of comprehensive regional or river basin plans and for the formulation and evaluation of Federal water and related land resources projects, including primary direct navigation benefits as defined by section 7a, P.L. 89-670.

(e) To coordinate schedules, budgets, and programs of Federal agencies in comprehensive interagency regional or river basin planning.

(f) To carry out its responsibilities under title II of the Act with regard to the creation, operation, and termination of Federal-State river basin commissions.

(g) To receive plans or revisions thereof submitted by river basin commissions in accordance with section 204 (3) of the Act (42 U.S.C. 1962b (3)), and to review and transmit them, together with its recommendations, to the President in accordance with section 104 of the Act (42 U.S.C. 1962a-3).

(h) To assist the States financially in developing and participating in the development of comprehensive water and related land resources plans in accordance with title III of the Act.

(i) To perform such other functions as the Council may be authorized by law, executive orders, regulations, or other appropriate instructions to perform.

(j) To take such actions as are necessary and proper to implement the Act and to carry out the functions enumerated herein.

§ 701.5

Organization pattern.

(a) The Office of the Water Resources Council is composed of the Water Resources Council, the Chairman of the Water Resources Council, the Water Resources Council Staff headed by a Director, and Field Organizations within its jurisdiction.

(b) The Water Resources Council consists of the following members: The Secretary of the Interior, the Secretary of Agriculture, the Secretary of the Army, the Secretary of Health, Education, and Welfare, the Secretary of Transportation (pursuant to section 7a, P.L. 89-670), the Chairman of the Federal Power Commisison, and such other agencies as may be added by statute.

(c) The Chairman of the Council is designated by the President.

(d) The Executive Officers of the Water Resources Council Staff are the Director, Deputy Director and two Assistant Directors. The principal Staff Officers are the Associate Director, General Counsel and Administrative Officer.

(e) The Water Resources Council staff is employed, assigned duties and responsibilities, and supervised by the Director in accordance with §§ 701.76 through 701.80, inclusive.

(f) Administrative, consultative and technical committees are established and assigned duties and responsibilities by the Council and are supervised by the Direc

(a) As used in this part the term "Member" means the Secretary of the Interior, the Secretary of Agriculture, the Secretary of the Army, the Secretary of Health, Education, and Welfare, the Secretary of Transportation, the Chairman of the Federal Power Commission, or a designee appointed in accordance with 701.53 (a) when the designee is acting for one of the above-named.

(b) As used in this part the term "Representative" means an individual authorized by a "Member” to act for such member pursuant to § 701.54.

§ 701.53

Council decisions by Members. Council decisions by Members with respect to the purpose stated in § 701.3 and the functions listed in § 701.4 are determined by majority vote of Members present except that decisions affecting the authority or responsibility of a Member, within the meaning of section 3(b) of the Act (42 U.S.C. 1962-1(b)), can be made only with his concurrence. In exceptional cases a Council decision may be made by written communication. Such decision requires unanimous approval of the Members.

(a) Each of the Secretaries named in § 701.5 and the Chairman of the Federal Power Commission shall designate in writing those individuals who may act as his designee in fulfilling his duties as a Member. (See § 701.58 (c).)

(b) A quorum for the transaction of business consists of four or more Mem

bers, at least one of whom shall be an aforementioned Secretary or the Chairman of the Federal Power Commission.

(c) Each Member has equal responsibility and authority in all decisions and actions of the Council and shall have full access to all information relating to the performance of his duties and responsibilities.

(d) No vote shall be taken until each Member shall have had full opportunity to express his views.

(e) Members shall meet regularly at least quarterly, upon the call of the Chairman, or when requested by a majority of Members.

(f) The agenda and related documents for such meetings will be distributed to Members at least 7 days in advance.

(g) Matters specifically reserved for Council decision by Members are:

(1) Actions requiring Presidential action or approval.

(2) Submission to the President of nominations for Chairmen of FederalState River Basin Commissions.

(3) Approval of Annual Budget requests and the Annual Operating Program of the Office of the Water Resources Council.

(4) Decisions involving substantial policy issues.

(5) Delegations of authority.

(6) Determination that testimony taken or evidence received shall be taken under oath.

(7) Issuance of invitations to become Associate Members or Observers.

(8) Appointment and termination of the appointment of Executive Officers and the Associate Director.

(9) Approval of Council rules and regulations and amendments thereto. § 701.54 Council decisions by Repre

sentatives.

Council decisions with respect to the purpose stated in § 701.3 and the functions listed in § 701.4, above, may be made by Representatives except for matters specifically reserved in § 701.53(g) for Council decision by Members. Only one Representative of a Member shall participate officially in a Council decision by Representatives, but up to four individuals may be authorized to act as Representatives of a Member. Council decisions by Representatives shall be by unanimous agreement of the Representatives and the Director, or in his absence the Acting Director. In exceptional cases,

a decision may be made by written communication.

(a) The Representatives and the Director shall work to coordinate the water and related land activities for which the Council Members are responsible.

(b) Each Representative and the Director has equal responsibility and authority for Council decisions and shall have full access to all information relating to the performance of his duties and responsibilities.

(c) The Director shall serve as Chairman of meetings of Representatives. The Acting Director, designated in accordance with § 701.79 (a), shall serve as Chairman in the absence or disability of the Director or vacancy in that office.

(d) Regular meetings for the transaction of business shall be the second Wednesday of each month, and special meetings shall be at the call of the Director or when requested by the Representatives of two Members. The Director will arrange, after consultation with the Representatives, the agenda of items for consideration; shall distribute the agenda for regular meetings and related documents to Representatives at least 7 days in advance of the meeting and as expeditiously as possible for special meetings; and shall insure that all matters within the purpose and scope of the functions of the Water Resources Council are presented for consideration. The Director shall include on the agenda for a regular meeting any matter proposed by any Representative. When items on the agenda have not been fully considered they shall take precedence, in the same order, over other matters to be placed on the agenda for the next regular meeting. The Director or a Representative may introduce matters not on the agenda or change the order of business at a particular meeting with the concurrence of a simple majority of the Representatives present.

(e) A quorum for the transaction of business consists of at least four Representatives of different Members and the Director or in his absence the Acting Director.

(f) Except for the appointment and tenure of the Executive Officers, matters specifically reserved for Council decision by Members should be considered by Representatives and the Director and proposals and recommendations formulated and presented at Council meetings of Members. The Council Members shall

be advised of minority views, if any, on such proposals and recommendations.

(g) If unanimity of Representatives and the Director is not achieved, after full opportunity for expression of views and reasonable consideration, the Director shall upon his own initiative or upon the request of a Representative present the issue for consideration at the next meeting of Members of the Council. Presentation of the issue shall include a statement of the conflicting positions and recommendations for resolution.

(h) Upon the declaration by any Representative or the Director that an issue involves "substantial policy" (see § 701.53(g) (4)), it shall be referred with recommendations to a subsequent meeting of Council Members for decision. § 701.55 Associate Members.

(a) The Chairman, with concurrence of the Council, may invite the heads of other Federal agencies having authorities and responsibilities relating to the work of the Council to become Associate Members. Associate Members, on the same terms and conditions as Members, may designate persons to serve for them as Associate Members and to act for them as Associate Representatives.

(b) Associate Members and their Associate Representatives may participate with Members and Representatives in consideration of all matters relating to their areas of responsibility, except that their concurrence in a decision of the Council is not required. Where such decision affects the authority and responsibility of any non-Member agency within the meaning of section 3(b) of the Act, the Council shall request such agency to take concurrent action along the basis of the Council recommendations.

(c) Associate Members and Associate Representatives shall be furnished agenda and minutes. They shall be furnished other materials pertinent to their participation in the work of the Council upon request.