any further certification for payment out of funds available for such fiscal year: Provided, That an applicant which has not received the regular initial payment for such year, shall have its application processed for such regular initial payment if a final report is received by the Commissioner within 30 days of the applicable date for filing the final report.

(c) Excessive entitlement. The Commissioner may disallow any portion of the entitlement estimated for a fiscal year for which no final report has been received which he may determine to be excessive on the basis of such information as is available. Whether or not a report has been submitted, if an applicant is found, after the applicable date for filing a final report following the close of the fiscal year, on the basis of all available information, to have received funds in excess of its entitlement or prorated portion of its entitlement for such fiscal year, such excess will be deducted in computing amounts subsequently certified for payment to the applicant for the current or subsequent fiscal year, or, where no payments are due, the applicant will be required to refund such excess to the United States through the Commissioner.

(d) Information submitted after deadline date. No effect shall be given to any report or information filed by the applicant after the applicable date for filing final reports to increase the amount computable on the basis of information on file on such date, except that where data have been requested in writing by the Commissioner for the purpose of processing applications and final reports, such information may be given such effect if received in writing by the Commissioner on or before the date stated in the Commissioner's request.

[24 F.R. 60, Jan. 3, 1959, as amended at 25 F.R. 2532, Mar. 25, 1960]

36-096-68-16

essary adjustments have been made and the adjustments have been reviewed and cleared by the Federal agencies making such reviews. The Commissioner does not require that records be maintained beyond this period unless, under special circumstances, the grantee agency is specifically advised that certain record materials should be retained until specific questions are settled.

§ 115.44 Reports from other Federal agencies.

Pursuant to the deduction requirements of section 3 (e) and other provisions of the act, the Commissioner requires information with respect to certain payments made by other Federal departments and agencies for the same general purposes. Pursuant to the provisions of section 8 (b) of the act other Federal departments and agencies which make expenditures (directly or otherwise) for, or in aid or supplementation of, elementary or secondary education, with respect to which an application has been filed with the Commissioner, will be requested to file reports of commitments and expenditures for such purposes as required by the Commissioner. Subpart F-Arrangements Under

Section 6 of the Act

§ 115.50 Proposal for arrangements for certain children residing on Federal property.

Any local educational agency or the Federal department or agency administering the Federal property on which part or all of such children reside, believing that the Commissioner should exercise his authority under section 6 (a) of the act to make arrangements to provide free public education for children who reside on Federal property, and being willing to enter into or assist in entering into such arrangements, should file with the Commissioner, on or before March 15 preceding the fiscal year for which such arrangements would be made, a proposal in the form prescribed by the Commissioner and bearing the endorsement of either the State and local educational agencies or the appropriate officials of the Federal department or agency administering the property or properties on which the children reside, as the case may be. Among the details to be included in the proposal are (a) the reasons why the Commissioner should make a determination to enter into such arrangements, (b) the esti

mated number of children to be educated, (c) financial and educational details necessary for the Commissioner to make the determinations and arrangements required under section 6, and (d) the name of the local educational agency or Federal department or agency which would provide such free public education. § 115.51

Determination by the Com

missioner.

If under section 6 (a) the Commissioner determines that he is required to make such arrangements to provide free public education for part or all of the children on whose behalf the request is made or if, acting upon information otherwise received, he makes a determination to provide free public education for children who reside on Federal property, such arrangements shall be made in accordance with the proposal or such other information or recommendation as he may deem appropriate, with a local educational agency or with the Federal department or agency administering the Federal property on which part or all of the children reside who will be provided education pursuant to the arrangements.

The local educational agency or the Federal department or agency with which such arrangements are made shall make such reports to the Commissioner from time to time as he may require to perform his functions under this act. § 115.56 Termination of arrangements.

Arrangements under section 6 shall be limited to providing free public education for not more than one school year. If the Commissioner determines that the local educational agency or the Federal department or agency with which arrangements have been made has substantially deviated from the terms of the arrangements, he shall so notify the local educational agency or the Federal department or agency concerned. If the local educational agency or the Federal department or agency does not within a reasonable time comply with the terms of the arrangements, the Commissioner may terminate such arrangements without further notice.

cational agencies.

State fiscal control and audit.

116.49-116.50 [Reserved]

Subpart F-General Provisions

116.51 Approval of State application. 116.52 Withholding by the Commissioner. Allowable expenditures.

116.53

116.54 Retention of records.

116.55 Inventories of equipment. 116.56 Financial interest of officials. 116.57

Copyrights and patents.

AUTHORITY: The provisions of this Part 116 issued under sec. 7, 64 Stat. 1107, as renumbered sec. 301, 79 Stat. 35; 20 U.S.C. 242. Interpret or apply secs. 201-212, 301-303, as added or renumbered by 79 Stat. 27-36, and 111(f), 80 Stat. 1196, 20 U.S.C. 241a-2411, 242-244 and 883 (c).

SOURCE: The provisions of this Part 116 appear at 32 F.R. 2742, Feb. 9, 1967, unless otherwise noted.

(a) "Act" means the Elementary and Secondary Education Act of 1965 (Public Law 89-10). Title II of Public Law 874, 81st Congress, which was added by Title I of said Elementary and Secondary Education Act of 1965, is hereinafter in this part referred to as Title I of the Act.

(b) "Attendance area" means, in relation to a particular public school, the geographical area in which the children who are normally served by that school reside. An attendance area for an elementary school may not necessarily be coterminous with an attendance area for a secondary school.

(c) "Average daily attendance” means (1) average daily attendance in elementary and secondary schools, not beyond grade 12, as determined in accordance with State law and (2) in the case of schools for handicapped children operated or supported by a State agency, the average number of children under 21 years of age participating per day for the length of a normal school year in an organized program in such schools of instruction which is recognized under State law as furnishing elementary or secondary education, but not beyond grade 12. Daily attendance shall be measured by the number of daily hours of participation in such instruction as the State agency determines to be appropriate for children with the particular handicap involved, except that any such instruction for more than 1 hour, but less than 3 hours, a day shall be deemed to constitute a maximum of one-half day of attendance. Time spent primarily in custodial care or in medical treatment or therapy cannot be counted in determining school attendance.

(d) "Average per pupil expenditure" in a State or in the United States means the aggregate of current expenditures (as defined in paragraph (h) of this section but otherwise without regard to the sources of funds from which such expenditures are made) of all those local educational agencies in the State, or in the United States, as the case may be, which are boards of education or other legally constituted local school authorities having administrative control and direction of free public education in a county, township, independent or other school district, including those State agencies which operate and main

tain facilities for the providing of free public education in a county, township, or other school district, plus any such current expenditures made directly by the State for operation of those local educational agencies, and the sum thereof divided by the aggregate number of children in average daily attendance to whom those local educational agencies provided free public education. As used in this paragraph, "the United States" means the States of the Union and the District of Columbia.

(e) "Commissioner" means the U.S. Commissioner of Education.

(f) "Construction" means the erecting, building, acquiring, altering, remodeling, improving, or extending of school facilities, and includes the preparation of drawings and specifications for school facilities and the inspection and supervision of the construction of school facilities.

(g) "County" means a division of a State of the Union which is treated as a county by the Secretary of Commerce in compiling and reporting data regarding counties.

(h) "Current expenditures" means expenditures for free public education, including expenditures for administration, instruction, attendance and health services, pupil transportation services, operation and maintenance of plants, and fixed charges, and net expenditures to cover deficits for food services and student body activities, but not including expenditures for community services, capital outlay and debt service, or any expenditures made from funds granted under Titles I, II, or III of the Act.

(i) "Educationally deprived children" means those children who have need for special educational assistance in order that their level of educational attainment may be raised to that appropriate for children of their age. The term includes children who are handicapped or whose needs for such special educational assistance result from poverty, neglect, delinquency, or cultural or linguistic isolation from the community at large.

(j) "Elementary school" means a day or residential school which provides elementary education, as determined under State law.

(k) "Equipment" includes machinery, utilities, and built-in equipment and any necessary enclosures or structures to house them, and includes all other items necessary for the functioning of a par

ticular facility as a facility for providing educational services, including such items as instructional equipment and necessary furniture, printed, published, and audiovisual instructional materials, and books, periodicals, documents, and other related materials. Equipment does not include supplies which are consumed in use or which may not reasonably be expected to last longer than 1 year.

(1) "Federal percentage" means 50 percent of the average per pupil expenditure in a State, or, where applicable, in the United States, for a prior fiscal year, which is used as a factor in computing maximum grants under Title I of the Act. (m) "Fiscal year" means a period beginning on July 1 and ending on the following June 30. (A fiscal year is designated in accordance with the calendar year in which the ending date of the fiscal year occurs.)

(n) "Free public education" means education which is provided at public expense, under public supervision and direction, and without tuition charge, and which is provided as elementary or secondary education, not above grade 12 in a State. Elementary education may, if so determined under State law, include education below grade 1 meeting the above criteria.

(0) "Handicapped children" means mentally retarded, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, crippled, or other health impaired children who by reason thereof require special education.

(p) "An institution for delinquent children" means a public or private nonprofit residential facility which is operated primarily for the care of, for an indefinite period of time or for a definite period of time other than one of short duration, children who have been adjudicated to be delinquent children.

(q) "An institution for neglected children" means a public or private nonprofit residential facility (other than a foster home) which is operated primarily for the care of, for an indefinite period of time, at least ten children who have been committed to the institution, or voluntarily placed in the institution, and for whom the institution has assumed or been granted custodial responsibility pursuant to applicable State law, because of the abandonment or neglect by, or death of, parents or persons acting in the place of parents.