ing to personal services, utility services, travel, or the rental of equipment or facilities) entered into prior to, or with respect to personal services, utility services, travel, or the rental of equipment or facilities rendered or performed prior to, the effective date of the approval by the Commissioner of the State application for participation or (except for commitments or services related to planning projects) prior to the date on which the applicant was notified that the application of the State or local educational agency for a grant with respect to that project was submitted for approval to the State educational agency or the Commissioner in substantially approvable form. Federal funds from two separate fiscal year appropriations are not available for payment with respect to a single such commitment.

(f) Obligations entered into by State and local educational agencies and payable out of funds under Title I of the Act shall be liquidated during the fiscal year following the fiscal year in which such funds are made available for use by such agencies unless prior to the end of that following fiscal year the State educational agency reports to the Commissioner the reasons why such obligations cannot be timely liquidated and, on the basis thereof, the Commissioner extends the time for so liquidating obligations.

§ 116.47

Expenditures by State and lo

cal educational agencies.

(a) Amounts granted or distributed to State or local educational agencies for approved projects may be expended by such agencies for such projects in the amounts for which they were approved by the Commissioner or the State educational agency. Amounts for approved projects may, within the limit of the amounts made available to the State or local educational agency for programs or projects, be varied upward or downward by 10 percent of such respective amounts upon the determination by the State or local educational agency that such projects and the program of that agency will continue to meet the requirements of Title I of the Act and the regulations in this part. A variation in excess of 10 percent may be made only with the approval of the Commissioner or the State educational agency which approved the original project.

(b) All proceeds from the sale of property being inventoried pursuant to the

provisions of § 116.55 but not less than the fair market value of such property, and the net proceeds from the rental of such property, shall be credited to the Federal Government.

§ 116.48 State fiscal control and audit.

(a) The State educational agency shall, for that agency and local educational agencies, provide for such fiscal control and fund accounting procedures as may be necessary for the proper disbursement of funds paid to the State and to local educational agencies under Title I of the Act.

(b) All expenditures by local educational agencies or by State educational agencies of Federal funds granted under Title I of the Act shall be audited either by State auditors or by other appropriate auditors. The State educational agencies shall, with due regard for Federal auditing requirements, provide for appropriate audit standards for that purpose. The results of such audits shall be used to substantiate State agency records and shall be made available to Federal auditors. Federal auditors shall be given access to such records or other documents as may be necessary to substantiate the results of such audits. SS 116.49-116.50 [Reserved]

Subpart F-General Provisions § 116.51 Approval of State application.

The Commissioner will approve each application by a State, through its State educational agency, to participate in the grant program under Title I of the Act if he determines that the application meets the requirements of section 206(a) in Title I of the Act and the regulations in Subpart D of this part. He will not finally disapprove any State application, or any application by a State educational agency for migratory children of migratory agricultural workers, except after reasonable notice and opportunity for a hearing to the State educational agency with repect to the disapproval of that application.

§ 116.52 Withholding by the Commissioner.

(a) Whenever the Commissioner, after reasonable notice and opportunity for a hearing to any State educational agency, finds that there has been a failure to comply substantially with any assurance set forth in the application of that State, or in the application of that

State educational agency, approved by the Commissioner, for a grant to establish or improve programs of education for migratory children of migratory agricultural workers, he will notify the agency that further payments will not be made to the State under Title I of the Act (or, in his discretion, that the State educational agency will not make further payments under Title I of the Act to specified local educational agencies affected by the failure) until he is satisfied that there is no longer any such failure to comply. Until the Commissioner is so satisfied, further payments under Title I of the Act will not be made to that State or payments by the State educational agency will be limited to payments to local educational agencies not affected by the failure, as the case may be.

(b) Prior to initiating a hearing under this section, the Commissioner will attempt to resolve any apparent differences between him and the State educational agency regarding the interpretation or application of the provisions of Title I of the Act and the regulations in this part, including any apparent differences with respect to the disposition of matters reported by the State educational agency pursuant to § 116.31(g). Nothing herein shall be deemed to prevent any State educational agency from seeking the advice of the Commissioner prior to disposing of such matters. § 116.53 Allowable expenditures.

(a) Federal funds made available to State and local educational agencies may be used by those agencies for such expenditures as are reasonably necessary for carrying out approved projects.

(b) Federal funds granted to State educational agencies for administration and for technical assistance to local educational agencies with respect to the measurements of educational achievement and evaluation of the effectiveness of projects in meeting the special educational needs of educationally deprived children may be used by those agencies for such expenditures as are reasonably necessary for carrying out those activities.

(c) Federal funds made available under Title I of the Act to local educational agencies and to State educational agencies may be used only for those expenses which are incurred as a result of the grant program under that title. They include expenses such as those for:

(7) Acquisition (by purchase or lease) and maintenance and repair of necessary equipment;

(8) Minor alterations in previously completed building space for use in the program under Title I of the Act;

(9) The rental of office space in privately and publicly owned buildings for use in the administration of the program under Title I of the Act, subject to the following provisions:

(i) The expenditures for the space are necessary for and properly related to the efficient administration of the program;

(ii) The State will receive the benefits of the expenditures during the period of occupancy commensurate with such expenditures;

(iii) The amounts paid are not in excess of comparable rental in the particular locality;

(iv) In the case of a publicly owned building, like charges are made to other State or local agencies occupying similar space for similar purposes;

(10) The acquisition of leasehold and other interests in land necessary for educational agencies to carry out approved projects successfully; and

(11) In exceptional cases, the construction of buildings, and the structural alteration of existing buildings.

(d) The expenditure of funds under Title I of the Act shall not be included in the determination of average per pupil expenditure pursuant to § 116.1 (d) or in the determination of fiscal effort pursuant to § 116.45.

(e) None of the funds under Title I of the Act may be used for religious workshop or instruction.

(a) Each State educational agency and local educational agency receiving a grant under Title I of the Act shall keep intact and accessible all records supporting claims for such Federal grants or relating to the accountability of the grantee for the expenditure of such grants (1) for 3 years after the close of the fiscal year in which the expenditure was made, (2) until the State educational agency is notified that such records are not needed for administrative review, or (3) until the State educational agency is notified of the completion of the fiscal audit by the Department of Health, Education, and Welfare, whichever is the latest. All other records developed under a program or project under Title I of the Act shall be kept intact and accessible for a period of 3 years after the completion of the program or project.

(b) The records involved in any claim or expenditure which has been questioned shall be further maintained until necessary adjustments have been made and such adjustments have been reviewed and approved by the Department of Health, Education, and Welfare.

§ 116.55 Inventories of equipment.

(a) Each State and local educational agency shall maintain an inventory of all equipment it has acquired with funds under Title I of the Act and placed in the temporary custody of persons in a private school. Such inventories shall be maintained until the equipment is discharged from such custody and, if costing $100 or more per unit, for the expected useful life of the equipment or until its disposition.

(b) Each State educational agency and each local educational agency shall maintain inventories of all other equipment it has acquired with funds under Title I of the Act and costing $100 or more per unit for the expected useful life of the equipment or until its disposition.

(c) The records of inventories required by this section shall be subject to the retention requirements of § 116.54. § 116.56 Financial interest of officials. No board or staff member of a State or local educational agency may participate in an administrative decision with respect to a grant program under Title I of the Act if such a decision appears

likely to result in any benefit or remuneration, such as a royalty, commission, contingent fee, or brokerage fee, or other benefit to him or any member of his immediate family.

§ 116.57 Copyrights and patents.

(a) Any material of a copyrightable nature produced through a project with financial assistance under Title I of the Act shall not be copyrighted but shall be placed in the public domain.

(d) Any materials of a patentable nature produced through a project with financial assistance under Title I of the Act shall be subject to the provisions of Parts 6 and 8 of this title.

AUTHORITY: The provisions of this Part 117 issued under sec. 703, 79 Stat. 57, as renumbered by secs. 201-207, 79 Stat. 36-37, and sec. 161, 80 Stat. 1204, 20 U.S.C. 883. Interpret or apply secs. 701, 703-705, 79 Stat. 55, 57-58, as renumbered by sec. 161, 80 Stat. 1204, 20 U.S.C. 821-827, 881, 883-885.

SOURCE: The provisions of this Part 117 appear at 32 F.R. 2753, Feb. 9, 1967, unless otherwise noted.

§ 117.1

Subpart A-Definitions

Definitions.

As used in this part

(a) "Act" means the Elementary and Secondary Education Act of 1965 (Public Law 89-10), as amended.

(b) "Children" means those persons who are in attendance in elementary or secondary schools of a State which provide education or which comply with State compulsory school attendance laws or are otherwise recognized by some procedure customarily used in the State. The age limits are the permissible ages for attendance at the public elementary and secondary schools of the State, but children does not include persons enrolled in adult education courses, or in courses beyond grade 12.

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

(d) "Elementary school" means a day or residential school which provides elementary education, as determined under State law or as determined by the Department of the Interior or the Department of Defense.

(e) "Fiscal year" means the period beginning on July 1 and ending on the following June 30. (A fiscal year is designated by the calendar year of the ending date.)

(f) "Local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or such combination of school districts or counties as is recognized in a State as an administrative agency for its public elementary or secondary schools. It also includes any other public institution or agency having administrative control and direction of a public elementary or secondary school program.

(g) "Public agency" means a legally constituted organization of government under public administrative control and direction.

(h) "Private elementary and secondary schools" means nonprofit or profit schools which provide elementary and secondary education as determined under State law, not beyond grade 12, and which are controlled by other than a public authority but which either comply with the State compulsory attendance laws or are otherwise recognized by some procedure customarily used in the State.

(i) "School library resources, textbooks, and other printed and published instructional materials" means: (1) School library resources are books, periodicals, documents, pamphlets, photographs, reproductions, pictorial or graphic works, musical scores, maps, charts, globes, sound recordings, including but not limited to those on discs and tapes; processed slides, transparencies, films, filmstrips, kinescopes, and video tapes, or any other printed and published materials of a similar nature made by any method now developed or hereafter to be developed, and which are processed and organized for use by elementary or secondary school children and teachers; (ii) "Textbooks" means books, reusable workbooks, or manuals, whether bound or in looseleaf form, intended for use as a principal source of study material for a given class or group of students, a copy of which is expected to be available for the individual use of each pupil in such class or group; (iii) “Other printed and published instructional materials" are books, periodicals, documents, pamphlets, photographs, reproductions, pictorial or graphic works, musical scores, maps, charts, globes, sound recordings, including but not limited to those on discs and

tapes; processed slides, transparencies, films, filmstrips, kinescopes, and video tapes, or any other printed and published materials of a similar nature made by any method now developed or hereafter to be developed, and which are not processed and organized for use by elementary or secondary school children and teachers. These terms include those printed and published instructional materials which are suitable for and are to be used by children and teachers in elementary and secondary schools and which with reasonable care and use may be expected to last more than 1 year. The terms do not include furniture or equipment.

(j) "Secondary school" means a day or residential school which provides secondary education, as determined under State law, or as determined by the Department of the Interior or the Department of Defense, except that secondary education does not include any education provided beyond grade 12.

(k) "Standards" means those measures (established by the State agency, the Department of the Interior, or the Department of Defense for administration of a plan under Title II of the Act or established by other authoritative groups or individuals and accepted for such administration) which are used for making determinations of the adequacy, quality, and quantity of school library resources, textbooks, and other printed and pub*lished instructional materials to be made › available for the use of children and teachers in elementary and secondary schools.

(1) "State" means, in addition to the several States in the Union, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands.

(m) "State educational agency" means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or, if there is no such officer or agency, an officer or agency designated by the Governor or by State law.

(n) "Teacher" means a person who is engaged in carrying out the instructional program of an elementary or secondary school, including a principal, guidance counselor, school librarian, or other member of the instructional or supervisory staff.

Subpart B-State or Department
Plan-General Provisions

§ 117.2 State or Department plan.

(a) Purpose. A basic condition for the grant of Federal funds to a State or the payment of funds under Title II of the Act to the Department of the Interior or the Department of Defense is (1) a plan which meets the requirements of Title II of the Act in providing a program under which funds so granted or paid will be expended solely for the acquisition of school library resources, textbooks, and other printed and published instructional materials and the administration of the plan, and (2) an annual description of the projected program activities to be carried out under the plan during the forthcoming fiscal year.

(b) Effects of a State plan. The State plan, when approved by the Commissioner, shall constitute the basis on which Federal grants will be made, and the basis for determining the propriety of the expenditures of those funds.

(c) Effect of a Department plan. A plan, submitted by the Department of the Interior or by the Department of Defense when approved by the Commissioner, shall constitute the basis on which payments will be made to those Departments under Title II of the Act and the basis for determining the propriety of the expenditures of those funds by those Departments.

(d) Amendments. The administration of the program shall be kept in conformity with the approved plan. Whenever there is any material change in the content or administration of the program, or when there has been any material change in pertinent State law or in the organization, policies, or operations of the State agency affecting the program under the plan, the plan shall be appropriately amended.

(e) Submission. A plan and all amendments thereto shall be submitted to the Commissioner by a duly authorized officer of the State agency, the Department of the Interior, or the Department of Defense. The plan shall indicate the official or officials authorized to submit plan materials. The State agency shall, either directly or through arrangements with other State or local public agencies, act as the sole agency for the administration of the State plan.

(f) Certificate by the State agency. The State plan and all amendments