services designed to enable and encourage persons to enter, remain in, or reenter educational programs, including the provision of special educational programs and study areas during periods when schools are not regularly in session;

(2) Comprehensive academic services, and, where appropriate, vocational guidance and counseling, for continuing adult education;

(3) The development and conduct of exemplary educational programs, including dual-enrollment programs for the purpose of stimulating the adoption of improved or new educational programs, and programs for conducting, sponsoring, or cooperating in educational research and demonstration programs and projects such as (i) establishing and maintaining curriculum research and innovation centers to assist in locating and evaluating curriculum research findings, (ii) discovering and testing new educational ideas (including new uses of printed and audio-visual media) and more effective educational practices, and putting into use those which show promise of success, and (iii) studying ways to improve the legal and organizational structure for education, and the management and administration of education, in the schools of the State;

(4) Specialized instruction and equipment for students interested in studying advanced scientific subjects, foreign languages, and other academic subjects which are not taught in the local schools or which can be provided more effectively on a centralized basis, or specialized instruction and equipment for persons who are handicapped or of preschool age;

(5) The making available on a temporary basis, of modern educational equipment and especially qualified personnel, including artists and musicians, to public and other nonprofit schools, organizations, and institutions;

(6) The developing, producing, and transmitting of radio and television programs for classroom and other educational use;

(7) The providing of special educational and related services to persons who are in or from rural areas or who are or have been otherwise isolated from normal educational opportunities, including, where appropriate, the providing of mobile educational services and equipment, special home study courses, radio, television, and related forms of instruction, and visiting teachers programs;

(8) Other specially designed educational programs which meet the purposes of Title III of the Act.

§ 118.5 Evidence of involvement of cultural and educational resources.

Each project proposal shall include evidence that representatives of appropriate cultural and educational resources have participated in the planning, and will participate in the operation and evaluation, of the project. No such proposal will be approved unless the Commissioner determines that the degree of participation by such resources is sufficient to assure that the proposed project will be effective in substantially increasing the educational and cultural opportunities for persons in the area to be served.

§ 118.6

Administration and reporting.

(a) Administration. Each project shall provide that the activities and services for which assistance under Title III of the Act is sought will be administered by or under the supervision of the applicant.

(b) Reports and records. Each project proposal shall provide for the making of an annual report and such other reports, in such form, and containing such information, as the Commissioner may reasonably require to carry out his functions under Title III of the Act and to determine the extent to which the use of funds provided under that Title has been effective in improving the educational opportunities of persons in the area served. The applicant shall keep such records, and afford such access thereto, as the Commissioner may find necessary to assure the correctness of such reports. § 118.7 Present programs.

(a) Programs during the base period. Each project proposal shall contain a description of those programs of a nature similar to the project being proposed which were carried on during the base period in the geographical area to be served.

(b) Maintenance of the level of funds made available. Each project proposal shall set forth policies and procedures under the grant to insure that services and activities of the type for which Federal assistance is being sought will not be curtailed, and that Federal funds made available for the project will be so used as to supplement and, to the extent practicable, increase the level of funds that

Each project proposal shall describe the program to be provided with funds made available under Title III of the Act and how it will meet the educational and cultural needs of persons in the geographical area to be served. It shall also describe the manner in which the project would supplement or improve programs of the same type that were carried on during the base period in the geographical area to be served, or state that it covers programs of a type that were not so carried on.

: § 118.9 Qualifications of professional

personnel.

Each project proposal shall set forth minimum acceptable qualifications, including educational background and experience, of all supervisory, teaching, and consulting personnel so as to assure the Commissioner that the best available talents will be used for proposed assignments.

§ 118.10 Adequacy of facilities.

Each project proposal shall describe the facilities available for the project. If a project proposal of a local educational agency calls for the acquisition, leasing, remodeling, or constructing of facilities, it must show how and why such action is essential for the success of the project.

§ 118.11 Participation of children enrolled in nonprofit private schools. Each project proposal shall provide for a degree of participation by or benefit to children who are enrolled in nonprofit private schools in the area to be served which is consistent with the number of such children. Wherever practicable, supplementary educational services, including broadened instructional offerings made available to children enrolled in nonprofit private schools, shall be provided on publicly controlled premises. Provisions for supplementary educational services for children enrolled in private nonprofit schools shall not include the paying of salaries of teachers or other employees of such schools except for services performed outside their regular hours of duty and under public su

pervision and control, nor shall they include the financing of regular school instruction for nonpublic schools, the leaving of equipment on private school premises, or the construction of facilities for such schools. None of the funds made available under Title III of the Act may be used for religious worship or sectarian instruction.

§ 118.12 Submission of project proposal.

Project proposals shall be submitted to the Commissioner on or before such dates as he establishes. Each project proposal, except in the cases of projects proposed by the Department of Defense or the Department of the Interior, must, on or before its submission to the Commissioner, also be submitted to the State educational agency for its review and recommendation.

§ 118.19

Criteria for evaluation of project proposals.

(a) General criteria. Each project proposal will be evaluated in terms of educational significance, project design, qualifications of personnel designated or intended to carry out the project, adequacy of designated facilities, economic efficiency, feasibility with regard to the needs and resources of the area to be served, and priorities and other criteria that may be adopted with the advice of the Advisory Committee on Supplementary Educational Centers and Services and announced from time to time by the Commissioner. In approving applications under Title III of the Act for grants for any fiscal year beginning after June 30, 1967, the Commissioner will give special consideration to the application of any local educational agency which is making a reasonable tax effort but which is nevertheless unable to meet critical

educational needs, including preschool education for 4- and 5-year-olds, because some or all of its schools are seriously overcrowded (as a result of growth or shifts in enrollment or otherwise), obsolete, or unsafe.

(b) Criteria to assure equitable distribution of assistance within each State. In order to assure equitable distribution of assistance under Title III of the Act within each State, the Commissioner will also evaluate all project proposals pursuant to the following criteria:

(1) The projects assisted will be accessible to large numbers of persons within the State;

(2) The projects so assisted will be accessible to persons within the various regions within the State to a degree commensurate with the population distribution in such regions;

(3) The projects assisted will be appropriate to the relative needs of various population groups within the State;

(4) The relative financial ability of communities or areas to provide the proposed services and activities has been considered in the development of the projects; and

(5) The resources of particular local educational agencies, in terms of personnel, facilities, administrative policies, and other factors, will, with effective coordination with relevant educational and cultural resources, be adequate to provide the proposed services and activities.

(c) Criteria to assure equitable distribution of assistance to children in overseas dependents schools of the Department of Defense and Indian children in elementary and secondary schools operated by the Department of the Interior. With respect to schools operated by the Department of Defense and the Department of the Interior, the Commissioner will evaluate such proposals pursuant to the following criteria:

(1) The projects assisted will be accessible to large numbers of eligible

The Commissioner will, on the basis of an evaluation of a project proposal pursuant to § 118.19, (a) approve the project proposal in whole or in part, (b) disapprove the project proposal, or (c) defer action on the project proposal for such reasons as lack of funds or a need for further evaluation. Any deferral or disapproval of the project proposal will not preclude its reconsideration or resubmission at a later date. The Commissioner will notify the applicant and, where appropriate, the respective State educational agency in writing of the disposition of the project proposal. For projects for local educational agencies approved by the Commissioner, the grant award document will include the approved budget and the terms and conditions upon which the grant is to be made.

§§ 118.21-118.23 [Reserved]

Subpart D-Federal Financial Participation and Payment Procedures § 118.24 Effective date of approved project.

The effective date of any approved project shall be the date indicated in the grant award document or in the case of the Department of the Interior or the Department of Defense the date of issuance of the notification of approval. There will be no financial participation under Title III of the Act with respect to expenditures made prior to the effective date of such grant award document. § 118.25 Payment procedures.

From the amounts apportioned to the States and the amounts made available to the Department of the Interior and the Department of Defense, the Commissioner will pay to each grantee in a State, or to the Department of the Interior or to the Department of Defense, either in advance or by way of reimbursement, amounts equal to the total allowable expenditures by the recipient under an approved project. Payments will be made in a manner consistent with the nature of the activities and the services under the project.

§ 118.26 Effect of Federal payments.

Neither the approval of the project proposal nor any payment to the grantee shall be deemed to waive the right or duty of the Commissioner to withhold or recover funds by reason of the failure of the grantee to observe any of the requirements of the Act.

§ 118.27 Extent of participation under Title III of the Act.

(a) Prior activities and services basis. Participation under Title III of the Act in supplementary educational centers and services will be provided only to the extent that the services and activities provided for in the project proposal are of a type not carried on during the base period in the area served, or that they supplement the quantity or improve the quality of services and activities of the same type carried on during the base period in the geographical area served.

(b) Monetary basis. Where a local educational agency has, during the base period, been carrying on activities and services of the type proposed with funds derived from State and local public sources, the degree of Federal financial participation will be determined by the Commissioner taking into account the proposed continued expenditures for services and activities of the type proposed as compared with expenditures for similar activities and services during the base period.

§ 118.28 Availability of funds for approved projects.

The issuance of a grant award document will be regarded as an obligation of the Government of the United States in the amount of the grant award. Federal appropriations so obligated will remain available for expenditure by such local educational agencies during the period for which the grant was awarded. For purposes of the regulations in this part, funds shall be considered to have been expended by a local educational agency on the basis of documentary evidence of binding commitments for the acquisition of goods or property, for the construction of school facilities, or for the performance of work, except that funds for personal services, for services performed by public utilities, for travel, and for the rental of facilities shall be considered to have been expended respectively as of the time such services were rendered, such travel was performed, and such

rented facilities were used. Such binding commitments for the acquisition of goods or property, for the construction of school facilities or for the performance of work, shall be liquidated within a reasonable period of time.

§ 118.29 Fiscal and auditing procedures.

(a) Custody of funds. Each project proposal shall designate the officer who will receive and have custody of project funds.

(b) Fiscal procedures. Each grantee receiving Federal funds for an approved project shall provide for such fiscal control and fund accounting procedures as are necessary to assure proper disbursement of, and accounting for, the Federal funds paid to it. Accounts and supporting documents relating to project expenditures shall be adequate to permit an accurate and expeditious audit.

(c) Auditing procedures. Each grantee shall make appropriate provision for the auditing of project expenditure records, and such records as well as the audit reports shall be available to auditors of the Federal Government.

(a) General rule. Subject to the provisions of paragraph (e) of § 118.40, each grantee shall provide for keeping accessible and intact all records pertaining to such Federal grants or relating to the expenditure of such grants (1) for 3 years after the close of the fiscal year in which the expenditure was liquidated, (2) until the grantee is notified that such records are not needed for program administrative review, or (3) until the grantee is notified of the completion of the Federal fiscal audit, whichever is the latest.

reviewed and cleared by the Department of Health, Education, and Welfare. § 118.32 Cooperative agreements.

or

An applicant may enter into a cooperative agreement or contract to provide services under a project if the services to be so provided, as well as the cooperating institution, organization, agency, are specified in the project proposal and if the agreement or contract is acceptable to the Commissioner. Such a cooperative agreement or contract will be acceptable only if the Commissioner is assured that the applicant will retain the responsibility for supervision of the project.

§ 118.33 Eligible expenditures.

Expenditures which are eligible for participation under Title III of the Act are those expenditures which (a) conform to the terms of the approved project, (b) are incurred for activities which supplement instruction that had been provided during the base period for public and nonprofit private school students and teachers, and (c) are clearly identifiable as additional expenditures incurred as a result of the Title III program.

§ 118.34 Funds not expended.

In the event that funds previously made available under Title III of the Act have not been expended pursuant to the approved project and, in the judgment of the Commissioner, will not be expended for such purposes, the Commissioner may, upon notice to the recipient, reduce the amount of the grant or payment to an amount consistent with the recipient's needs. In the event that an excess over the sum needed for completion of the project shall have actually been paid to the recipient, the custodian of the project funds shall pay that excess over to the Commissioner.

Subpart E-Equipment and
Construction

§ 118.40 Acquisition and maintenance of equipment.

(a) Title to equipment. Title to equipment acquired under Title III of the Act must be vested in, and retained by, a public agency, or in the case of the Department of the Interior or the Department of Defense, in the United States.

(b) Use and control. All equipment acquired under Title III of the Act must be used for the purposes specified in the approved project, and such equipment must be subject to the administrative control of the recipient public agency, or in the case of the Department of the Interior or the Department of Defense, the administrative control of the United States.

(c) Maintenance and repair of equipment. Costs of maintaining and repairing equipment purchased under grants pursuant to Title III of the Act shall be eligible for Federal financial participation during the life of the project. It shall be the responsibility of the grantee to make reasonable provision for the maintenance and repair of such equipment.

(d) Built-in equipment. The provisions of paragraphs (a), (b), and (c) of this section also apply to built-in equipment, which is defined to mean equipment that is permanently fastened to the building and functions as part of the building. The cost of such equipment is eligible for financial participation under Title III of the Act if a State or local educational agency or the U.S. Government owns or operates the facility to which such equipment is attached and retains such ownership, or there is reserved the right to remove such equipment.