Nothing in this part shall be construed to mean that a proposed program shall be excluded from participation on the basis that it would also be eligible to receive financial assistance under another Federal program. Subpart C-State Plan Provisions § 173.9 Administrative information. The State plan shall contain a statement of the name of the designated or created State agency or institution and of the official to whom communications shall be directed; and an assurance that the agency or institution so designated or created shall be the sole agency for administration of the plan or for super=vision of the administration of the plan, and that such agency or institution shall consult with any required State advisory council with respect to policy matters arising in the preparation and adminis=tration of the plan. § 173.10 Policies and procedures for selection of community problems. The State plan shall contain a general statement setting forth the policies and procedures which will be followed by the State agency in selecting those community problem(s) or specific aspects thereof for the solution of which Federal funds allotted under this program will be used. The statement shall describe any general methods and/or criteria which the State agency has determined will be used in making such selection(s). Policies and procedures for selection of institutions. § 173.11 The State plan shall contain a statement of the policies and procedures to be used in selecting the institution(s) of higher education for participation under the State plan. This statement shall describe the policies and procedures to be used in connection with the review of applications submitted by institutions of higher education interested in participating in this program, and shall insure that adequate notice of the selected community problem(s) for the solution of which financial assistance under this program shall be used, will be given to institution(s) of higher education which might qualify for participation. The State agency or institution shall indicate the criteria which will be used in selecting institutions of higher education for participation and the consideration which will be given to the following: (a) Whether the program, service, or activity proposed to be undertaken by an institution of higher education is specifically designed to directly assist in the solution of urban, rural, or suburban problems with special emphasis upon urban and suburban problems; (b) Whether the relative capacity and willingness of the particular institution(s), public or private, will be utilized to provide effective community service programs; (c) Whether the program, service, or activity will effectively utilize the special resources of the institution(s) of higher education and its faculty; (d) Whether the program, service, or activity will be consistent with the overall educational program of the institution(s) of higher education; (e) Whether a single community service program will be undertaken by two or more institutions of higher education within the State or by or with one or more institutions in other States; and (f) Whether the results of periodic, objective and systematic evaluations of the programs, services, and activities will be considered in the light of information regarding current and anticipated community problems. § 173.12 Annual program plan. (a) The annual program plan shall be submitted as an amendment on an annual basis as required under § 173.4. (b) The annual program plan submission shall contain a statement describing the specific aspects of the comprehensive, coordinated, and statewide system of community service programs for which financial assistance is requested, and the basis for the selection of the community service programs. The description of the method followed by the State agency in determining the community problem(s) or aspects thereof to be solved shall indicate that, and the degree to which: (1) The State agency has consulted with representative community leaders, associations, and organizations, and with representatives of institutions of higher education; (2) Due consideration has been given to the existence of other federally financed programs dealing with similar and other community problems in the State and coordination with those programs, particularly in determining priorities of problems; (3) Due consideration has been given to the resources of institutions of higher education especially relevant or adaptable to develop and carry out community service programs related to the community problems selected; (4) Due consideration has been given to the relationship of the aspect of the community problem (s) selected for solution to other significant community problems in the State; and (5) Other criteria have been used in selecting community service problems to be included under the program. (c) In describing the particular community problem (s) and the aspects thereof that the State will attempt to solve, the State plan shall indicate, specifically, the part of the overall problem(s) with which each particular program will be concerned; the scope, prevalence, complexity, duration, and other appropriate specific aspects of the problems; and the relationship between the types of activities proposed and similar tyes of existing or contemplated activities in the State. The statement shall also indicate whether the problem(s) and specific aspects thereof exist in all types of communities or whether they are of general significance to the State as a whole although not specifically manifested in all communities thereof. The statement shall also indicate the approximate amount from the State's allotment that the State agency estimates will be required in order to carry out each type of program which will be undertaken in attempting to solve these problems. (d) As an alternative, if a State has determined the programs, activities, and services which will be undertaken pursuant to its plan to assist in the solution of the community problems selected as part of a comprehensive, coordinated, and statewide system of community serv-" ice programs, it may set forth such pro grams, activities, and services in detail and cost estimates for each, in lieu of the descriptions required under the above paragraph. (e) If a State indicates a desire to solve community problems other than those possible under its allotment, it may indicate such problems with the same specificity as given those presently to be undertaken and give the priority of importance and the basis therefor together with budgetary estimates of each program, service, or activity. Such programs, services, and activities will be considered for reallocation of funds as provided for under section 103(b) of the Act and § 173.34. § 173.13 Fiscal assurances. The State plan shall contain: (a) A statement of the policies and procedures designed to assure that Federal funds allotted to the State for the program described in this part will not be used to supplant State or local funds, or funds of institutions of higher education but to supplement and, to the extent practicable, to increase the amount of such funds that would otherwise be made available for community service programs. (b) A statement of assurance that the State agency will, prior to approval of any community service program under the plan, provide the certification required under § 173.22. § 173.14 Fiscal procedures. The State plan shall contain: (a) A statement setting forth such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the State, including such funds paid by the State to institutions of higher education. Such procedures shall be in accordance with applicable State law and regulations which shall be set forth in the plan or an appendix thereto and shall assure that accounts and supporting documents relating to any program involving Federal financial participation shall be adequate to permit an accurate and expeditious audit of the program. (b) A statement assuring that all expenditures of institutions of higher education claimed for Federal financial participation or matching purposes or for any other purpose relevant to the program described in this part will be audited either by the State or by appropriate auditors; and indicating, if the audit is to be conducted at the institutional level, how the State agency will secure information necessary to assure proper use of funds expended under the Act by such institutions of higher education. § 173.15 Institutional assurance. (a) The State plan shall contain a statement of assurance that, prior to approval of any community service program under the plan, each institution of higher education proposing such community service program shall submit to the State agency a certification: (1) That the proposed program is not otherwise available; (2) That the conduct of the program or performance of the activity or service is consistent with the institution's overall educational program and is of such a nature as is appropriate to the effective utilization of the institution's special resources and the competencies of its faculty; and (3) That, if courses are involved, such courses are extension or continuing education courses and (1) that they are fully acceptable toward an academic degree, or (ii) that they are of college #level as determined by the institution offering the courses. (b) Copies of the certification required by paragraph (a) of this section shall be maintained by the State agency and made available to the Commissioner upon request. § 173.16 Policies and procedures for State agency administrative review and evaluation. The State plan shall contain a statement of the policies and procedures to be followed by the State agency in making periodic, systematic and objective administrative reviews and evaluations in order to evaluate the status and progress of particular programs in terms of the annual program proposals and overall objectives stated in the plan. § 173.17 Transfer of funds to participating institutions. The State plan shall contain a statement of the policies and procedures to be followed in determining, for each institution selected for participation under the plan, whether payment of funds shall be made (a) as a reimbursement for actual expenditures; (b) as an advance prior to actual expenditures; or (c) a combination of reimbursements and advances. The State plan shall provide that when, under any payment procedure, the State agency determines that an overpayment has been made, adjustments shall be made by repayment or by setoff against payment thereafter. § 173.18 Accounting bases for expendi tures. (a) State level expenditures. The State plan shall specify the particular accounting basis (cash, accrual, or obligation) used by the State agency and shall set forth the relevant State laws, rules, and regulations. (Accounting practices relating to payments to participating institutions are described in § 173.23(b).) (b) Participating institutions expenditures. The State plan shall provide that the State agency will be responsible for ascertaining the accounting practice of each institution at the time of its selection for participation under the State plan and for maintaining such information in the State agency. § 173.19 Certification of State plan. (a) The State plan shall include as a part or appendix thereto: (1) A certification by the official of the State agency authorized to submit the State plan that the plan (or amendment) has been adopted by the State agency and will constitute the basis for operation and administration of the programs described therein; (2) A certification by the appropriate State legal officer that the State agency named in the plan is the sole State agency for the preparation and administration or supervision of the administration of the plan, and has authority under State law to develop, submit, and administer or supervise the administration of the plan and that all the provisions contained in the plan are consistent with State law. (b) Citations to, or copies of, all relevant statutes, regulations, court decisions, and directly pertinent policy statements or interpretations of law by appropriate State officials shall be furnished as part of the plan. State agency will maintain such records, afford such access thereto, and comply with such other provisions as the Commissioner may find necessary to substantiate and/or verify the information contained in the reports. (a) An estimated budget itemizing the amount of funds which have or will be required by the State agency for developing and administering the State plan, to be submitted at the time of the submission of the original State plan and thereafter concurrently with the annual amendment of the State plan; (b) A detailed statement, describing the proposed operation of each community service program, to be submitted immediately upon approval of said program by the State agency; (c) The certification required under § 173.22; (d) A progress report, containing an evaluation of each approved community service program and indicating total expenditures incurred in each such program as of the date of evaluation, to be submitted on a semiannual basis; (e) A report of the total amount charged against the State's allotment during a particular fiscal year, to be submitted at the close of the fiscal year; (f) An annual report containing an evaluation of the State plan program and its administration in terms of the plan provisions and program objectives; (g) A copy of any independent evaluations of the State plan, its program, objectives and/or administration, or of any other nature, if obtained by any State, State agency or institution, or State advisory council; and (h) Any other reports containing such information in such form as the Commissioner may, from time to time, require in order to carry out his functions under the Act. Subpart D-Federal Financial § 173.21 Federal financial (a) The Federal Government will pay from each State's allotment an amount equal to 75 percent for the fiscal years ending June 30, 1966, and June 30, 1967, and 50 percent for the next 3 succeeding fiscal years, of the total amount expended (on eligible costs as defined in § 173.27) by the State agency and the institutions participating under the State plan, except that, in calculating such total amount, there shall be excluded any amounts received for the same purpose under any other Federal program and the matching funds required therefor. Where fees, if any, exceed the non-Federal share of the cost of the program, as determined above, the Federal share shall be reduced by the amount of this excess. (b) No payment for any fiscal year will be made, however, with respect to expenditures for developing or administering the plan by the State agency which exceed 5 percent of the total eligible costs for that year or $25,000, whichever is greater. § 173.22 Required certification by State agency. As a condition to receipt of any payments under the program described in this part, the State agency must submit to the Commissioner, both at the time that it initially determines the institutions of higher education to participate under the State plan, and each time that it approves a new program involving an institution not previously participating, a certification that all institutions participating under the plan will together have available during that year from non-Federal sources for expenditure for extension and continuing education programs not less than the total amount actually expended by those institutions for extension and continuing education programs from such sources during the fiscal year 1965, plus an amount which is not less than the non-Federal share of the costs of community service programs for which Federal financial assistance is requested. The certification shall also state that the State agency has obtained all information including records documenting expenditures necessary to make the above-noted finding and that such documents shall be kept by the State agency and made available to the Commissioner upon request. The certification required under this section shall constitute the basis for the finding required to be made by the Commissioner under section 106(b) of the Act. § 173.23 Fiscal year to which an expend. iture is chargeable. Allotments to a State under this part are made with respect to a fiscal year commencing on July 1 and ending on the following June 30. (a) Except as provided in paragraph (b) of this section, expenditures by the State agency shall be charged against the allotment for the fiscal year in which the expenditure was incurred as determined by State law governing the accounting practices by the State agency. (b) The amount of Federal financial participation in any community service program approved under a State plan shall be charged against the allotment for the fiscal year in which the approval was made and was necessary in order to activate the program in due course, regardless of whether the actual payments to, or expenditures by, the participating institution are made prior or subsequent to the close of that fiscal year. § 173.24 Effective date for allowable expenditures. Except for expenditures by the State agency for development and administration of the State plan or annual amendment thereof, Federal financial participation is made only with respect to amounts expended under an approved I State plan. For the purpose of this part, and absent any contrary notification, the I date on which the original State plan Sor subsequent annual amendments 1 thereto shall be considered to be in effect is the date of approval by the Commissioner. The State agency will be apprised of this effective date in the notice of approval sent to the State agency by the Commissioner. § 173.25 Proration of costs. Federal financial participation is available only with respect to that portion of any eligible costs as defined in § 173.27, attributable to the development and administration of a State plan or the carrying out of any community service program approved thereunder. The State agency and individual participat#ing institutions must maintain records to substantiate the proration of expenditures for all eligible costs. § 173.26 Deviation from estimates. Expenditures will not be considered ineligible for Federal financial participation solely because of minor deviations from the estimate of the amount or nature of the expenditure as set forth in the plan or in required reports submitted thereafter, provided that the expenditures in question are made in connection with a program under an approved State plan, in accordance with the Act and this part, and that the total Federal share under the plan will not exceed the State's allotment. (a) State level. To the extent that they are directly attributable to the development and administration of the State plan or annual amendment thereto, the State agency may receive an amount, not to exceed 5 percent of the total eligible costs for the year for which payment is requested, or $25,000, whichever is greater, to cover the cost of: (1) Salaries of the staff, both professional and clerical, including all amounts deducted or withheld as contributions to retirement, health, or other welfare benefit funds maintained for employees of the State agency; (2) Employer's contributions to retirement, health, workmen's compensation, and other welfare funds maintained for employees of the State agency; (3) Consultants' fees in accordance with State standards; (4) Expenses connected with committees, workshops, and conferences; (5) Travel expenses of staff and consultants thereto, including advisory council members. Travel expenses are limited by travel regulations pertaining to State employees and those considered working with or consulting with the State; (6) Mailing, telephone, and other communications costs; (7) Supplies, printing, and printed materials; (8) Rental of, or, where economically justified, purchase of office equipment and equipment necessary for developing and administering the State plan; and (9) Rental of office space (including the costs of utilities and janitorial services) in privately or publicly owned buildings if (i) the State agency will receive benefits during the period of occupancy commensurate with such expenditures, (ii) the amounts paid by the State agency are not in excess of comparable rental in the particular locality, (iii) the expenditures represent an actual cost to the State agency, and (iv) in the case of publicly owned buildings, like charges are made to other agencies occupying similar space. (b) Participating institutions of higher education—(1) Direct costs. To the extent directly attributable to the carrying out of a community service program, a participating institution of |