If for any reason the grantee discontinues an approved project, the grantee shall notify the Regional Commissioner and the State agency in writing, giving the reasons for termination, an accounting of funds granted for the project, and other pertinent information. The grant may be terminated in whole or in part, at any time at the discretion of the Adminstrator. The grantee and the State agency will be given prompt notice of the termination, including the reasons therefor. Such termination shall not affect obligations incurred prior to the termination of the grant. Upon termination or completion of a project, the proportion of unexpended funds attributable to the Federal grant shall be refunded. Subpart F-Technical Assistance to Rehabilitation Facilities

§ 404.65 Furnishing of technical assist

ance.

Technical assistance authorized in section 13 (c) of the act will be furnished, directly, or by contract with State vocational rehabilitation agencies or experts or consultants or groups thereof to provide technical assistance and consultation to public and other nonprofit rehabilitation facilities. Such technical assistance may be in such areas as the provision of medical, psychological, social, vocational, and other rehabilitation services within rehabilitation facilities; the utilization of subprofessional and support personnel within rehabilitation facilities; vocational evaluation and work adjustment techniques and practices; plant layout, contract procurement wage standards, industrial engineering, systems accounting, planning for efficient production on new contracts, work simplification, labor relations, and quality control.

§ 404.70

Appointment and composition. The National Policy and Performance Council shall consist of 12 members not otherwise in the full-time regular employ of the United States and appointed by the Secretary without regard to civil service laws. The Secretary shall, from time to time, appoint one of the members to serve as chairman. The appointed members shall be selected from among leaders in the vocational rehabilitation and workshop fields, State and local government, business and from among representatives of related professions, labor leaders, and the general public. § 404.71 Term of office.

Each appointed member shall hold office for a term of 4 years except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor is appointed shall be appointed for the remainder of such term; and except that, of the members first appointed, three shall hold office for a term of 3 years, three shall hold office for a term of 2 years, and three shall hold office for a term of 1 year, as designated by the Secretary at the time of appointment. No

member of the Council shall be eligible for reappointment until a year has elapsed after the end of his preceding term.

§ 404.72 Duties.

The Council shall (a) advise the Administrator with respect to the policies and criteria to be used in determining whether or not to make grants for projects for training services under Subpart H of this part; (b) make recommendations with respect to rehabilitation facility improvement and the extent to which the program under Subpart E of this part is effective in accomplishing its purpose, especially insofar as it relates to rehabilitation facilities which are or which contain workshops; and (c) perform such other services with respect to rehabilitation facilities which are which contain workshops as the Administrator may request. The Administrator shall make available to the Council such technical, administrative, and other assistance as it may require to carry out its functions.

§ 404.73 Per diem payments.

or

Appointed members of the Council, while attending meetings or conferences thereof or otherwise serving on business of the Council, shall be entitled to receive compensation at a rate to be fixed by the Secretary, but not exceeding $100 per day, including travel time, and while so serving away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code for persons in the government service employed intermittently.

Subpart H-Grants for Projects for Training Services

lated services, including work evaluation, work testing, provision of occupational tools and equipment required by an individual to engage in such training, and job tryouts; and (3) payment of weekly training allowances to individuals receiving such training and related services.

(b) "Training in occupational skills" means a planned and systematic sequence of instruction under competent supervision which is designed to impart predetermined skills and knowledge with respect to a specific occupational objective or a job family, and to assist the individual to adjust to a work environment through the development of appropriate patterns of behavior.

(c) "Work evaluation" means the appraisal of the individual's capacity (1) to adjust to a work environment, (2) to acquire occupational skills, and (3) to attain appropriate vocational goals.

(d) "Work testing" means the utilization of work simulated or real, to assess the individual's productive, physical, and psychological capacity to adapt to a work environment.

(e) "Job tryouts" means work experience, within a rehabilitation facility or in conjunction with outside industry or other community resources to assist the individual to acquire knowledge and develop skills, and to assess his readiness for job placement or fitness to engage in a specific occupation.

§ 404.77 Eligible applicants.

States and public and other nonprofit organizations and agencies shall be eligible to apply for grants for projects for training services. A State agency may apply for a grant for use in a rehabilitation facility operated or designated by the State agency.

§ 404.78 Qualification of rehabilitation facilities.

A basic condition for the receipt of a grant is that the rehabilitation facility, to be involved in the provision of training services, shall meet the following requirements: (a) It is a public or private nonprofit rehabilitation facility; (b) it has been in operation at least 1 year; (c) it will provide training courses in occupational skills (with the major portion of each course being provided within the rehabilitation facility) and related services including work evaluation, work testing, and job tryouts and the major portion of each of these items with the exception of job tryouts, will be pro

vided within the rehabilitation facility; (d) it meets applicable safety standards prescribed by regulation of the Secretary of Labor; (e) it substantially meets the standards promulgated by the Administrator with the advice of the National Policy and Performance Council; and (f) it prepares trainees for gainful employment.

§ 404.79 Application procedure.

(a) Application for a project for training services shall be in the form and detail required by the Administrator. In the case of an applicant other than a State vocational rehabilitation agency, the application shall be reviewed by the appropriate State agency, and forwarded to the Regional Commissioner for review for approval. In the case of an application by a State agency, the application shall be submitted to the Regional Commissioner. Where the Social and Rehabilitation Service considers that an application has grant potential, it shall arrange for a survey of the facility which Iwill be the site of the training services project.

(b) The Social and Rehabilitation Service will notify each applicant in writing of the action taken on its application.

§ 404.80 Application content.

The application for a grant shall: (a) Describe how the project will be organized including designation of a project director; (b) describe the role of the State agency in the project and its relationship with the facility in which the training is to be provided, including the determination by the State agency as to whether individuals are suitable for and in need of training services; (c) describe the rehabilitation facility in which the training will be provided, giving information on, (1) the kinds of training to be provided in relationship to employment possibilities, the manner in which this training will be provided, and the length of the various training programs, (2) the staff and the qualifications of the staff that will be assigned to the project, as well as other supportive resources available, and (3) the methods to be followed in the development of the individualized training program for each trainee based upon his specific needs, capacities, interests, and other relevant factors; (d) specify the duration of the project; (e) set forth a budget for the project; (f) describe the procedures that

will be followed for the placement and follow up of trainees in gainful employment upon completion of training; (g) contain an agreement tc make such reports and to keep such records as the Administrator may require and to make such records and accounts available for audit purposes; (h) where the training will be provided in a private, nonprofit rehabilitation facility which is or which contains a workshop, give assurance that applicable Federal and State wage and hour standards will be observed or, where the training will be provided in a rehabilitation facility which is or which contains a workshop and is operated by a State, county, or municipal government, give assurance that the rehabilitation facility will comply with wage and hour standards specified by the Administrator, which will be at least equal to those imposed by the Fair Labor Standards Act, as amended; (i) give assurance that the rehabilitation facility will meet safety standards prescribed by regulation of the Secretary of Labor; (j) give assurance that the rehabilitation facility will substantially meet the standards promulgated by the Administrator with the adIvice of the National Policy and Performance Council; (k) state the source, or sources, of non-Federal funds; and (1) include such other information as the Administrator may require.

§ 404.81

Assurances from applicant.

The applicant shall submit with his application assurances that (a) weekly training allowances will not reduce, but will supplement, any wages or other remuneration due a trainee, and the amount of the payment for the weekly training allowance will be identified and disbursed separately from any payment representing wages or other remuneration due a trainee, (b) no trainee will remain in training when it is determined that he is no longer making reasonable progress (as indicated by regular training progress reports) toward the completion of his traininig program or the development of a capability for gainful employment, or in any event for more than 2 years, (c) in the event any portion of the training services is performed outside the designated rehabilitation facility the applicant will retain responsibility for the quality of such services, and (d) the full range of training services will be made available to each trainee to the extent of his need for such services.

§ 404.82 Site survey of rehabilitation facilities.

A site survey will be made prior to final determination of an application that is considered to have grant potential in order to determine whether the proposed project facility meets applicable safety standards prescribed by regulations of the Secretary of Labor and substantially meets standards promulgated by the Administrator with the advice of the National Policy and Performance Council. A site survey may also be made whenever the Administrator deems it necessary in connection with the project. The survey shall be conducted by a team competent in the field of rehabilitation facilities. The team shall include two or more of the following: (a) A representative of the State agency, (b) a person from an operating rehabilitation facility, other than the applicant, (c) technical assistance consultants from Social and Rehabilitation Service panels, or (d) other qualified persons except that where a State agency is the applicant, no officer or employee of such agency shall participate on the survey team. A written report of the survey in the form and detail required by the Administrator shall be submitted to the Social and Rehabilitation Service.

404.83 Selection of individuals to enter a project for training services.

The individuals to receive training services under a project will include only individuals who have been certified as eligible pursuant to § 401.30 (b) of this chapter and have been determined, by the appropriate State agency of the State in which the rehabilitation facility is located, to be suitable for and in need of such training services.

§ 404.84

Weekly training allowances.

(a) A weekly training allowance shall be available to each trainee, except that such allowance shall not be paid for any period in excess of 2 years and for any week shall not exceed $25 plus $10 for each of his dependents, or $65, whichever is less. Dependents shall be included whose relationship to the trainee is that of spouse, parent, child under the age of 21 (including an adopted child or stepchild), or handicapped child whose dependency is related to the handicap, and who are living in the same home with the trainee.

(b) The amount of the weekly training allowance shall be determined in

accordance with §§ 404.85 and 404.86. It is anticipated that ordinarily the trainee will receive the maximum allowance of $25 per week for himself, but such allowance may be adjusted pursuant to the provisions of § 404.86. In view of the incentive factor, however, the adjusted weekly training allowance available to a trainee shall not be less than $10 per week. To the extent that the weekly training allowance is paid for dependents, the amount shall be $10 per week for each dependent.

(c) The State agency shall make final determination, after consultation with the project facility and in accordance with the training services plan, with respect to (1) the amount of the weekly training allowance and (2) any adjustment to be made in the amount of the allowance.

§ 404.85 Factors considered in determining the amount of weekly training allowances.

In determining the amount of such allowance the following factors shall be considered: (a) The extent of the need for the allowance, including any expenses reasonably attributable to receipt of training services, (b) the extent to which the allowance will help ensure entry into and satisfactory completion of training and (c) the extent which the allowance will motivate the trainee to achieve a better standard of living. § 404.86

Factors considered in adjustment of weekly training allowances. (a) Adjustment in the weekly training allowances may be made at any time during the individual's training period and the amount of the allowance shall be reviewed periodically. The project facility may propose the adjustment, but the final determination shall be made by the State agency.

(b) In considering whether adjustment is appropriate the following factors will be considered: (1) Whether the trainee is earning a wage, (2) the relationship of the amount of wages, if any, to the amount of the allowance, (3) any other material change in the economic condition of the individual or his family, and (4) the effect of any adjustment on the incentive of the trainee.

§ 404.87 Federal financial participation.

(a) Federal financial participation will be available only in those costs set forth in the approved application for a

training services project. Such costs may include (1) compensation costs (including salary and fringe benefits) of fulltime or part-time employees of the project, (2) travel costs of such employees for travel essential to the project, (3) the purchase or rental of supplies, equipment, and materials necessary for the project, (4) indirect costs, if the rehabilitation facility is not operated by the State agency, (5) telephone, postage, and other communication costs, (6) in the case of a grant to a State agency, services provided through purchase or other contractual arrangement with a rehabilitation facility (not operated by the State agency) as set forth in the approved application provided such service costs include only items permitted by direct grant, (7) the purchase of psychological and other tests and testing materials to be used in the work evaluation of trainees, (8) the purchase of occupational tools and equipment required by trainees, to engage in training and job tryouts such tools and equipment to remain the property of the rehabilitation facility, (9) the payment of weekly training allowances, and (10) other costs as may be approved in the application. Federal financial participation shall be at the rate of 90 per centum of approved costs.

(b) Federal financial participation shall not be available to pay costs of acquiring, constructing, expanding, remodeling, or altering any building.

§ 404.88 Grant awards.

All grant awards shall be in writing, shall set forth the amount of funds granted, and shall constitute for such amounts the encumbrance of Federal funds available for such purposes on the date of the award. The initial award shall also specify the project period for which support is contemplated if the activity is satisfactorily carried out and Federal funds are available. For continuation support, grantees must make separate application in the form and detail required by the Administrator.

§ 404.89 Payments.

Payments of the Federal share of an approved training services project may be made in installments, and in advance for estimated costs of operation or by way of reimbursement to the grantee and shall be subject to such requirements as the Administrator may establish.

§ 404.90 Interest.

Pursuant to section 203 of the Intergovernmental Cooperation Act of 1968 (Public Law 90-577), a State, as defined in section 102 of that Act, will not be held accountable for interest earned on grant funds, pending their disbursement for program purposes. A State, as defined in the Intergovernmental Cooperation Act, section 102, means any one of the several States, the District of Columbia, Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State, but does not include the governments of the political subdivisions of the State. All other grantees must return to the Social and Rehabilitation Service all interest earned on grant funds.

If for any reason the grantee discontinues an approved project, the grantee shall notify the Social and Rehabilitation Service in writing, giving the reasons for termination, an accounting of funds granted for the project, and other pertinent information. The grant may be terminated, in whole or in part, at any time at the discretion of the Administrator. The grantee will be given prompt notice of the termination, including the reasons therefor. Such termination shall not affect obligations incurred prior to the termination of the grant. Upon termination or completion of a project, the proportion of unexpended funds attributable to the Federal grant shall be refunded.

§ 404.94 Factors considered in evaluating proposals.

In evaluating proposals for grants for projects for training services a number of factors will be considered by the Social and Rehabilitation Service such as: The distribution of training services projects among the regions; the types of disability groups served; the merit of a proposal in