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CHAPTER XII-UNITED STATES TRAVEL SERVICE,

DEPARTMENT OF COMMERCE

Part 1200

Issuance of grants to promote travel to States or their political subdivisions

by foreign residents.

PART 1200_ISSUANCE OF GRANTS lic Law 91-477 authorized the U.S. Travel TO PROMOTE TRAVEL TO STATES

Service to make matching Federal grants OR THEIR POLITICAL SUBDIVISIONS

to States or their political subdivisions, or

private or public nonprofit organizations, BY FOREIGN RESIDENTS

in an effort to encourage foreign resiSec.

dents to visit the United States and to 1200.1 Background and purpose.

upgrade and improve the tourist host and 1200.2 Definitions.

reception facilities in this country there1200.3 Applications for Federal grant for

by furthering the stated purposes of the travel promotional projects.

Act. 1200.4 Action on application. 1200.5 Grant accounting and records.

$ 1200.2 Definitions. 1200.6 Reports. 1200.7 Inspection and audit.

(a) “Act" means the International 1200.8 Publications.

Travel Act of 1961, as amended (22 U.S.C. 1200.9 Collection of information.

2121 et seq.). 1200.10 Termination.

(b) “Assistant Secretary” means the 1200.11 Repayment.

Assistant Secretary of Commerce for 1200.12 Federal coordination.

Tourism or such official as may be desAUTHORITY: The provisions of this part ignated to act in his behalf. 1200 issued pursuant to Public Law 87–63, as (c) “State" means one of the several amended by Public Law 88–426 and Public

States of the United States, the District Law 91-477; Department of Commerce Organization Order 10–7 of November 12, 1970.

of Columbia, the Commonwealth of

Puerto Rico, the Virgin Islands, Guam, SOURCE: The provisions of this Part 1200 appear at 36 F.R. 17036, Aug. 27, 1971, unless

American Samoa, and the Trust Terriotherwise noted.

tory of the Pacific Islands.

(d) “Political subdivision” means а $ 1200.1 Background and purpose.

unit of local government, including speThe regulations in this part are issued cifically, a county, municipality, city, under the authority of the International

town, township, or other special district Travel Act of 1961, as amended. The pur

created by or pursuant to law. pose of the Act is to strengthen the do

(e) "Private or public non-profit ormestic and foreign commerce of the United States; promote friendly under

ganizations" means an institution, orgastanding and appreciation of the United

nization, or association, either private States by encouraging foreign residents

or public, which has tax exempt status to visit the States, as defined in § 1200.2;

as defined in section 501(a) of the Inand facilitate international travel in

ternal Revenue Code. general. On October 21, 1970, the Act was (f) “Applicant” means a State or politamended by Public Law 91-477. One of ical subdivision or combination thereof, the amendments made to the Act by Pub- or private or public nonprofit organization seeking a Federal grant for a travel from the U.S. Travel Service. This appromotional project.

66-032-72 30

plication form incorporates assurances (g) "Travel promotional project” of compliance with the nondiscriminameans an activity or program designed to tion requirements of title VI of the Civil enhance a State or political subdivision Rights Act of 1964 (42 U.S.C. 2000d-1 et as a desired travel destination of resi- seq.) and implementing regulations dents of foreign countries or to inform ($ 8.1 et seq. of this title). Also, the form such residents and to encourage them shall contain the date, address, and offito visit a State or political subdivision

cial title of the applicant and shall be through such means as:

signed by an authorized representative. (1) Preparing and disseminating ma

(d) Every application, except where terials, including brochures, leaflets,

specifically waived by the Assistant Secbooklets, posters, and displays featuring

retary, shall be accompanied by the foldomestic regional and local attractions

lowing exhibits: in appropriate foreign languages in for

(1) Exhibit No. 1. A statement setting eign cities and countries that constitute

forth in detail the current level of toura potential travel market to the States;

ism in area in terms of (i) numbers of (2) Carrying out either singly or in

tourists in area, both foreign and doconjunction with other States and/or

mestic; (ii) impact of tourism on area other political subdivisions and/or with

economy (i.e., employment and income); U.S. Travel Service, special promotions

and (iii) current efforts to develop and of facilities, attractions, events and sery

promote tourism in area. ices of an area by means of exhibits,

(2) Exhibit No. 2. A project statement shows, films, etc.;

setting forth in detail the existing need (3) Planning, developing and sponsor

for Federal assistance, the goals and obing advertising campaigns in foreign

jective thereof, in terms of tourism recountries to inform and encourage for

ceipts and their effects on area jobs and eign residents to visit;

income, the specific methods proposed (4) Undertaking projects to upgrade

for accomplishing these objectives in and improve tourist facilities and sery

terms of personnel and funds and the ices to better serve the foreign resident;

procedures that will be used to evaluate (5) Carrying out other projects that

the project. indicate a high probability of increasing

(3) Exhibit No. 3. A statement setting foreign tourism;

forth in detail the budget proposed for (h) "Matching funds” means funds

the project, together with procedures for that are provided by the State or polit

fiscal control, funding, accounting and ical subdivision or by a combination

auditing to assure proper disbursement thereof, or from other non-Federal

of funds paid to the applicant. sources and may include fees, contri

(4) Exhibit No. 4. Documentation esbutions, donations, gifts of money, and

tablishing that the applicant has coordispecial user charges from persons and

nated the travel promotion project with private profit or nonprofit firms, organi

other States (when regional cooperation zations, or institutions.

is desirable) and with other publicly sup§ 1200.3 Applications for Federal grant

ported activities within the States or for travel promotional projects.

political subdivision, as appropriate, and

the extent and manner in which such (a) Each applicant seeking a Federal

coordination has been carried out by grant for à travel promotional project shall file an application, as further speci

identifying such projects and activities

and indicating how any duplication of fied below, with the Assistant Secretary.

other travel promotion project in the (b) Every application, exhibit, or en

area has been avoided. closure, except where specifically waived

(5) Exhibit No. 5. Certification by the by the Assistant Secretary, shall be in

Governor of the State or the chief politquadruplicate, duly authenticated and

ical officer of the political subdivision or referenced, and addressed to the As

the president of the private or public sistant Secretary of Commerce for Tour

nonprofit organization, as the case may ism, U.S. Travel Service, U.S. Depart

be, that the applicant hasment of Commerce, Washington, D.C.

(i) Established adequate standards 20230.

and rules to insure that no officer or (c) Every application shall be on

employee of the State or political subUSTS Form, “Request for Travel Promo

division or their designated agencies, or tion Project Grant,” which is available

private or public organization, shall re

ceive compensation from sources other than his employer for tourism development or promotional services for which funds are provided under the Act and that no such officer or employee shall otherwise maintain any private interest in conflict with his public responsibility. Each applicant will furnish a copy of the standards and rules which are established to avoid any conflict of interest in connection with the administration of a grant which may be made under the Act. Such rules shall clearly set forth the standards and procedures which officers, employees, and consultants can follow to avoid any conflict of interest.

(ii) Determined that matching funds will be available from States or other non-Federal sources. In addition, each applicant shall indicate the basis for the determination by identifying such sources.

(iii) Determined that such travel promotional project supported by a grant under the Act does not provide or arrange transportation for, or accommodations to, persons traveling between foreign countries and the States in competition with any private business engaged in providing or arranging for such transportation and accommodations.

(iv) Planned no services specially related to a particular firm or company, public work or other capital project ex.cept insofar as the services are of general .concern to the industry and commerce of the State or political subdivision. If the applicant has planned services which are specially related to a particular firm or company, public work or other capital project, a statement shall be furnished by the applicant to the Assistant Secretary describing such services and the basis for the determination that such services are of general concern to the industry and commerce of the State or political subdivision. § 1200.4 Action on application.

(a) Upon receipt of an application, the Assistant Secretary shall designate an employee of the U.S. Travel Service who will investigate the application and accompanying exhibits for compliance with the provisions of § 1200.3 and report his findings with respect thereto to the Assistant Secretary.

(b) The Assistant Secretary, within a reasonable time after receipt of the report referred to in paragraph (a) of this section, may authorize a grant to the applicant provided he finds that (1) the

travel promotional project is designed to carry out the purposes of the Act; (2) the project will facilitate and encourage travel to the State or political subdivision or combination thereof by foreign residents; and (3) matching funds will be available from State or other nonFederal sources.

(c) In no event shall the amount of any grant made under the regulations of this part for any travel promotion project exceed 50 percent of the total cost of the project. $ 1200.5 Grant accounting and records.

(a) Accounting for grant funds shall consist of any generally accepted accounting system and internal control procedures, including provisions for audit, provided that they meet the following requirements:

(1) Separate ledger accounts are established for each grant or grant project which conforms to or permits ready identification with grant budget categories. Such accounts should provide separate and specific accountability of receipts, expenditures, and balances. Separate accounts may be maintained for each annual period, but are not required.

(2) Supporting records of project expenditures are maintained in sufficient detail and itemization to show the exact nature of each expenditure. Such records should clearly indicate to which major budget category and subitems within the category an expenditure is charged.

(3) Reimbursements of travel expenses are supported by vouchers containing the signature of the individual performing the travel and the person authorized by the applicant to approve such travel. Vouchers should show the starting point and destination of travel, dates of travel, itemization of amounts expended for transportation and a statement of the amounts expended for transportation and a statement of the amount of per diem due (not to exceed the per diem authorized by the State or political subdivision or the rate of $25 per day (whichever is less)).

(4) Each expenditure is referenced to a supporting purchase order, contract, voucher, invoice, or bill, properly approved. Special voucher forms are not necessary since ordinarily the documents used by a designated agency to support expenditures from its own funds will be sufficient. Whenever possible, separate orders should be issued for purchases

charged to grant funds in order that bills Secretary within 90 days after the official or invoices will not contain items charged termination date of the grant (a) a final to other funds.

financial report, and (b) a descriptive (5) Grant number, account number, report describing and evaluating the date, and expense classification are iden- project accomplishments. tified on invoices or vouchers charged to

$ 1200.7 Inspection and audit. other funds.

(6) Payroll authorizations are main- (a) The Assistant Secretary and the tained to effect control on salaries and Comptroller General of the United wages charged against grant funds. States, or any of their duly authorized These authorizations shall be approved representatives, shall have access for the by the appropriate authority in the State purpose of audit and examination, any or political subdivision.

books, documents, papers, and records of (7) Some objective evidence of time the designated agency that are pertinent devoted to the grant project is main

to Federal assistance received under the tained. As a minimum, a statement

Act. should be prepared at the end of each

(b) Financial records must be kept on pay period showing the names of em

file for a minimum of 3 years following ployees, the percentage of time each the termination of the grant. The redevoted to grant projects, the gross quired retention period may be extended amounts of salaries and approval by ap

by written notification by the Assistant propriate authority in the designated Secretary. agency.

§ 1200.8 Publications. (8) Adequate records are maintained supporting charges for fringe benefits,

(a) If the applicant desires to publish such as pensions, retirement, social se

information resulting from the grant, the curity tax (FICA), etc., when included in

general provisions accompanying the the project budgets.

grant will contain regulations regard(9) All canceled checks are filed and

ing acknowledgment and disclaimer are readily accessible for examination.

requirements. When cash disbursements are made, they

(b) A determination as to responsibilmust be supported by receipts approved

ities will be made on a case-by-case basis; by appropriate authority.

however, the Government reserves a non(10) The accounting system is ade

exclusive license to use and reproduce for quate to permit immediate identification

Government purposes, without payment, of project balances and funds in general

any publishable matter or information accounts, or separate bank accounts may

collected, including copyrighted matebe established for project funds.

rial, arising out of the applicant's (11) Inventory records are maintained

activities, for all equipment purchased with grant $ 1200.9 Collection of information. funds.

If the applicant collects information (12) The applicant receiving Federal funds under the Act shall require all sub

from the public on its own initiative in

connection with a research or other gencontractors to provide documentation covering receipt and expenditure of grant

eral purpose project, it will not, without and matching funds for which the desig

prior written approval of the Assistant nated agency is held responsible.

Secretary, in any way represent that the (13) The grant accounting system pro

information is being collected by or for a

Federal agency. vides for adequate internal audits and the use of written policies and instruc- $ 1200.10 Termination. tions defining accounting policies, pro

(a) Grants may be terminated, in cedures and controls.

whole or in part, by the Assistant Secre(14) All income from project activity

tary if he finds that any of the follow(sale of publications, entrance fees, user ing conditions exist: charges, etc.) is accounted for and clearly (1) The applicant, or those with identified in financial reports.

whom such agency has contracted or $ 1200.6 Reports.

subcontracted, is not complying with the

provisions of the Act, with the regulaFinancial reports and descriptive re- tions in this part, or with any of the ports will be required as the Assistant

provisions of the grant; or Secretary may specify. Each applicant is (2) Any funds paid to the applicant also required to submit to the Assistant under the provisions of the Act or the

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