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CHAPTER XII-UNITED STATES TRAVEL SERVICE,
DEPARTMENT OF COMMERCE
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.
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