tion of studes enrolled in nonprofit private schools to the extent consistent with the number of students enrolled in such schools in the area to be served by the program or project whose educational needs are of the type which the program or project is designed to meet, and in accordance with the requirements in 45 CFR 102.7;

(4) Adequacy of qualifications and experience of personnel designated to carry out the program or project, including unique and relevant experiences in lieu of formal degrees and certification requiring such degrees;

(5) A justification of the amount of grant or contract funds requested;

(6) The portion of the cost, if any, to be borne by the applicant;

(7) Such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the applicant which meet the requirements of § 103.44;

(8) Such program accountability and evaluation procedures as may be necessary to assure that the purposes of the program or project are being accomplished which meet the requirements of § 103.45; and

(9) An assurance that no fees or charges will be collected from students as a condition of enrollment or participation in or completion of any training or instruction offered in the program or project; and

(10) Such other pertinent information as the Commissioner may require.

(b) Copies of applications shall be submitted simultaneously to the Commissioner, and to the State board for its review. The Commissioner will not approve any grant or contract for a proposed program or project if the State board has notified the Commissioner of its disapproval of such program or project within 60 days of its submission to the State board by the applicant.

(c) The application shall be executed by an individual authorized to act for the applicant. Applications and requests for information shall be sent to: Division of Vocational and Technical Education, Bureau of Adult, Vocational and Technical Education, U.S. Office of Education, Washington, D.C. 20202.

cation has been reviewed by a panel of experts and specialists, and in accordance with such other procedures as the Commissioner may establish. Such review will take into account such factors as:

(a) Potential impact on reducing the level of youth unemployment;

(b) Extent of focus on problem areas of major importance in (1) creating bridges between school and earning a living for young people, (2) promoting cooperation between public education and manpower agencies, (3) broadening occupational aspirations and opportunities for youths, and (4) training persons for new careers in public service occupations;

(c) Extent of emphasis on youths who have academic, socioeconomic, or other handicaps;

(d) Relevance to priority areas in vocational education as reflected in the Act;

(e) Utilization of procedures that appear practical and feasible for wide application in vocational education;

(f) Utilization of new approaches and tested innovations which have emerged from recent research and development work; and

(g) Soundness of the proposed plan of operation, including consideration of the extent to which:

(1) The objectives of the proposed program or project are sharply defined, clearly stated, capable of being attained by the proposed procedures, and capable of being measured;

(2) The procedures for achieving the objectives are appropriate, technically sound, and explained in detail;

(3) Provisions are made for adequate evaluation of the effectiveness of the program or project and for determining the extent to which the objectives are accomplished;

(4) Provisions are made for the genuine and meaningful participation of students enrolled in nonprofit private schools;

(5) Provisions are made for coordinating the activities of the proposed program or project with others having the same or similar purposes;

(6) Provisions are made for disseminating the results of the program or project and for making materials, techniques, and other outputs resulting therefrom available to all those concerned with the improvement of vocational and technical education.

(h) Adequacy of facilities, equipment, and materials for carrying out the proposed program or project;

(1) Adequacy of qualifications and experience of personnel designated to carry out the program or project, including unique and relevant experiences in lieu of formal degrees and certification requiring such degrees;

(j) Reasonableness of estimated cost in relation to anticipated results;

(k) Adequacy of the steps described for insuring that successful aspects of the program or project will be incorporated into vocational education programs supported with other funds; and

(1) Sufficiency of size, scope, and duration of program or project so as to make a significant contribution to vocational education.

§ 103.26 Distribution of grants and contracts among the States.

Grants and contracts to eligible applicants located in any one State will be awarded by the Commissioner only from funds allotted to that State pursuant to section 142 (b) of the Act and available to the Commissioner under section 142(c) of the Act.

§ 103.27 Disposition of applications.

On the basis of his review of an application pursuant to § 103.25, the Commissioner will either (a) approve the the application in whole or in part, (b) disapprove the application, or (c) defer action on the application for such reasons as lack of funds or a need for further review. Any deferral or disapproval of an application shall not preclude its reconsideration or resubmission. The Commissioner will notify the applicant and the applicable State board in writing of the disposition of the application. If the Commissioner awards a grant, the grant award document will incorporate the grant terms and conditions in subpart E of this part and include such other provisions as are appropriate. If the Commissioner awards a contract, the contract award document shall include whatever provisions are required by Federal law or regulations, or may be deemed necessary or desirable for the achievement of the purposes of the Act.

The purpose of part I of the Act is to enable the Commissioner to provide appropriate assistance to State and local educational agencies in the development of curriculums for new and changing occupations, and to coordinate improvements in, and dissemination of, existing curriculum materials.

§ 103.32 Eligible programs and projects.

Funds available under section 191 of the Act may be used by the Commissioner to award grants and contracts to eligible applicants for programs and projects having the following purposes:

(a) To promote the development and dissemination of vocational education curriculum materials for use in teaching occupational subjects, including curriculums for new and changing occupational fields such as public service;

(b) To develop standards for curriculum development in all occupational fields;

(c) To coordinate efforts of the States in the preparation of curriculum materials and prepare current lists of curriculum materials available in all occupational fields;

(d) To survey curriculum materials produced by other agencies of Government, including the Department of Defense;

(e) To evaluate vocational-technical education curriculum materials and their uses; and

(f) To train personnel in curriculum development.

§ 103.33 Eligible applicants.

(a) The following categories of agencies or institutions are eligible for grants or contracts under this subpart:

(1) Colleges or universities;
(2) State boards; and

(3) Other public or private agencies or institutions, provided that no grant may be made to other than a nonprofit agency or institution.

(b) Individuals are not eligible for such grants or contracts.

(a) Any applicant eligible for a grant or contract under § 103.33 may file on or before the cutoff date or dates announced by the Commissioner for each fiscal year an application in accordance with such forms and instructions as may be prescribed by him. Such an application shall contain

(1) A description of the nature, duration, purpose, and plan of the program or project;

(2) The qualifications of the principal staff who will be responsible for the program or project;

(3) A justification of the amount of grant or contract funds requested;

(4) The portion of the cost, if any, to be borne by the applicant;

(5) Such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the applicant which meet the requirements of § 103.44;

(6) Such program accountability and evaluation procedures as may be necessary to assure that the purposes of the program or project are being accomplished which meet the requirements of § 103.45;

(7) Evidence of consultation on the proposed program or project with the State board, State advisory council, and other appropriate State education agencies, if any; and

(8) Such other pertinent information as the Commissioner may require.

(b) The application shall be executed by an individual authorized to act for the applicant. Applications and requests for information shall be sent to: Division of Vocational and Technical Education, Bureau of Adult, Vocational and Technical Education, U.S. Office of Education, Washington, D.C. 20202.

§ 103.35 Review of applications.

The Commissioner will not approve any application for a grant or contract under this subpart unless and until such application has been reviewed by the Commissioner in accordance with such procedures as he may establish and after consultation with the National Advisory Council on Vocational Education. Such review will take into account such factors as:

(a) Relevance to priority areas in vocational education as reflected in the Act;

(b) Adequacy of qualifications and experience of personnel designated to carry out the program or project, including unique and relevant experiences in lieu of formal degrees and certification requiring such degrees;

(c) Adequacy of facilities;

(d) Reasonableness of estimated cost in relation to anticipated results;

(e) Expected potential for utilizing the results of the proposed programs or projects in vocational education programs, including exemplary programs;

(f) Soundness of the proposed plan of operation, including consideration of the extent to which:

(1) The objectives of the proposed program or project are sharply defined, clearly stated, capable of being attained by the proposed procedures, and capable of being measured;

(2) The procedures for achieving the objectives are appropriate, technically sound, and explained in detail;

(3) Provisions are made for adequate evaluation of the effectiveness of the program or project and for determining the extent to which the objectives are accomplished; and

(4) Provisions are made for disseminating the results of the program or project and for making materials, techniques, and other outputs resulting therefrom available to all those concerned with the improvement of vocational and technical education.

§ 103.36

Disposition of applications.

On the basis of his review of an application pursuant to § 103.35, the Commissioner will either (a) approve the application in whole or in part, (b) disapprove the application, or (c) defer action on the application for such reasons as lack of funds or a need for further review. Any deferral or disapproval of an application shall not preclude its reconsideration or resubmission. The Commissioner will notify the applicant and the applicable State board in writing of the disposition of the application. If the Commissioner awards a grant, the grant award document will incorporate the grant terms and conditions in subpart E of this part and include such other provisions as are appropriate. If the Commissioner awards a contract, the contract award document shall include whatever provisions are required by Federal law or regulations, or as may be deemed necessary or desirable for the achievement of the purposes of the Act.

The amount of the grant shall be set forth in the grant award document. The total cost to the Government for the performance of the program or project will not exceed the amount set forth in the grant award document or any appropriate modification thereof. The Government shall not be obligated to reimburse the grantee for costs incurred in excess of such amount unless or until the Commissioner has notified the grantee in writing that such amount has been increased and has specified such increased amount in a revised grant award document pursuant to § 103.43. Such revised amount shall thereupon constitute the revised total cost of the performance of the program or project.

(a) All payments made with respect to each grant shall remain available for expenditures during the budget period specified in the grant award document or until otherwise terminated in accordance with § 103.51. Such period may be extended by revision of the grant without additional funds pursuant to paragraph (b) of this section.

(b) When it is determined that special or unusual circumstances will delay the completion of the program or project for more than 3 months beyond the period for which the grant is awarded, the grantee shall in writing request the Commissioner to extend such period and shall indicate the reasons therefor.

(c) Notwithstanding the provisions of paragraphs (a) and (b) of this section, no financial assistance may be given under part D of the Act to any program or project for a period exceeding 3 years.

(a) In order for a grant to be materially changed, or for the amount of the grant award to be increased pursuant to § 103.41, the grantee shall submit to the Commissioner a written request therefor. Minor deviations of specific amounts of expenditures among categories from those estimated in the budget set forth in the grant award document will not require revision of such application.

(b) Requests for revisions shall be submitted in writing and reviewed by the Commissioner. Such revisions may be initiated by the Commissioner if, on the basis of reports, it appears that Federal funds are not being used effectively, or if changes are made in Federal appropriations, laws, regulations, or policies governing such grants.

§ 103.44 Fiscal accounting and auditing procedures.

(a) Fiscal accounting. The grantee shall maintain accounts, records, and other evidence pertaining to all costs incurred, and revenues or other applicable credits acquired in connection with the grant. The system of accounting employed by the grantee shall be in accordance with generally accepted accounting procedures and will be applied in a consistent manner so that expenditures under the grant may be clearly identified.

(b) Noncommingling. With respect to exemplary programs and projects under subpart C of this part, the system of accounting employed by the grantee shall also include accounting methods which assure that each expenditure of Federal funds made available under the grant or contract can be separately identified as such in order that the Federal funds will not be commingled with State or local funds so as to lose their identity as Federal funds.

(c) Cost sharing records. When the grant award requires cost sharing, the grantee shall maintain records which demonstrate that its contributions to the program or project are not less, in proportion to the charges against the grant, than the amount specified in the grant award document, or any subsequent revision thereof.

(d) Auditing records. Each grantee shall make appropriate provision for the auditing of the program or project expenditure records referred to in para

graphs (a) and (c) of this section. Such audits shall be in accordance with generally accepted auditing standards, which shall be no less in scope and coverage than those standards which may be prescribed by the Department. Such expenditure records, the reports of such audits, and other records relating to the grant shall be subject to inspection and audit by the auditors of the Federal Government at all reasonable times during the period of retention provided for in § 103.47.

(e) Adjustments. Each grantee shall, in maintaining program or project expenditure accounts, records, and reports, make any necessary adjustments to reflect refunds, credits, underpayments, or overpayments, as well as any adjustments resulting from administrative reviews and audits by the Federal Government or by the grantee. Such adjustments shall be set forth in the financial reports filed with the Commissioner. § 103.45 Program accountability and evaluation procedures.

Each program or project proposal shall include an evaluation plan to be carried out by a third party for the purpose of evaluating the effectiveness of the program or project. Such plan shall describe the steps by which the grantee will:

(a) Determine the extent to which the objectives of the program or project have been accomplished;

(b) Determine what factors either enabled or precluded the accomplishment of these objectives; and

(c) Promote the inclusion of the successful aspects of the program or project into vocational education programs supported with funds other than those provided under the grant.

§ 103.46 Allowable costs.

(a) Except as otherwise indicated in paragraph (b) of this section, allowable costs for any approved grant shall be determined in accordance with, and governed by, the principles and procedures set forth in the following documents and any other Federal requirements concerning cost determination as may be applicable:

(1) Bureau of the Budget Circular A-21 and implementing instructions of the Department, if the grantee is an educational institution;

(2) Bureau of the Budget Circular A-87 and implementing instructions of the Department, if the grantee is a State or local government organization;

(3) Exhibit X-2-66-1 of the Department of Health, Education, and Welfare Grants Administration Manual, if the grantee is a hospital; or

(4) Exhibit X-2-68-1 of the Department of Health, Education, and Welfare Grants Administration Manual, if the grantee is a nonprofit agency or institution other than a hospital or an educational institution, or a State or local government organization.

(b) With respect to training programs, as defined in § 103.3(j)

(1) There may be included in direct costs for payments to training program participants only those allowances provided for in § 103.47, and

(2) Indirect costs incurred by grantees other than State and local governmental entities shall be based on actual indirect costs or a fixed rate of 8 percent of allowable direct costs (including the allowances referred to in subparagraph (1) of this paragraph), whichever is less.

(c) Travel allowances to other than training program participants shall be paid in accordance with applicable State and local laws and regulations and agency and institutional practices. If there are no such applicable laws, regulations, and practices, travel cost shall be in accordance with the Standardized U.S. Government Travel Regulations (Bureau of the Budget Circular No. A−7). No foreign travel will be authorized under the grant unless prior approval is obtained from the Commissioner. § 103.47

Subsistence and travel allowances for training program participants.

(a) Subject to the conditions set forth therein, the grant award document may provide that training program participants will upon application therefor receive subsistence allowances from the grantee. Such allowances shall not exceed $75 per week for the duration of the program.

(b) Allowances may also be paid for participant travel cost for one round trip between each participant's home and the place at which the training program is conducted. Such allowance shall not exceed 8 cents per mile by private transportation or the tourist air or coach