be made for an amount equal to the total cost as found necessary by the Secretary for the carrying out of the project. In determining the grantee's share of project costs, costs for which Federal funds from other sources have been or may be claimed or received, or costs used to match other Federal grants unless otherwise authorized by Federal statute, or costs to be met from the Federal share of grant related income (except as may be permitted by Chapter 1-420 of the Department of Health, Education, and Welfare Grants Administration Manual 2) may not be included.

(c) All grant awards shall be in writing, shall set forth the amound of funds granted and the period for which support is recommended.

(d) Neither the approval of any project nor any grant award shall commit or obligate the United States in any way to make any additional, supplemental, continuation or other award with respect to any approved project of portion thereof but this provision shall not preclude the Secretary from making upward adjustments to actual costs as to amounts awarded on a provisional basis. For continuation support, grantees must make separate application periodically at such times and in such form as the Secretary may direct.

§ 59.7 Payments.

The Secretary shall from time to time make payments to a grantee of all or a portion of any grant award, either in advance or by way of reimbursement for expenses incurred or to be incurred to the extent he determines such payments necessary to promote prompt initiation and advancement of the approved project.

$ 59.8 Use of project funds.

(a) Any funds granted pursuant to this subpart shall be expended solely for carrying out the approved project in accordance with the statute, the regulations of this subpart, the terms and conditions of the award, and cost principles set forth in the Department of Health, Education, and Welfare Grants Administration Manual.

(b) Prior approval by the Secretary of revision of the budget and project plan is required whenever there is to be a significant change in the scope or nature of project activities.

2 Available for purchase at the Government Printing Office (GPO 894-523).

§ 59.9 Civil rights.

Attention is called to the requirements of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. 200d et seq.) and in particular section 601 of such Act which provides that no person in the United States shall on the grounds of race, color, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. A regulation implementing Title VI, which applies to grants made under this subpart, has been issued by the Secretary of Health, Education, and Welfare with the approval of the President (45 CFR Part 80).

§ 59.10 Confidentiality.

Each grant award is subject to the condition that all information obtained by the personnel of the project from participants in the project related to their examination, care, and treatment, shall be held confidential, and shall not be divulged without the individual's consent except as may be required by law or as may be necessary to provide service to the individual. Information may be disclosed in summary, statistical, or other form which does not identify particular individuals.

§ 59.11 Inventions or discoveries.

A grant award is subject to the regulations of the Department of Health, Education, and Welfare as set forth in 45 CFR Parts 6 and 8, as amended. Such regulations shall apply to any activity for which grant funds are in fact used whether within the scope of the project as approved or otherwise. Appropriate measures shall be taken by the grantee and by the Secretary to assure that no contracts, assignments or other arrangements inconsistent with the grant obligation are continued or entered into and that all personnel involved in the supported activity are aware of and comply with such obligations. Laboratory notes, related technical data, and information pertaining to inventions and discoveries shall be maintained for such periods, and filed with or otherwise made available to the Secretary or those he may designate at such times and in such manner as he may determine necessary to carry out such Department regulations.

§ 59.12 Publications and copyright.

Except as may otherwise be provided under the terms and conditions of the

award, the grantee may copyright without prior approval any publications, films or similar materials developed or resulting from a project supported by a grant under this subpart, subject, however, to a royalty-free, nonexclusive, and irrevocable license or right in the Government to reproduce, translate, publish, use, disseminate, and dispose of such materials and to authorize others to do so. § 59.13

Grantee accountability.

(a) Accounting for grant award payments. All payments made by the Secretary shall be recorded by the grantee in accounting records separate from the records of all other grant funds, including funds derived from other grant awards. With respect to each approved project the grantee shall account for the sum total of all amounts paid by presenting or otherwise making available evidence satisfactory to the Secretary, of expenditures for direct and indirect costs meeting the requirements of this subpart: Provided, however, That when the amount awarded for indirect cost was based on a predetermined fixed percentage of estimated direct costs, the amount allowed for indirect costs shall be computed on the basis of such predetermined fixed percentage rates applied to the total, or a selected element thereof, of the reimbursable direct costs incurred.

(b) Accounting for equipment, materials, or supplies. Expenditures of grant funds for movable or fixed equipment, materials or supplies, all of which are termed in this paragraph as “material”, may be charged to grant funds as direct costs only to the extent such material is required for the conduct of the approved project. Materiai on hand on the date of termination (excluding expendable supplies within such limitations as the Secretary may prescribe) shall be accounted for, or accountability waived, by one or a combination of the following methods:

(1) Retention of material for other health projects. Material may be used without adjustment of accounts on other projects within the scope of section 1001 of the Act, and no other accounting for such material shall be required: Provided, however, (i) That during such period of use no charge for depreciation, amortization, or for other use of the material shall be made against any existing or future Federal grant or contract, and (ii) if within the period of their useful life the material is transferred by sale or

otherwise for use outside the scope of the Act, the Federal portion of the fair market value at the time of transfer shall be refunded to the Federal Government.

(2) Sale or other disposition of material, crediting of proceeds or value. The material may be sold by the grantee and the net proceeds of sale credited to the grant account for project use, or it may be used or disposed of in any manner by the grantee or crediting to the grant account the Federal share of the fair market value on the termination date. To the extent material purchased from grant funds is used for credit or trade-in on the purchase of new material, the accounting obligation shall apply to the same extent to such new material.

(3) Transfer of title to the Federal Government. To the extent the Secretary so requires or approves, title to material will be transferred to the Federal Government for such authorized use or disposition as he may direct.

a

(c) Accounting for grant related income (1) Interest. Pursuant to section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), State will not be held accountable for interest earned on grant funds, pending their disbursement for grant purposes. A State, as defined in section 102 of the Intergovernmental Cooperation Act, 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 grantees other than a State, as defined in this section, must return all interest earned on grant funds to the Federal Government.

(2) Royalties. Royalties earned from publications or similar material produced from a grant must first be used to reduce the Federal share of the grant to cover the costs of publishing or producing the materials. Royalties in excess of the costs of publishing or producing the materials shall be distributed as in subparagraph (3) of this paragraph.

(3) Other income. Other income earned by the grantee shall be disposed of in accordance with one of the alternatives specified in Chapter 1-420 of the Grants Administration Manual as determined by the Secretary in the grant award.

(d) Grant closeout-(1) Date of final accounting. A grantee shall render, with respect to each approved project, a full account, as provided herein, as of date of the termination of grant support. The Secretary may require other special and periodic accounting.

(2) Final settlement. There shall be payable to the Federal Government as final settlement with respect to each approved project the total sum of:

(i) Any amount not accounted for pursuant to paragraph (a) of this section;

(ii) Any credits for material on hand as provided in paragraph (b) of this section;

(iii) Any credits for earned interest pursuant to paragraph (c) (1) of this section;

(iv) Any other settlements required pursuant to paragraph (c) (2) of this section.

Such total sum shall constitute a debt owed by the grantee to the Federal Government and shall be recovered from the grantee or its successors or assignees by setoff or other action as provided by law.

§ 59.14 Records, reports, and inspection.

(a) Records and reports. Each grant awarded pursuant to this subpart shall be subject to the condition that the grantee shall maintain such operational and accounting records, identifiable by grant number, and file with the Secretary such operational and fiscal reports relating to the use of grant funds, as the Secretary may find necessary to carry out the purposes of the Act and the regulations. All records shall be retained for 3 years after the close of the budget period. Such records may be destroyed at the end of such 3-year period if the applicant has been notified of the completion of the Federal audit by such time. If the applicant has not been so notified, such records shall be retained (1) for 5 years after the close of the budget period or (2) until the grantee is notified of the completion of the Federal audit, whichever comes first. In all cases where audit questions have arisen before the expiration of such 5-year period, records shall be retained until resolution of all such questions.

(b) Inspection and audit. Any application for a grant under this subpart shall constitute the consent of the applicant to inspections of the facilities, equipment and other resources of the

applicant at reasonable times by persons designated by the Secretary and to interview with principal staff members to the extent that such resources and personnel are, or will be, part of the project. In addition, the acceptance of any grant under this Subpart shall constitute the consent of the grantee to inspections and fiscal audits by such persons of the supported activity and of progress and fiscal records relating to the use of grant funds.

§ 59.15

Additional conditions.

The Secretary may with respect to any grant award impose additional conditions prior to or at the time of any award when in his judgment such conditions are necessary to assure or protect advancement of the approved project, the interests of public health, or the conservation of grant funds.

§ 59.16 Early termination and withholding of payments.

Whenever the Secretary finds that a grantee has failed in a material respect to comply with the Act, the regulations of this subpart or any of the assurances thereunder, or the terms of the grant, he may, on reasonable notice to the grantee, withhold further payments, and take such other action, including the termination of the grant, as he finds appropriate to carry out the purposes of the Act and regulations. Noncancelable obligations of the grantee properly incurred prior to the receipt of the notice of termination will be honored. The grantee shall be promptly notified of such termination in writing and given the reasons therefor.

59a.39 Expenditures by grantee.

59a.40 Payments.

59a.41 Accounting for materials.

59a.42

Publications.

59a.43 Copyrights.

59a.44 Interest.

59a.45 Project net income. 59a.46 Final settlement.

Subpart A-Grants for Construction of

Medical Library Facilities

AUTHORITY: The provisions of this Subpart A issued under sec. 392, 79 Stat. 1060; 42 U.S.C. 2806-2; sec. 393, 79 Stat. 1060; 42 U.S.C. 280b-3, and sec. 398, 79 Stat. 1065; 42 U.S.C. 280b-8.

SOURCE: The provisions of this Subpart A appear at 31 F.R. 9499, July 13, 1966, unless otherwise noted.

§ 59a.1 Applicability.

The provisions of this subpart apply to grants for the construction of medical library facilities as authorized by section 393 or section 398 of the Act.

§ 59a.2 Definitions.

(a) All terms not defined herein shall have the same meaning given them in the Act.

(b) "Act" means the Public Health Service Act, as amended.

(c) "Surgeon General" means the Surgeon General of the Public Health Service and any other officer or employee of the Service to whom he delegates the authority involved.

(d) "Grant" means a grant of funds for the construction of medical library facilities as authorized by the Act.

(e) "Equipment" means those items which are necessary for the functioning of the facilities and which are considered depreciable and as having an estimated life of not less than 5 years. Not inIcluded are items of current operating expense such as stationery, binding supplies, catalog cards, or books, pamphlets, and related matter.

§ 59a.3 Eligibility.

In order to be eligible for a construction grant the applicant must:

(a) Meet the requirements of section 393 or section 398 of the Act and (b) Be located in a State.

§ 59a.4 Application.

(a) Forms. An application for a grant shall be submitted on such forms and in such manner as the Surgeon General may prescribe.

(b) Execution. The application shall be executed by an individual authorized to act for the applicant and to assume on behalf of the applicant all of the obligations specified in the terms and conditions of the grant including those contained in these regulations in this subpart.

(c) Plans and specifications. The applicant shall furnish in sufficient detail plans and specifications of the facility to be constructed so as to indicate the nature and purpose of all portions of the facility and the type and quality of any features bearing on the major costs of construction.

(d) Costs. The applicant shall set forth in detail the estimated total costs of construction of the facility and the basis on which such estimate was made.

(e) Capacity and quality of service. The applicant shall furnish information on the extent to which and manner in which the proposed construction will expand the applicant's capacity for medical library services or is necessary to improve or maintain the quality of such service by the applicant or, for the purpose of section 398, will enable it to serve as a regional medical library.

(f) Other information. The applicant shall submit such other information as the Surgeon General may require in order to enable him to act on the application.

§ 59a.5 Approval of grants.

Construction grants under this subpart may be made only if the application therefor is recommended for ap

proval by the National Medical Libraries Assistance Advisory Board and approved by the Surgeon General. The Board shall recommend and the Surgeon General shall approve only applications for facilities which will in their judgment best promote the purposes of the Act. In evaluating applications, the Surgeon General shall give priority to applications for construction of facilities for which the need is greatest taking into consideration

(a) Facility; effective utilization. The provisions made for effective utilization and efficient operation of the proposed facility in order to meet demonstrated needs for additional or improved medical library services.

(b) Existing informational services. The number and geographic distribution of health sciences informational facilities and services in the area in which the proposed construction is to take place.

(c) Service group; proximity. Proximity to health professional schools and other institutions, organizations, or groups the members or representatives of which are likely to have the greatest need for the expanded or additional facilities.

(d) Contribution to attainment of health objectives. The extent to which the applicant has assumed or can assume continuing obligations for providing medical library services on a scale and/ or of a type such as to contribute materially to the attainment of the broad objectives of the Act.

§ 59a.6 Nondiscrimination.

(a) Attention is called to the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) which provides that no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance (sec. 601; 42 U.S.C. 2000d). A regulation implementing Title VI has been issued by the Secretary of Health, Education, and Welfare with the approval of the President (45 CFR Part 80). Grants under this subpart provide Federal financial assistance subject to Title VI of the Civil Rights Act and the regulation promulgated pursuant thereto.

(b) Each grant hereunder is subject to the condition that the grantee shall comply with the requirements of Execu

tive Order 11246, 30 F.R. 12319 (Sept. 24, 1965), and the applicable rules, regulations, and procedures prescribed pursuant thereto.

§ 59a.7 Terms, conditions, and assur.

ances.

(a) In addition to any other requirements imposed by law or determined by the Surgeon General to be reasonably necessary with respect to particular projects to fulfill the purpose of the grant, each construction grant shall be subject to the following terms, conditions, and assurances to be furnished by the applicant. The Surgeon General may at any time approve exceptions to these terms, conditions, and assurances where he finds that such exceptions are not inconsistent with the Act and the purposes of the program.

(b) The applicant shall have a fee simple or such other estate or interest in the site, including necessary easements and rights-of-way, sufficient to assure for a period of not less than 50 years undisturbed use and possession for the purpose of the construction and operation of the facility.

(c) That all construction shall be permanent construction and designed to carry out the purposes of a medical library or regional medical library and that the Surgeon General's approval of the final working drawings and specifications, which conform to the minimum standards of construction and equipment prescribed in § 57.109 of this Chapter, will be obtained before the project is advertised or placed on the market for bidding.

(d) That applicant will perform actual construction work by the lump sum (fixed price) contract method; employ adequate methods of obtaining competitive bidding prior to awarding the construction contract, either by public advertising or circularizing three or more bidders; and award the contract to the responsible bidder submitting the lowest acceptable bid.

(e) The applicant will enter into no construction contract or contracts for the project or a part thereof, the cost of which is in excess of the estimated cost approved in the application for that portion of the work covered by the plans and specifications, without the prior approval of the Surgeon General, will finance all costs in excess of such estimated cost and will submit to the Surgeon General for prior approval changes that substan