tory notes, related technical data and information pertaining to inventions or 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. § 52.23 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 research project supported by a grant under this part, subject, however, to a royalty-free, nonexclusive license or right in the Government to reproduce, translate, publish, use, disseminate, and dispose of such materials and to authorize others to do so. [35 F.R. 5470, Apr. 2, 1970] § 52.24 Records, reports, inspections. (a) Records and reports. Each grant award pursuant to § 52.14 shall be subject to the condition that the grantee shall maintain such progress and fiscal records, and file with the Secretary such progress and fiscal reports relating to the conduct and results of the approved project and the use of grant funds as the Secretary may prescribe. Such records shall be retained, as follows: (1) Records may be destroyed 3 years after the end of the budget period if audit by or on behalf of the Department of Health, Education, and Welfare has occurred by that time. (2) If audit by or on behalf of the Department of Health, Education, and Welfare has not occurred by that time, the records must be retained until audit or until 5 years following the end of the budget period, whichever is earlier. (3) In all cases an overriding requirement exists to retain records until resolution of any audit questions relating to individual grants. (b) Inspection and audit. Any application for a grant award filed pursuant to § 52.12 shall constitute the consent of the applicant to inspections at reasonable times by persons designated by the Secretary of the facilities, equipment and other resources of the applicant and to interviews with principal staff members to the extent such resources and personnel will be, or are, involved in the project. In addition, the accep tance of any grant award under § 52.14 shall constitute the consent of the grantee to inspections and fiscal audit by such persons of the supported activity and of progress and fiscal records relating to the approved project. [28 F.R. 10420, Sept. 26, 1963, as amended at 35 F.R. 5470, Apr. 2, 1970. Redesignated at 35 F.R. 5469, Apr. 2, 1970] § 52.25 Nondiscrimination. Attention is called to the requirements of title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. 2000d et seq.) and in particular section 601 of such act which provides that no person in the United States shall, on account 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. Regulations implementing Title VI have been issued by the Secretary of Health, Education, and Welfare with the approval of the President (45 CFR Part 80) and apply with respect to research project grants awarded under this part. [35 F.R. 5470, Apr. 2, 1970] The Secretary may with respect to any grant award or class of awards 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 the public health, or the conservation of grant funds. [28 F.R. 10420, Sept. 26, 1963. Redesignated at 35 F.R. 5469, Apr. 2, 1970] Subpart D-Expenditures by § 52.30 Allocation of costs. Except as may otherwise be provided by or pursuant to the regulations of this part, the allocation of expenditures by a grantee as between direct and indirect costs shall be in accordance with generally accepted and established accounting practices and in accordance with the same policies and methods that the grantee applies to all its research and related activities whether self-sponsored or supported by contracts or grants. § 52.31 Direct costs in general. Funds granted for the direct costs of an approved project may be expended by the grantee for personal services, (a) Purpose and nature. The amount awarded for indirect costs is provided for the purpose of meeting the approved project's share of the general administrative and other overhead expenses of the grantee. Indirect costs are those which, because of their incurrence for common or joint objectives, are not readily identified with individual research projects. Expenditures representing an institution's auxiliary services or supportive activities to research, such as personnel management, accounting or purchasing, and the cost of the usual utilities or the normal maintenance and protection of the grantee's facilities, shall not be charged as direct costs, unless because of special circumstances such a charge is specifically approved by the Secretary in advance of expenditure. (b) Determination of amount of award for indirect costs. Subject to such maximum amounts or percentages as may be prescribed by law and to accountability as provided in § 52.41, the amount of any award for the indirect costs of any project shall be calculated by the Secretary either (1) on the basis of his estimate of the actual indirect costs reasonably related to the approved project, or (2) on the basis of a percentage of all, or a portion of, the estimated direct costs of the approved project when there are reasonable assurances that the use of such percentage will not exceed the approximate actual indirect costs. § 52.33 Particular direct costs. (a) Personal services. The costs of personal services are payable from grant funds substantially in proportion to the time or effort the individual devotes to carrying out the approved project. In such proportion, such costs may include all direct costs incident to such services, such as salary during vacations and re tirement and workmen's compensation charges, in accordance with the requirements applicable by law to the grantee and where in accordance with the policies and accounting practices consistently applied by the grantee to all its activities. (b) Equipment and materials. The cost of acquiring materials or fixed or movable equipment not available to the grantee for the approved project but required for its execution may be charged to grant funds as a direct cost. Such acquisition may be by lease or other arrangement for use during the project period or by outright purchase subject to accounting as provided in § 52.42. Such costs may include those incurred for delivery, installation and maintenance services. (c) Travel costs. Costs of travel of individuals engaged in carrying out the approved project may be payable as direct costs where such travel is required by the nature of the project, such as field surveys or studies or transportation of patients participating in a project conducted at a central clinic or other place. Not chargeable as direct costs are expenses for staff attendance at scientific meetings or conferences not related in the judgment of the Surgeon General to advancing the approved project. To the extent the grantee has not established rules or policies which it uniformly applies regardless of source of funds in determining the amounts and types of reimbursable travel expenses, the Standardized Government Travel Regulations shall be applied in determining the amount of grant funds chargeable for travel expenses. (d) Alterations and renovations. The costs of altering or renovating buildings or other structures in which the approved project is to be, or is being, conducted may be charged as direct costs to the extent such alteration or renovation is essential to the accomplishment of the specific objective of such project. Such costs may not include enlarging or adding to such structures or the erection of new structures. Whenever grant funds are used in whole or in part to defray the costs of any contract for alterations or renovation and the contract amount is in excess of $10,000 the grantee and such contract shall be subject to and comply with all the requirements of Executive Order 11246 of September 24, 1965, as amended (30 F.R. 12319), relating to nondiscrimination in employment by the contractor, unless such contract is otherwise exempt pursuant to the provisions of such crder. (e) Publication costs. Costs required to assure effective publication or other distribution of the research results of any approved project may be charged as direct costs. Where such costs relate to charges imposed by scientific journals, they may be payable from grant funds only where they are imposed without discrimination relating to the source of support and, if assessed to secure early or accelerated publication date, only where the Secretary determines in advance that such acceleration is of significant value to the public health. [28 F.R. 10420, Sept. 26, 1963, as amended at 35 F.R. 5470, Apr. 2, 1970] Subpart E-Grantee Accountability § 52.40 Date of final accounting. In addition to such other accounting as the Secretary may require, a grantee shall render, with respect to each approved project, a full account, as provided herein, as of a termination date which shall be either (a) the end of the project period as determined pursuant to § 52.13(b) or its extension as provided in § 52.20 (c), or (b) the date of any termination of grant support as provided in § 52.15, whichever first oc curs. § 52.41 Accounting for grant award payments. With respect to each approved project the grantee shall account for the sum total of all amounts paid under § 52.14 (e) by presenting or otherwise making available vouchers or any other evidence satisfactory to the Secretary of expenditures for direct and indirect costs meeting the requirements of Subpart D of this part: Provided, however, That where in accordance with § 52.32(b) (2) the amount awarded to an educational institution 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. Such predetermined fixed-percentage rates may also be applied in accounting for awards to noneducational institutions to the extent such application is deemed by the Secretary to protect adequately the interests of the Government. [31 F.R. 13445, Oct. 18, 1966] § 52.42 Accounting for equipment, materials or supplies. Expenditures of grant funds for movable or fixed equipment, materials or supplies, termed in this subpart "materials", may be charged to grant funds as direct costs only to the extent such materials are required for the conduct of the approved project during the project period. Any materials 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: (a) Waiver of equipment accountability. Where the grantee is an organization within the terms of the Act of September 6, 1958 (72 Stat. 1793; Public Law 85-934), the obligation to account for the value of any fixed or movable equipment may be waived by the Secretary as provided by such Act. (b) Retention for other health research projects. If the grantee is other than an individual, the materials may be used, without adjustment of accounts, in other research projects within the scope of § 52.10, and no other accounting for such materials shall be required: Provided, however, (1) That during such period of use no charge for depreciation, amortization or for other use of the materials shall be made against any existing or future Federal grant or contract, and (2) if within the period of their useful life the materials are transferred by sale or otherwise for use outside the scope of § 52.10, the fair market value at the time of transfer shall be payable to the United States. (c) Sale or other disposition; crediting of proceeds or value. The materials may be sold by the grantee and the net proceeds of sale credited to the grant account for project use, or they may be used or disposed of in any manner by the grantee by crediting to the grant account their fair market value on the termination date. To the extent materials purchased from grant funds have been used for credit or "trade-in" on the purchase of new materials, the accounting obligation shall apply to the same extent to such new materials. (d) Transfer to the United States. To the extent the Secretary so requires or Any interest earned through any deposit or investment by the grantee of the funds paid pursuant to § 52.14(e) shall be paid to the United States as such interest is received by the grantee. § 52.44 Project net income. Except as may otherwise be provided pursuant to regulations of the Department of Health, Education, and Welfare with respect to income from patentable inventions or discoveries, the Secretary may impose on any grant award or class of grant awards conditions that will assure return to the United States of its equitable share of any net income derived by the grantee from the activity supported by grant. § 52.45 Final settlement. There shall be payable to the United States as final settlement with respect to each approved project the total sum of (a) any amount not accounted for pursuant to § 52.41, (b) any credits for materials on hand as provided in § 52.42, and (c) any credits for earned interest and for net income of the project pursuant to §§ 52.43 and 52.44. Such total sum shall constitute a debt owed by the grantee to the United States and shall be recovered from the grantee or its successors or assignees by setoff or other action as provided by law. PART 53-GRANTS, LOANS LOAN GUARANTEES FOR AND CON 84-001-72-9 Rehabilitation facilities (new construction). Public health centers (new construction). Modernization. Subpart J-Allotments for Modernization Grants and for Loans and Loan Guarantees, and Transfer of State Allotments Allotments for modernization grants. 53.91 53.92 53.102 Size of facilities for long-term care. Subpart L-Services for Persons Unable to Pay; Community Service; Nondiscrimination (c) "State agency" means the agency designated by a State pursuant to section 604(a) (1) of the Act. (d) "Service area" means the geographic territory from which patients come or are expected to come to existing or proposed hospitals or existing or proposed public health centers, or existing or proposed medical facilities (i.e., facilities for long-term care, outpatient facilities, rehabilitation facilities), the delineation of which is based on such factors as population distributon, natural geographic boundaries, and transportation and trade patterns, and all parts of which are reasonably accessible to existing or proposed hospitals, public health centers, or medical facilities. When appropriate, interstate areas may be formed with the mutual agreement of the States concerned. (f) "General hospital" means any hospital for short-term inpatient medical or surgical care of illness or injury, which may include obstetrical care. (g) "Mental hospital" means a hospital (including long-term care, intensive care, or both) for the diagnosis and treatment of mental illness. (h) "Tuberculosis hospital" means a hospital for the diagnosis and treatment of tuberculosis. (i) "Facility for long-term care" means a facility (including an extended care facility) providing community service for inpatient care for convalescent or chronic disease patients who require skilled nursing care and related medical services (1) Which is a hospital (other than a hospital primarily for the care and treatment of mentally ill or tuberculosis patients) or is operated in connection with a hospital, or (2) In which such nursing care and medical services are prescribed by, or are performed under the general direction of, persons licensed to practice medicine |