Section 2, Calculating the Ratios from the Balance Sheet and Statement of Activities

Balance Sheet

Statement of Activities column:

Total

2

Accounts Receivable

6,000,000

1,500,000

4

Inventories

500,000

Contributions Receivable

2,000,000

6

Student Loans Receivable

8,000,000

7

Investments

6,000,000

Section 3: Calculating the Composite Score

Step 1: Calculate the strength factor score for each ratio, by using the following algorithms

Primary Reserve strength factor score = 10 x Primary Reserve ratio result:

Equity strength factor score = 6 x Equity ratio result:

Because the Net Income ratio result is negative, the algorithm for negative

Example (for Private Non-Profit institutions)

net income is used -- Net Income strength factor score = 1 + (25 x Net Income ratio result):

(Note: If the Net Income ratio result is positive, the following algorithm is used,

Net Income strength factor score = 1 + (50 x Net Income ratio result) -- If the Net Income ratio result is 0, the Net Income strength factor score is 1).

If the strength factor score for any ratio is greater than or equal to 3, the strength factor score for that ratio is 3. If the strength factor score for any ratio is less than or equal to -1, the strength factor score for that ratio is -1.

Step 2: Calculate the weighted score for each ratio and calculate the composite score by adding the three weighted scores

Primary Reserve weighted score = 40% x Primary Reserve strength factor score:

Equity weighted score = 40% x Equity strength factor score:

Net Income weighted score = 20% x Net Income strength factor score:

Round the composite score to one digit after the decimal point to determine the final score:

*The symbol "x" denotes multiplication.

Composite score = sum of all weighted scores:

§669.3 What activities may the Secretary fund?

Centers funded under this part must carry out activities to improve the teaching and learning of foreign languages. These activities may include— (a) The conduct of research on new and improved methods for teaching foreign languages, including the use of advanced educational technology;

(b) The development of new materials for teaching foreign languages, to reflect the results of research on effective teaching strategies;

(c) The development and application of performance testing that is appropriate for use in an educational setting to be used as a standard measurement of skill levels in foreign languages;

(d) The training of teachers in the administration and interpretation of foreign language performance tests, the use of effective teaching strategies and the use of new technologies;

(e) The publication of instructional materials in the less commonly taught foreign languages; and

(f) The widespread dissemination of research results, teaching materials, and improved pedagogical strategies to the postsecondary education community.

(Authority: 20 U.S.C. 1123)

[55 FR 2773, Jan. 26, 1990, as amended at 58 FR 32577, June 10, 1993]

§ 669.4 What regulations apply?

The following regulations apply to this program:

(a) The regulations in 34 CFR part 655.

(b) The regulations in this part 669. (Authority: 20 U.S.C. 1123)

[58 FR 32577, June 10, 1993]

§ 669.5 What definitions apply? The following definitions apply to this part:

(a) The definitions in 34 CFR 655.4.

(b) "Language Resource Center" means a coordinated concentration of educational research and training resources for improving the nation's capacity to teach and learn foreign languages.

(Authority: 20 U.S.C. 1123)

Subpart B [Reserved]

Subpart C-How Does the
Secretary Make a Grant?

§ 669.20 How does the Secretary evaluate an application?

(a) The Secretary evaluates an application for an award on the basis of the criteria contained in §669.21.

(b) The Secretary awards up to 100 possible points for these criteria. However, if the Secretary establishes one or more priorities under §669.22, the Secretary awards up to 120 possible points.

(c) The maximum possible points for each criterion are shown in parentheses.

(Authority: 20 U.S.C. 1123)

§ 669.21 What selection criteria does the Secretary use?

The Secretary uses the following criteria in evaluating applications under this part:

(a) Plan of operation. (15 points) (See 34 CFR 655.31(a))

(b) Quality of key personnel. (20 points) (See 34 CFR 655.31(b))

(c) Budget and cost-effectiveness. (10 points) (See 34 CFR §655.31(c))

(d) Evaluation plan. (5 points) (See 34 CFR 655.31 (d))

(e) Adequacy of resources. (5 points) (See 34 CFR 655.31(e))

(f) Need and potential impact. (30 points) The Secretary reviews each application to determine

(1) The extent to which the proposed materials or activities are needed in the foreign languages on which the project focuses;

(2) The extent to which the proposed materials may be used throughout the United States; and

(3) The extent to which the proposed work or activity may contribute significantly to strengthening, expanding, or improving programs of foreign language study in the United States.

(g) Likelihood of achieving results. (10 points) The Secretary reviews each application to determine

(1) The quality of the outlined methods and procedures for preparing the materials; and

(2) The extent to which plans for carrying out activities are practicable and can be expected to produce the anticipated results.

(h) Description of final form of results. (5 points) The Secretary reviews each application to determine the degree of specificity and the appropriateness of the description of the expected results from the project.

(1) Priorities. (20 points) If, under the provisions of §669.22, the application notice specifies priorities for this program, the Secretary determines the degrees to which the priorities served.

are

(Approved by the Office of Management and Budget under control number 1840-0608)

(Authority: 20 U.S.C. 1123)

[55 FR 2773, Jan. 26, 1990, as amended at 58 FR 32577, June 10, 1993]

§ 669.22 What priorities may the Secretary establish?

(a) The Secretary may each year select funding priorities from among the following:

(1) Categories of allowable activities described in § 669.3.

(2) Specific foreign languages for study or materials development.

(3) Levels of education, for example, elementary, secondary, postsecondary, or teacher education.

(b) The Secretary announces any priorities in the application notice published in the FEDERAL REGISTER. (Authority: 20 U.S.C. 1123)

Subpart D-What Conditions Must Be Met by a Grantee?

§ 669.30 What are allowable equipment costs?

Equipment costs may not exceed fifteen percent of the grant amount. (Authority: 20 U.S.C. 1123)

(a) The Federal Perkins Loan Program, which encourages the making of loans by institutions to needy undergraduate and graduate students to help pay for their cost of education.

(b) The Federal Work-Study (FWS) Program, which encourages the parttime employment of undergraduate and graduate students who need the income to help pay for their cost of education and which encourages FWS recipients to participate in community service activities.

(c) The Federal Supplemental Educational Opportunity Grant (FSEOG) Program, which encourages the providing of grants to exceptionally needy undergraduate students to help pay for their cost of education.

(Authority: 20 U.S.C. 421-429, 1070b-1070b-3, and 1087aa-108711; 42 U.S.C. 2751-2756b)

§673.2 Applicability of regulations.

The participating institution is responsible for administering these programs in accordance with the regulations in this part and the applicable program regulations in 34 CFR parts 674, 675, and 676.

(Authority: 20 U.S.C. 421-429, 1070b-1070b-3, and 1087aa-108711; 42 U.S.C. 2751-2756b)

Subpart B-General Provisions for the Federal Perkins Loan, FWS, and FSEOG Programs

§673.3 Application.

(a) To participate in the Federal Perkins Loan, FWS, or FSEOG programs, an institution shall file an application before the deadline date established annually by the Secretary through publication of a notice in the FEDERAL REGISTER.

(b) The application for the Federal Perkins Loan, FWS, and FSEOG programs must be on a form approved by the Secretary and must contain the information needed by the Secretary to determine the institution's allocation or reallocation of funds under sections 462, 442, and 413D of the HEA, respectively.

(Authority: 20 U.S.C. 1070b-3 and 1087bb; 42 U.S.C. 2752)

$673.4 Allocation and reallocation.

(a) Allocation and reallocation of Federal Perkins Loan funds. (1) The Secretary allocates Federal capital contributions to institutions participating in the Federal Perkins Loan Program in accordance with section 462 of the HEA.

(2) The Secretary reallocates Federal capital contributions to institutions participating in the Federal Perkins Loan Program by

(i) Reallocating 80 percent of the total funds available in accordance with section 462(j) of the HEA; and

(ii) Reallocating 20 percent of the total funds available in a manner that best carries out the purposes of the Federal Perkins Loan Program.