(1) Settlement expenses.-Settlement expenses including the following are generally allowable:

(1) Accounting, legal, clerical, and similar costs reasonably necessary for

(a) The preparation and presentation to awarding agency of settlement claims and supporting data with respect to the terminated portion of the project, and

(b) The termination and settlement of subcontracts; and

(2) Reasonable costs for the storage, transportation, protection, and disposition of property acquired or produced for the project.

(g) Subcontractor claims.-Subcontractor claims, including the allocable portion of claims which are common to the project and to other work of the institution are generally allowable.

43. Trade, business, technical, and professional activity costs.-(a) Memberships.This category includes costs of memberships in trade, business, technical, and professional organizations. Such costs are allowable. (b) Subscriptions.-This

item includes

cost of subscriptions to trade, business, professional, or technical periodicals. Such costs are allowable.

(c) Meetings and conferences.-This item includes costs of meals, transportation, rental of facilities for meetings, and costs incidental thereto, when the primary purpose of the incurrence of such costs is the dissemination of technical information or stimulation of production. Such costs are allowable.

44. Training and educational costs.—(a) The costs of training courses taken by a bona fide employee to acquire basic skills which he should bring to the job or to qualify a person for duties other than those related

(b) Costs of on-the-job training and part-time education, at an undergraduate or postgraduate college level, related to the job requirements of bona fide employees, identified in (1) through (5) below, are allowable.

(1) Training materials;

(2) Textbooks;

(3) Fees charged by the educational institution;

(4) Tuition charged by the educational institution, or in lieu of tuition, instructors' salaries and the related share of indirect cost of the educational institution to the extent that the sum thereof is not in excess of the tuition which would have been paid to the participating educational institution; and

(5) Straight-time compensation of each employee for time spent attending classes during working hours not in excess of 156 hours per year where circumstances do not permit the operation of classes or attendance at classes after regular working hours.

(c) Costs of tuition, fees, training materials and textbooks (but not subsistence,

salary, or any other emoluments) in connection with full-time scientific and medical education at a postgraduate (but not undergraduate) college level related to the job requirements of bona fide employees for a total period not to exceed 1 school year for each employee so trained, are allowable when approved in writing by the awarding agency.

(d) Grants to educational or training institutions, including the donation of facilities or other properties, scholarships, or fellowships, are considered contributions and are unallowable.

45. Transportation costs.-Transportation costs include freight, express, cartage, and postage charges relating either to goods purchased, in process, or delivered. These costs are allowable. When such costs can readily be identified with the items involved, they may be directly costed as transportation costs or added to the cost of such items (see G.22.).

Where identification with the materials received cannot readily be made, inbound transportation costs may be charged to the appropriate indirect cost accounts if the institution follows a consistent, equitable procedure in this respect. Outbound freight, if reimbursable under the terms of the grant or contract shall be treated as a direct cost.

46. Travel costs.-(a) Travel costs include costs of transportation, lodging, subsistence, and incidental expenses, incurred by institution personnel in a travel status while on official business.

(b) Travel costs may be based upon actual costs incurred, or on a per diem or mileage basis in lieu of actual costs, or on a combination of the two, provided the method used does not result in an unreasonable charge. The difference in cost between firstclass and less than first-class air accommodations is unallowable except when less than first-class air accommodations are not reasonably available to meet necessary mission requirements, such as where less than firstclass accommodations would (1) require circuitous routing, (2) require travel during unreasonable hours, (3) greatly increase the duration of the flight, (4) result in additional costs which would offset the transportation savings, or (5) offer accommodations which are not reasonably adequate for the medical needs of the traveler.

(c) Travel costs incurred in the normal course of overall administration of the business are allowable and shall be treated as indirect costs.

(d) Travel costs directly attributable to specific grant or contract performance are allowable and may be charged to the grant or contract in accordance with the principle or direct costing (see section C).

(e) Costs of personnel movement of a special or mass nature are allowable only when authorized or approved in writing by the sponsoring agency.

(20 U.S.C. 1221c(b)), 31 U.S.C. 628.)

SUBCHAPTER B-PROGRAM REGULATIONS 1

PART 101-GRANTS TO LAND GRANT
COLLEGES AND UNIVERSITIES

Sec.

Subpart A

101.1 Purposes for which grants are made. 101.2 Manner in which funds are channeled to the States.

101.3 Forms for reports from land-grant colleges and universities.

101.4 Withholding of grants.

AUTHORITY: 26 Stat. 417, as amended; 7 U.S.C. 321-329; sec. 204, Reorg. Plan No. 1 of 1939; 3 CFR, 1943 Cum. Supp., sec. 5, Reorg. Plan No. 1 of 1953; 3 CFR, 1953 Supp.

SOURCE: 11 FR 177A-545, Sept. 11, 1946, unless otherwise noted. Redesignated at 13 PR. 8785, Dec. 80, 1948.

$101.1 Purposes for which grants are made.

The Morrill, Nelson and BankheadJones appropriations for the land-grant colleges and universities may be applied to instruction in agriculture, the mechanic arts, the English language and the various branches of mathematical, physical, natural, and economic science, with special reference to their applications in the industries of life, and to the facilities for such instruction, and a portion thereof may be used for providing courses for the special preparation of instructors for teaching the elements of agriculture and the mechanic arts.

§ 101.2 Manner in which funds are channeled to the States.

The Federal funds for the land-grant colleges and universities are channeled to the institutions as follows: From a study of the information contained in reports covering the preceding year from the presidents and treasurers of the landgrant colleges and universities together with further investigation if necessary, it is determined whether the several States and Territories are entitled to participate in the Federal appropriations. On or before July 1 each year the Secretary of Health, Education, and Welfare certifies to the Secretary of the Treasury as to each State and Territory whether it is entitled to receive its share of the annual appropriation for the land-grant colleges and universities, and the amount it is entitled to receive. On or before July 31 the Secretary of the Treasury pays to

138 FR 30661, Nov. 6, 1973.

each State and Territory, to the State or Territorial treasurer, or to such officer as has been designated by the laws of the State or Territory to receive it, the amount it is entitled to receive. Immediately upon request of the appropriate officials of the land-grant colleges or universities the State or Territorial treasurers or other officers designated to receive the grants pay the money over to the treasurers of the land-grant institutions.

§ 101.3 Forms for reports from land. grant colleges and universities.

The following forms, prepared by the Office of Education, are used by the presidents and treasurers of the land-grant colleges and universities for their annual reports to the office:

8-041 Part I Staff and Students for the Academic Year. Contains five schedules: A-Staff; B-Students; C-Enrollments and Degrees; D-Distribution of Degrees in Colleges of Arts and Sciences; E-Preparing for Teaching. 104 items. 4 pages.

8-041 Part II Financial Report for the Fiscal Year. Contains five schedules: A-Receipts Specifically Designated for Additions to Physical Plant and Additions to Endowments and to Other Nonexpendable Funds; B-General Income; C-Bond Issues and Other Borrowings; D-Expenditures by Function or Purposes; E-Fund and Plant Values. 58 items. 4 pages.

8-041 Part II Schedule G, Federal Funds. 15 items. 1 page.

8-041 Part III Land-Grant Fund, First Morrill Act of 1862. 19 items. 2 pages.

8-041 Part IV Supplementary Morrill Funds. 1 page. Itemized report of Receipts and Disbursements of Morrill, Nelson and Bankhead-Jones funds.

§ 101.4 Withholding of grants.

In the event that the Secretary of Health, Education, and Welfare withholds certification from a State or Territory of its share of the appropriation, he reports the facts and reasons therefor to the President of the United States and the amount involved is kept separate in the Treasury until the close of the next Congress, in order that the State or Territory may, if it should so desire, appeal to Congress from the determination of the Secretary of Health, Education, and Welfare. If the next Congress does not direct such sum to be paid, it is covered into the Treasury.

102.136 Allowable expenditures for vocational education for disadvantaged persons.

102.137 Allowable expenditures for research and training programs.

102.138 Allowable expenditures for exemplary programs and projects.

102.140 Allowable expenditures for

consumer and homemaking education.

102.141 Allowable expenditures for cooperative vocational education.

102.142 Allowable expenditures for vocational work-study programs. 102.143 Allowable expenditures for State planning, administration, and evaluation.

102.145 Allowable expenditures under more than one State allotment.

Subpart E-Payments and Reports 102.151 Conditions for payments to States. 102.152 Withholding of payments. 102.153 Payment to State advisory council. 102.156 Transfer of allotments.

including vocational education programs, as provided for in § 102.4(g);

(c) Evaluation of programs under the State plan, as provided for in § 102.36;

(d) Training of teachers and other program personnel as provided for in §§ 102.9 and 102.38(b);

(e) Special demonstration and experimental programs;

(f) Development of curricula and instructional materials; and

(g) Research related to any of the services and activities above.

(20 U.S.C. 1262 (a) (8))

"Area vocational education school" means any public school or public institution which falls in any one of the following categories:

(a) A specialized high school used exclusively or principally for the provision of vocational education to persons who are available for study in preparation for entering the labor market; or

(b) The department of a high school exclusively or principally used for providing vocational education in no less than five different occupational fields to persons who are available for study in preparation for entering the labor market; or

(c) A technical or vocational school used exclusively or principally for the provision of vocational education to persons who have completed or left high school and who are available for study in preparation for entering the labor market; or

(d) The department or division of a junior college or community college or university which provides vocational education in no less than five different occupational fields, under the supervision of the State board, leading to immediate employment but not necessarily leading to a baccalaureate degree.

An "area vocational education school" shall be available to all residents of the State or an area of the State designated and approved by the State board. In the case of a technical or vocational school described in subparagraph (c) of this paragraph or a division of a junior college or community college or university described in subparagraph (d) of this paragraph, such school must admit as regular students both persons who have completed high school and persons who have left high school. (20 U.S.C. 1248(2))

"Consumer and homemaking education" means education designed to help individuals and families improve home environments and the quality of personal and family life, and includes instruction in food and nutrition, child development, clothing, housing, family relations, and management of resources with emphasis on selection, use, and care of goods and services, budgeting, and other consumer responsibilities.

(20 U.S.C. 1341)

"Cooperative vocational education program" means a cooperative work-study program of vocational education for persons who, through a cooperative arrangement between the school and employers, receive instruction, including required academic courses and related vocational instruction by the alternation of study in school with a job in any occupational field, but these two experiences must be planned and supervised by the school and employers so that each contributes to the student's education and to his employability. Work periods and school attendance may be on alternate halfdays, full-days, weeks, or other periods of time in fulfilling the cooperative vocational education work-study program.

(20 U.S.C. 1248(1), 1355)

"Disadvantaged persons" means persons who have academic, socioeconomic, or other handicaps that prevent them from succeeding in vocational education or consumer and homemaking programs designed for persons without such handicaps, and who for that reason require specially designed educational programs or related services. The term includes persons whose needs for such programs or services result from poverty, neglect, delinquency, or cultural or linguistic isolation from the community at large, but does not include physically or mentally handicapped persons (as defined in this section) unless such persons also suffer from the handicaps described in this paragraph.

(20 U.S.C. 1262(a) (4) (A))

"Employment" means lawful work in a recognized or new or emerging occupation.

(20 U.S.C. 1248(1), 1263 (a) (6) (A))

"Funds", unless otherwise specified, means any funds available for expenditure under the State plan, whether de