26(b), as well as the following additional criteria:

(1) The extent to which the target area of the project is characterized by having a percent of youths from low-income families residing or attending school in the area that exceeds the minimally acceptable 25 percent;

(2) The number of youths who are eligible to be served by a project who reside or attend schools in the target area; (3) The extent to which the applicant has successfully carried out a project that was funded under the Talent Search Program or was comparable or identical to those authorized under this part, which resulted in (i) a significant increase in the rate of postsecondary admissions, (ii) a significant decrease in the rate of secondary and postsecondary school dropouts, and (iii) a significant increase in the number of secondary and postsecondary dropouts who re-entered secondary and postsecondary educational programs;

(4) The extent to which the project will, in the target area, increase the rate of secondary school completion and postsecondary admissions, decrease the rate of secondary school dropouts, and increase the number of secondary and postsecondary dropouts who reenter secondary and postsecondary educational programs;

(5) The comprehensiveness of the applicant's plan for (i) identifying and selecting eligible participants and assessing and documenting their potential for postsecondary education, (ii) providing career and academic guidance and counseling, (iii) disseminating information on student financial aid to the target population, (iv) assisting youths in gaining admission or readmission to secondary schools and postsecondary institutions which have adequate supportive services, if needed by the participants, (v) assisting youths enrolling in postsecondary institutions in obtaining student financial aid, and (vi) determining whether the participants actually enrolled in secondary programs or postsecondary institutions and whether participants enrolled in postsecondary institutions received adequate financial aid; (6) The reasonableness of the allocation of resources among the proposed project activities;

(7) The extent to which the applicant has provided for the orientation of secondary and postsecondary schools in the

target area to the goals and objectives of the Talent Search Program and has received written commitments by community and other relevant organizations for the utilization of community and other resources to supplement authorized activities;

(8) The quality of the applicant's plan to evaluate the effects of project services on the enrollment of participants in postsecondary educational programs with adequate financial aid and on the return of participants to secondary and post secondary educational programs;

(9) The extent to which the proposed budget reflects the activities to be undertaken; and

(10) The adequacy of (i) the project's staffing pattern, (ii) the required professional qualifications and experience, the duties and the salary range for each professional category and (iii) the plan for staff selection and in-service training.

(d) National demonstration projects. The Commissioner will select a limited number of applications to be funded as Talent Search national demonstration projects on the basis of the criteria set forth in paragraph (c) of this section and the following additional criteria:

(1) Whether the proposed project is national or inter-regional in scope or presents a clearly new or experimental technique or design for the provision of Talent Search services to eligible participants;

(2) Whether the proposed project 'does not duplicate nor compete with existing regional or national programs, nor consolidate existing regional or inter-regional educational activities under the aegis of a single agency or institution;

(3) Whether, with regard to proposed projects presenting a new or experimental technique or design, the proposed acitivities and results can be readily replicated and utilized by other educational programs concerned with the programs concerned with the provision of services to similar youths;

(4) Whether the proposed project will provide services not readily available on a local or regional basis to such youths; and

(5) Whether the proposed project will provide disadvantaged students a variety of educational opportunities and options for postsecondary education. (20 U.S.C. 1070d-1)

§ 159.8 Project activities and servicesproject requirements.

(a) Each project funded under this part shall be designed to assist youths with academic potential from lowincome families to complete secondary school and enroll with adequate financial aid in postsecondary institutions and shall provide the following services:

(1) Collection and dissemination of information regarding the variety of postsecondary educational opportunities, student financial aid, academic assistance and career options available to project participants;

(2) Counseling and guidance to each project participant with regard to the appropriate postsecondary institution for that person;

(3) Counseling with regard to career options available to project participants; and

(4) Assistance to project participants in applying for (i) admission to postsecondary institutions, (ii) readmission to secondary schools, or postsecondary institutions with adequate supportive services if needed by project participants, and (iii) student financial aid.

(b) Each project shall: (1) Identify and serve a minimum of 1,000 youths, except that projects serving sparsely populated or geographically isolated areas need not serve 1,000 youths but must serve at least 500 youths;

(2) Develop and utilize an assessment process, which includes the results of standardized measurement instruments or other verifiable indicators to determine when needed, each participant's interests, career goals, and academic potential;

(3) In the target area, develop and implement a strategy to (i) increase significantly the secondary school completion rate, the postsecondary school admissions rate and, with regard to dropouts, the secondary and postsecondary readmission rates and (ii) decrease significantly the secondary school dropout rates;

(4) Not duplicate services offered by an Educational Opportunity Center, another Talent Search project or other similar programs in the target area and, if practicable, shall share facilities, staff, services and activities;

(5) Establish cooperative relationships with service agencies in the target area which have resources needed by the project participants;

(6) Establish a direct relationship with educational institutions to determine admission requirements, filing and deadline dates for the submission of admission and financial aid applications, course requirements, and appropriate supportive services available for project participants;

(7) Engage (i) a full-time project director with demonstrated administrative skills and a clear commitment to the goals of the program, who will be authorized to conduct the project effectively and to expend project funds as required, and (ii) a staff that has adequate professional qualifications and commitment to carry out the proposed activities and services;

(8) Provide necessary in-service training to the project staff;

(9) Determine (i) whether each participant admitted to a secondary or postsecondary institution actually enrolled in that institution and (ii) whether participants enrolled in postsecondary institutions received adequate financial assistance; and

(10) Evaluate the effects of project services on (i) increasing the rates of secondary school completion, postsecondary admissions and secondary and postsecondary dropouts' re admission to secondary and postsecondary educational programs and (ii) decreasing the rates of secondary and postsecondary school dropouts.

(20 U.S.C. 1070d-1)

(5) Provide disadvantaged youth a variety of educational opportunities and options for postsecondary education. (20 U.S.C. 1070d-1)

§ 159.10 Allowable costs.

(a) The Commissioner will pay those costs that are reasonably related to carrying out the project.

(b) Costs that may not be charged against the project include:

(1) Tutoring or any instructional costs;

(2) Tuition, fees, stipends or other forms of direct financial support for youths participating in project activities;

(3) Application fees for enrollment or financial aid;

(4) Duplication of services that are otherwise provided by the institution or agency sponsoring the project or by such local agencies as vocational rehabilitation centers and social service organization;

(5) Construction, major remodeling or major repair; and

(6) Meals and lodging for project participants.

(c) Grantees under this part will be allowed indirect costs as authorized in accordance with item 4c, Appendix A, parts 100 thru 100d of this title (General Provisions for Office of Education Programs).

(20 U.S.C. 1070d-1)

§ 159.11 Salary and wage rates.

(a) The salaries paid to project staff under this part shall be comparable to the salaries paid to persons with similar positions within the sponsoring institution or agency.

(b) The minimum rate of compensation that may be paid to project employees, including students, shall be the minimum wage required under any applicable Federal, State, or local law. (20 U.S.C. 1070d-1)

§ 159.12 Participant records.

Projects shall develop and utilize a data collection system which allows the project to establish accurate participant records. Such records shall include, but are not limited to the following:

(a) The method used to select the participant;

(b) The participant's high school transcripts and all available aptitude and achievement test scores;

(c) Documentation of the participants' eligibility to receive services under the project;

(d) Documentation of counseling services received by the student;

(e) Documentation of visits made to postsecondary institutions;

(f) Documentation of assistance provided the participant in applying for admission to postsecondary institutions and for student financial aid;

(g) The postsecondary institutions which accepted the participant for admission and the one in which he or she enrolled;

(h) The amount and type of student financial aid received by the participant; and

(i) The participant's age, sex, race, family income, grade level and permanent address.

In accordance with the cost principles set forth in Appendix C to parts 100 through 100d of this title, the following travel is authorized: (a) Travel to enable youths (i) to visit campuses of postsecondary institutions which are in reasonable proximity to the project's target area, (ii) to participate in "College Days" or their equivalent or (iii) to observe and meet with persons who are employed in various career fields and who work within reasonable proximity to the target area;

(b) Staff travel to professional and educational conferences specifically related to project development and

(c) Other travel specifically approved by the Commissioner in writing and in advance of such travel.

(20 U.S.C. 1070d-1)

standards of such an agency or association within a reasonable time, or

(2) Is an institution whose credits are accepted for credit, on transfer, by not less than three accredited institutions, on the same basis as if transferred from an accredited institution.

Such an institution also means any school which provides not less than a one year training program to prepare students for gainful employment in a recognized occupation and which meets the provisions of paragraphs (a), (b), (d), and (e) of this section.

"Local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State or such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary schools. The term also includes any other public institution or agency having administrative control and direction of a public elementary or secondary school.

"State" means, in addition to the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands.

"State educational agency" means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or, if there is no such officer or agency, an officer or agency designated by the Governor or by State law.

(20 U.S.C. 1851-53)

§ 160.4 Types of projects.

(a) Section 4(b) of the Act provides that not less than 50 percent of the funds appropriated pursuant to the Act shall be reserved for the following priority programs:

(1) The metric education program authorized by section 403 of Pub. L. 93-380, as described in Part 160a of this chapter; (2) The program for education of gifted and talented children authorized by section 404 of Pub. L. 93-380, as described in Part 160b of this chapter;

(3) The community education program authorized by section 405 of Pub.

L. 93-380, as described in Part 160c of this chapter;

(4) The career education program authorized by section 406 of Pub. L. 93-380, as described in Part 160d of this chapter;

(5) The consumers' education program authorized by section 811 of the Elementary and Secondary Education Act of 1965, as amended, as described in Part 160e of this chapter;

(6) The women's educational equity program authorized by section 408 of Pub. L. 93-380, as described in Part 160f of this chapter; and

(7) The arts in education program authorized by section 409 of Pub. L. 93-380, as described in Part 160g of this chapter.

(b) Funds reserved pursuant to paragraph (a) of this section will be apportioned for each priority program in paragraphs (a) (1) through (7) of this section in the same ratio as the total amount authorized for sections 403, 404, 405, 406, 408 and 409 of Pub. L. 93-380 and section 811 of the Elementary and Secondary Education Act of 1965 as amended, bears to the individual amount authorized for each program in those sections except that not less than $750,000 of the funds reserved pursuant to paragraph (a) of this section will be available for purposes of the program of arts education described in paragraph (a) (7) of this section.

(c) (1) Funds appropriated to carry out the Act which are not reserved pursuant to paragraph (a) of this section will be available for activities described in the appendix to this part.

(2) It is expected that the funding activities described in the appendix to this part will be modified from time to time (with appropriate amendments to the appendix to this part) in accordance with spending plans prepared by the Commissioner pursuant to section 4(b) (1) of the Act.

(20 U.S.C. 1851-53, 1861-67, 887d; Sen. Rep. No. 1026, 93rd Cong., 2d Sess., 172 (1974)) § 160.5 Use of grants or contracts.

(a) With respect to funds which are reserved for priority programs pursuant to § 160.4(a), the Commissioner will select between grant and contract procedures and instruments in accordance with the provisions of Parts 160a through 160g of this chapter, as applicable.

(b) With respect to funds appropriated to carry out the Act which are not reserved pursuant to § 160.4(a), the Com