share and the total expenditures for the purposes for which the Federal share is paid.

(2) The non-Federal share of expenditures under the State plan may be computed on a statewide basis and may come from any source other than Federal assistance so long as these expenditures are made to further the purposes of the State plan approved under this part.

(Sec. 307; 20 U.S.C. 1206)

§ 426.62 What are the maintenance of effort requirements of the program?

(a) (1) To be eligible for Federal funds a State shall maintain its fiscal effort.

(2) A State shall expend for adult education from non-Federal sources an amount equal to the fiscal effort of the State in the preceding fiscal year.

(3) A State may determine its fiscal effort on a per student basis or on a total expenditure basis.

(b) The Secretary does not make any payment to a State in any fiscal year unless the Secretary finds that the fiscal effort of a State for adult education for the preceding fiscal year was not less than the fiscal effort expended for adult education purposes during the second preceding fiscal year. (Sec. 307; 20 U.S.C. 1206)

§ 426.63 How is a maintenance of effort waiver granted?

(a) During the life of the Act, the Secretary may waive for one fiscal year only the maintenance of effort requirement in section 307(b) of the Act if the Secretary determines it would be equitable to do so in view of exceptional and unforeseen circumstances affecting the State.

(b) (1) If a State educational agency wishes to receive a waiver from the maintenance of effort requirement under § 426.62(a) of these regulations, the State educational agency shall submit a request for a waiver with its three-year State plan or as an amendment to the plan.

(2) A State educational agency shall include in the request for a waiver the reason for the request and any additional information the Secretary may require.

(Sec. 431A (GEPA); 20 U.S.C. 1232-1)

§ 426.64 What are exceptional and unforeseen circumstances?

(a) The Secretary considers exceptional and unforeseen circumstances to include situations in which the local educational agency or the State had no control of the events resulting in decreased expenditures but made a reasonable effort in a timely fashion to comply with the maintenance of effort requirement of the Act.

(b) Exceptional and unforeseen circumstances include, but are not limited to, the following situations:

(1) A sudden, substantial reduction in available revenue due to

(i) A natural or man-made disaster; (ii) The unforeseen removal of property from the tax roll by government action; or

(iii) The unforeseen departure of an industrial or commercial facility.

(2) A sudden and substantial diversion of available revenue to other purposes outside the control of the local educational agency or the State.

(3) Decreased expenditures by the State that are directly attributable to strikes involving educational or service personnel or both.

(4) Reductions of services to adults that are directly attributable to energy shortages or conservation measures resulting in a general reduction of educational services throughout the State or any of its local educational agencies.

(Sec. 431A (GEPA); 20 U.S.C. 1232-1)

§ 426.65 How is maintenance of effort computed in the event of a waiver?

(a) In any case in which the Secretary grants a waiver to a State under these regulations, the Secretary reduces the amount of the Federal payment to that State for the current fiscal year in the exact proportion to which the fiscal effort of the State was less than 100 percent of its fiscal effort for the second preceding fiscal year. For example, if a State, having received a waiver under this section, reduced its expenditures in the preceding fiscal year 20 percent below the second preceding fiscal year, the Secretary reduces the amount of the Fed

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eral payment for the current fiscal year by 20 percent.

(b) Fiscal effort for the year following the year for which a waiver is granted shall be based on the level of effort that existed prior to the waiver. For example, if in FY 1981 a State receives a waiver for its failure in FY 1980 to maintain fiscal effort at the level established in FY 1979, the State shall compute its fiscal effort for FY 1981 on the basis of the fiscal effort for FY 1979.

(Sec. 431A (GEPA); 20 U.S.C. 1232-1)

§ 426.66 What are the percentage requirements with respect to State distribution of Federal funds?

(a) The percentage requirements in this section are applicable to a State's grant under section 305 of the Act.

(b) A State educational agency may expend an amount not to exceed 20 percent of its grant for programs of equivalency for a certificate of graduation from a secondary school.

(c) A State educational agency shall expend an amount not less than 10 percent of its grant for special experimental demonstration projects and teacher training projects described in §§ 426.71 through 426.74.

(d) A State educational agency may expend an amount not more than 20 percent of its grant for the education of institutionalized adults.

(Secs. 304, 306, 310; 20 U.S.C. 1203, 1205, 1208)

Subpart H-State-Administered Spe

cial Experimental Demonstration Projects and Teacher Training Projects

§ 426.71 Who are the eligible applicants for these projects?

(a) (1) Eligible applicants include any State of local educational agency or public or private nonprofit agency, organization, or institution.

(2) Unless precluded by State law, individuals are eligible applicants.

(b) A State may award funds under this subpart to eligible applicants outside the boundaries of the State if that award is determined to be in the best interest of the State in meeting

its priorities and the purposes of the Act.

(Sec. 310; 20 U.S.C. 1208)

§ 426.72 What are the criteria and priorities in administering these projects? (a) (1) A State educational agency shall establish its own statewide criteria and priorities for administering special projects and teacher training projects.

(2) A State educational agency shall include the criteria and priorities in the State plan.

(3) In establishing statewide criteria and priorities, a State educational agency shall give consideration to serving adults who are least educated and most in need of assistance.

(b) (1) The Secretary publishes national priorities in adult education in the FEDERAL REGISTER.

(2) Each State shall indicate in its State plan how the statewide criteria and priorities relate to published national priorities.

(Sec. 310; 20 U.S.C. 1208)

(1) Administer these projects consistent with the other regulations listed in 34 CFR 425.3 of these regulations;

(2) Make a general announcement of the availability of Federal and State funds for special projects and teacher training projects;

(3) Establish procedures for submitting and reviewing applications. These procedures shall be consistent with Subparts D and E of 34 CFR Part 76 of EDGAR; and

(4) Distribute funds to applicants approved for funding on the basis of the criteria and priorities developed under § 426.72 of these regulations.

(b) A State educational agency may

(1) Approve projects for a multi-year period; and

(2) In accordance with State law, policies, and procedures, make provisions for stipends and travel allow

ances for participants in teacher training projects.

(Sec. 310; 20 U.S.C. 1208)

§ 426.74 How will the results be disseminated?

(a) (1) A State educational agency shall develop and describe in its State plan the procedures for disseminating results of these activities.

(2) A copy of each final report of special projects and teacher training projects supported under this subpart shall be sent to

(i) The Secretary; and

(ii) The adult education information clearinghouse authorized by section 309(a)(1)(C) of the Act.

(Secs. 435 (GEPA), 310; 20 U.S.C. 1208)

Sec.

431.142 What documents must a State educational agency have on file with the Secretary to be eligible for a planning grant?

431.143 What records and reports are required of the grantee?

AUTHORITY: Secs. 301-318 of Pub. L. 91230, as amended by Title XIII of Pub. L. 95561, 92 Stat. 2356, 20 U.S.C. 1201-1211c, unless otherwise noted.

SOURCE: 45 FR 22783, Apr. 3, 1980, unless otherwise noted. Redesignated at 45 FR 77369, Nov. 21, 1980.

Subpart A-General

§ 431.101 How do the National Adult Education Development and Dissemination Program and Planning Grants relate to the overall adult education program? (a) Program description. This program provides Federal assistance for development, demonstration, and dissemination projects that will improve or be of national significance to the adult education program. Planning grants provide Federal assistance to State educational agencies to plan for the expansion of their systems for the delivery of adult education services. This program is authorized under section 309 of the Act.

(b) Other applicable provisions. The provisions of 34 CFR 425.1 through 425.4 of 34 CFR Part 425 apply to the National Adult Education Development and Dissemination Program and Planning Grants under this part.

(Sec. 309; 20 U.S.C. 1207a)

§ 431.102 Who is eligible to apply for a grant?

(a) For a planning grant, only a State educational agency is eligible to apply.

(b) For all other projects, eligible applicants include public and private nonprofit agencies, institutions, and organizations.

(Sec. 309; 20 U.S.C. 1207a)

Subpart B-Kinds of Projects the Department May Assist Under These Programs

§ 431.111 What types of projects may be funded?

(a) The Secretary may fund projects and activities that improve and promote effective adult education programs and further the purposes of the Act by

(1) Carrying out demonstration activities; and

(2) Developing, evaluating, and disseminating systems, materials, new approaches, and innovative methods.

(b) The Secretary may award a planning grant to a State educational agency to plan the expansion of its adult education delivery system that—

(1) Involves adults with less than a high school education and those adults who are least educated and most in need of assistance in the process of identifying the adult education needs within the State;

(2) Develops a coordinated strategy to meet the adult education needs of the State; and

(3) Involves local educational agencies, business, industries, community organizations, and other institutions.

(c) Projects under paragraph (a) of this section shall address national priorities established and announced in the FEDERAL REGISTER by the Secretary. The Secretary will invite public comment on the national priorities.

(d) Projects for the development of curricula or instructional materials shall be conducted in accordance with section 426 of the General Education Provisions Act.

(e) The Secretary may fund one or more of the types of projects described in paragraphs (a) and (b) of this section by publishing a notice in the FEDERAL REGISTER.

(Sec. 309; 20 U.S.C. 1207a)

Subpart C-How To Apply for a Grant

§ 431.121 What must an application for a grant contain?

An application shall contain—

(a) Information required by the Notice of Closing Date published in the FEDERAL REGISTER;

(b) Information that meets the application content requirements of 34 CFR 75.108 through 75.116 of EDGAR;

(c) For a multi-year or for subsequent years of a development or dissemination project, information that meets the requirements of 34 CFR 75.117, 75.118, and 75.250 through 75.253 of EDGAR; and

(d) Any additional information required by the Secretary in the application package.

(Sec. 309; 20 U.S.C. 1207a)

§ 431.122 What is the duration of a project grant?

(a) A grant period is for not more than one year.

(b) Development and dissemination projects may be approved for a multiyear period.

(c) Planning grants may be approved for a period of not more than one year.

(Sec. 309; 20 U.S.C. 1207a)

Subpart D-How a Grant Is Made

§ 431.131 How does the Secretary evaluate an application?

(a) The Secretary evaluates an application on the basis of the criteria in § 431.132 of these regulations.

(b) The Secretary awards up to 100 possible points for these criteria.

(c) The maximum possible score for each complete criterion is indicated in parentheses after the heading for that criterion.

§ 431.132 What selection criteria does the Secretary use?

(a) Plan of operation (40 points).

(1) The Secretary reviews each application for information that shows the quality of the plan of operation for the project.

(2) The Secretary looks for information that shows

(i) High quality in the design of the project;

(ii) An effective plan of management that ensures proper and efficient administration of the project;

(iii) A clear description of how the objectives of the project relate to the purpose of the program;

(iv) The way the applicant plans to use its resources and personnel to achieve each objective; and

(v) In the case of projects offering educational services, a clear description of how the applicant will provide equal access and treatment for eligible project participants who are members of groups that have been traditionally underrepresented, such as members of racial or ethnic minority groups, women, handicapped persons, and the elderly.

(b) Quality of key personnel (20 points).

(1) The Secretary reviews each application for information that shows the quality of the key personnel the applicant plans to use on the project. (2) The Secretary looks for information that shows

(i) The qualifications of the project director (if one is to be used);

(ii) The qualifications of each of the other key personnel to be used in the project;

(iii) The time that each person referred to in paragraphs (b)(2) (i) and (ii) plans to commit to the project; and (iv) The extent to which the applicant, as part of its nondiscriminatory employment practices, encourages applications for employment from persons who are members of groups that have been traditionally underrepresented, such as members of racial or ethnic minority groups, women, handicapped persons, and the elderly.

(3) To determine the qualifications of a person, the Secretary considers evidence of past experience and training in fields related to the objectives of the project, as well as other information that the applicant provides.

(c) Budget and cost effectiveness (15 points).

(1) The Secretary reviews each application for information that shows that the project has an adequate budget and is cost effective.

(2) The Secretary looks for information that shows

(i) The budget for the project is adequate to support the project activities; and

(ii) Costs are reasonable in relation to the objectives of the project.

(d) Evaluation plan (10 points).

(1) The Secretary reviews each application for information that shows the quality of the evaluation plan for the project. (See 34 CFR 75.590 of EDGAR-Evaluation by the grantee.)

(2) The Secretary looks for information that shows methods of evaluation that are appropriate for the project and, to the extent possible, are objective and produce data that are quantifiable.

(e) Adequacy of resources (15 points). (1) The Secretary reviews each application for information that shows that the applicant plans to devote adequate resources to the project.

(2) The Secretary looks for information that shows

(i) The facilities that the applicant plans to use are adequate; and

(ii) The equipment and supplies that the applicant plans to use are adequate.

(20 U.S.C. 1221e-3(a)(1))

Subpart E-Conditions That Must Be Met by a Grantee

§ 431.141

What are the cost requirements under this program?

(a) Allowable costs under grants awarded under section 309 of the Act are determined in accordance with the applicable cost principles of 34 CFR 75.530 through 75.534 of EDGAR and Subpart Q of 34 CFR Part 74.

(b) No cost sharing is required.

(c) Neither stipends nor dependency allowances are allowable.

(d) Projects combining funds under section 309 of the Act with other Federal, State, or local funds shall contain provisions for separate accounting. (Sec. 309; 20 U.S.C. 1207a)

§ 431.142 What documents must a State educational agency have on file with the Secretary to be eligible for a planning grant?

A State educational agency must have on file with the Secretary