Sufficient funds shall be available to meet the non-Federal share of the cost of constructing the facility (where applicable), and sufficient funds shall be available when construction is completed to assure effective operation and maintenance of the facility for the purposes for which constructed.

(20 U.S.C. 1221c(b) (1).)

§ 100a.172 Supervision and inspection.

The recipient shall provide and maintain competent and adequate architectural engineering supervision and inspection and at the construction site to insure that the completed work conforms to the approved drawings and specifications. (20 U.S.C. 1232c (b) (1).)

§ 100a.173 Cultural activities.

Reasonable provision shall be made, consistent with the other uses to be made of the facilities, for areas in such facilities which are adaptable for artistic and cultural activities.

(20 U.S.C. 1221c(b) (1).)

§ 100a.186 Preservation of historic sites.

Each application for Federal financial assistance for construction shall describe the relationship to and the probable effect, or lack of effect, on any district, site, building, structure, or object that is included in the National Register of Historic Preservation of the National Park Service and published with periodical updatings in the FEDERAL REGISTER. Such information is to be furnished to the Department to enable it to take into account such an effect and to consider the comments thereon of the advisory council on historic preservation, prior to providing such Federal financial assistance, as required by section 106 of Public Law 89665.

(16 U.S.C. 470f.) § 100a.187

Davis-Bacon, Copeland, and Contract Work Hours Standards Acts. Except as otherwise provided by law, all laborers and mechanics employed by contractors and subcontractors on construction assisted under Federal programs, including minor remodeling, shall be paid wages at rates not less than those prevailing as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended, and shall receive overtime compensation in accordance with and subject to the provisions of the Contract Work Hours Standards Act. Such contractors and subcontractors shall comply with the provisions of 29 CFR part 3 ("antikickback" regulations); and all construction contracts and subcontracts shall incorporate the contract clauses required by 29 CFR 5.5 (a) and (c). (20 U.S.C. 1232b; 40 U.S.C. 276a, 276c, 327332.)

Construction contracts shall include the applicable provisions of Executive Order No. 11246, as amended by Executive Order No. 11375 (nondiscrimination in construction contract employment), and the applicant shall otherwise comply with the requirements of section 301 of said Executive order.

(E.O. Nos. 11246, 11375.)

§ 100a.189 Access by the handicapped.

The recipient shall require the facility to be designed to comply with the "American Standard Specifications for Making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped," No. A117.1-1961, as modified by

As used in this subpart:

"Acquisition cost" of nonexpendable personal property acquired by purchase means the net invoice price of the property, including any attachments, accessories, or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired. Ancillary charges such as taxes, duty, protective intransit insurance, freight, or installation shall be included in or excluded from acquisition cost in accordance with the recipient's regular accounting practices.

"Real property," means land, land improvements, structures and appurtenances thereto, excluding movable machinery and equipment.

(OMB Circular No. A-102, Attachment N.) § 100a.212 Real property.

Title to real property whose acquisition cost was borne in whole or in part by Federal funds shall vest in the recipient upon acquisition. In the absence of applicable statutory provisions governing the use or disposition of such property, it shall be subject to the following requirements, in addition to (and subject to) any other requirements imposed by statute or regulation.

(a) The recipient shall use the real property for the purposes authorized by the original grant or contract as long as needed.

(b) The Commissioner may authorize the recipient to use the property for the following (but no other) purposes when the grantee determines that the property is no longer needed for the originally authorized purposes:

(1) Activities sponsored by other Federal awards (regardless of which Federal agency makes the other awards), or

(2) Activities not sponsored by other Federal awards, but which, nevertheless, have purposes consistent with those of the legislation under which the original award was made.

(c) (1) When no longer used in accordance with paragraphs (a) and (b) of this section, the recipient shall return to the control of the Commissioner all real property whose acquisition cost was borne wholly by Federal funds. If the acquisition cost of the property was borne partly by Federal funds, the recipient may be relieved of accountability to the Federal Government with respect to the

Federal interest in the property by compensating the Federal Government for its fair share of the current value of the property, or if the recipient no longer needs the property, by selling it and compensating the Federal Government for its fair share of the sales proceeds.

(2) The amount of compensation to the Federal Government under subparagraph (1) of this paragraph shall be computed by applying the percentage of Federal participation in the cost of the project for which the property was acquired to the property's current fair market value (if the recipient retains the property) or to the proceeds from sale (if the recipient sells the property). In most cases, the real property will have been acquired under an award whose purpose was to assist the recipient in acquiring the property (e.g., a construction grant). In such cases, the "total cost of the project for which the property was acquired" will ordinarily be the same as the acquisition cost of the property. (OMB Circular No. A-102, Attachment N.) Nonexpendable personal

§ 100a.215

property.

(a) Title. When nonexpendible personal property is acquired by a recipient wholly or in part with Federal funds, title shall be vested in the recipient.

(b) Use. (1) The recipient shall retain such property in the project as long as there is a need for such property to accomplish the purpose of the project, whether or not the project continues to be supported by Federal funds.

(2) When there is no longer a need for such property to accomplish the purpose of the project, the recipient shall use the property in connection with other Federal awards it has received in the following order or priority:

(i) Other awards under Federal programs administered by the Commissioner needing the property,

(ii) Awards of other Federal agencies needing the property.

(3) When the recipient no longer has need for such property in any of its federally assisted projects, the property may be used for the recipient's own official activities in accordance with the following standards:

(i) If the property had an acquisition cost of less than $500 per unit and has been used 4 years or more, the recipient may use the property without reimburse

ment to the Federal Government or sell the property and retain the proceeds.

(ii) For all of such property not covered under subparagraph (3) (i) of this paragraph, the recipient may retain the property for its own use provided that a fair compensation is made to the Federal Government for the Federal share of the property. The amount of such compensation shall be computed by applying the percentage of Federal participation in the cost of the project to the current fair market value of the property.

(c) Disposition. If the recipient has no need for the property, disposition of the property shall be made as follows:

(1) If the property had an acquisition cost of $1,000 or less per unit (except for property covered under paragraph (b) (3) (i) of this section) the recipient shall sell the property and reimburse the Federal Government in accordance with subparagraph (2) (iii) of this paragraph.

(2) If the property had an acquisition cost of over $1,000 per unit, the recipient shall request disposition instructions from the Commissioner. The Commissioner will issue instructions to the recipient within 120 days following the receipt of such request and the following procedures shall govern:

(i) If the recipient is instructed to ship the property elsewhere, the recipient will be reimbursed by the Federal Government with an amount which is computed by applying the percentage of the recipient's participation in the project to the current fair market value of the property, plus any shipping or interim storage costs incurred.

(ii) If the recipient is instructed to otherwise dispose of the property, the recipient will be reimbursed by the Federal Government for the costs incurred in such disposition.

(iii) If disposition instructions are not issued within the 120-day period specified in subparagraph (2) of this paragraph, the recipient shall sell the property and reimburse the Federal Government with an amount which is computed by applying the percentage of Federal participation in the project to the sales proceeds. The recipient may, however, deduct and retain from that amount, $100 or 10 percent of the proceeds, whichever is greater, for the recipient's selling and handling expenses.

(d) Special property. Where the Commissioner determines that nonexpendable personal property with an

acquistion cost of $1,000 or more and financed soley with Federal funds is unique, or difficult or costly to replace, he may reserve the right to require the recipient to transfer title to the property to the Federal Government or to a third party to be named by the Commissioner, subject to the following provisions:

(1) The right to require the transfer of title may be reserved only by means of an express special condition in the grant or contract, or if approval for the acquisition of the property is given after the grant is awarded, by means of a written stipulation at the time the approval is given.

(2) The property shall be appropriately identified in the award document or otherwise made known to the recipient.

(3) The Commissioner will not exercise this right until the recipient no longer needs the property in the project for which it was acquired. That need will be deemed to end on the date of completion or termination of the grant or contract unless the recipient continues to conduct the project after that date and demonstrates to the Commissioner a continued need for the property in the project.

(4) The Commissioner will issue disposition instructions within 120 days after the completion of the need for the property under the project for which it was acquired. If instructions are not issued within such 120-day period the Commissioner's right shall lapse, and the recipient shall apply the applicable standards contained in paragraphs (b) (1), (b)(2), (b) (3) (ii), and (c) (2) of this section.

(5) The recipient shall be entitled to reimbursement for any shipping and interim storage costs it incurs pursuant to the Commissioner's disposition instructions.

(e) Property management standards. Recipients' property management standards for nonexpendable personal property shall also include the following procedural requirements:

(1) Property records shall be maintained accurately and provide for: (i) A description of the property; (ii) manufacturer's serial number or other identification number; (iii) acquisition date and cost; (iv) source of the property; (v) percentage of Federal funds used in the purchase of the property; (vi) location, use, and condition of the property; and (vii) ultimate disposition data in

cluding sales price or the method used to determine current fair market value if the grantee reimburses the Federal Government for the Federal share.

(2) A physical inventory of property shall be taken and the results reconciled with the property records at least once every 2 years to verify the existence, current utilization, and continued need for the property.

(3) A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft of nonexpendable property shall be investigated and fully documented. The recipient shall be responsible for replacing or repairing (with funds of such recipient) property which is lost, damaged, or destroyed due to the negligence of the recipient.

(4) Adequate maintenance procedures shall be implemented to keep the property in good condition.

(5) Proper sales procedures shall be established for unneeded property which would provide for competition to the extent practicable and result in the highest possible return.

(OMB Circular No. A-102, Attachment N.) § 100a.216 Expendable personal prop

erty.

(a) The recipient may at its option either retain or sell items of expendable personal property when no longer needed for any federally sponsored activity (including activities sponsored by other Federal agencies).

(b) Compensation to the Federal government is required if the aggregate fair market value of all of those items acquired under the grant or contract exceeds $500 when no longer needed for any federally sponsored activity. The amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original project to the current fair market value of items retained, and to the sales proceeds of items sold.

(OMB Circular No. A-102, Attachment N.) § 100a.217 Intangible personal property of State and local governments. (a) This section applies only to recipients which State and local governments.

are

(b) Where a project results in a book or other copyrightable material, the author or recipient is free to copyright the work, but the Commissioner reserves a royalty-free, nonexclusive and irrevoca

Any publication or presentation resulting from or primarily related to Federal financial assistance shall contain the following acknowledgment:

The activity which is the subject of this report was supported in whole or in part by the U.S. Office of Education, Department of Health, Education, and Welfare. However, the opinions expressed herein do not necessarily reflect the position or policy of the U.S. Office of Education, and no official endorsement by the U.S. Office of Education should be inferred.

(20 U.S.C. 1221c (b) (1).)

§ 100a.219 Copyrights and patents.

(a) Copyrights. (1) Copyright standards for State and local governments are contained in § 100a.217.

(2) Any material of a copyrightable nature produced by a recipient other than a State or local government with Federal assistance shall be subject to the copyright policy of the U.S. Office of Education set forth in its "Copyright Guidelines" of May 9, 1970 (35 FR 7317), or any modification thereof in effect at the time of the award.

(b) Patents. (1) All inventions conceived or first actually reduced to practice in the course of or under a grant or contract are subject to Parts 6 and 8 of this title. Each invention shall be promptly and fully reported to the Assistant Secretary for Health, Department of Health, Education, and Welfare.

(2) Determination as to ownership and disposition of rights to those inventions, including whether a patent application shall be filed, and, if so, the manner of obtaining, administering, and disposing of rights under any patent application or patent which may be issued shall be made either:

(i) By the Federal Government, or

(ii) Where the recipient has a separate formal institutional patent agreement with the Department,by the recipient in accordance with that agreement. (20 U.S.C. 1221c(b)(1); OMB Circular No. A-102, Attachment N)

§ 100a.220 Determining percentage of participation.

(a) Various provisions in this subpart require a determination of the percentage of Federal (or recipient) participa

tion in the cost of the project or program in order to compute the amount of compensation for the value, or proceeds from sale of property. In determining the applicable percentage, there shall first be deducted from the allowable costs incurred during the period for obligation, any royalties or other income (not including interest income or proceeds from sale of property) earned by the federally-supported project or program during the period for obligation.

(b) The deduction of income required by paragraph (a) of this section is independent of, and is not intended to control, the disposition of such income pursuant to Subpart M of this part.

(OMB Circular No. A-102, Attachment N.) Subpart M-Program Income

§ 100a.230 Scope of subpart.

This subpart sets forth standards for recipients in accounting for program income and other income related to projects and programs financed in whole or in part with Federal funds. (OMB Circular No. A-102, Attachment E.) § 100a.231 Meaning of program income.

As used in this subpart, the term "program income" shall have the meaning set forth for that term in § 100a.401. (OMB Circular No. A-102, Attachment E.) § 100a.232 Interest income.

(a) As used in paragraph (b) of this section:

(1) The term "State" shall have the meaning set forth in section 102 of the Intergovernmental Cooperation Act of

1968.

(2) The term "grant-in-aid" shall have the meaning set forth for that term in section 106 of the Intergovernmental Cooperation Act of 1968.

(b) In accordance with section 203 of the Intergovernmental Cooperation Act of 1968, States shall not be held accountable for interest earned on grantin-aid funds, pending their disbursement for program purposes.

(c) In all other cases, recipients shall remit to the Federal Government any interest earned on advances of Federal funds.

(Pub. L. 90-577, secs. 102, 106, 203; OMB Circular No. A-102, Attachment E.)

§ 100a.233 Sale of real and personal property.

Proceeds from the sale of real and tangible personal property whose acquisi