Under the authority of section 7 of the act, the Administrator is authorized to establish and maintain research fellowships in technical matters relating to vocational rehabilitation services for the purpose of increasing the number and competence of personnel concerned with the provision of such services. Financial assistance may be provided to individuals who are securing advanced research training or carrying out independent research in rehabilitation problems or methods. Such fellowships may be in the fields of physical medicine and rehabilitation, physical therapy, occupational therapy, speech pathology and audiology, rehabilitation nursing, rehabilitation social work, prosthetics and orthotics, rehabilitation psychology, rehabilitation counseling, recreation for the ill and handicapped, and other specialized fields contributing to vocational rehabilitation.

Research fellowships are available to any person who has demonstrated ability and special aptitude for advanced training or productive scholarship in the professional fields which contribute to the vocational rehabilitation of handicapped persons. Predoctoral, postdoctoral, and special research awards are made. A candidate for a fellowship shall meet the qualifications established by the Administrator for carrying out the purpose of research fellowships, including:

(a) The individual shall have filed an application in the form and manner prescribed by the Administrator, and shall have supplied pertinent information with respect to his scholastic and other qualifications and personal fitness for the proposed work;

(b) He shall be a citizen of the United States or shall have been lawfully admitted for permanent residence to the United States;

(c) He shall not be receiving other Federal educational benefits during the period of the Social and Rehabilitation Service fellowship.

istrator. Applications may be submitted at any time.

(b) Selection of fellows is based on ability as evidenced by letters of recommendation, academic records, and other appropriate evidences of scholarly and research activity. Applications are submitted to the Research Fellowship Board of the Social and Rehabilitation Service for review and recommendation. Applications are presented to the Fellowship Board as soon as possible after they are received. However, in order to allow sufficient time for preliminary review, it is necessary that the application and all supporting documents be received at least 3 months prior to the desired notification date of action on the application.

(c) The Administrator determines the action to be taken on the award and the applicant is informed accordingly in writing.

Research fellowship awards may include:

(a) Stipends at rates fixed by the Administrator;

(b) Actual tuition costs and related fees, payable directly to the educational institution or facility;

(c) Vacation or other leave in accordance with the custom of the institution at which the fellow is working, but not in excess of 1 month per year; and

(d) Transportation and related expenses, in accordance with the Standard Government Travel Regulations, for travel to the location of the fellowship and travel required to carry out the purposes of the fellowship, including attendance at meetings. Such travel allowance shall not include expenses of transporting dependents, shipping charges for personal effects or household goods, or foreign travel.

§ 405.34 Denials or terminations in the best interests of the United States. Whenever with respect to an applicant for, or a recipient of, a research fellowship who otherwise meets the qualifications for such fellowship there is substantial reason to believe that the fellowship should be denied or terminated on grounds that the applicant or fellow has engaged in such criminal or other conduct as reflects seriously and adversely on his moral character, the Administrator shall so notify such appli

cant or fellow and inform him that, unless a request for a review it made within 20 days of the mailing of such notice, his application or request for renewal will be denied or his fellowship terminated. Any such request for review shall be promptly submitted by the Administrator to the Chairman of the Departmental Fellowship Review Panel for further proceedings in accordance with the regulations of the Secretary providing for such review. (Part 10 of this title.) § 405.35 Conditions.

(a) Location. Research under a rehabilitation research fellowship shall be carried out only at the educational institution or facility specified in the award. It is the responsibility of the applicant to make all necessary arrangements for the conduct of his proposed research fellowship work with the institution or agency where the work will be done.

(b) Publications. All publications resulting from work accomplished under a Social and Rehabilitation Service research fellowship shall carry appropriate acknowledgment of the award, and copies of such publications shall be furnished to the Social and Rehabilitation Service. Where the work accomplished under a research fellowship award results in a book or other copyrightable material, the author is free to copyright the work, but the Social and Rehabilitation Service reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, all copyrightable material resulting from the award supported activity.

(c) Patents. In accordance with Department of Health, Education, and Welfare Regulations (45 CFR Subtitle A, Parts 6 and 8), all inventions made in the course of or under the Social and Rehabilitation Service grant shall be promptly and fully reported to the Inventions Office, Department of Health, Education, and Welfare. The fellow shall neither have nor make any commitments or obligations which conflict with the requirements of this policy.

(d) Confidential information. All information as to personal facts given or made available to a research fellow in the course of his activities under the research fellowship award, including lists of names and addresses and records of evaluation, shall be held to be confidential. The use of such information

and records shall be limited to purposes directly connected with the research fellowship award and may not be disclosed either directly or indirectly unless the consent of the agency providing the information and the individual to whom the information applies, or his representative, has been obtained in writing. The final product of the research will not reveal any information that may serve to identify any person about whom information has been obtained without his written consent, or the written consent of his representative.

(e) Final report. The fellow is expected to send a copy of a final report to the Social and Rehabilitation Service within 30 days after termination of his award. A copy of the dissertation is required from predoctoral fellows. § 405.36

Duration.

A research fellowship may be awarded for varying periods, such as for a full 12 months, and may be subject to extension or renewal by the Administrator; Provided, That no research fellowship, or a combination of research fellowships and traineeships, shall be awarded to any individual for any one course of study for a period longer than 4 years. § 405.37 Payment.

Payment of fellowship awards shall be made according to methods and rates established by the Administrator.

§ 405.38 Termination.

The Administrator may terminate a research fellowship appointment before its expiration date at the request of the fellow or because of unsatisfactory performance, unfitness, or inability to carry out the purposes of the award. Subpart E-Intramural Research and Information

an information service, to make available to agencies, organizations, and other groups and persons concerned with vocational rehabilitation, information on rehabilitation resources useful for various kinds of disability and on research and the results thereof and on other matters which may be helpful in promoting the rehabilitation of handicapped individuals and their greater utilization in gainful and suitable employment. Activity under this authority may include the establishment and operation of a national information service in rehabilition, using modern automated data equipment, to collect, store, analyze, retrieve, and disseminate information on the Federal-State program, research, training, prosthetics and orthotics, rehabilitation facilities, and other related aspects of vocational rehabilitation, as a service to agencies and individuals.

For purposes of this part

(a) The terms "act," "Administrator," "construction of a rehabilitation facility," "establishment of a rehabilitation facility," "handicapped individual," "nonprofit," "rehabilitation facility," "Regional Commissioner," and "vocational rehabilitation services" shall, except where the context indicates otherwise, have the same meanings as set forth in § 401.1 of this chapter.

(b) "State" means the several States, the District of Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa, and the Trust Territory of the Pacific Islands.

(c) "State agency" or "State vocational rehabilitation agency" has the same meaning as set forth in § 401.1(v) of this chapter and, in addition, means the Governor of American Samoa and the High Commissioner of the Trust Territory of the Pacific Islands. § 406.2

Non-Federal funds.

In the case of any project under this part for which Federal funds are granted to pay part of the cost, the matching grantee funds may not consist of other Federal funds or of non-Federal funds that are applied to match other Federal funds, except as may be specifically authorized by Congress. No Federal financial assistance may be furnished under this part for activities for which payment is made under another part of this chapter, or other authority.

§ 406.3

Consultant fees.

Fees for consultant services are allowable to the extent that such payments are in accordance with the policies and standard practices of the agency, or

ganization, or institution to which a grant or contract has been awarded. Fees for consultant services may not be paid to any regular full-time Federal Government employee. They may not be paid to any other individual for activities which are ordinarily a part of his duties in another position for which there is Federal financial participation under the act, or which conflict with his duties in such other position.

§ 406.4 Audit and review.

(a) All fiscal transactions relating to Federal financial assistance under this part are subject to audit by the Department of Health, Education, and Welfare to determine whether expenditures have been made in accordance with the act, the regulations, and other requirements.

(b) From time to time members of the staff of the Social and Rehabilitation Service review administrative, fiscal and program methods and practices in connection with activities under this part, and make suggestions for the improvement of such methods and practices.

Subpart B-Training and Traineeships in Vocational Rehabilitation

§ 406.10 Purpose.

Under section 4(a) (1) of the act, grants may be made to pay part of the cost of organized identifiable activities which are undertaken to seek solutions to vocational rehabilitation problems common to all or several States, or to contribute to the development of more effective vocational rehabilitation services in all or several States. Such grants may be for training, including education of personnel in all fields or disciplines which contribute to vocational rehabilitation, through the provision of training, teaching or traineeship grants. Grants for training and traineeships may include training and traineeships in physical medicine and rehabilitation, physical therapy, occupational therapy, speech pathology and audiology, rehabilitation nursing, rehabilitation social work, prosthetics and orthotics, rehabilitation psychology, rehabilitation counseling, recreation for the ill and handicapped, and other specialized fields contributing to vocational rehabilitation.

§ 406.11 Applications.

Applications for project grants may be made at any time by State vocational rehabilitation agencies and by other pub

lic or nonprofit agencies and institutions, including universities and other educational institutions. Applications shall be made in the form and detail required by the Administrator. The project application shall cover (a) a statement of the purpose of the project; (b) a statement that the project will be under the direction of a single qualified project director; (c) a description of the nature and scope of the activities to be undertaken and methods to be used in accomplishing the purpose; (d) a proposed budget; (e) an agreement to safeguard personal information pertaining to individuals served or studied under the project; (f) an agreement to make such reports and to keep such records and accounts including property and financial controls, as the Administrator may require, and to make such records available for audit purposes; and (g) such other information as the Administrator may require.

§ 406.12 Approval of applications for training or traineeships.

Application for grants for paying a part of the cost of a project for training or traineeships may be made only upon an official application form which may be obtained from the Administrator. Completed applications are submitted to the Administrator for processing and evaluation with the assistance of advisory groups. The applicant may be requested to submit further information. When all pertinent information has been obtained, a determination of the action to be taken is made by the Administrator who notifies the applicant accordingly.

§ 406.13

Approval of State agency.

The approval of the appropriate State vocational rehabilitation agency shall be secured by the applicant, if other than the State agency, for any project which involves direct services to handicapped individuals.

§ 406.14 Federal financial participation.

Federal financial participation will be available for the following types of expenditures under projects approved by the Administrator: (a) Salaries, cost of travel, and related expenses of project personnel; (b) necessary supplies, equipment, and related expenses; (c) purchase or provision of vocational rehabilitation services to individuals served by the project; (d) costs of administration and other indirect costs of the project, subject to such limitations as the Administrator

All grant awards shall be in writing, shall set forth the amount of funds granted, and shall constitute for such amounts the encumbrance of Federal funds available for such purpose on the date of the award. The initial award shall also specify the project period for which support is contemplated if the activity is satisfactorily carried out and Federal funds are available. For continuation support, grantees must make separate application in the form and detail required by the Administrator.

§ 406.16 Payments.

Payment of the Federal share of an approved project may be made in advance for estimated costs of operation, or as reimbursement to the grantee and shall be subject to such requirements as the Administrator may establish. § 406.17

Revisions.

A project grantee shall request that the project be revised whenever the approved plan of operation or method of financing is materially changed. Revision originating with the grantee shall be submitted in writing and will be given appropriate review. Project revisions may be initiated by the Administrator if, on the basis of reports, it appears that Federal funds are not being used effectively, or if changes are made in Federal appropriations, laws, regulations, or policies governing special projects. § 406.18

Confidential information.

(a) All information obtained by a grantee as to personal facts about individual's served by the project, including lists of names and addresses and records of evaluation, shall be held to be confidential.

(b) The use of such information and records shall be limited to purposes directly connected with the project and

may not be disclosed, directly or indirectly, other than in the administration thereof, unless the consent of the agency providing the information and the individual to whom the information applies, of his representative, has been obtained in writing. The final product of the project will not reveal any information that may serve to identify any person about whom information has been obtained without his written consent, or the written consent of his representative. § 406.19 Termination.

If for any reason the grantee discontinues an approved project, the grantee shall notify the Administrator in writing, giving the reasons for termination, an accounting of funds granted for the project, and other pertinent information. The grant may be terminated, in whole or in part, at any time at the discretion of the Administrator. The grantee and the State agency will be given prompt notice of the termination, including the reasons therefor. Such termination shall not affect obligations incurred prior to the termination of the grant. Upon termination or completion of a project, the proportion of unexpended funds attributable to the Federal grant shall be refunded.

Pursuant to section 203 of the Intergovernmental Cooperation Act of 1968 (Public Law 90-577), a State, as defined in section 102 of that Act, will not be held accountable for interest earned on grant funds, pending their disbursement for program purposes. A State, as defined in the Intergovernmental Cooperation Act, section 102, means any one of the several States, the District of Columbia, Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State, but does not include the governments of the political subdivisions of the State. All other grantees must return to the Social and Rehabilitation Service all interest earned on grant funds.

§ 406.21 Patents.

In accordance with Department of Health, Education, and Welfare Regulations (45 CFR Subtitle A, Parts 6 and 8), all inventions made in the course of or under the Social and Rehabilitation Service grant shall be promptly and fully reported to the Inventions Office, Department of Health, Education, and Welfare.