tution's administrative and academic staff, its veteran student population, and relevant community organizations;

(4) The use of qualified Vietnam-era veterans in staffing the institution's office of veterans' affairs and in providing related services;

(5) The employment of a sufficient number of qualified staff members in order to adequately support required veterans' activities and services:

(6) The provision of adequate, visible and accessible housing for the institution's office of veterans' affairs, in light of the institution's veteran student enrollment and physical environment; and

(7) The coordination of veterans' services with other campus services available to veterans, such as admissions, student financial aid, counseling, and job placement.

(b) With respect to outreach, the establishment and maintenance of

(1) Contact with veterans in the institution's normal service area;

(2) A procedure for assessing veterans' needs, problems, and interests; and

(3) A coordinated and extensive referral service involving agencies providing assistance in areas such as housing, employment, health, recreation, vocational and technical training, and financial assistance;

(c) With respect to recruitment, the establishment and maintenance of a process of bringing the maximum number of veterans into purposeful systematic programs of postsecondary education most suited to their educational and career aspirations, including such techniques as publications, use of mass media, and personal contacts;

(d) With respect to special education programs, the establishment maintenance of

and

(1) Support from appropriate departments of the institution for launching special education programs for the veteran student of a remedial, motivational, and tutorial nature;

(2) Support throughout the institution for appropriate changes in rules, policies, and procedures that will accommodate the special needs and problems of the veteran student; and

(3) Adequate guidance for individual veteran students that will insure the highest possible rate of their retention in educational programs; and

(e) With respect to counseling, the establishment and maintenance of—

(1) Ease of access of veteran students to professional assistance for consultation on personal, family, educational, and career problems as appropriate and necessary; and

(2) Frequent and scheduled liaison of the office of veterans' affairs with the institution's academic departments, counseling service, and central administration.

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

§ 189.17 Expenditure requirements.

(a) Not less than (1) 75 percent of funds awarded to an institution under this part or (2) the amount of funds needed to implement the required services set forth in §§ 189.12 and 189.13, whichever is greater, shall be used by the institution to implement such services. Any remaining awarded funds may be used solely to defray instructional expenses in academically related programs of such institution.

(b) All assistance received under this part must be expended or obligated for the foregoing purposes not later than the end of the period for which the award is made. Obligations will be considered to have been incurred by a recipient on the basis of documentary evidence of binding commitments for the acquisition of goods or property or for the performance of work, except that funds for personal services, for services performed by public utilities, for travel, and for the rental of facilities, shall be considered to have been obligated as of the time such services were rendered, such travel was performed, and such rented facilities were used, respectively.

(c) Travel expenditures shall be restricted to recruitment and outreach activities, attendance at Office of Education sponsored meetings providing technical assistance for this part, and attendance at Office of Education approved professional meetings.

(20 U.S.C. 1070e, 1070-1, 1232c(b)(2); 31 U.S.C. 200)

Subpart C-Application Process

$189.21 Submission of application by individual institutions.

(a) Assistance under this part will be provided only on the basis of an application submitted by an institution which sets forth all information necessary to determine the institution's eligibility and payment amount.

(b) Each application must be submitted on a form to be provided by the Commissioner and contain the follow

ing:

(1) Information necessary to show that the institution is eligible for assistance under this part;

(2) Information necessary to determine the amount of the institution's payment, in accordance with § 189.3;

(3) An assurance that any funds received by the institution under this part will not be used for a school or department of divinity or for any religious worship or sectarian activity;

(4) An assurance that any funds received by the institution under this part which are not required pursuant to § 189.17 to be used to implement the requirements of §§ 189.12 and 189.13 will be used solely to defray instructional expenses in academically related programs of the institution;

(5) An assurance that the institution will expend during the period for which the award is made, for all academically related programs of the institution, an amount equal, in terms of either total or per student expenditure, to at least the average amount so expended during the 3 academic years preceding such period, together with such supporting data as the Commissioner may require;

(6) An assurance that the institution will carry out the required services set forth in 88 189.12 and 189.13;

(7) An assurance that the institution will initiate the services required by $$ 189.12 and 189.13, and will submit a proposed budget for the operation of the office of veterans' affairs, not later than 90 days after the date of award notification;

(8) An assurance that the services required by §§ 189.12 and 189.13 will be reasonably accessible to all undergraduate veteran students on behalf of

whom funds are received by the institution under this part; and

(9) If the institution is seeking a waiver of any of the required activities specified in §§ 189.12 and 189.13 pursuant to § 189.14, information necessary to show that it has less than 2,500 students and not more than 70 undergraduate veteran students in attendance on April 16 (or, where such date falls between academic terms of the institution, the end of the previous academic term) of the academic year during which assistance under this part is sought.

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

§ 189.22 Submission of applications by parties to consortium agreements. Institutions proposing to carry out the activities required under this part through a consortium agreement, pursuant to § 189.15, must submit their applications on a form to be provided by the Commissioner, and each such institution must provide all information and assurances required pursuant to § 189.21 as well as information and assurances necessary to a finding by the Commissioner that the conditions for a consortium agreement set forth in § 189.15 have been met.

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

Subpart D-Fiscal and Reporting Requirements

§ 189.31

Maintenance of records.

(a) Records. Each institution and consortium of institutions shall keep intact and accessible records relating to the receipt and expenditure of Federal funds in accordance with section 434(a) of the General Education Provisions Act, including all accounting records and related original and supporting documents that substantiate direct costs charged to the award. Records must be maintained so as to reflect (1) expenditures made for veterans' services provided for under this part, and (2) expenditures made for instructional costs in academically related programs.

(b) Period of retention. (1) Except as provided in paragraph (b)(2) or (b)(3) of this section, the records specified in

paragraph (a) of this section shall be retained for 3 years after the date of the submission of the fiscal operations report, pursuant to § 189.33, to which they pertain.

(2) Records for nonexpendable personal property which was acquired with Federal funds shall be retained for 3 years after it is no longer needed for program purposes.

(3) The records involved in any claim or expenditure which has been questioned by Federal audit shall be further retained until resolution of any such audit questions.

(c) Microfilm copies. Institutions may substitute microfilm copies in lieu of original records in meeting the requirements of this section.

(20 U.S.C. 1232c(a).)

§ 189.32 Audits.

(a) Audit and examination. The Secretary of Health, Education, and Welfare and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to all records required pursuant to § 189.31(a) and to any other pertinent books, documents, papers, and records of the institution or consortium of institutions. The Commissioner may, at any time before or after making a payment under this part, review the data supplied by an institution with respect to such payment and take appropriate action as a result thereof, including that of requiring the institution to return funds received on the basis of inaccurate data submitted by the institution.

(b) Audit responsibilities. All expenditures by recipient institutions or consortiums thereof shall be audited by the recipient or at the recipient's direction to determine, at a minimum, the fiscal integrity of financial transactions and reports, and the compliance with laws and regulations. Such audits shall be scheduled with reasonable frequency, usually annually, but not less frequently than once every two years, considering the nature, size, and complexity of the activity.

(20 U.S.C. 1232c(a), (b)(2).)

§ 189.33 Fiscal operations reports.

(a) In addition to such other accounting as the Commissioner may require, an institution or consortium shall render annually, with respect to the assistance awarded under this part, a full account of funds expended, obligated, and remaining.

(b) A report of such accounting in a format approved by the Commissioner shall be submitted to the Commissioner within 90 days of the expiration of the academic year for which such assistance was awarded, and the institution or consortium shall remit within 30 days of the receipt of a written request therefor any amounts found by the Commissioner to be due. Such period may, upon written request, be extended at the discretion of the Commissioner.

(20 U.S.C. 1232c(b)(3); 31 U.S.C. 628)

§ 189.34 Limitations on costs.

(a) The maximum amount of a payment under this part shall be set forth in the award document. The total payment from the Federal Government will not exceed the amount so set forth.

(b) Institutions will be governed by the cost principles set forth in Part II of Appendix D of 45 CFR Part 74 (Part II of Appendix C of 45 CFR Subchapter A).

(31 U.S.C. 200; 20 U.S.C. 1070e-1.)

§ 189.35 Reporting requirements.

(a) Institutions of higher education, and consortiums thereof, receiving assistance under this part must submit to the Commissioner no more than 30 days after the close of each academic year, a report describing the manner in which the required veterans' services were provided during such academic year. Such a report shall be in a format approved by the Commissioner and shall make specific reference to the extent to which the criteria set forth in § 189.16 of this part have been met.

(b) Interim reports describing the progress being made in providing the veterans' services required pursuant to §§ 189.12 and 189.13 of this part shall be submitted if, and at such times as,

[Reserved]

190.45 Computation of expected contribution from the assets of the independent student and his or her spouse.

190.46 Computation for expected contribution from annual adjusted family income and assets, adjusted for number of family members attending institutions of post-secondary education. 190.47 Computation of the total expected family contribution.

190.48 Extraordinary circumstances affecting the expected family contribution determination for the independent student.

Subpart E-Costs of Attendance 190.51 Costs of attendance.

Subpart F-Determination of Basic Educational Opportunity Grant Awards

190.61 Submission of "Student Eligibility Report" for purposes of basic educational opportunity grant calculation. 190.62 Calculation of basic educational opportunity grant awards at full-funding. 190.63 Calculation of basic educational opportunity grant awards at less-than-fullfunding

190.64 Calculation of basic educational opportunity grant awards for less than a full school year.

190.65 Calculation of basic educational opportunity grant awards for a school year which is longer than 12 months in length.

190.66 Calculation of basic educational opportunity grant awards for a school year which spans 2 academic years.

Subpart G-Administration of Grant Payments 190.71 Scope.

190.72

[Reserved]

190.83 Attendance at more than one institution during an academic year.

190.84 [Reserved]

190.85 Recalculation of Basic Educational Opportunity Grant award.

190.86 Calculation and disbursement of awards by the Commissioner of Education.

AUTHORITY: Sec. 411 of the Higher Education Act of 1965 as added by Sec. 131(b) of Pub. L. 92-318, 86 Stat. 247-251 (20 U.S.C. 1070a), unless otherwise noted.

Subpart A-Scope, Purpose and General Definitions

SOURCE: 39 FR 39414, Nov. 6, 1974, unless otherwise noted.

§ 190.1 Scope and purpose.

The purpose of the Basic Educational Opportunity Grant Program is to assist in making available the benefits of postsecondary education to eligible students by providing assistance in meeting the cost of such education. (20 U.S.C. 1070a)

§ 190.2 General definitions.

For purposes of this part,

(a) "Academic year" means, for purposes of grant award calculation and disbursement, the period of time between July 1 of one year and June 30 of the subsequent year.

(20 U.S.C. 1088(c)(1))

(b) "Act" means Title IV-A-1 of the Higher Education Act of 1965, as amended.

(c) "Clock hour" means a period of time which is the equivalent of (1) a 50 to 60 minute class, lecture, or recitation, or (2) a 50 to 60 minute faculty internship.

(d) "Commissioner" means the U.S. supervised laboratory, shop training, or Commissioner of Education or his designee.

(e) "Disbursement Schedule" means a table, effective for a given academic year, published by the Commissioner, which indicates the amount of a student's Basic Educational Opportunity Grant which would be paid to a threequarter time or half-time student if such student is enrolled for the same number of months during an academic year as is required for a full-time stu

dent enrolled in the same program of t study to complete a full school year. Such a table is based upon the student's expected family contribution, cost of attendance, and the part-time nature of the student's attendance.

(f) "Eligible program" means a program of training at an institution of higher education which (1) leads to a degree or certificate, (2) is of at least six months duration, and (3) admits as regular students only those persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate.

(20 U.S.C. 1141(a)(1); 20 U.S.C. 1088(b)(3))

1

(g) "Full-time student" means a student who is carrying a full-time academic work load, other than by correspondence, measured in terms of (1)|| the tuition and fees customarily charged for full-time study by the institution and (2) the course work or other required activities as determined by the institution in which the student is enrolled; provided, however, that such course work and activities amount to a minimum of (i) 12 semester hours or 12 quarter hours per academic term for institutions utilizing semesters, trimesters, or quarter hour systems; (ii) 24 semester hours or 36 quarter hours per school year for institutions which measure progress in terms of such credit hours but which do not utilize semester, trimester, or quarter systems; or (iii) 24 clock hours per week for institutions which utilize clock hours to measure progress. For students enrolled in an institution which measures progress in terms of both credit and clock hours, a student shall be considered a full-time student at that institution if the sum of the fractions representing the number of credit hours taken by the student, when divided by 12, and the number of clock hours per week taken by the student, when divided by 24, is equal to or greater than one, and if such student is charged the tuition and fees customarily charged for full-time study by the institution. Furthermore, a student shall be considered a full-time student if he undertakes a series of courses or seminars, which extends over a period not exceeding 18 weeks