share" of the estimated cost of that construction project. If the Federal allotment to a State during a fiscal year is insufficient to meet in full the Federal share of the cost of one of the public libraries, or of the sole public library, intended to be approved under the State plan during that fiscal year, the State agency may during that fiscal year approve as a construction project such initial or intermediate part of the construction of that public library as is to be covered by separate contract, postponing for approval during a subsequent fiscal year an additional part of such construction, but only if the State agency provides the Commissioner with an assurance satisfactory to him that such a construction project will be undertaken promptly and that the construction project will result in a complete public library within a reasonable period of time.

(d) For the purpose of the regulations in this part, an "expenditure" shall not include administrative approval of a program or project by the State or local agency, nor as of July 1, 1964, shall it include the advance or reimbursement by the State of funds which are or will be expended by a local or other public agency under the State plan.

[29 F.R. 8215, June 30, 1964, as amended at 30 F.R. 6394, May 7, 1965]

§ 130.17 Requirements for payment.

(a) The State plan for services. Except for payments under an allotment made prior to February 11, 1964, for carrying out a State plan approved prior to February 11, 1964, no payments shall be made to any State from its allotment for public library services for any fiscal year unless the Commissioner finds that for that fiscal year:

(1) There will be available for expenditure from State sources for all public library services an amount not less than the amount actually expended from such sources for all public library services during the fiscal year which ended June 30, 1963;

(2) There will be available from State and local sources for expenditure for all public library services in the geographic areas covered by the plan for services an amount not less than the total amount actually expended from such sources during the fiscal year which ended June 30, 1963, for such services in such areas;

(3) There will be available from State and local sources for expenditure for those public library services that are pro

vided for during that fiscal year under the plan for services an amount not less than the total amount expended from such sources during the fiscal year which ended June 30, 1963, for public library services in the same areas and of the same type as those provided for by the plan for services;

(4) The State will have available for expenditure from State and local sources for public library services under the plan for services sums sufficient to enable the State to receive not less than $25,000 of Federal funds in the case of the Virgin Islands, American Samoa, or Guam, and $100,000 of Federal funds in the case of any other State. However, in any case in which payments are being made under an initial State plan for services that is required to provide for expenditures not less than those made for comparable services during the fiscal year ending June 30, 1963, and the program for the applicable fiscal year covers a period of less than 12 months, the requirements of subparagraphs (2) and (3) of this paragraph may be met if the amounts available under such a plan are not less than the amounts expended during a portion of the fiscal year which ended June 30, 1963, that is equivalent to such period.

(b) The State plan for construction. The "Federal share" of expenditures for projects under a State plan for construction will be paid to a State only if the Commissioner finds that funds will be available from sources other than Federal sources in a total amount equal to the State percentage as determined under section 104(c) of the Act, of such expenditures plus any such additional amounts as may be necessary to complete the project if the appropriate assurance called for by § 130.16(c) has been given to the Commissioner.

[29 F.R. 8215, June 30, 1964, as amended at 30 F.R. 6394, June 1965]

§ 130.18 Submission of budgets.

For each State plan for services and construction, the State agency shall, in accordance with procedures established by the Commissioner, submit for each fiscal year on official forms:

(a) A description of those public library services or public library construction projects which are to be carried out during that year, identifying the areas which are to be served;

(b) Budgets by categories of expenditures of the estimated expenditures to

be made in carrying out each portion of the plan for services or each project under the plan for construction; and

(c) A statement indicating the sources of funds to be available, showing the Federal share, and the State and local share of the total estimated expenditures. § 130.19 Estimates and reports of expenditures.

(a) The Commissioner's findings under 130.17(a) shall be made on the basis of (1) reports by the State showing amounts spent during the fiscal year ending June 30, 1963, and amounts available for expenditure during the fiscal year for which the findings are made, and (2) such other information as he may have requested or have available.

(b) The Commissioner's findings under § 130.17(b) shall be made on the basis of (1) reports by the State showing amounts available for expenditure during the fiscal year for which the findings are made, and (2) such other information as he may have requested or have available.

(c) The State agency shall, in accordance with procedures prescribed by the Commissioner, submit to the Commissioner on official forms statements of estimated total expenditures under the State plans for services and construction during the ensuing period for which a Federal payment is requested and statements of sources of the funds available for activities under each of such plans during such period. At the same time, the State agency shall submit a report of the total estimated or actual expenditures made under each of such plans during the preceding period. In the case of a plan for services, such a period shall not cover more than the first or second half of a fiscal year.

§ 130.20 Reallotments.

The amount of any State's allotment for any fiscal year under section 102 or 202 of the Act which the Commissioner determines will not be required during the period for which such allotment is available for carrying out that State's plan for services or construction shall be available for reallotment, on such dates during such year as the Commissioner may fix, to other States for carrying out their plans for services or construction respectively, in the same proportion as the original allotments were made for such a purpose to such other States in

(a) Neither the approval of the State plan for services or construtcion nor any payments to the State pursuant thereto shall be deemed to waive the right or duty of the Commissioner to withhold funds by reason of the failure of the State to observe, before or after such administrative action, any requirement by Federal law or regulation.

(b) The final amounts to be paid for any period are determined on the basis of the respective expenditures under State plans for services and construction for which Federal financial participation is authorized. The State assumes responsibility for the application of Federal funds to authorized purposes under such a plan.

(a) "Section 1009" means section 1009 of the National Defense Education Act of 1958, Public Law 85-864, as amended (72 Stat. 1605), 20 U.S.C. 589.

(b) "State" means a State, Puerto Rico, the District of Columbia, the Canal Zone, Guam, or the Virgin Islands.

(c) "Commissioner” means the United States Commissioner of Education, Department of Health, Education, and Welfare, or his delegates.

(d) "Department" means the Department of Health, Education, and Welfare.

(e) "State educational agency" or "State 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.

(f) "Educational statistics" means the information, facts, and data concerning education in public and nonpublic educational institutions which are recorded in and reported by State or local systems of records and reports, or both, for the purpose of reflecting the condition and progress of organized education in the State.

(g) "State plan" or "plan" means the document or documents submitted by a State for approval by the Commissioner to comply with the requirements for participation under section 1009.

the State educational agency and of the program(s) proposed by the State educational agency for improving the State and local statistical services, and the general policies and procedures to be followed in so doing, except that, in cases where the plan provides for an evaluation of the present educational statistics program, the submission of a description of the present program, in connection with the report of such evaluation when completed will be accepted as a substitute for the description in the State plan. The plan shall clearly show how each program under the plan is a "new program" or "an addition to an existing program” or “an expansion of an existing program" within the meaning of § 140.3. The description of each of the State agency programs shall set forth the scope of the agency activities and arrangements to be undertaken in carrying out such programs. The plan, when approved by the Commissioner, shall constitute the basis on which Federal grants will be made, as well as a basis for determining the propriety of State and local expenditures in which Federal participation is requested.

(b) Submission. The State plan and all amendments thereto shall be submited to the Commissioner for approval by a duly authorized officer of the State agency. The plan shall indicate the official or officials authorized to submit plan material.

(c) Amendment. The administration of the programs must be kept in conformity with the approved State plan. Whenever there is any material change in the content or administration of a program, or when there has been a change in pertinent State law or in the organization, policies, or operations of the State educational agency affecting a program, under the plan, the State plan must be appropriately amended.

(d) Certificate of the State educational agency. The State plan and all amendments thereto must include as an attachment a certificate of the officer of the State educational agency authorized to submit the State plan to the effect (1) that the plan or amendment has been adopted by the State agency and that the plan, or plan as amended, will constitute the basis for operation and administration of the program (s) in which Federal participation under section 1009 will be requested and (2) that the program(s) is (are) either new program(s) or addi

tions to or expansions of one or more existing programs within the meaning of § 140.3.

(e) Certificate of the State Attorney General. The plan must also include as an attachment a certificate of the State's Attorney General to the effect that the State agency named in the plan is the "State educational agency" as defined in § 140.1(e) which has authority under State law to submit the State plan and to carry out the program (s) described therein as the sole State agency responsible for the administration of the plan, and that all of the plan provisions are consistent with State law. If an official, other than the Attorney General of the State, is designated by State law to advise the State educational agency on legal matters and if the rulings of such official have the same legal effect with respect to the agency as rulings of the Attorney General have with respect to agencies advised by him, the certification may be made by such official. § 140.3

New programs and additions to or expansions of existing programs. (a) New programs. A new program is a plan of operations and the activities to carry out such plan in which none of the principal elements involved were being employed before the program was initiated and which does one or more of the following: (1) Collects and disseminates educational information from a category of sources not before used, e.g., from kindergartens, libraries, junior colleges or private schools, the same types of information hitherto collected only from public schools, grades 1 through 12; or (2) collects, processes, or disseminates information of a new type which requires a different technique of collection, processing, or analysis, or a different type of publication, to make it useful for educational purposes, e.g., information concerning the causes of absence, physical and health characteristics of children, or the effects of one or more of these on educational progress, collected in a State where only classroom and curricular information had been analyzed and disseminated before; or (3) by adopting a new and different type of analysis of processing, makes use of information hitherto collected for an entirely new and different purpose, e.g., the use of electronic equipment to analyze and show the relationship between educational progress and attendance, or health, or physical training, or partici

or

pation in organized sports, or certain types of physical handicaps of children, or the social or educational background of teachers, etc. An evaluative study undertaken in connection with the State plan to determine ways of improving the State agency's program for providing educational statistics may also qualify as a new program within the meaning of this section.

(b) Addition or expansion. An addition to or expansion of an existing program is a plan of operations, and the activities to carry out such plan, which involve additional expenditures by the State educational agency for statistical services of the types set forth in section 1009 (b) of the Act, over and above those hitherto expended for like services, and does one or more of the following: (1) provides for collecting and disseminating increased amounts of data about educational areas in which the agency is already making data available; (2) provides for recording, collecting, or disseminating types of data about educational areas in which such types of data are not available; (3) increases the usefulness of educational data by making it more current; (4) increases the usefulness of educational data by improving its quality; or (5) increases the usefulness of collected data through improved analysis. (See also § 140.10.)

(c) Time basis for measurement. Whether a program is "new" or an "addition to" or "expansion of" an existing program will, for the fiscal year 1959, be measured against the activities being carried on by the State educational agency prior to September 2, 1958. For programs submitted for approval after fiscal year 1959, such improvement or increase will be measured against the activities being carried on by the State educational agency prior to the first day of the fiscal year in which the program was submitted for approval.

§ 140.4 State agency for administration.

(a) Designation. The State plan shall give the official name of the agency which will be the sole agency for administering the plan. Such agency shall meet the criteria set forth in § 140.1(e) defining "State educational agency."

(b) Organization. The State plan shall indicate the administrative unit(s) within the State agency that will be responsible for administering the program(s) set forth in the plan.

§ 140.5

Authority of State agency.

The State plan shall set forth the authority of the State agency under State law to submit the State plan and to administer the program (s) set forth therein. Citations to, or copies of, all directly pertinent statutes and interpretations of them by the appropriate State officials, whether by regulations, policy statements, opinions of the Attorney General, or court decisions, shall be furnished as a part of the plan. All copies must be certified as correct by an appropriate official. § 140.6

Custody of funds.

(a) Fiscal administration. The State plan shall describe the fiscal administration of the plan. Such administration shall be conducted in accordance with applicable State laws, policies, and procedures, which shall be identified in the plan or set forth in an appendix. Accounts and supporting documents relating to any program involving Federal participation shall be adequate to permit an accurate and expeditious audit of the program.

(b) Disposal of records. The State educational agency shall provide for keeping accessible and intact all records supporting claims for Federal grants or relating to the accountability of the grantee agency for expenditure of such grants and relating to the expenditure of matching funds: (1) For three years after the close of the fiscal year in which the expenditure was made by the State educational agency; or (2) until the State agency is notified that such records are not needed for program administration review; or (3) until the State agency is notified of the completion of the Department's fiscal audit, whichever is later.

(c) Questioned expenditure. The records involved in any claim or expenditure which has been questioned shall be further maintained until necessary adjustments have been made and the adjustments have been reviewed and cleared by the Department.

The State plan shall provide that the State agency will participate in such periodic consultations and will make such reports to the Commissioner, at such time, in such form, and containing such information as the Commissioner may consider reasonably necessary to enable him to perform his duties under section 1009, and will comply with such provisions as he may find necessary to assure the correctness and verification of such reports.

Subpart C-Federal Financial
Participation and Payment

§ 140.9 Federal participation.

Section 1009 authorizes payment of one-half (not to exceed $50,000 for each fiscal year) of the total sum expended by the State under the State plan. Such expenditures may include salaries and wages, purchase of equipment, rental of equipment, conferences and workshops, travel, printing and reproduction, and other expenditures that may be readily identified as having been made pursuant to the State plan and within the provisions and limitations of section 1009 and the regulations in this part. Federal financial participation will be available in expenditures made in accordance with the provisions of the State plan and the applicable State laws, rules, and regulations, and standards governing the use of State funds.