and will be in accordance with the Act, these regulations and the policies and procedures promulgated thereunder, and in accordance with the approved State plan.

(10) That to the extent that funds are inadequate for the provision of comprehensive dental care and services, the program of projects will be curtailed in terms of areas served or age levels of children served, or similar factors, and not in terms of the care and services provided under the program.

(11) That the program of projects will be in addition to the demonstration services referred to in § 51a.117.

(d) The State plan may provide, in its program of projects, for research looking toward the development of new methods of diagnosis or treatment, or demonstration of the utilization of dental personnel with various levels of training.

[40 FR 54106, Nov. 20, 1976] § 51a.133

[Reserved]

§ 51a.134 Submission of budgets by State agencies.

Prior to the beginning of each fiscal year, the State agency shall submit, upon official forms and in accordance with procedures established by the Secretary, an annual budget, appropriately documented and supported, providing for financial participation by the State and indicating the availability and sources of all funds to be expended under the State plan during such fiscal year.

[39 FR 26692, July 22, 1974. Redesignated at 40 FR 54103, Nov. 20, 1975]

§ 51a.135 Payments to States; effect of

certification.

Neither the approval of the State plan nor any certification of funds or payment to the State pursuant thereto shall be deemed to waive the responsibility of the State to observe before or after such administrative action any Federal requirements or the right or duty of the Secretary to withhold funds by reason thereof.

[39 FR 26692, July 22, 1974. Redesignated at 40 FR 54103, Nov. 20, 1975]

§ 51a.136 Private funds

Funds obtained from private sources and made fully available for expenditure by the State agency under the approved State plan may be included in the computation of the amounts of public funds

expended. Private funds shall be placed on deposit in accordance with the State law, but if there is no State law setting forth applicable procedures, the funds shall be deposited with the State Treasurer, the Treasurer of a political subdivision, or in a private depository, in a special account to the credit of the State agency. If the funds are placed in a private depository, the certificate of an officer of the private depository shall be furnished showing the deposit of such funds in a special account to the credit of the State agency.

[39 FR 26692, July 22, 1974. Redesignated at 40 FR 54103, Nov. 20, 1975]

§ 51a.137 Application of Federal funds; effect of State rules.

Except as specifically stated in the Act and in these regulations, State laws, rules, regulations, and standards governing the custody and disbursement of State funds shall govern the custody and disbursement of Federal funds paid to the State.

[39 FR 26692, July 22, 1974. Redesignated at 40 FR 54103, Nov. 20, 1975]

§ 51a.138 Custody of and accounting for Federal funds.

(a) The State Treasurer or official exercising similar functions for the State shall receive and provide for the custody of all funds paid to the State under the Act, subject to requisition or disbursement thereof by the State agency for State plan purposes.

(b) The State plan shall incorporate by reference such written fiscal control and fund accounting procedures as are necessary to assure the proper disbursement of and accounting for funds paid to the State under this subpart. Such procedures shall provide for an accurate and timely recording of receipts of Federal funds paid to the State for expenditures incurred or to be incurred under the approved plan, of the amounts and purposes of expenditures made in carrying out such plan and of any unearned balances of Federal funds paid to the State. In addition, such procedures must:

(1) Provide for the determination of allowability and the allocation of costs in accordance with Subpart Q of 45 CFR Part 74; and

(2) Provide adequate information to show exclusion from expenditures claimed for Federal participation of those

§ 51a.140 Maintenance of effort.

The amount payable to any State under the regulations in this part for any fiscal year ending after June 30, 1968, shall be reduced by the amount by which the sum expended (as determined by the Secretary) from nonFederal sources for maternal and child health services and services for crippled children for such year is less than the sum expended from such sources for such services for the fiscal year ending June 30, 1968. In case of any such reduction the Secretary shall determine the portion thereof which shall be applied, and the manner of applying such reduction, to the amounts otherwise payable to the State under these regulations.

[39 FR 26692, July 22, 1974. Redesignated at 40 FR 54103, Nov. 20, 1975]

§ 51a.141 Merit system.

The State plan shall provide for the establishment and maintenance of personnel standards on a merit basis for persons employed by the State agency and by official local agencies to provide or supervise the provision of maternal and child health and crippled children's services under the approved State plan, and of State agency supervision of compliance with such standards by official local agencies. Conformity with Standards for a Merit System of Personnel Administration, 45 CFR Part 70, issued by the Secretary of Health, Education, and Welfare, including any amendments thereto, and any standards prescribed by the United States Civil Service Commission pursuant to section 208 of the Intergovernmental Personnel Act of 1970 (Public Law 91-648; 84 Stat. 1915) modifying or superseding such Standards, will be deemed to meet this requirement as determined by sald Commission. Laws, rules, regulations, and policy statements, and amendments thereto, effectuating such methods of personnel administration shall be incorporated by reference in the State plan. [39 FR 26692, July 22, 1974. Redesignated at 40 FR 54103, Nov. 20, 1975]

race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. A regulation implementing such Title VI, which applies to grants made under this subpart, has been issued by the Secretary of Health, Education, and Welfare with the approval of the President (45 CFR Part 80). Such regulation is applicable to services and programs provided under section 501-507 of the Act, and requires receipt and acceptance by the Secretary of the applicable documentation set forth therein.

[39 FR 26692, July 22, 1974. Redesignated at 40 FR 54103, Nov. 20, 1975]

§ 51a.143 Applicability of 45 CFR Part 74.

The provisions of 45 CFR Part 74, establishing uniform administrative requirements and cost principles, shall apply to all grants made under this subpart. [39 FR 26692, July 22, 1974. Redesignated at 40 FR 54103, Nov. 20, 1975]

Subpart B-Special Project Grants for Family Planning Services [Reserved] Subpart C-Special Project Grants for Dental Health of Children [Reserved] Subpart D-Project Grants to Institutions of Higher Learning

AUTHORITY: Sec. 1102, 49 Stat. 647; 42 U.S.C. 1302.

SOURCE: 40 FR 12760, Mar. 20, 1975, unless otherwise noted.

§ 51a.401 Applicability.

The regulations in this subpart are applicable to grants to public or nonprofit private institutions of higher learning pursuant to sections 503 (2), 504(2), and 511 of the Social Security Act for special projects of regional or national significance which may contribute to the advancement of maternal and child health or of services for crippled children and/or for training personnel for health care and related services for mothers and children.

§ 51a.402 Definitions.

As used in this subpart:

(a) "Act" means the Social Security Act, as amended.

(b) "Secretary" means the Secretary of Health, Education, and Welfare and

any other officer or employee of the Deartment of Health, Education, and Welfare to whom the authority involved has been delegated.

(c) "Institution of higher learning" eans any college or university accred

ised by a recognized body or bodies apProved for such purpose by the US. Comissioner of Education, and any teach

hospital which has higher learning

among its purposes and functions and credited school of medicine and a fullsime academic medical staff holding fac157 $bus in such school of medicine.

ich has a formal affiliation with an ac

(d) "Nonprofio", as applied to any in

stitution of higher learning, refers to an stitution of higher learning which is a corporation or association, or is owned and operated by one or more corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual

(2) Eligible applicants. Any public or nonprofit private institution of higher learning is eligible to apply for a grant under this subpart.

(b) Eligible projects. Grants to eligible applicants may be made by the Secretary for projects:

(1) of regional or national significance which may contribute to the advancement of maternal and child health.

(2) of regional or national significance which may contribute to the advancement of services for crippled children.

(3) For training personnel for health care and related services for mothers and children.

§ 51a.404 Application for a grant.

(a) An application for a grant under this subpart shall be submitted at such time and in such form and manner as the Secretary may prescribe. The application shall contain a budget and narrative plan of the manner in which the applicant intends to conduct the project and carry out the applicable requirements of this subpart. The plan must describe the project in sufficient detail to identify clearly the nature, need, specific objectives, and methods of the project.

(b) The application must be executed by an individual authorized to act for the applicant and to assume for the applicant the obligations imposed by the

state, the applicable regulations of this subpart and any additonal conditions of the grant.

51a-405 Project requirements.

An approvable application shall contain each of the folowing:

(a) A statement of the purpose of the project with an identification of the characteristics which will enable the project to:

(1) Contribute to the advancement of maternal and child health: and/or

(2) Contribute to the advancement of services for crippled children; and/or

(3) Train personnel for health care and related services for mothers and children.

(b) A description of the nature and scope of the activities to be undertaken and the methods to be used in accomplishing the purpose.

(c) A proposed budget.

(d) An evaluation methodology, including the manner in which such methodology will be employed to measure the achievement of the purpose of the program.

(e) An assurance that when diagnostic services are provided by project personnel or through use of project facilities, such services will be made available under the plan with:

(1) No charge to the person or his family, except to the extent that payment will be made by a third party (including a governmental agency) which is authorized or under legal obligation to pay such charges. (Where the cost is to be reimbursed by a governmental agency, a written agreement between the project and the agency is required. Reimbursement may be made either to the project or directly to the provider in accordance with such an agreement.)

(2) No restriction as to the economic status of the person receiving such services under the project or his family or relatives, or their legal residence.

(3) No requirement that referral to the project be made by any individual or agency except as may be described in the application for the project.

(f) The basis on which charges for services other than diagnostic services may be made. (Services which may be provided to persons by staff or facilities supported by project funds shall not relieve other public, including Federal or federally supported, or private agency or insuror of any obligations to pay for services which the recipient would nor

mally be eligible to receive from such agency or insuror. The grantee shall make a reasonable effort to collect from third-party payment sources and from individuals in accordance with their ability to pay.)

(g) Provision that trainees and fellows will be appointed in accordance with the qualifications and conditions in the project application. A trainee or fellow must be a national of the United States or be in the United States for other than temporary purposes and intend to become a permanent resident of the United States. § 51a.406 Evaluation and grant award.

(a) Within the limit of funds available for such purposes, the Secretary may award grants to assist in the establishment and operation of those projects which will, in his judgment, best promote the purposes of sections 503(2), 504(2), or 511 of the Act, taking into account:

(1) The need for the services or training to be provided, including the relative extent to which the project will contribute to a nationwide distribution of needed services and training;

(2) The capability of the applicant to provide training or services of high quality and effectiveness;

(3) The relative extent to which the project will provide more effective utilization of personnel currently providing health services to mothers and children;

(4) The extent to which the project will assist in the development of new information or innovative methods relating to the provision of maternal and child health and crippled children's services.

(b) In the case of grants under section 511 of the Act, the Secretary will give special attention to programs providing training at the undergraduate level and to programs which provide training for health care and related services for mothers and children-particularly mentally retarded children and children with multiple handicaps.

(c) The amount of any award will be determined by the Secretary on the basis of his estimate of the sum necessary for the proper performance of the project. In determining the grantee's share of project costs, if any, costs borne by Federal funds, or costs used to match other Federal grants, may not be included except as may be otherwise provided by law.

(d) All grant awards shall be in writing, shall set forth the amount of funds

The Secretary shall from time to time make payments to a grantee of all or a portion of any grant award, either in advance or by way of reimbursement for expenses incurred or to be incurred in the performance of the project, to the extent he determines such payments necessary to promote prompt initiation and advancement of the approved project.

§ 51a.408 Use of project funds.

Any funds granted pursuant to this subpart as well as other funds to be used in performance of the approved project may be expended solely for carrying out the approved project in accordance with the applicable statute, the regulations of this subpart, the terms and conditions of the award, and the applicable cost principles prescribed by Subpart Q of 45 CFR Part 74.

§ 51a.409 Civil rights.

(a) Attention is called to the requirements of title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. 2000d et seq.) and in particular section 601 of such Act which provides that no person in the United States shall, on the grounds of race, color, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. A regulation implementing such title VI, which applies to grants made under this part, has been issued by the Secretary of Health, Education, and Welfare with the approval of the President (45 CFR Part 80).

(b) Attention is called to the requirements of title IX of the Education Amendments of 1972 and in particular to section 901 of such Act, which provides that no person in the United States shall, on the basis of sex, be excluded from participation in, be denied the ben