to the effective date of such award document, which in no event will be prior to the date on which the project proposal was received by the Commissioner in substantially approvable form.

§ 124.21 Payment procedures.

The Commissioner will pay to each local educational agency with an approved project, either in advance or by way of reimbursement, amounts equal to the total expenditures by that agency under the approved project, but not in excess of the total allowable expenditures therefor. Payments will be made in a manner consistent with the nature of the activities and the services under the approved project. § 124.22

Availability of funds for approved projects.

The issuance of an award document will be regarded as an obligation of the Government of the United States in the amount of the award. Federal appropriations so obligated will remain available for expenditure by such local educational agencies during the period for which the award is made. Funds will be considered to have been expended by a local educational agency 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 expended as of the time such services were rendered, such travel was performed, and such rented facilities were used, respectivley. Such binding commitments for the acquisition of goods or property or for the performance of work shall be liquidated within a reasonable period of time.

(20 U.S.C. 887; 31 U.S.C. 200)

§ 124.23 Fiscal and auditing procedures. (a) Each project proposal shall designate the officer who will receive and have custody of project funds.

(b) Each local educational agency receiving Federal funds for an approved project shall provide for such fiscal control and fund accounting procedures as are necessary to assure proper disbursement of, and accounting for, the Federal funds paid to it. Accounts and supporting documents relating to project expenditures shall be adequate to permit an accurate and expeditious audit.

(c) Each local educational agency shall make appropriate provision for the auditing of project expenditure records by a certified or licensed public accountant, and such records as well as the audit reports shall be available to auditors of the Department.

§ 124.24 Adjustments.

Each local educational agency shall in maintaining project expenditure accounts, records, and reports, make any necessary adjustments to reflect refunds, credits, underpayments, or overpayments, as well as any adjustments resulting from Federal or local administrative reviews and audits. Such adjustments shall be set forth in the financial reports filed with the Commissioner. § 124.25 Disposal of records.

(a) Subject to the provisions of paragraph (d) of § 124.28, each local educational agency shall keep accessible and intact all records pertaining to Federal funds provided under section 807 of the Act and to the expenditure of such funds (1) for 5 years after the close of the fiscal year in which the expenditure is liquidated or (2) until it is notified that such records are not needed for program administrative review, whichever is the earlier.

(b) The records pertaining to any claim or expenditure which has been questioned at the time of audit shall be further maintained.

§ 124.26

Eligible expenditures.

Expenditures which are eligible for participation under section 807 of the Act are those expenditures which (a) conform to the terms of the approved project and (b) are clearly identifiable as additional expenditures incurred as a result of the section 807 program. None of the funds made available under section 807 of the Act may be used for religious worship or instruction. (20 U.S.C. 885, 887)

§ 124.27 Funds not expended.

In the event that funds previously made available under section 807 of the Act shall not have been expended for the approved project and, in the judgment of the Commissioner, will not be needed for that purpose, the Commissioner may, upon notice to the local educational agency, reduce the amount of the payment to it to an amount consistent with its needs for that purpose. In the event

that an amount in excess of the sum needed for the completion of the project shall have actually been paid to the local educational agency, the custodian of the project funds shall repay that excess amount to the Commissioner. § 124.28

Acquisition and maintenance

of equipment.

(a) Title of equipment acquired with funds provided under section 807 of the Act must be vested in, and retained by, a public agency.

(b) All equipment acquired with funds provided under section 807 of the Act must be used for the purposes specified In the approved project, and is accountable to the Federal Government at the end of such project. Such equipment must at all times during the project period be subject to the administrative control of the recipient local educational agency.

(c) Costs of maintaining and repairing equipment purchased with funds provided under section 807 of the Act shall be eligible for financial assistance thereunder during the life of the project. It shall be the responsibility of the local educational agency to make reasonable provision for the maintenance and repair of such equipment.

(d) Each local educational agency shall maintain for the expected useful life of the equipment, or until it is disposed of, inventories of all equipment it acquires with funds under section 807 of the Act and costing $100 or more per unit. The records of such inventories shall be maintained for a period of 1 year after the end of the expected useful life of the equipment or after the equipment is disposed of.

Subpart E-General Provisions

§ 124.33 Leasing facilities.

In the case of a project involving the leasing of a facility, the local educational agency shall demonstrate that it will have the right to occupy, to operate, and if necessary to maintain and improve, the leased facility during the proposed period of the project.

§ 124.34 Copyrights and patents.

(a) Any material of a copyrightable nature produced through a project with financial assistance under title VIII of the Act shall not be copyrighted, but shall be placed in the public domain un

less, at the request of the grantee and upon a showing that it will result in more effective development or dissemination of the material and would otherwise be in the public interest, the Commissioner may authorize arrangements for the copyright of the material for a limited period of time.

(b) Any materials of a patentable nature produced through a project with financial assistance under title VIII of the Act shall be subject to the provisions of 45 CFR Parts 6 and 8.

§ 124.35 Dissemination of information.

In order to assure the value for demonstration purposes of projects under section 807 of the Act, the local educational agency shall provide for a widespread dissemination of significant information developed as a result of such projects and of their evaluation of them. The cost thereof may be charged to the project to the extent that it is authorized in the award document.

(a) "Construction" means (1) erection of new or expansion of existing structures, and the acquisition and installation of equipment therefor; or (2) acquisition of existing structures not owned by any agency or institution making application for assistance under this part; or (3) remodeling or alteration (including the acquisition, installation, modernization, or replacement of equipment) of existing structures; or (4) a combination of any two or more of the foregoing. In addition, "construction" means the construction of residential fa

cilities; and the cost of construction shall be deemed to include the cost of acquisition of land in connection with any of the foregoing, but not the cost of off-site improvements. (20 U.S.C. 877b(f)).

(b) "Eligible party" means any public or nonprofit private agency, organization, or institution. (20 U.S.C. 877b (b)).

(c) "Secretary" means the Secretary of Health, Education, and Welfare. (20 U.S.C. 877b(1)).

§ 125.2 Scope and purpose.

The regulations in this part govern programs of financial assistance, pursuant to Part C of the Education of the Handicapped Act, the purpose of which is to provide, through a limited number of model centers for deaf-blind children, a program designed to develop and bring to bear upon such children, beginning as early as feasible in life, those specialized, intensive professional and allied services, methods and aids that are found to be most effective to enable them to achieve their full potential for communication with and adjustment to the world around them, for useful and meaning participation in society, and for self-fulfillment. These programs of financial assistance will be carried out through grants and contracts with eligible parties. (20 U.S.C. 877b (a), (b), (e)). § 125.3

Grants to or contracts with eligible parties.

The Secretary may make grants to or contracts with eligible parties to pay part or all of the cost of establishment (including, when necessary, construction) or operation, or both, of centers for deaf-blind children. In determining whether to make such a grant or contract the Secretary will take into consideration the need for a center for deaf-blind children in the light of the general availability and quality of existing services for such children in the part of the country involved. (20 U.S.C. 877b (b), (c)).

Services to be provided pursuant to grants or contracts made under § 125.3 may be provided to deaf-blind children (and, where applicable, other persons) regardless of whether they reside in the center, may be provided at some place other than the center, and may include the provision of transportation for any such children (including an attendant) and for parents. (20 U.S.C. 8775(d) (2)). § 125.6 Grants or contracts for related activities.

The Secretary may, either as a part of a grant or contract under § 125.3, or by separate grant to or contract with an eligible party operating a center meeting the requirements of § 125.4, provide for the payment of all or part of the cost of activities such as the following:

(a) Research to identify and meet the full range of needs of deaf-blind children;

(b) Development or demonstration of new, or improvements in existing, methods, approaches, or techniques which would contribute to the adjustment and education of deaf-blind children;

(c) Training (either directly or otherwise) of professional and allied personnel engaged or preparing to engage in programs specifically designed for deafblind children, including payment of stipends for trainees and allowances for travel and other expenses for them and their dependents; and

(d) Dissemination of materials and information about practices found effective in working with deaf-blind children. (20 U.S.C. 877b(e).)

§ 125.7 Determination

children.

of deaf-blind

As used in this part, the term "deafblind child" means a child who has auditory and visual handicaps the combina

tion of which causes such severe communication and other developmental and educational problems that he cannot properly be accommodated in special education programs either for the hearing handicapped child or for the visually handicapped child. In recognition of the inherent and special difficulties attendant to the making of the determination of whether a child is deaf and blind within the meaning of the preceding sentence, that determination shall be made by the grantee or contractor on the basis of an extended period of evaluation, conducted in the center or elsewhere by a team consisting of specialists, at least in the fields of hearing, vision, and education of the handicapped, who shall make appropriate recommendations to the grantee or contractor as to whether a child is deaf and blind within the meaning of this definition. (20 U.S.C. 877b (h)).

§ 125.8 Further information.

Additional information concerning the program described in this part is provided in guidelines which may be obtained from the Project Centers Branch, Bureau of Education for the Handicapped, U.S. Office of Education, 400 Maryland Avenue SW., Washington, D.C. 20202.

130.88

130.89

Retention of records.

Eligible costs.

Condition precedent to receiving

Federal funds.

Special limitations on use of funds.
Submission of reports.

130.90 Effect of Federal payments.

130.91 Noncompliance.

130.92 Right to hearing and judicial review. 130.93 Termination of program.

AUTHORITY: The provisions of this Part 130 issued under sec. 8, 70 Stat. 295, as amended and renumbered sec. 302, 78 Stat. 14, as further amended and renumbered sec. 502, 80 Stat. 317; 20 U.S.C. 357.

SOURCE: The provisions of this Part 130 appear at 32 F.R. 2946, Feb. 16, 1967, unless otherwise noted.

§ 130.1

Subpart A-Definitions
Definitions.

As used in this part:

(a) "Act" means the Library Services Act, Public Law 84-597, as amended by Public Law 84-896; Public Law 86-679; Public Law 87-688; Public Law 88-269 (as renamed, the Library Services and Construction Act); and Public Law 89511 (20 U.S.C. Chap. 16).

(b) "Commissioner" means the U.S. Commissioner of Education.

(c) "Department" means the U.S. Department of Health, Education, and Welfare.

(d) "Geographic area(s)," for the purpose of subpart C, means all or part of one or more political subdivisions of the State in which the public library services will be provided under the State plan.

(e) "Interlibrary cooperation," for the purpose of subpart E, means the establishment and operation of systems or networks of libraries, including State, school, college, and university, public, and special libraries, and special information centers working together to achieve maximum effective use of funds in providing services to all library users. Such systems may be designed to serve a community, metropolitan area, region within a State, or may serve a statewide or multistate area.

(f) "Library services to the physically handicapped," for the purpose of subpart G, means the provision of library services through public or other nonprofit libraries, agencies, or organizations, to physically handicapped persons, including the blind and visually handicapped, certified by competent authority as unable to read or to use conventional printed material as a result of physical limitations.

(g) "Project" or "construction project," for the purpose of subpart D, means a construction project which is eligible for a grant under an approved State plan and which will result in a usable public library facility.

(h) "Public library" means a library that serves free all residents of a community, district, or region without discrimination and receives its financial support in whole or in part from public funds. The term does not include libraries such as law, medical, school, and academic libraries, which are organized to serve a special clientele or purpose. (i) [Reserved].

(j) "Public library services," for the purpose of subpart C, means library services which are provided by or on behalf of a public library. The term does not include those library services that are properly the responsibility of the schools.

(k) "State" means a State of the Union, the District of Columbia, Puerto Rico, Guam, American Samoa, the Trust

Territory of the Pacific Islands, or the Virgin Islands.

(1) "State institutional library services," for the purpose of subpart F, means the providing of books and other library materials, and of library services to (1) inmates, patients, or residents of penal institutions, reformatories, residential training schools, orphanages, or general or special institutions or hospitals operated or substantially supported by the State, and (2) students in residential schools for the handicapped (including mentally retarded, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, crippled, or other health impaired persons who by reason thereof require special education) operated or substantially supported by the State.

(m) "State agency" means the "State library administrative agency" (Section 504 (b) of the Act), the State library agency, or any other official State agency charged by State law with the extension and development of public library services, the construction of public libraries, the promotion of interlibrary cooperation, or the provision of specialized State library services.

[32 F.R. 2946, Feb. 16, 1967, as amended at 33 F.R. 8668, June 13, 1968]

The purposes of the State plan are to set forth the manner and procedures under which the State will carry out the State program(s) to promote the further extension of free public library services to areas without such services or with inadequate services, to provide for the construction of public libraries, to promote interlibrary cooperation, to assist the States in providing certain specialized State library services, and to provide the basis on which Federal payments are made. Therefore, in order to participate in one or more of the programs described in this part, a State must submit to the Commissioner a State plan which meets the requirements of this part applicable to such programs.

§ 130.3 State plan provisions.

(a) State agency. The State plan shall give the official name of the agency which will be the sole agency for administering or supervising the administration of the plan and shall indicate the pro