in which the grant was made. For purposes of this section, an expenditure shall be determined in accordance with the grantee's customary fiscal and accounting practices.

§ 131.13 Payment procedures.

Federal payment will be made in accordance with the regulations in this part and the grant award document.

§ 131.14 Effect of Federal payments.

Neither the approval of a grant nor any payment to a grantee shall be deemed to waive the right of the Commissioner to withhold or recover the grant funds by reason of the failure of the grantee to comply with any requirements of the Act, the regulations, or the terms and conditions set forth in the grant award document.

§ 131.15 Fiscal accounting and auditing procedures.

(a) Fiscal accounting. The grantee shall maintain clearly identifiable accounts, records, and other evidence referred to in § 131.16 in accordance with generally accepted accounting procedures used by the grantee.

(b) Auditing records. Each grantee shall make appropriate provision for an audit of program expenditure records. Such records and the reports of the audits thereof shall be made available for inspection and audit by the auditors or other authorized representatives of the Federal Government.

(c) Adjustments. Each grantee shall, in maintaining program expenditure accounts, records, and reports, make any necessary adjustments to reflect refunds, credits, underpayments, or overpayments, as well as any adjustments resulting from administrative reviews and audits by the Federal Government or by the grantee. § 131.16

Retention of records.

(a) Each grantee shall provide for keeping accessible and intact all records supporting claims for Federal funds and relating to the accountability of the grantee for expenditure of matching funds:

(1) For 5 years after the close of the fiscal year in which the expenditure was made by the grantee; or

(2) Until the grantee is notified of the completion of the Federal fiscal audit, whichever is earlier.

The regulations in this part apply to grants by the U.S. Commissioner of Education to institutions of higher education to assist them in training persons in librarianship under title II-B of the Higher Education Act of 1965 (20 U.S.C. 1031-1033). Such grants are also subject to the requirements of title VI of the Civil Rights Act of 1964, approved July 2, 1964 (Public Law 88-352, 78 Stat. 252, 42 U.S.C. 2000d et seq.). Section 601 of that Act provides that no person in the United States shall, on the ground 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. Therefore, Federal financial assistance pursuant to this part is subject to the regulation in 45 CFR Part 80. (20 U.S.C. 1031-1033, 42 U.S.C. 2000d et seq.)

§ 132.2 Definitions.

As used in this part:

(a) "Act" means the Higher Education Act of 1965, as amended (20 U.S.C. 1001-1150).

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

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

(d) "Fellowship" means an award to participants engaged in a regular academic program of formal education in an institution of higher education for which are awarded credits that may be used to earn an academic degree.

(e) "Fiscal year" means the period beginning on July 1 and ending on the following June 30, and designated by the calendar year in which the fiscal year ends.

(f) "Institute" means an intensive short-term or regular-session program of specialized training designed to train individuals in particular principles and practices of librarianship.

(g) "Institution of higher education" means an educational institution in any State which meets all of the following criteria:

(1) It admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate.

(2) It is legally authorized within such State to provide a program of education beyond secondary education.

(3) It provides at least one of the following types of programs:

(i) An educational program for which it awards a bachelor's degree.

(ii) A program or not less than 2 years which is acceptable for full credit toward a bachelor's degree.

(iii) A program of not less than 1 year of training to prepare students for gainful employment in a recognized occupation.

(4) It is a public or other nonprofit institution.

(5) It is either accredited by a nationally recognized accrediting agency or association, or meets at least one of the following requirements:

(i) It is an institution with respect to which the Commissioner has determined that there is satisfactory assurance, considering the resources available to the institution, the period of time, if any, during which it has operated, the effort it is making to meet accreditation standards, and the purpose for which this determination is being made, that the institution will meet the accreditation standards of such an agency or organization within a reasonable period of time.

(ii) It is an institution whose credits are accepted on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited.

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(h) "Librarianship" means the principles and practices of the library and information sciences, including the acquisition, organization, storage, trieval, and dissemination of information, and reference and research use of library and other information resources.

(i) "State" means, in addition to the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, and the Virgin Islands.

(j) “Traineeship" means an award to participants enrolled in a directed training program which is not a regular academic program of the type described in paragraph (d) of this section (20 U.S.C. 1032, 1141)

§ 132.3 Eligible purposes.

Funds available under title II-B of the Act may be used by the Commissioner to award grants to institutions of higher education for any one or more of the following purposes:

(a) To assist in covering the cost of courses of training or study (including institutes) for such persons;

(b) For establishing and maintaining fellowships or traineeships with stipends (including allowances for traveling, subsistence, and other expenses) for fellows and others undergoing training and their dependents not in excess of such maximum amounts as may be prescribed by the Commissioner; and

(c) For establishing, developing, or expanding programs of library and information science. (20 U.S.C. 1033) § 132.4 Eligible participants.

An individual may be enrolled as a participant in training programs assisted with Federal funds under this part provided that such individual:

(a) Is a national of the United States or is in the United States for other than a temporary purpose and intends to become a permanent resident thereof; and (b) Is either engaged in or preparing to engage in a profession or other occupation involving librarianship. (20 U.S.C. 1032, 1033)

§ 132.5 Applications for grants.

(a) Any institution of higher education may file on or before the cutoff date or dates announced by the Commissioner for each fiscal year an application in accordance with such forms and instructions as may be prescribed by him. Such application shall contain—

(1) Such fiscal control and funding accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the applicant, which meet the requirements of § 132.12;

(2) Such program accountability and evaluation procedures as may be necessary to assure that the purposes of the training program are being accomplished which meets the requirements of § 132.13;

(3) An assurance that no fees or charges will be collected from participants as a condition of enrollment or participation in or completion of any training; and

(4) Such other pertinent information as the Commissioner may require.

(b) The application shall be executed by an individual authorized to act for the applicant. Applications and requests for information may be sent to the Director, Division of Library Programs, Bureau of Libraries and Educational

Technology, U.S. Office of Education, Washington, D.C. 20202. (20 U.S.C. 1033) § 132.6 Review of applications.

The Commissioner will approve applications for a grant under this part only after such application has been reviewed by a panel of experts and specialists, and in accordance with such other procedures as the Commissioner may establish. Such review will take into account such factors as:

(a) The number of persons to be trained in the program;

(b) Adequacy of qualifications and experience of personnel designated to carry out the training program;

(c) Adequacy of facilities, equipment, and materials to be used in the training program;

(d) Reasonableness of estimated cost in relation to anticipated results;

(e) Sufficiency of size, scope, and duration of the training program so as to make a significant contribution to meeting overall needs for persons trained in librarianship;

(f) Quality and suitability of curricula in the training program;

(g) Experience of the applicant institution with similar training programs;

(h) Criteria for selection of participants;

(i) Extent to which the applicant institution will contribute its own resources to the proposed training program; and maintain, expand, and improve its other training programs in librarianship;

(j) Potential for achieving innovative and exemplary training programs; and (k) Priorities which may be determined by the Commissioner. (20 U.S.C. 1033)

§ 132.7 Disposition of applications.

On the basis of his review of an application pursuant to § 132.6, the Commissioner will either (a) approve the application in whole or in part, (b) disapprove the application, or (c) defer action on the application for such reasons as lack of funds or a need for further review. Any deferral or disapproval of an application shall not preclude its reconsideration or resubmission. The Commissioner will notify the applicant in writing of the disposition of the application. The grant award document will incorporate the grant terms and conditions in this part and include such other provisions as appropriate. (20 U.S.C. 1033)

§ 132.8 Payment procedure.

Federal payments pursuant to a grant under this subpart may be made either in advance or by way of reimbursement, to be determined consistent with the nature of the activities and the services involved in the training program, and in accordance with the applicable requirements of these regulations and the terms and conditions of the grant award. (20 U.S.C. 1033, 1232d)

§ 132.9 Amount of grant.

The amount of the grant shall be set forth in the grant award document. The total cost to the Government for the performance of the training program will not exceed the amount set forth in the grant award document or any appropriate modification thereof. The Government shall not be obligated to reimburse the grantee for costs incurred in excess of such amount unless or until the Commissioner has notified the grantee in writing that such amount has been increased and has specified such increased amount in a revised grant award document pursuant to § 132.11. Such revised amount shall thereupon constitute the revised total cost of the performance of the grant. (20 U.S.C. 1033)

§ 132.10 Duration of the training pro

gram.

(a) All payments made with respect to each grant shall remain available for expenditures during the budget period specified in the grant award document or until otherwise terminated in accordance with 132.20. Such period may be extended by revision of the grant without additional funds pursuant to paragraph (b) of this section. (20 U.S.C. 1033)

(b) When it is determined that special or unusual circumstances will delay the completion of the program or project for more than 3 months beyond the period for which the grant is awarded, the grantee shall in writing request the Commissioner to extend such period and shall indicate the reasons therefor. § 132.11 Revisions.

(a) In order for a grant to be substantially changed, or for the amount of the grant award to be increased pursuant to § 132.9, the grantee shall submit to the Commissioner a written request therefor. Minor deviations of specific amounts of expenditures among categories from those estimated in the budget set forth in the grant award

document will not require revision of such application.

(b) Requests for revisions shall be submitted in writing for approval by the Commissioner. Such revisions may be initiated by the Commissioner 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 such grants. (20 U.S.C. 1033)

§ 132.12 Fiscal accounting and auditing procedures.

(a) Fiscal accounting. The grantee shall maintain accounts, records, and other evidence pertaining to all costs incurred, and revenues or other applicable credits acquired, in connection with the grant. The system of accounting employed by the grantee shall be in accordance with generally accepted accounting principles and will be applied in a consistent manner so that expenditures under the grant may be clearly identified.

(b) Cost sharing records. When the grant award requires cost sharing, the grantee shall maintain records which demonstrate that its contributions to the training program are not less, in proportion to the charges against the grant, than the amount specified in the grant award document, or any subsequent revision thereof.

(c) Auditing records. Each grantee shall make appropriate provision for the auditing of the program or project expenditure records referred to in paragraphs (a) and (b) of this section. Such audits shall be in accordance with generally accepted auditing standards, which shall be no less in scope and coverage than those standards which may be prescribed by the Department. Such expenditure records, the reports of such audits, and other records relating to the grant shall be subject to inspection and audit by the representatives of the Federal Government at all reasonable times during the period of retention provided for in § 132.16.

(d) Adjustments. Each grantee shall, in maintaining program expenditure accounts, records, and reports, make any necessary adjustments to reflect refunds, credits, underpayments, or overpayments as well as any adjustments resulting from administrative reviews and audits by the Federal Government or by the grantee. Such adjustments shall be set forth in the

financial reports filed with the Commissioner. (20 U.S.C. 1033, 1232c)

§ 132.13

Program accountability and

evaluation procedures.

Each program or project proposal shall include an evaluation plan to be carried out by a third party for the purpose of evaluating the effectiveness of the program or project. Such plan shall describe the steps by which the grantee will.

(a) Determine the extent to which the objectives of the program or project have been accomplished;

(b) Determine what factors either enabled or precluded the accomplishment of these objectives; and

(c) Promote the inclusion of the successful aspects of the program or project into adult education programs supported with funds other than those provided under the grant. (20 U.S.C. 1033) § 132.14 Allowable costs.

Except as otherwise indicated in paragraph (b) of this section, allowable costs for any approved grant shall be determined in accordance with, and governed by, the principles and procedures set forth in the Office of Management and Budget Circular A-21 and any other Federal requirements concerning cost determination as may be applicable; except that

(a) There may be included in direct costs for payments to training program participants only those allowances provided for in § 132.15, and

(b) Indirect costs chargeable to the grant shall be limited to actual indirect costs or a fixed rate of 8 percent of allowable direct costs (including the allowances referred to in paragraph (a) of this section), whichever is less.

(c) Travel allowances to other than training program participants shall be paid in accordance with applicable State and local laws and regulations and agency and institutional practices. If there are no such applicable laws, regulations, and practices, travel cost shall be in accordance with the Standardized United States Government Travel Regulations (Office of Management and Budget Circular No. A-7). No foreign travel will be authorized under the grant unless prior approval is obtained from the Commissioner. (20 U.S.C. 1033) § 132.15 Stipends and travel allowances for participants.

(a) Stipends, travel allowances and dependency allowances shall be author

ized at levels established by the Commission and consistent with prevailing practices in other comparable Federal programs.

(b) Any amounts received under any other Federal grant program (except veterans' and war orphans' and widows' educational assistance under title 38, United States Code) shall be set off against the amount which a participant otherwise would be entitled to receive under this part. A participant shall not be precluded from receiving a loan that is made, insured, or reinsured under any Federal educational loan program, and neither the amount of such loan nor any Federal interest payment made during the period of his participation in a training program shall be deducted from the amount received by the participant under this part.

(c) Allowances may be paid for a participant's travel expenses for one round trip between each participant's home beyond a reasonable commuting distance and the place at which the training program is conducted. In addition, allowances may also be paid for a participant's daily commuting travel for a reasonable distance upon determination by the Commissioner that such allowances are necessary for successful participation in the program and that extreme need and hardship exist. Such travel may be performed either by public or private conveyance; but if performed by private conveyance, the allowance for such travel shall not exceed eight cents per mile or the common carrier cost of such travel, whichever is less. (20 U.S.C. 1033, 38 U.S.C. 1781)

§ 132.16 Retention of records.

(a) Each grantee shall provide for keeping accessible and intact all records relating to the receipt and expenditure of Federal grant funds and to the expenditure of the grantee's contribution to the cost of the training program, including all accounting records and related original and supporting documents that substantiate direct and indirect costs charged to the grant. Such records shall be retained for 3 years after the end of the budget period if audit by or on behalf of the Department has occurred by that time; or if such audit has not occurred by that time:

(1) Until the grantee is notified of the completion of such audit, or

(2) For 5 years following the end of the budget period, whichever is earlier.