The grantee shall submit such fiscal and program reports as may be required by the Commissioner and in the quantity and at the time stated in the report schedule which shall be set forth in the grant award document. (20 U.S.C. 1033) § 132.18 Publications.

(a) Material produced as a result of any program supported with grants under this part may be published without prior review by the Commissioner: Provided, That (1) 15 copies of such material shall be furnished to the Commissioner; (2) that no such materials may be published for sale without the prior approval of the Commissioner, which approval shall be subject to such requirements as he deems appropriate, and (3) that no motion pictures for viewing by the general public shall be produced without prior clearance by the Department. All such published material shall contain the following statement:

The program presented or reported herein was performed pursuant to a grant from the U.S. Office of Education, Department of Health, Education and Welfare. The opinions expressed herein, however, do not necessarily reflect the position or policy of the U.S. Office of Education, and no official endorsement by the U.S. Office of Education should be inferred.

(b) All printing or duplicating authorized under a grant under this part shall be subject to the restrictions and limitations contained in the current issue of the "Printing and Binding Regulations," published by the Joint Committee on Printing, Congress of the United States. (20 U.S.C. 1033; 44 U.S.C. 103, 501, 502)

§ 132.19 Patents and copyrights.

(a) Any material of a copyrightable nature produced through a program supported with grants under this part shall be subject to the copyright policy of the U.S. Office of Education set forth in its Copyright Guidelines of May 9, 1970 (35 F.R. 7317) or any modification thereof in effect at the time of the grant. Provisions implementing this policy will be included in the terms and conditions of the grant award document.

(b) Any material of a patentable nature produced through a program supported with grants under this part shall be subject to the provisions of Parts 6 and 8 of this title. Provisions implementing these parts will be included in the terms and conditions of the grant award document. (20 U.S.C. 1033)

§ 132.20 Termination of grant.

(a) Any grant may be terminated by the Commissioner

(1) If he determines that the program is no longer susceptible of productive results or

(2) If the grantee fails to comply with any grant requirement or condition.

(b) Where action is taken under this section, the Commissioner may authorize the expenditure of Federal funds in such amounts as he deems necessary for the purpose of terminating the program financed by the grant which is being terminated. (20 U.S.C. 1033)

§ 132.21 Use of and accountability for equipment.

(a) Definition. As used in this section, the term "equipment" means nonconsumable personal property procured or fabricated which is complete in itself, is of a durable nature and has an expected useful life of more than 1 year.

(b) Use. Equipment purchased with grant funds shall be used only to accomplish the purposes of the grant. The grantee shall certify in its application that the equipment being acquired is not already on hand and that it will safeguard and protect all such equipment in accordance with prudent property management practices.

(c) Accountability. The grantee shall maintain records of all equipment procured or fabricated under the grant and costing more than $300 or having a residual value of more than $100. Such: equipment may not be disposed of by the grantee without the prior consent of the Commissioner and shall, upon the expiration or termination of the grant, be made available by the grantee for such disposition as the Commissioner may direct in accordance with the applicable provisions of the Department's Grants Administration Manual, Chapter 1-410. (20 U.S.C. 1033)

§ 132.22 Sale of goods and services.

The grantee shall obtain from the Commissioner prior approval of any sale of goods and s rvices resulting from the

program and such approval will be subject to the condition that the proceeds from such sales will be disposed of in either one of the following two ways:

(a) Returning the funds to the Federal Government by (1) reducing the level of expenditures from grant funds by an amount equal to the Federal share of the grant related income, (2) treating the funds as a partial payment to the award of a succeeding (continuation) grant, or (3) payment to miscellaneous receipts of the Treasury, or

(b) Using the funds to further the purposes of the grant program from which the award was made. (20 U.S.C. 1033)

§ 132.23 Service contracts.

The grantee may enter into contracts or agreements for the provision of part of the services to be provided under the grant by other appropriate public or private agencies or institutions. Such contract or agreement shall incorporate the regulations of this part and other applicable Federal requirements, describe the services to be provided for the agency or institution, and contain provisions assuring that the grantee will retain supervision and administrative control over the provision of services under this contract or agreement. Services to be provided by contract or agreement pursuant to this section shall be specified in the program proposal or in an amendment thereto, and the proposed contract or agreement shall be submitted to the Commissioner for prior approval. (20 U.S.C. 1033)

§ 132.24 Changes in key personnel.

If for any reason it becomes necessary to substitute the program director or other key professional staff listed in the program proposal, the grantee shall in writing request the approval by the Commissioner of such substitution. Such written request shall include the name and qualifications of the successor. (20 U.S.C. 1033)

from other sources to pay a fee to, or travel expenses of, employees of the Department of Health, Education, and Welfare for lectures, attending program functions, or any other activities in connection with the grant. (20 U.S.C. 1033) § 132.26 Interest on grants.

Interest earned on any cash advances made to grantees under this part other than States shall be credited to the United States. The grantee shall submit as a part of each financial report required under the grant a statement showing the amount of interest earned on Federal funds during the period covered by the report. (20 U.S.C. 1033)

§ 132.27 Final accounting.

In addition to such other accounting as the Commissioner may require, the grantee shall render, with respect to the program under the grant, a full account of

(a) Funds expended, obligated, and remaining under the grant;

(b) All equipment and supplies purchased with Federal funds for which accountability is required by § 132.21(c);

(c) All instructional materials developed for use in the program or project; and

(d) All salable items resulting from the program or project. A report of such accounting shall be submitted to the Commissioner within 60 days of the expiration or termination of the grant, and the grantee shall remit within 30 days of the receipt of a written request therefor any amounts found by the Commissioner to be due. (20 U.S.C.1033)

(a) "Academic subjects" means the following elementary and secondary school subjects: The arts, civics, economics, English, geography, history, the humanities, industrial arts, mathematics, modern foreign languages, reading, and science.

(b) "Act" means the National Defense Education Act of 1958, 20 U.S.C. Ch. 17.

(c) "Audiovisual library" means a facility used for the collection, custody, cataloging, maintenance, and distribution of audiovisual materials for education in academic subjects in public elementary and secondary schools, and controlled and operated by a State or local educational agency or other public school authority below the State level.

(d) "Class" means a group of students assembled for instruction for a given period of time under a teacher or teachers.

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

a

(f) "Elementary school" means school which provides elementary education, as determined under State law or, if such school is not in a State, as determined by the Commissioner.

(g) "Equipment” eligible for purchase through approved projects means laboratory and other special equipment as defined in paragraph (i) of this section, including materials as defined in paragraph (k) of this section.

(h) “Fiscal year” as used with respect to reporting and accounting requirements means the period beginning on the first day of July and ending on the following June 30. The calendar year of the ending date is used to designate the fiscal year.

(i) "Laboratory and other special equipment" means (1) fixed or movable articles, which are particularly appropriate for use in providing education in academic subjects in a public elementary or secondary school and which are to be used either by teachers in connection with teaching or by students in learning in such subjects; (2) audiovisual equip`ment (including projectors, recorders, television cameras, television receivers, closed-circuit television distribution systems, and ancillary television projection and reception equipment to be used primarily for nonbroadcast purposes, except where broadcast takes the place of closed-circuit cable systems), to be used, either by teachers in connection with teaching or by students in connection with learning, primarily in providing education in academic subjects in a public elementary or secondary school; (3) "materials" as defined in paragraph (k) of this section and devices (other than those used for printing, such as printing presses and offset printing machines) to be used for preparation of audiovisual and instructional materials for academic subjects; (4) storage equipment to be used solely for the care and protection of the foregoing items when used in laboratories or classrooms; (5) testgrading equipment to be used primarily in providing education in academic subjects in a public elementary or secondary school; and (6) specialized equipment for audiovisual libraries serving public elementary or secondary schools when such equipment is to be used primarily in providing education in academic subjects. (The term excludes such items as general-purpose furniture, radio or television broadcasting apparatus, school public address

systems, or items for the maintenance and repair of equipment. However, the term does include equipment for maintenance, repair, and storage of materials in audiovisual libraries.)

(j) "Local educational agency” means a board of education or other legally constituted local school authority having administrative control and direction of public elementary or secondary schools in a city, county, township, school district, or any other political subdivision in a State, or any other public institution or agency having administrative control and direction of a public elementary or secondary school.

(k) "Materials" means those items which with reasonable care and use may be expected to last for more than 1 year and are suitable for and are to be used in providing education in academic subjects in an elementary or secondary school. The term includes such items as tapes and discs; slides and transparencies; films and filmstrips; books pamphlets, and periodicals; and other printed and published materials such as maps, globes, and charts. The term does not include such items as textbooks (as defined in paragraph (t) of this section) or chemicals and other supplies which are consumed in use.

(1) "Minor remodeling" means those minor alterations in a previously completed building in space used or to be used as a laboratory or classroom for education in academic subjects which are needed to make effective use of equipment in providing education in such subjects. The term also includes those minor alterations in a previously completed building which are needed to make effective use of the items referred to in subparagraphs (5) and (6) of paragraph (i) of this section. The term may also include the extension of utility lines, such as for water and electricity, from points beyond the confines of the space in which the minor remodeling is undertaken but within the confines of such previously completed building, to the extent needed to make effective use of equipment. The term does not include building construction, structural alterations to buildings, building maintenance, repair, or renovation.

(m) "Project" as applied to the acquisition of laboratory or other special equipment or minor remodeling means (1) a proposal submitted by a local educational agency, or agencies, or other public school authority below the State

84-006-72—15

level, or (2) in cases where the State educational agency operates one or more public elementary or secondary schools or audiovisual libraries, a proposal submitted by the highest administrative officer of such school or audiovisual library. Such a proposal shall contain: (i) Description and current cost estimates of the equipment to be acquired or minor remodeling to be performed; (ii) certification that the equipment is to be used primarily for providing education in academic subjects, except that in the case of storage equipment the certification shall be to the effect that the storage equipment will be used solely for the care and protection of equipment and materials used in providing such education; and (iii) information showing the direct relationship of the proposed expenditures to the overall design for enriching the planned educational program and the achievement of desired curriculum goals in academic subjects.

(n) "Public" as applied to any school or institution includes a school or institution of any agency of the United States, except that no such school or institution shall be eligible to receive any grant, loan, or other payment under the Act.

(o) "School" means a division of instructional organization consisting of a group of pupils comprised of one or more grade groups, organized on a class basis as one unit with one or more teachers to give instruction of a defined type, and housed in a school plant of one or more buildings. More than one school may be housed in one school plant as when elementary and secondary schools are so housed.

(p) "Secondary school" means a school which provides secondary education, as determined under State law or, if such school is not in a State, as determined by the Commissioner. The term does not include any education provided beyond grade 12 except that it may include a public junior college when it is a part of or an extension of the secondary school system of the State as determined under State law.

(q) "Services": (1) "Supervisory services" means the services rendered by a qualified person in the promotion, maintenance, and improvement of instruction in one or more of the academic subjects; (2) "Related services" means those technical activities which support supervisory services in academic subjects.

(r) "State" means a State of the Union, the District of Columbia, Puerto Rico, the Canal Zone, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands.

or

(s) "State educational agency" "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.

(t) "Textbook" means a book or workbook, or manual, which is used as the principal source of study material for a given class or group of students, a copy of which is expected to be available for the individual use of each pupil in such a class or group of students.

(a) Purpose-(1) State plan. A basic condition for the payment of Federal funds to a State under sections 301-304 of the Act is a State plan meeting the requirements of sections 303(a) and 1004 (a) of the Act in providing a program under which funds paid to the State under its allotment under section 302(a) will be expended solely for projects approved by the State educational agency for the acquisition of laboratory and other special equipment suitable for use in providing education in academic subjects, and minor remodeling.

(2) Department plan or memorandum of understanding. A basic condition for the payment of funds under Title III-A of the Act to the Department of the Interior or the Department of Defense is a plan or a memorandum of understanding which describes the projects to be carried out with funds paid thereunder, together with such other information and assurances as the Commissioner may require.

(b) Effect of State plan. The State 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.

(c) Effect of Department plan or memorandum of understanding. A plan or memorandum of understanding from

the Department of the Interior or the Department of Defense, when approved by the Commissioner, shall constitute the basis on which payments will be made to those Departments under Title III-A of the Act and the basis for determining the propriety of the expenditures of those funds by those Departments.

(d) Program and operational procedures. The administration of the program shall be kept in conformity with the approved plan or memorandum of understanding, the regulations in this part, and Title III-A of the Act. A description of the program and operational procedures shall be recorded and made available to the public upon request. Whenever there is any material change in the content or administration of the program, or when there has been any material change in pertinent State law or in the organization, policies, or operations of the State agency affecting the program under the plan, the procedures shall be appropriately amended.

(e) Submission. The State plan shall be submitted to the Commissioner by a duly authorized officer of the State agency or a plan or memorandum of understanding shall be submitted by an officer of the Department of the Interior or the Department of Defense. A State plan shall give the official name of the agency which will administer the plan and shall indicate that such agency meets the criteria for a State educational agency. The State plan shall designate the officer who will receive and provide for the custody of all funds to be expended under applicable State laws and regulations on requisition or order of the State agency.

(f) Certificate of the State Attorney General or other appropriate State legal officer. The State plan shall also include as an attachment a certificate by the appropriate State legal officer to the effect that the State educational agency named in the plan is the agency having authority to administer the State plan or to supervise the administration of the State plan; that the State educational agency has authority under State law to develop, submit, and administer or supervise the administration of the plan; and that the State has authority under State law to carry out the State plan.

(g) Approval by the Commissioner. The Commissioner will approve each plan which he determines meets the applicable requirements of Title III-A of the Act and regulations in this part, and will notify the applicant of the granting or