§ 155.1 Scope and purpose.

The regulations in this part govern the administration of the Upward Bound program authorized under section 408 of the Higher Education Act of 1965. Under this program, support is given to projects of certain educational institutions which have promise of motivating and preparing academic risk students from lowincome backgrounds and with inadequate secondary school preparation to engage successfully in programs of post-secondary and higher education. They are academic risk students for college education because their lack of educational preparation and/or underachievement in high school is such that they would not have considered enrollment nor would they have been likely to have gained admission to, and successfully pursued an academic career at a 2- or 4-year college without the benefits of an Upward Bound program.

As used in this part: (a) The term "Act" means the Higher Education Act of 1965, as amended.

(b) The term "Applicant", "applicant institution", or "institution" refers to the institution applying for or receiving an Upward Bound grant under this part.

(c) The term "Combination of Institutions of Higher Education" means a group of institutions of higher education that have entered into a cooperative arrangement for the purpose (although not necessarily the exclusive purpose) of carrying out an Upward Bound project, or a public or private nonprofit agency, organization, or institution designated or created by a group of institutions of higher education for the purpose (although not necessarily for the exclusive purpose) of carrying out an Upward Bound Project on their behalf.

(d) The term "Commissioner" means the Commissioner of Education or his designee.

(e) The term "Institution of Higher Education" means an educational institution in any State which meets the requirements set forth in section 1201(a) of the Act.

(f) The term "Post-Secondary School" means a public or private nonprofit institution which meets the requirements set forth in section 435 (c) of the Act.

(g) The term "Secondary School" means a school which provides secondary education as determined under State law except that it does not include any education provided beyond grade 12.

(h) The term "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.

§ 155.3 Submission of project proposals.

(a) Timely filing. Awards for the conduct of Upward Bound project shall be made on the basis of the review of proposals for the continuation of existing projects and proposals for new projects which have been submitted timely on such forms and in such manner as the Commissioner may from time to time prescribe.

(b) Closing dates. The Commissioner may set dates by which project proposals must be received in order to be assured that they will be considered for an award.

(c) Additional information. The Commissioner reserves the right to request the submission of such additional or supplemental information as he believes necessary or desirable in connection with the review and consideration of a proposal.

(d) Eligible applicants. Awards for the conduct of Upward Bound projects will be made to institutions of higher education and combinations of institutions of higher education; and in exceptional cases where a secondary school or postsecondary educational institution may be better able to provide the requisite services, an award may be made to such an institution.

(e) Terms and conditions of award. Grants pursuant to this part shall be made for carrying out the project proposal approved by the Commissioner and shall be subject to such other terms and conditions as are made a part of the grant document. Copies of standard terms and conditions shall, to the extent practical, be made available to prospective applicants.

§ 155.4 Proposals for continuation of existing Upward Bound projects.

(a) Proposals for the continuation of existing Upward Bound projects must include a statement as to the specific purposes to be accomplished in the period covered by the grant, a detailed plan of operation for accomplishing these purposes, an explanation of the procedures for recruitment and selection of Upward Bound students, a budget, and a list of key personnel. Such proposals must also provide assurance that none of the services made available under the grant are otherwise available to Upward Bound participants through the applicant institution or other public or private community agencies and that, where appropriate, such other services have been or will be utilized in carrying out the Upward Bound project.

(b) The Commissioner will approve such proposals only if he finds that the objectives and requirements set forth in §§ 155.6 and 155.8 have been and will continue to be met, that the methods adopted for the accounting for and management of Federal funds are adequate, and that the project has been carried out in an efficient manner and is achieving its projected goals. In making this finding the Commissioner shall particularly review the efforts made by the applicant and its success in placing its Upward Bound students in institutions of higher education.

§155.5 Proposals for new projects.

(a) Preliminary proposals for new projects will be considered to the extent of available funds after the review of proposals for the continuation of existing projects has been completed. Generally, new Upward Bound projects should provide for activities for prospective Upward Bound students who are completing the 10th and 11th grades, however, the Commissioner may consider proposals dealing with students completing the 8th and 9th grades who are from an area or a group frequently experiencing severe dropout rates at an early age.

(b) Such preliminary proposals need contain only a summary plan of operation, which assures that the objectives and requirements set forth in §§ 155.6 and 155.8 will be met and assures that Federal funds will be properly expended and accounted for.

(c) Preliminary proposals will be reviewed in the light of criteria set forth in § 155.7.

(d) Applicants whose preliminary proposals are selected for further consideration may submit a comprehensive proposal as outlined under § 155.4(a). Awards will be made only on the basis of a comprehensive proposal (including such changes as may be made pursuant to paragraph (e) of this section) which is approved by the Commissioner.

(e) In reviewing the preliminary proposal, and during the course of any subsequent consideration of the comprehensive proposal, the Commissioner reserves the right to suggest inclusions or deletions which he feels will strengthen the proposed project.

§ 155.6 Required project objectives.

Each project proposal must include provisions for implementing each of the following objectives:

(a) The enrollment in the Upward Bound project of students whose lack of preparation or under achievement in high school or both is such that they are not likely to apply for admission to or be accepted for enrollment in institutions of higher education;

(b) Cooperation among one or more institutions of higher education and one or more secondary schools;

(c) The provision of necessary health services to Upward Bound students including diagnostic services designed to identify the medical and dental deficiencies of new Upward Bound students;

(d) (1) The recruitment of Upward Bound students whose ethnic backgrounds reflect the diversity existing in the community served by the Upward Bound project, (2) the utilization of project leadership and staff that reflect the ethnic background of the Upward Bound students, (3) the utilization of teaching staff that is drawn from both secondary schools and institutions of higher education with a substantial portion of such staff drawn from the regular faculty of the institution conducting the project, (4) the utilization of tutorcounselors who are college students, and (5) the utilization of the resources of individuais from the community to be served by the project who can make a special contribution to the program:

(e) The involvement of the community to be served by an Upward Bound project through committees which to the

Proposals for new projects will be selected on the basis of a review in the light of the following factors which are not necessarily listed in order of weight or importance:

(a) The scope and variety of the methods for recruiting of Upward Bound students;

(b) The level of the annual per capita income of the area to be served;

(c) Whether other projects or activities are already being supported in the area to be served which can provide some or all of the assistance set forth in the proposal;

(d) Whether the applicant institution has established rapport with the community to be served;

(e) Demonstrated ability to work with members of the academic community in the area to be served;

(f) The nature and quality of the physical facilities to be used in the conduct of the project;

(g) The number of the applicant's regular faculty members who will become members of the Upward Bound staff;

(h) The degree of involvement in the project of the secondary schools from which the Upward Bound students are drawn;

(i) If the applicant is an institution of higher education, the number of Upward Bound students to whom it is prepared to extend financial aid and admit into its regular program;

(j) The degree to which the curriculum design and method of execution promise to develop critical thinking, effective expression, and positive attitudes toward learning;

(k) The extent to which the applicant can provide suitable extra-curricular activities as reflected by the kind of the activities to be offered, the adequacy of the facilities for such activities and the ability of the staff directing such activities; and

(1) The extent and quality of the counseling services provided Upward Bound students.

§ 155.8 Eligibility and treatment of Upward Bound students.

(a) Family income of participants. Upward Bound students shall be selected only from among those whose family income meets the "low income family" criteria prescribed by the Commissioner. The income of families living in public housing, or receiving support under State or Federal welfare programs will generally be presumed to meet such criteria.

(b) Comparability of treatment of Upwara Bound students. Upward Bound students shall not be subject to any rules, standards or requirements which do not apply to other regularly enrolled students of the applicant, nor shall Upward Bound students be segregated or discriminated against in their participation in campus activities.

(c) Student stipends. Upward Bound students shall be entitled to such stipends not in excess of $30 per month as are provided for in the grant award.

§ 155.9 Costs eligible for Federal

support.

(a) Federal funds may be used only to cover those costs which are reasonable and necessary to the carrying out of an Upward Bound project, such as salaries of administrative staff, student stipends, student medical expenses and instructional materials.

(b) The purchase of equipment will be approved only to the extent that it is indispensable to the achievement of the purpose of the project and does not represent a disproportionately large expenditure in light of the total cost of, and the period of time over which the equipment will be used in carrying out, the proposal being supported.

(c) In no case may funds granted under this part be used for the construction of buildings or the purchase of land or buildings (although costs of minor remodeling may be allowed).

§ 155.10 Amount of the Federal share.

The Federal share shall not exceed 80 percent of the eligible costs of the project: Provided, however, That in no event may the federal share exceed an amount computed at an annual rate of $1,440 per enrollee.

ability.

(a) The Commissioner shall make payments on account of approved projects pursuant to such methods as he determines will best make the funds available as needed and will eliminate unnecessary expense to the Federal Government.

(b) Such funds shall remain available for the payment of obligations incurred during the designated award period.

(c) Neither the approval of a proposal nor any payment to the grantee shall be deemed to waive the right or duty of the Commissioner to withhold or recover funds by reason of the failure of the grantee to observe any Federal requirement.

$155.12 Interest earned on Federal funds.

Interest earned on Federal funds awarded under this program shall be refunded by check drawn payable to U.S. Office of Education and mailed to the Finance Division, U.S. Office of Education, 400 Maryland Avenue SW., Washington, D.C. 20202. This section does not apply if grantee is a State agency.

$155.13 Economical methods of purchase.

All equipment, materials, and supplies (including minor remodeling) purchased with funds provided under this part shall be procured in an economical manner consistent with sound business practice. Except in connection with the procurement of consumable materials and supplies, specific justification must be submitted and approved in advance for any purchase on other than a competitive bidding basis.

$155.14 Records and reports.

(a) Records. The institution shall establish and maintain such records as are necessary to document the progress of each Upward Bound student in the project, the changes in project design if any, and the manner in which the project is meeting its objectives. These records shall be available for such disposition as the Commissioner may prescribe. All accounting records (including bank deposit slips, canceled checks, and other supporting documents or facsimiles thereof) shall be retained intact by the institution for audit or inspection by authorized representatives of the Federal Government for a period of 3 years after com

The regulations in this part implement the non-Federal share requirements contained in section 225 (c) of the Economic Opportunity Act of 1964, as amended, and apply to Follow Through project grants made by the Commissioner of Education under the authority of sections 222(a) (2) and 621 of said Act.

§ 158.2 Non-Federal share.

(a) Requirement for non-Federal share. Subject to the provisions of § 158.3, the grantee shall share part of the costs of the Follow Through project. Such share (hereinafter, "non-Federal share") shall be an amount equal to a specified percentage of the project grant awarded the grantee from funds appropriated under the Economic Opportunity Act of 1964, which percentage shall be not less than: (1) 25 per centum of the grant award if the project comprises one grade level; (2) 20 per centum of the grant award if the project comprises two grade levels; (3) 16 per centum of the grant award if the project comprises three grade levels; and (4) 14 per centum of the grant award if the project comprises four or more grade levels. Once the project has reached its highest grade level (at least four grades, unless no kindergarten is in operation in the school district) and has operated at that level for a period of 2 grant years, the non-Federal share shall increase again up to the maximum 25 per centum, rising in the same increments (one per year) in which it decreased to its lowest point.

(b) Allowability of in-kind contributions. Subject to paragraph (d) of this section, any portion of the non-Federal share may consist, in lieu of cash, of in-kind contributions to the Follow Through project, including facilities, equipment, supplies, and services.

(c) Evaluation of in-kind contributions. The value of in-kind contributions to a Follow Through project shall be determined as follows:

(1) Facilities (including related utilities, maintenance, and similar services) which are contributed to the grantee by a third-party for use in the Follow Through project, or which are contributed by the grantee but were held for commercial or revenue-producing purposes prior to their use in the project, shall be deemed to have a value equal to the lowest reasonable cost at which those or comparable facilities could be procured on the open market in the locality of the Follow Through project for the grant period or, if shorter, the period for which such facilities shall be used in the project. Facilities (other than commercial or revenue-producing facilities) which are contributed to the project by the grantee shall be deemed to have a value equal to that part of their acquisition cost which is reasonably allocable (through depreciation or use allowances) to the use of such facilities in the project.

(2) Equipment which is contributed to the grantee by a third-party for use in the Follow Through project shall be deemed to have a value equal to the lowest reasonable cost at which it could be procured on the open market for use during the grant period or, if shorter, the period for which such equipment shall be used in the project. Equipment which is contributed to the project by the grantee shall be deemed to have a value equal to that part of its acquisition cost which is reasonably allocable (through

depreciation or use allowances) to the use of such equipment in the project.

(3) Supplies shall be deemed to have a value equal to the lowest reasonable cost at which they could be procured on the open market for use in the project.

(4) Services of volunteers shall be valued at a rate equal to the rate at which the grantee pays regular employees or consultants performing comparable work, or, if there are no such employees or consultants, the prevailing rate which is paid locally for such services. In no case shall the rate used be less than the prevailing Federal minimum wage.

(d) Limitations on the sources and amounts of contributions includable as non-Federal share. (1) Contributions from any source may be included in the non-Federal share, except that federally owned facilities or equipment, facilities or equipment purchased or constructed with Federal funds (to the extent of Federal participation), and Federal financial assistance to the grantee or any donor to the project conducted by the grantee may not be included unless such facilities, equipment, or assistance was provided from or purchased with sums paid by the Federal Government in lieu of taxes (or comparable payments). (2) Contributions may be included in the non-Federal share only to the extent they are actually used in the Follow Through project. If facilities, equipment, supplies, or services used in the Follow Through program are also used for other purposes, only that portion of their cost or value (determined in accordance with paragraph (c) of this section in the case of in-kind contributions) which is fairly attributable to the provision of Follow Through services may be included in the non-Federal share. (3) Contributions in cash or in kind which detract from or substitute for services regularly provided by the grantee (or by any public or private school whose children are served by the grantee) for the grades to be served by the Follow Through project, or which are diverted from other programs designed to meet the needs of the poor within the community, may not be included in the non-Federal share.

(e) Documentation of non-Federal share. As part of the project application, the grantee shall submit letters of commitment from the various agencies, organizations, institutions, or persons (except non-professional volunteers) providing cash or in-kind contributions to