of award, or installment payment as the case may be, shall be reduced accordingly or the amount of unexpended Federal funds remaining at the time of the completion of the training shall be refunded to the United States as an overpayment. § 160.12 Effect of payments.

Neither the approval of any CAMPS plans or institutional training or administrative budget nor any advance or other payment made pursuant thereto shall be deemed to waive the right or duty of the Commissioner to withhold funds by reason of the failure to observe, before or after such administrative action, any Federal requirement.

§ 160.13

State fiscal procedures.

(a) The State agency may make payments in advance or by way of reimbursement to training facilities conducting institutional training under the State agreement. Such payments shall be supported by statements of expenditures, either made or proposed on forms provided by the Commissioner.

(b) The State agency shall require each training facility providing training under the State agreement to keep adequate records by budget classification of expenditures made for each training project. Where payment is to be made on a reimbursable basis, prior to final settlement for a training project, the State agency shall determine the correctness of the amount through an audit made in accordance with generally accepted auditing standards by an appropriate State audit agency or by an independent certified public accountant or independent licensed public accountant, certified or licensed by a regulatory authority of a State or other subdivision of the United States.

§ 160.14 Records and reports.

(a) Each State agency and each training facility with which the Commissioner has a State agreement or direct arrangement shall submit such reports (at such time and on such forms as may be prescribed therefor) as the Commissioner or Secretary of Labor may require to perform their respective duties under the Act (including the attendance and training progress reports required in § 160.15) and shall keep such records and afford such access thereto as the Commissioner may find necessary to assure the correctness and verification of such reports. Such records shall indicate these activities as separate and distinct from other

Pursuant to regulations issued by the Secretary of Labor (29 CFR §§ 20.50 and 20.51), each training facility shall submit a certification to the local representatives of the Secretary of Labor, on forms and in accordance with instructions provided therefor, with respect to each person receiving training who, without good cause (as determined pursuant to criteria issued under 29 CFR § 20.50 (b)), is found upon review by an official of the training facility not to have a satisfactory attendance record or not to be making satisfactory progress in his training.

§ 160.16 Retention of fiscal records.

(a) Each State agency and each training facility with which the Commissioner has a State agreement or direct arrangement shall provide for keeping accessible and intact all records supporting claims for Federal funds or relating to the accountability of a State agency or training facility for expenditure of such funds and relating to the expenditure of its share of the costs of providing training under the Act:

(1) For 5 years after the close of the fiscal year in which the expenditure was made by the State agency or any public or private training facility; or

(2) Until the State agency or training facility is notified of the completion of the Federal fiscal audit, whichever is earlier.

(b) The records involved in any claim or expenditure which has been questioned by the Federal fiscal audit shall be further maintained until necessary adjustments have been made and the adjustments have been approved by the Commissioner.

§ 160.17 Equipment and teaching aids purchased with Federal funds.

(a) Equipment and teaching aids purchased under State agreement. Equipment and teaching aids purchased by a State or local educational agency with funds to carry out the provisions of a

State agreement shall be under the control of the State, with full custody and accountability in the State agency and not in a local educational agency or any other agency or institution. So long as the Act is in force, such equipment and teaching aids shall not be disposed of by the State without the consent of the Commissioner and shall be made available during their useful lives by the State agency for the purpose of carrying out the agreement, including the conduct of training projects other than those for which the equipment and teaching aids were originally purchased.

(b) Equipment and teaching aids acquired under direct arrangements. All direct arrangements with public or private training facilities will provide that equipment and teaching aids purchased under such direct arrangements will not be disposed of by the training facility without the consent of the Commissioner, and shall, upon discontinuance of their use in a training project, be made available by the training facility for assignment to other training projects at the request of the Commissioner.

(c) Disposition of equipment and teaching aids. When items of equipment, in the cost of which the Federal Government has participated, are sold or diverted to uses inconsistent with carrying out the agreement prior to the expiration of the Act, the Federal Government shall be credited with its proportionate share of the value of such equipment, the value being determined on the basis of the sale price in the case of a bona fide sale or on the fair market value in the case of diversion for uses other than the purpose of carrying out the agreement. If such equipment is loaned to another party for uses other than adult basic and vocational education which do not interfere with its full use in carrying out the agreement, the Federal Government shall be credited with its proportionate share of the fair rental value of such use or, in the case of a bona fide lease, the rent prescribed in the lease arrangement.

(d) Inventories of units of equipment. (1) When the unit cost of equipment is $50 or more, the State agency shall maintain an up-to-date inventory of all equipment acquired (i) as a part of the training projects approved under the Act, (ii) for use in State direction and

supervision of training, and (iii) for use in program development by other agencies. A separate inventory must be maintained for equipment described in subdivisions (i), (ii), and (iii) of this subparagraph. A training facility with which the Commissioner has a direct arrangement shall maintain an up-todate inventory on all such equipment acquired pursuant to the arrangement.

(2) All equipment inventoried under this paragraph must be clearly marked to identify it as having been purchased with funds provided under the Act. Such inventories shall be maintained (i) until the expiration of the useful life of such equipment, or (ii) until the State agency or training facility is notified by the Secretary of the completion of the audit covering the disposition of such

equipment.

§ 160.18 Federal personal property.

Excess or other Federal personal property on loan from other Federal agencies is available, on a loan basis, for use in training projects. Only the right of possession is granted. Title to such property remains in the United States. The use of such property is subject to the following conditions: (a) The State agency or training facility with which the Commissioner has a State agreement or direct arrangement shall maintain separate records of all excess or other Federal personal property received in such form and detail as will permit the location and identification of such property at any time; (b) the possessor shall be responsible for such property from the time of receipt or its release to the transportation agent, whichever is earlier; and (c) in the event of any loss or damage to any of such property, the State agency or training facility shall file such claim and/or institute and prosecute to conclusion such proceedings as may be necessary to recover, for the account of the United States, the fair value of any such property.

§ 160.19 Materials developed for training purposes.

Any training materials which are developed or created by a State agency or training facility for the conduct of training with funds under the Act shall be made available, upon request, for study, reproduction, distribution, and use by the Commissioner and such persons

In addition to such other accounting as the Commissioner may require, each State agency and each training facility with which the Commissioner has a State agreement or direct arrangement shall render, with respect to each approved training project and budget for State direction and supervision, a full account of (a) the sum total of all amounts paid with respect to such project or budget, (b) all equipment and teaching aids purchased with Federal funds, (c) all Federal personal property loaned for use in the training project, (d) all training materials developed for use in the training project, and (e) all salable items resulting from the training project. A report of such account shall be submitted to the Commissioner within 60 days of the expiration or termination of the training project or the program of State direction and supervision for which the account is made.

§ 160.22 Applicability of other regulations.

Federal financial assistance under this part is 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 42 CFR Part 80.

84-006-72—19

APPENDIX-MANPOWER
TRAINING ACT OF 1962, AS AMENDED
TRAINING PROGRAM AGREEMENT

DEVELOPMENT AND

ARTICLE I. TERMS OF AGREEMENT

The U.S. Commissioner of Education (hereinafter referred to as the "Commissioner"), acting for the Secretary of Health, Education, and Welfare (hereinafter referred to as the "Secretary"), and

(Name of authorized State Agency) (hereinafter referred to as the "State Agency"), acting for

(Name of State, District, Commonwealth, etc.)

in order

to carry out those provisions of the Manpower Development and Training Act of 1962, as amended (hereinafter referred to as the "Act") for which the Secretary is responsible, hereby agree that the State Agency will provide training and that the Commissioner will make payments of Federal funds for such training in accordance with the provisions of the Act and the implementing regulations (45 CFR Part 160).

ARTICLE II. PERIOD OF PERFORMANCE

This Agreement shall continue in effect so long as the Act is in force or until terminated by the Commissioner or the State Agency pursuant to Article III.

ARTICLE III. TERMINATION

A. The State Agency may terminate this Agreement on 30 days' advance notice in writing to the Commissioner, or without such advance notice if it certifies to the Commissioner, accompanied by an opinion of an appropriate legal officer of the State that it is no longer legally able to comply substantially with all or any part of this Agreement.

B. The Commissioner may terminate this Agreement on 30 days' advance notice in writing to the State Agency. He may terminate it without such notice if, after affording an opportunity for a hearing to the State Agency, he finds that the State Agency is no longer able or has failed to comply substantially with all or any part of this Agreement.

C. Upon termination of this Agreement, any funds paid to a State Agency pursuant to this Agreement prior to the date of such termination, and any equipment purchased with funds paid to the State Agency ander this Agreement shall be accounted for in accordance with provisions in the regulations.

ARTICLE IV. COMPLETION OF PROJECTS AFTER CHANGE IN REGULATIONS

In the event of any change in the regulations, the State Agency may carry to completion any project in accordance with the provisions of the regulations in effect at the time of final approval of that project by the Commissioner or the State Agency, as the case may be.

ARTICLE V. NONDISCRIMINATION

A. Federal financial participation under this Agreement is subject to the regulation in 45 CFR Part 80, issued by the Secretary of Health, Education, and Welfare, and approved by the President, to effectuate the provisions of section 601 of the Civil Rights Act of 1964 (Public Law 88-342).

B. Employment will be in accordance with the provisions of Executive Order No. 11246 of September 24, 1965. The equal employment opportunity clause contained in section 202 of such Executive order shall be deemed to be a part of this Agreement as though the provisions were set out in full herein: Provided, That the terms "State Agency", "Commissioner", and "Agreement" shall be substituted for the terms "contractor", "contracting officer", and "contract", respectively, wherever they appear therein; and that the terms "subcontractor" and "subcontract” in paragraph (7) thereof shall be deemed to include training facilities and agreements with such training facilities, respectively.

ARTICLE VI. OFFICIALS NOT TO BENEFIT No member of or delegate to Congress, or resident Commissioner, shall be admitted to any share or part of this Agreement, or to any benefit that may arise therefrom.

ARTICLE VII. EFFECTIVE DATE

This Agreement shall be effective as of the date it is signed by the Commissioner.

(a) "Act" means the Adult Education Act of 1966 (Title III of P.L. 89-750, 80 Stat. 1191; 20 U.S.C. 1201–1213).

(b) "Adult" means any individual who has attained the age of 18 and is not currently enrolled in school.

(c) "Adult basic education" means education for adults whose inability to speak, read, or write the English language constitutes a substantial impairment of their ability to get or retain employment commensurate with their real ability, which is designed to help eliminate such inability and raise the level of education of such individuals with a view to making them less likely to become dependent on others, to improving their ability to benefit from occupational training and otherwise increasing their opportunities for more productive and profitable employment, and to making them better able to meet their adult responsibilities.

(d) "Adult education" means services or instruction below the college level (as determined by the Commissioner), for adults who

(1) Do not have a certificate of graduation from a school providing secondary education and who have not achieved an equivalent level of education, and

(2) Are not currently enrolled in schools.

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

(f) "Department" means the Department of Health, Education, and Welfare.

(g) "Fiscal year" means the period beginning on the first day of July and ending on the following June 30, and is designated by the calendar year in which the fiscal year ends.

(h) "Local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary schools; except that if there is a separate board or other legally constituted local authority having administrative control and direction of adult education in public schools therein, such term means such other board authority.

or

(i) "Private nonprofit agency" means an agency, organization or institution no part of whose net earnings may legally inure to the benefit of any private shareholder or individual.

(j) "Public agency" means an entity established by a State or a political subdivision thereof supported in whole or in part by public funds, and administered and controlled by publicly elected or appointed officials.

(k) "School or department of divinity" means an institution, or a department or branch of an institution, whose program is specifically for the education of students to prepare them to become ministers of religion, to enter upon some other religious vocation, or to prepare them to teach theological subjects.

(1) "State" includes the District of Columbia, and (except for the purposes of section 305(a) of the Act) the Commonwealth of Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands.

(m) "State educational agency" or "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 a separate State agency or officer primarily responsible for supervision of adult education in public schools then such agency or officer may be designated for the purposes of the Act by the Governor or by State law. If no agency or officer qualifies under the pre