operational and fiscal reports relating to the use of grant funds, as the Secretary may find necessary to carry out the purposes of the Act and the regulations. All records shall be retained for 3 years after the close of the budget period. Such records may be destroyed at the end of such 3-year period if the applicant has been notified of the completion of the Federal audit by such time. If the applicant has not been so notified, such records shall be retained (1) for 5 years after the close of the budget period or (2) until the grantee is notified of the completion of the Federal audit, whichever comes first. In all cases where audit questions have arisen before the expiration of such 5-year period, records shall be retained until resolution of all such question.

(b) Inspection and audit. Any application for a grant under this part shall constitute the consent of the applicant to inspections of the facilities, equipment, and other resources of the applicant at reasonable times by persons designated by the Secretary and to interview with principal staff members to the extent that such resources and personnel are, or will be, part of the project. In addition, the acceptance of any grant under this part shall constitute the consent of the grantee to inspections and fiscal audits by such persons of the supported activity and of records relating to the use of grant funds. § 56.116 Additional conditions.

The Secretary may with respect to any grant award impose additional conditions prior to or at the time of any award when in his judgment such conditions are necessary to assure or protect advancement of the approved project, the interests of public health, or the conservation of grant funds.

Subpart C-Health Professions Student Loans

57.201

Definitions.

57.202 Eligibility of schools.

57.203

Application by school.

57.204

Agreements for Federal Capital Contributions and Federal Capital

Loans.

57.205

Allotment and payment of Federal
Capital Contributions and Federal
Capital Loans.

57.206 Federal Capital Loan Promissory Note.

57.207 Health professions student loan, funds.

57.208 57.209

Nondiscrimination.

Eligibility and selection of student loan recipients.

Except where the context indicates otherwise, when used in this part

(a) All terms which are defined in sections 2, 702, and 766 of the Public Health Service Act, as amended, shall have the same meaning as given them in such sections: Provided, That the term "Council" means the National Advisory Council on Health Research Facilities established by section 703, except that with respect to applications for Part D grants, "Council" means such Council or the council or councils concerned with the field or fields of research involved. (b) "Act" means the Public Health Service Act, as amended.

(c) "Construction grant" means a grant for the construction of facilities authorized under Part A or Part D of Title VII of the Act.

(d) "Part A grant" means a grant for the construction of facilities authorized under Part A of Title VII of the Act. (e) "Part D grant” means a grant for the construction of facilities authorized under Part D of Title VII of the Act.

(f) "Equipment" means those items that are considered depreciable and as having an estimated life of not less than five years. Not included are such items as glassware, chemicals, storage batteries, and books.

(g) "Research" means (1) research or (2) research and activities having related purposes (including research training and the use for medical libraries to the extent that they support research and research training) in the sciences related to health or (3) in the case of an application for a Part D grant, research, or research and related purposes, relating to human development, which may assist in finding the causes, and means of prevention, of mental retardation, or in finding means of ameliorating the effects of mental retardation.

Eligible institutions

A public or nonprofit institution shall be eligible to apply for a construction grant upon a determination by the Surgeon General:

(a) That such institution is a State, county, municipal, or other non-Federal governmental agency or is a nonprofit. corporation, association or other nonprofit legal person.

(b) That such institution is authorized to conduct the research and engage in the activities related to health research, or in the case of an application for a Part D grant, that it is authorized to conduct the research and engage in the activities related to mental retardation, described in the application and related documents.

(c) Upon a further determination, and in the case of an application for a grant for construction of a health research facility under Part A of Title VII of the Act, after consultation with the Council, that the institution is competent to engage in the type of research for which the facility is to be constructed, taking into consideration among other pertinent factors:

(1) The scientific or professional standing or reputation of the institution and of its existing or proposed officers and research staff;

(2) The availability, by affiliation or other association, of other scientific or health personnel and facilities to the extent necessary to provide effective opportunities for the type of research proposed.

§ 57.3 Application for

grants.

construction

No construction grant shall be made unless an application is filed therefor in the form and manner prescribed by the Surgeon General and is executed by an official or officials legally authorized by the applying agencies, corporations, or associations to make on their behalf such application and to provide the required assurances. In addition to any other pertinent information which the Surgeon General may require, each applicant shall:

(a) Furnish in sufficient detail plans and specifications of the facility to be constructed so as to indicate the nature and purpose of all portions of the facility and the type and quality of any

features bearing on the major costs of construction;

(b) Set forth in detail the estimated total costs of construction of the facility and the basis on which such estimate was made;

(c) Furnish information on the extent and manner in which the proposed construction will expand the applicant's capacity for research or is necessary to improve or maintain the quality of such research by the applicant.

§ 57.4

Required assurances.

No construction grant shall be made unless the application therefor contains or is supported by assurances, found by the Surgeon General to be reasonable:

(a) That for not less than 10 years after completion of construction, or in the case of a Part D grant, that for not less than 20 years after completion of construction, the facility will be used for the research for which it is to be constructed. Such an assurance shall be supported by evidence indicating the applicant's ownership of, or right otherwise to occupy, the site and to control the use of the facility for such period.

(b) That sufficient funds will be available to meet the non-Federal share of the cost of constructing the facility. Such assurance shall be supported by evidence of the amount of funds in escrow or firmly pledged or of funds or fund sources specifically earmarked for such purpose, or other such evidence indicating that funds for the non-Federal share are available: Provided, That if the applicant for a Part A grant is unable to give the assurances as required by this paragraph, the grant may be made notwithstanding on such terms and conditions as prescribed by the Surgeon General after consultation with the Council and on the specific condition that such assurances, together with supporting evidence, will be furnished by the applicant within six months after such conditional grant or within such other period as determined by the Surgeon General after such consulation; and

(c) That sufficient funds will be available when construction is completed for effective use of the facility for the research for which it is being constructed. Such an assurance shall be supported as to new facilities by a proposed operating budget indicating the amount and

source of operating funds for a 2-year period immediately following completion of construction or, as to existing facilities, by a statement of the amount and source of funds that are or will be available for such 2-year period to meet any difference between proposed expenditures and anticipated income.

§ 57.5 Approval of grants.

The Council shall recommend, and the Surgeon General shall approve, construction grants only for those proposed facilities which in their judgment will be the more effective in expanding capacity for research, in improving the quality of such research, and in promoting an equitable geographical distribution of such research. In so recommending or approving, particular consideration shall be given to facilities that: (a) Will be used for research in disciplines or diseases or aspects of a disease which have the most urgent needs; (b) are adaptable to various methods by which research is organized or advanced; (c) will be in institutions or localities with broad research programs and potentials; (d) will promote a better geographic distribution of research through assistance to established or promising new facilities in various areas of the Nation having at present relatively few such research facilities.

§ 57.6

Amount of grant; limitation.

Subject to the maximum amounts prescribed in the Act, the amount of any grant shall be that recommended by the Council or such lesser amount as the Surgeon General deems to be appropriate: Provided, That the amount of a grant for construction of a mental retardation center shall be determined by the Surgeon General. Such an amount shall be reserved from any available appropriation, but the amount so reserved may be amended from time to time either upon a revision by the Surgeon General of his estimate of the necessary cost of construction or upon the Surgeon General's approval of an amendment to the application.

§ 57.7 Necessary costs of construction.

In determining the necessary costs of construction of any facility, the Surgeon General, in addition to other relevant considerations, shall exclude:

(a) The value of any donation or gift of services, materials, or equipment;