the approval of the President (45 CFR Part 80).

(b) All services and employment opportunities provided with the aid of grants under this part shall, except where otherwise medically indicated, be made available without discrimination on the grounds of age, sex, creed, marital status, or duration of residence.

§ 91.10 Confidentiality.

Each grant award is subject to the condition that all information obtained by the personnel of the project from participants in the project related to their examination, care, and treatment, shall be held confidential, and shall not be divulged without the individual's consent except as may be required by law or as may be necessary to provide service to the individual. Information may be disclosed in summary, statistical, or other form which does not identify particular individuals.

§ 91.11

Inventions or discoveries.

Any grant award pursuant to this part is subject to the regulations of the Department of Health, Education, and Welfare as set forth in 45 CFR Parts 6 and 8, as amended. Such regulations shall apply to any activity for which grant funds are in fact used whether within the scope of the project as approved or otherwise. Appropriate measures shall be taken by the grantee and by the Secretary to assure that no contracts, assignments or other arrangements inconsistent with the grant obligation are continued or entered into and that all personnel involved in the supported activity are aware of and comply with such obligations. Laboratory notes, related technical data, and information pertaining to inventions and discoveries shall be maintained for such periods, and filed with or otherwise made available to the Secretary, or those he may designate at such times and in such manner, as he may determine necessary to carry out such Department regulations.

§ 91.12 Publications and copyright.

Except as may otherwise be provided under the terms and conditions of the award, the grantee may copyright without prior approval any publications, films, or similar materials developed or resulting from a project supported by a grant under this part, subject, however, to a royalty-free, nonexclusive, and ir

revocable license or right in the Government to reproduce, translate, publish, use, disseminate, and dispose of such materials and to authorize others to do

So.

§ 91.13 Expenditures by grantee.

The total cost of a project includes the identifiable direct costs and the associated indirect costs. Except as may otherwise be provided by or pursuant to the regulations of this part, the identification of direct and indirect costs will be consistent with the same policies and methods that the grantee applies to its own activities and in conformance with the applicable cost principles as set forth in the Department's Grants Administration Manual. Funds granted for the direct costs of approved projects may be expended by the grantee to the extent that such items are required to carry out the approved project. The amount of any award for the indirect costs of any project, subject to such maximum amounts or percentages as may be prescribed by law, shall be calculated in accordance with chapter 1-80 of the Department's Grants Administration Manual. The Secretary may issue instructions, interpretations or limitations supplementing the regulations of this part and prescribing the extent to which particular types of expenditures may be charged as direct or indirect costs to the granted funds.

rules,

(a) Accounting for grant award payments. All payments made by the Secretary shall be recorded by the grantee in accounting records separate from the records of all other funds, including funds derived from other grant awards and separate records shall be maintained for payment with respect to title I and title II of the act. With respect to each approved project, the grantee shall account for the sum total of all amounts paid out by presenting or otherwise making available evidence, satisfactory to the Secretary, of expenditures for direct and indirect costs meeting the requirements of this part: Provided, however, That when the amount awarded for indirect cost was based on a predetermined fixed-percentage of estimated direct costs, the amount allowed for indirect costs shall be computed on the basis of such predetermined fixed-percentage rates applied to the total, or a selected

element thereof, of the reimbursable direct costs incurred.

(b) Accounting for equipment. As used in this section the term "equipment" means an article of property procured or fabricated which is complete in itself, is of a durable nature, and has an expected service life of more than 1 year. Equipment on hand on the date of termination for which accounting is required in accordance with the procedures set forth in chapter 1-410-50 of the Department of Health, Education, and Welfare Grants Administration Manual shall be identified and reported by the grantee in accordance with such procedures, and, accounted for by one or a combination of the following methods, as determined by the Secretary:

(1) Retention of equipment for other lead-based paint poisoning prevention projects. Equipment may be used without adjustment of accounts on other grant supported projects (whether or not federally supported) within the scope of the act, and no other accounting for such equipment shall be required: Provided, however, (i) That during such period of use no charge for depreciation, amortization, or for other use of the equipment shall be made against any existing or future Federal grant or contract, and (ii) if, within the period of its useful life, the equipment is transferred by sale or otherwise for use outside the scope of the act, the Federal portion of the fair market value at the time of transfer shall be refunded to the Federal Government.

(2) Sale or other disposition of equipment, crediting of proceeds or value. The equipment may be sold by the grantee and the net proceeds of the sale credited to the grant account for project use, or they may be used or disposed of in any manner by the grantee by crediting to the grant account the Federal share of the fair market value on the termination date. To the extent equipment purchased from grant funds is used for credit or trade-in on the purchase of new equipment, the accounting obligation shall apply to the same extent to such new equipment.

(3) Return or transfer of equipment. The equipment may be returned to the Federal Government by the grantee or, in accordance with the provisions of chapter 1-410-50B of the Department of Health, Education, and Welfare Grants Administration Manual, may be transferred to another grantee for the pur

pose of continuing the project for which the equipment was purchased.

(c) Accounting for grant related income-(1) Interest. Pursuant to section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), a State will not be held accountable for interest earned on grant funds, pending their disbursement for grant purposes. A State, as defined in section 102 of the Intergovernmental Cooperation Act, means any one of the several States, the District of Columbia, Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State, but does not include the governments of the political subdivisions of the State. All grantees other than a State, as defined in this subsection, must return all interest earned on grant funds to the Federal Government.

(2) Royalties. Royalties earned from publications or similar material produced from a grant must first be used to reduce the Federal share of the grant to cover the costs of publishing or producing the materials. Royalties in excess of the costs of publishing or producing the materials shall be distributed as in subparagraph (3) of this paragraph.

(3) Other income. Other income earned by the granteee shall be disposed of in accordance with one of the alternatives specified in Chapter 1-420 of the Grants Administration Manual as determined by the Secretary in the grant award.

(d) Grant closeout—(1) Date of final accounting. A grantee shall render, with respect to each approved project, a full accounting, as provided herein, as of date of the termination of grant support. The Secretary may require other special and periodic accounting.

(2) Final settlement. There shall be payable to the Federal Government as final settlement with respect to each approved project the total sum of

(i) Any amount not accounted for pursuant to paragraph (a) of this section; (ii) Any credits for materials on hand as provided in paragraph (b) of this section;

(iii) Any credits for earned interest pursuant to paragraphs (c) (1) of this section; and

(iv) Any other settlements required by paragraph (c) (2) and (3) of this section.

Such total sum shall constitute a debt owed by the grantee to the Federal Government and shall be recovered from the

grantee or its successors or assignees by set off or other action as provided by law.

§ 91.15 Records, reports, inspection, and audit.

(a) Records and reports. Each grant awarded pursuant to this part shall be subject to the condition that the grantee shall maintain such operational and accounting records, identifiable by grant number, and file with the Secretary such operational and fiscal reports relating to the use of grant funds, as the Secretary may find necessary to carry out the purpose 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 questions.

(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 interviews 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 audit by such persons of the supported activity and of records relating to the use of grant funds.

§ 91.16 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.

§ 91.17 Early termination and withholding of payments.

Whenever the Secretary finds that a grantee has failed in a material respect to comply with the Act, the regulations of this part, or the terms of the grant, he may on reasonable notice to the grantee, withhold further payments, and take such other action, including the termination of the grant, as he finds appropriate to carry out the purposes of the Act and regulations. Noncancellable obligations of the grantee properly incurred prior to the receipt of the notice of termination will be honored. The grantee shall be promptly notified of such termination in writing and given the reasons therefor.

Plan for Maternal and Child Health or Crippled Children's Services;

(c) "Act" means the Social Security Act as amended (42 U.S.C. Ch. 7);

(d) "Service" means the Social and Rehabilitation Service in the Department of Health, Education, and Welfare;

(e) "Administrator" means the Administrator of the Social and Rehabilitation Service;

(f) "Bureau" means the Children's Bureau in the Social and Rehabilitation Service;

(g) "Chief" means the Chief of the Children's Bureau in the Social and Rehabilitation Service;

(h) "Obligation" means a debt properly incurred by a State agency in carrying out the provisions of an approved State Plan;

(i) "Official forms" means forms supplied by the Bureau to State agencies for requesting funds and for submitting State budgets or reports under title V of the Act;

(j) "Crippled child" means an individual below the age of 21 who has an organic disease, defect, or condition which may hinder the achievement of normal growth and development;

means

(k) "Facilitating services" transportation, subsistence away from home, drugs, biologicals, communications, supplies, and equipment as may be necessary for the provision of maternal and child health or crippled children's services;

(1) "Health" means a state of physical and mental well-being, not merely the absence of disease or infirmity;

(m) "Medical care" means services, including services in hospitals, convalescent homes, and clinics, and home health services, by physicians and the allied services of dentists, nurses, medical social workers, nutritionists, dietitians, physical therapists, occupational therapists, speech and hearing specialists, optometrists, technicians, and other personnel whose services are needed in the maternal and child health and crippled children's programs;

(n) "Maternal and child health services" means (1) the provision of educational, preventative, diagnostic, and treatment services, including medical care, hospitalization, and other institutional care and aftercare, appliances and facilitating services directed toward reducing infant mortality and improving the health of mothers and children; (2)

the development, strengthening, and improvement of standards and techniques relating to such services and care; (3) the training of personnel engaged in the provision, development, strengthening, or improvement of such services and care; and, (4) necessary administrative services in connection with the foregoing;

(0) "Crippled children's services" means (1) the early location of crippled children; (2) the provision for such children of preventive, diagnostic, and treatment services, including medical care, hospitalization, and other institutional care and aftercare, appliances and facilitating services directed toward the diagnosis of the condition of such children or toward the restoration of such children to maximum physical and mental health; (3) the development, strengthening, and improvement of standards and techniques relating to the provision of such care and services; (4) the training of personnel engaged in the provision, development, strengthening, or improvement of such care and services; and (5) necessary administrative services in connection with the foregoing;

(p) "Demonstration services" means either (1) the provision in a county, district, or community of more and better health services than are available in any comparable area in the State, utilizing facilities meeting acceptable standards and personnel who are especially well qualified, for the purpose of establishing standards of care and service that can be shown to be practical, effective and adequate to improve the health of mothers and children, or (2) the provision of a special type of health service for the purpose of proving its value in improving the health of mothers and children and in providing information on cost, methods of development, techniques of provision and the administration of a given type of health service not generally available to mothers and children;

(q) "Specialized expenditures for Maternal and Child Health Services," "Specialized expenditures for Crippled Children's Services," "Supporting expenditures for Maternal and Child Health Services," and "Supporting expenditures for Crippled Children's Services," shall have such meaning as may be ascribed to them in policies issued by the Administrator in order to best achieve the objectives of the Act.