(a)
Before the Secretary sets the amount of a new grant, the Secretary does a cost analysis of the project. The Secretary:
(1)
Verifies the cost data in the detailed budget for the project;
(2)
Evaluates specific elements of costs; and
(3)
Examines costs to determine if they are necessary, reasonable, and allowable under applicable statutes and regulations.
(b)
The Secretary uses the cost analysis as a basis for determining the amount of the grant to the applicant. The cost analysis shows whether the applicant can achieve the objectives of the project with reasonable efficiency and economy under the budget in the application.
Notes, amendments, and revision history
Amendments
[45 FR 22497, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, as amended at 59 FR 30261, June 10, 1994]
Authority
Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted. Section 75.263 also issued under 2 CFR 200.308(e)(1). Section 75.617 also issued under 31 U.S.C. 3504, 3505. Section 75.740 also issued under 20 U.S.C. 1232g and 1232h.
Source
Source: 45 FR 22497, Apr. 3, 1980, unless otherwise noted. Redesignated at 45 FR 77368, Nov. 21, 1980.
Amendments
[45 FR 22497, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, as amended at 59 FR 30261, June 10, 1994]