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IFAP
FSA Information for Financial Aid Professionals
U.S. Department of Education

Citations: (R)667.14
AsOfDate: 12/31/95

From the Compilation of Regulations through 12/31/95.

Sec. 667.14 Allowable costs and activities.

(a) If included in a State's approved plan, the Secretary


pays, by reimbursement, direct costs as described in paragraph
(c) of this section and in Office of Management and Budget
(OMB) Circular A-87, and indirect costs as determined in
paragraph (b) of this section, of--

(1) Establishing State review standards in consultation


with institutions in the State, publicizing the State review
standards, and providing initial and continuing training to State
and other personnel in the State, including personnel at the
institution subject to review;

(2) Establishing and implementing, in consultation with


institutions in that State, the procedures for receiving and
responding to complaints from students, faculty, and others
regarding institutions in the State;

(3) Reviewing referred institutions; and

(4) Developing and maintaining an information system


for SPRE review activities.

(b) If a State seeks reimbursement for indirect costs,


the State shall--

(1) Use the restricted indirect cost rate, computed under


34 CFR 75.564 and approved by the Secretary under 34 CFR
75.561; and

(2) Not charge as a direct cost any cost that qualifies as


an indirect cost.

(c) The direct costs of carrying out the activities


described in paragraph (a) of this section include, but are not
limited to--

(1) The salary of State employees engaged in allowable


activities;

(2) Travel costs incurred--

(i) Consulting with institutions in developing standards


and complaint procedures; and

(ii) Reviewing referred institutions;

(3) Training for--

(i) State employees to perform reviews of referred


institutions; and

(ii) Institutional and other personnel regarding the State


review standards;

(4) Contracting with private organizations, nationally


recognized accrediting agencies, and peer review systems to
carry out required activities;
(5) Costs incurred by the State for administrative
actions and legal proceedings; and

(6) Costs incurred by the SPRE in that State in sharing


information with other SPREs, the Secretary, other State
agencies, nationally recognized accrediting agencies, institutions,
private organizations, and others.

(Authority: 20 U.S.C. 1099a-1099a-3)