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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


(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)