[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR1386.35]

[Page 401]
 
                        TITLE 45--PUBLIC WELFARE
 
CHAPTER XIII--OFFICE OF HUMAN DEVELOPMENT SERVICES, DEPARTMENT OF HEALTH 
                           AND HUMAN SERVICES
 
PART 1386--FORMULA GRANT PROGRAMS--Table of Contents
 
   Subpart C--Federal Assistance to State Developmental Disabilities 
                                Councils
 
Sec. 1386.35  Allowable and non-allowable costs for Federal Assistance to State Developmental Disabilities Councils.

    (a) Under this subpart, Federal financial participation is available 
in costs resulting from obligations incurred under the approved State 
plan for the necessary expenses of the approved State plan for the 
necessary expenses of the State Council, the administration and 
operation of the State plan, and training of personnel.
    (b) Expenditures which are not allowable for Federal financial 
participation are:
    (1) Costs incurred by institutions or other residential or non-
residential programs which do not comply with the Congressional findings 
with respect to the rights of individuals with developmental 
disabilities in section 110 of the Act (42 U.S.C. 6009).
    (2) Costs incurred for activities not provided for in the approved 
State plan; and
    (3) Costs not allowed under other applicable statutes. Departmental 
regulations or issuances of the Office of Management and Budget.
    (c) Expenditure of funds which supplant State and local funds will 
be disallowed. Supplanting occurs when State or local funds previously 
used to fund activities in the developmental disabilities State Plan are 
replaced by Federal funds which are then used for the same purpose. 
However, supplanting does not occur if State or local funds are replaced 
with Federal funds for a particular activity or purpose in the approved 
State Plan if the State or local funds are then used for other 
activities or purposes in the approved State Plan.
    (d) For purposes of determining aggregate minimum State share of 
expenditures, there are three categories of expenditures:
    (1) Expenditures for projects or activities carried out directly by 
the Council and Council staff, as described in section 125A(a)(2) of the 
Act, require no non-Federal aggregate participation.
    (2) Expenditures for projects with activities or products targeted 
to urban or rural poverty areas but not carried out directly by the 
Council and Council staff, as described in section 125A(a)(2) of the 
Act, shall have non-Federal participation of at least 10% in the 
aggregate.
    (3) All other activities not directly carried out by the Council and 
Council staff, shall have non-Federal participation of at least 25% in 
the aggregate.
    (e) The Council may vary the non-Federal participation required on a 
project by project, activity by activity basis (both poverty and non-
poverty activities), including requiring no non-Federal participation 
from particular projects or activities as the Council deems appropriate 
so long as the requirement for aggregate non-Federal participation is 
met.

[49 FR 11779, Mar. 27, 1984, as amended at 52 FR 44847, Nov. 20, 1987; 
54 FR 47985, Nov. 20, 1989; 61 FR 51161, Sept. 30, 1996]