[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR75.232]

[Page 147]
 
                           TITLE 34--EDUCATION
 
PART 75--DIRECT GRANT PROGRAMS--Table of Contents
 
                     Subpart D--How Grants Are Made
 
Sec. 75.232  The cost analysis; basis for grant amount.

    (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.

(Authority: 20 U.S.C. 1221e-3 and 3474)

[45 FR 22497, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, 
as amended at 59 FR 30261, June 10, 1994]