[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: 34CFR76.565]

[Page 174-175]
 
                           TITLE 34--EDUCATION
 
PART 76--STATE-ADMINISTERED PROGRAMS--Table of Contents
 
Subpart F--What Conditions Must Be Met by the State and Its Subgrantees?
 
Sec. 76.565  General management costs--restricted rate.

    (a) As used in Sec. 76.564, general management costs means the costs 
of activities that are for the direction and control of the grantee's 
affairs that are organization-wide. An activity is not organization-wide 
if it is limited to one activity, one component of the grantee, one 
subject, one phase of operations, or other single responsibility.
    (b) General management costs include the costs of performing a 
service function, such as accounting, payroll preparation, or personnel 
management, that is normally at the grantee's level even if the function 
is physically located elsewhere for convenience or better management. 
The term also includes certain occupancy and space maintenance costs as 
determined under Sec. 76.568.
    (c) The term does not include expenditures for--
    (1) Divisional administration that is limited to one component of 
the grantee;
    (2) The governing body of the grantee;
    (3) Compensation of the chief executive officer of the grantee;
    (4) Compensation of the chief executive officer of any component of 
the grantee; and
    (5) Operation of the immediate offices of these officers.
    (d) For purposes of this section--
    (1) The chief executive officer of the grantee is the individual who 
is the head of the executive office of the

[[Page 175]]

grantee and exercises overall responsibility for the operation and 
management of the organization. The chief executive officer's immediate 
office includes any deputy chief executive officer or similar officer 
along with immediate support staff of these individuals. The term does 
not include the governing body of the grantee, such as a board or a 
similar elected or appointed governing body; and
    (2) Components of the grantee are those organizational units 
supervised directly or indirectly by the chief executive officer. These 
organizational units generally exist one management level below the 
executive office of the grantee. The term does not include the office of 
the chief executive officer or a deputy chief executive officer or 
similar position.

(Authority: 20 U.S.C. 1221e-3(a)(1), 2831(a), 2974(b), and 3474)

[59 FR 59583, Nov. 17, 1994]