[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR222.53]



[Page 523-524]

 

                           TITLE 34--EDUCATION

 

                  CHAPTER II--OFFICE OF ELEMENTARY AND

              SECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

PART 222_IMPACT AID PROGRAMS--Table of Contents

 

     Subpart D_Payments Under Section 8003(d) of the Act for Local 

       Educational Agencies That Serve Children With Disabilities

 

Sec.  222.53  What restrictions and requirements apply to the use of 

funds provided under section 8003(d)?



    (a) An LEA shall use funds provided under section 8003(d) in 

accordance



[[Page 524]]



with the provisions of section 8003(d)(2) and 34 CFR part 300.

    (b) Obligations and expenditures of section 8003(d) funds may be 

incurred in either of the two following ways:

    (1) An LEA may obligate or expend section 8003(d) funds for the 

fiscal year for which the funds were appropriated.

    (2) An LEA may reimburse itself for obligations or expenditures of 

local and general State aid funds for the fiscal year for which the 

section 8003(d) funds were appropriated.

    (c) An LEA shall use its section 8003(d) funds for the following 

types of expenditures:

    (1) Expenditures that are reasonably related to the conduct of 

programs or projects for the free appropriate public education of 

federally connected children with disabilities. These expenditures may 

include program planning and evaluation but may not include construction 

of school facilities.

    (2) Acquisition cost (net invoice price) of equipment required for 

the free appropriate public education of federally connected children 

with disabilities.

    (i) If section 8003(d) funds are used for the acquisition of any 

equipment described in this paragraph (c)(2) of this section, the fair 

market value of any financial advantage realized through rebates, 

discounts, bonuses, free pieces of equipment used in a program or 

project for the free appropriate public education of federally connected 

children with disabilities, or other circumstances, is not an allowable 

expenditure and may not be credited as an expenditure of those funds.

    (ii) Funds awarded under the provisions of section 8003(d) may be 

used to acquire equipment for the free appropriate public education of 

the federally connected children with disabilities only if title to the 

equipment would be in the applicant agency.

    (d) An LEA shall account for the use of section 8003(d) funds as 

follows:

    (1) By recording, for each fiscal year, the receipt (or credit) of 

section 8003(d) funds separately from other funds received under the 

Act, i.e., on a line item basis in the general fund account or in a 

separate account; and

    (2) By demonstrating that, for each fiscal year, the amount of 

expenditures for special education and related services provided to the 

federally connected children with disabilities is at least equal to the 

amount of section 8003(d) funds received or credited for that fiscal 

year. This is done as follows:

    (i) For each fiscal year determine the amount of an LEA's 

expenditures for special education and related services provided to all 

children with disabilities.

    (ii) The amount determined in paragraph (d)(2)(i) of this section is 

divided by the average daily attendance (ADA) of the total number of 

children with disabilities the LEA served during that fiscal year.

    (iii) The amount determined in paragraph (d)(2)(ii) of this section 

is then multiplied by the total ADA of the LEA's federally connected 

children with disabilities claimed by the LEA for that fiscal year.

    (3) If the amount of section 8003(d) funds the LEA received (or was 

credited) for the fiscal year exceeds the amount obtained in paragraph 

(d)(2)(iii) of this section, an overpayment equal to the excess section 

8003(d) funds is established. This overpayment may be reduced or 

eliminated to the extent that the LEA can demonstrate that the average 

per pupil expenditure for special education and related services 

provided to federally connected children with disabilities exceeded its 

average per pupil expenditure for serving non-federally connected 

children with disabilities.



(Approved by the Office of Management and Budget under control number 

1810-0036)



(Authority: 20 U.S.C. 7703(d))