[Code of Federal Regulations]
[Title 34, Volume 2]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR303.123]

[Page 174]
 
                           TITLE 34--EDUCATION
 
 CHAPTER III--OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES, 
                         DEPARTMENT OF EDUCATION
 
PART 300_ASSISTANCE TO STATES FOR THE EDUCATION OF CHILDREN 
WITH DISABILITIES--Table of Contents
 
        Subpart H_Preschool Grants for Children with Disabilities
 
Sec. 303.123  Prohibition against commingling.

    The statement must include an assurance satisfactory to the 
Sec. etary that funds made available under this part will not be 
commingled with State funds.

(Approved by the Office of Management and Budget under control number 
1820-0550)

(Authority: 20 U.S.C. 1437(b)(5)(A))
    Note: As used in this part, commingle means depositing or recording 
funds in a general account without the ability to identify each specific 
source of funds for any expenditure. Under that general definition, it 
is clear that commingling is prohibited. However, to the extent that the 
funds from each of a series of Federal, State, local, and private 
funding sources can be identified--with a clear audit trail for each 
source--it is appropriate for those funds to be consolidated for 
carrying out a common purpose. In fact, a State may find it essential to 
set out a funding plan that incorporates, and accounts for, all sources 
of funds that can be targeted on a given activity or function related to 
the State's early intervention program.
    Thus, the assurance in this section is satisfied by the use of an 
accounting system that includes an ``audit trail'' of the expenditure of 
funds awarded under this part. Separate bank accounts are not required.