Where under State regulations there is an option given for the payment of salary for overtime services in lieu of compensatory time off, such payment should be made within 60 days from the time the overtime services are performed. The costs for the payment of overtime must be absorbed within the funds granted.

Subpart C-Standards Relative to Penalty

Mail

§ 25.23 Statutory basis for transmittal of official State Employment Service postal matter without prepayment of postage. The Wagner-Peyser Act authorizes and directs the Postmaster General to extend to all State employment systems, which receive funds appropriated under the authority of that act, the privilege of free transmittal of official mail matter. The act of June 28, 1944 (58 Stat. 394, 39 U. S. C. 321c) provides that:

(a) All envelopes, labels, wrappers, cards, and other articles bearing the indicia prescribed by law for material mailed free of postage under the penalty privilege by executive departments and agencies, and all other organizations authorized by law to use the penalty franking privilege, shall be procured or accounted for through the Postmaster General under such regulations as he shall prescribe.

(b) Based upon the estimated cost of handling penalty mail by the Post Office Department, each agency using the frank shall bear the cost thereof by depositing in the U. S. Treasury through the United States Employment Service an amount equivalent to such costs.

(c) No article or package of official matter exceeding four pounds in weight shall be admitted to the mails under the penalty privilege.

(d) All executive departments and all other organizations authorized by law to use the penalty privilege are directed to supply all necessary information requested by the Post Office Department to carry out the provision of that act.

§ 25.24 Limitation of use of penalty privilege. Under these basic statutes the penalty privilege is limited to mail pertaining solely to employment service activities. In carrying out the provisions outlined in § 25.23, operating agencies will be expected to exercise a high degree of control to limit the use of penalty

§ 25.26 Audits conducted by agencies other than the United States Employment Service, U. S. Department of Labor. Granted funds may be used for expenditures incident to the establishment and maintenance of day-to-day internal checks and controls necessary to insure proper handling of accounts. But it is assumed that a relationship between the State agency and the State auditing department is established which satisfies the State auditor that the internal controls of the State agency insure proper handling of the funds. Therefore, granted funds may not be used to finance an independent or separate audit of the State agency's handling of State Employment Service funds, and grants will not include amounts to defray the costs of conducting such audits of the administration fund accounts of a State agency. The United States Employment Service will conduct periodic audits of the State Employment Service administration fund accounts.

$ 25.27 Workload analysis study. Granted funds may be used for expenditures for studies of workloads to provide a method for measuring the staff time directed to employment service activities. State agencies shall make such studies. and shall submit reports thereof as required by the Director of the United States Employment Service.

§ 25.28 Financial reports. The mak ing of financial reports will be required in such form and containing such information as may be necessary in determining that funds have been expended according to law and in determining the status of unexpended granted funds. In compliance with this requirement, and to assure the correctness and verification of such reports, appropriate accounting records and procedures shall be established and maintained by each State agency. The State agency shall have authority to transfer between cate

gories any funds made available for the administration of the State Employment Service except as may be otherwise specifically provided in the letter approving the grant of funds.

§ 25.29 Certificates. The submittal by each State agency of certificates of authorization will be required which certify the extent of authority delegated by the State agency to any person (a) to request a grant of funds, (b) otherwise to represent the State agency in connection with such grant, (c) to designate the payee to whom payment of granted funds is to be made, and (d) to furnish fiscal information and reports.

Subpart E-Travel Standards

§ 25.30 General. Expenditures for official travel will be considered necessary for proper and efficient administration of a State Employment Service if they are proper under State law and are incurred in accordance with the following standards.

Reim

§ 25.31 Allowable expenses. bursable travel expenses are confined to those which are essential to transacting the agency's official business in the administration of the State Employment Service. Such expenses are reimbursable only if incurred while in a travel status. Reimbursable travel expenses do not include:

(a) Those incurred for the convenience of the traveler, such as expenses for travel by an indirect route or stop-overs for personal reasons.

(b) Those of a strictly personal nature, such as telegrams to the headquarters office concerning leave or salary matters.

(c) Those for travel between home and office or for other non-official purposes.

(d) Per diem or subsistence at an employee's official station.

§ 25.32 Persons eligible for reimbursement of travel expenses. Eligibility for reimbursement of travel expenses is confined to employees of the agency and to expenses necessary to the discharge of their official duties in the administration of the State Employment Service; in addition, individuals in specified classes or groups, such as Advisory Council members, are eligible for reimbursement. In such additional cases, travel expenses will be allowed only in accordance with the rules and regulations applicable to employees of the State agency.

§ 25.33 Travel status. Employees may be considered in travel status when they are absent from their official station and engaged in official business which has been appropriately authorized. In order to establish travel status, it is necessary that the circumstances governing the travel be prescribed, so that expenses incurred by the traveler in performing the duties properly can be reimbursed. The circumstances to be prescribed should include the nature of the duties to be performed, the area in which they are to be performed and the period of time during which they are to be performed.

§ 25.34 Official station. The designated post of duty and official station mean one and the same, the extent of which should be the corporate limits of the city or town in which the employee is stationed. Normally an employee will be stationed at that point or approximate location where his official duties require him to spend the major part of his official working time.

§ 25.35 Authorization of travel expenditures. (a) All travel, whether intrastate or interstate, will be authorized by the head of the State agency (or by an agency official to whom such authority has been properly delegated) in such manner as to insure proper control.

(b) Expenditures from granted funds for any interstate travel by any State agency official or employee are, in addition, subject to prior authorization by the regional office of the United States Employment Service, except interstate travel performed by the administrative head of the agency for official purposes.

§ 25.36 Mode and route of travel. Reimbursable travel expenses are confined to those occasioned by use of the most economical standard mode of transportation and most usually traveled route, unless the head of the State agency or his designated representative determines that, due to unusual circumstances, other means of regular transportation are justified.

hicle, a maximum mileage rate in lieu of actual transportation is required.

The following are the alternative bases for determining reasonable maximum subsistence and mileage rates:

(a) Specific mandatory rates prescribed by statutes or regulations applicable generally to all agencies of the State; or

(b) Rates representing reasonable maximum limitations (to be established by agreement between the State agency and the United States Employment Service)' where applicable State statutes or regulations do not prescribe specific limitations.

§ 25.38 Reimbursable expenses to be specified. (a) The items included in subsistence or per diem allowance will be specified.

(b) The State agency will set forth the minimum number of hours of absence from official station, distance from official station, or other conditions to be uniformly observed by all employees which will entitle the traveler to claim reimbursement of per diem or subsistence.

§ 25.39 Vouchers and receipts. Employees are required to submit travel vouchers in such form as to insure complete and necessary audits. Receipts are required for all unusual items of expenditures in such form as to establish official necessity. The State agency's regulations will specify those items which are considered unusual.

§ 25.40 Leave of absence during travel. Provision must be made for proper determination of allowable expenses when an employee is granted leave of absence while on official travel.

Subpart F-Standards Relative to
Automobiles

§ 25.41 Expenditures for agencyowned automobiles. Granted funds may be used for purchase of agency-owned automobiles, but approval of such purchase and use will be dependent upon

'In arriving at agreements with State agencies as to reasonable maximum limitations for substance, or mileage rates, established State practice, as well as rates established by the Federal Government for its employees, will be factors which the United States Employment Service will use in determining whether the proposed expenditures are reasonable. (See §§ 25.2 and 25.8 for an explanation of the significance of State practice.)

considerations of need, resulting economy, and efficiency of that method of transportation.

Subpart G-Standards Relative to Transportation of Household Goods and Effects

§ 25.42 Transportation of household goods and effects. When employees of State agencies are transferred from one official station to another for permanent duty, the Department of Labor will consider as necessary expenditures from granted funds the payment of reasonable costs of transportation of household effects and other personal property as determined in accordance with State law. Granted funds may not be used for payment of such costs where the transfer is made at the request and primarily for the benefit or convenience of the employee, or for disciplinary reasons. Subpart H-Standards Relative to Rental of Premises

§ 25:43 Rental of premises. Granted funds may be used for payments for rental of premises. Such rental may include reasonable amounts for the maintenance of proper facilities for the administration of the State Employment Service. Approval of expenditures for rental of premises does not constitute a commitment on the part of the Department of Labor to make grants under the Wagner-Peyser Act for future periods.

§ 25.44

Rent applied toward cost of purchase or construction of buildings. The Department of Labor will make specific determinations with respect to requests for funds to be supplied in the form of rental to offset cost of purchase or construction of State-owned buildings to provide quarters for the State Employment Service on the merits of each case.

Subpart I-Standards Relative to Repairs and Alterations

§ 25.45 Repairs and alterations. Granted funds may be used for reasonable costs of repairs and alterations necessary for the maintenance of proper facilities for the administration of the State Employment Service.

Subpart J-Procurement Standards

§ 25.46 General. The following standards constitute the fundamentals of a proper procurement procedure, to be observed in the expenditure by State

agencies of granted funds for the procurement of furniture, fixtures, equipment, supplies, printing and binding and contractual services.

§ 25.47 Authorization for purchases. Purchases of material and contracts for services are to be made by a designated procurement officer on the basis of requisitions issued by authorized individuals within the Agency. All requisitions will bear the written approval of the head of the State Agency (or his authorized deputy for such purpose) as well as the certification of the fiscal officer of the agency, showing that funds for the purpose are available.

§ 25.48 Competition. All purchases and contracts are required to be made on a competitive basis by:

(a) Advertising at least once a year in a newspaper or newspapers of State-wide circulation and by posting notices in appropriate places that materials and supplies are to be purchased during the year, and inviting prospective vendors to file data from which lists of prospective vendors shall be established.

(b) Submitting invitations to bid on materials and supplies required to vendors listed in accordance with paragraph (a).

(c) In addition to paragraph (b) of this section, soliciting bids at least once in a newspaper or newspapers of Statewide circulation in each case of a purchase or contract amounting to $1,000 or more.

(d) Compliance with paragraphs (b) and (c) of this section is not required where:

(1) Purchases amounting to less than $100, and approval of the head of the State agency is obtained, provided that before making such purchases effort should be made to obtain oral bids (reduced to writing, if possible) from at least three vendors.

(2) Purchases are limited by State statute.

§ 25.49 Invitation to bid. In submitting invitations to bid, the procurement officer will give due allowance to:

(a) Time necessary for submitting bids, in recognition of vendor's ability to submit bids promptly and make delivery within specified time.

(b) Savings, if any, to be effected by calling for bids on a lump-sum or aggregate basis.

(c) The necessity of obtaining bids and making awards on a basis which will be exclusive of Federal taxes.

§ 25.50 Opening of bids. Bids will be opened in public at a time and place to be specified in the invitation to bid, and abstracts of all bids (or their equivalent) inserted in a register, or the necessary information maintained in some other form, and be readily available to the public during office hours. All bids which fail to meet time and other specifications of the invitation to bid will be considered invalid.

§ 25.51 Awards. If a bid is accepted, award will be made:

(a) Promptly and in writing.

(b) To the responsible bidder whose proposal meets the specifications or performance test which have been set forth in the invitation to bid, and whose price is the lowest net price offered.

(c) Subject to inspection where contract calls for furniture, fixtures, supplies, and equipment, and subject to furnishing proofs where printing is involved.

(d) Subject to guarantees by bidder where the procurement officer considers it necessary to protect the interests of the State agency.

Subpart K-Equipment Standards

§ 25.52 Equipment and furniture. Granted funds may be used for the purchase of equipment by the State agency. Such equipment shall be used only by the State agency, except when loaned for use in the administration of a joint merit system which is financed through grants made by Federal agencies. Title to equipment purchased by a State agency from granted funds may not be transferred, unless the State Employment Service administration fund is reimbursed in an amount equal to the fair market value of the equipment.

§ 25.53 Equipment control records. Each State agency is required to maintain equipment control records showing for each item of equipment on hand, regardless of the manner of acquisition, unit cost, description, identification number, date received, source of acquisition, and location at all times.

In the event of disposition of any item of equipment, whether it be sold, traded in, scrapped, lost, stolen, or otherwise disposed of the equipment control rec

ords are to be properly adjusted. Such adjustments will be supported by the necessary explanatory data or documents relating to the action. When requested, the regional office will assist State agencies in arranging for sales of usable surplus equipment between State agencies within regional boundaries or in nearby States of other regions, if practicable.

§ 25.54 Proceeds from sale of equipment. Proceeds from the sale or disposition of any item of equipment are subject to the same conditions which are applicable to granted funds. Accordingly, such proceeds will be deposited in the State Employment Service administration fund and the amounts thereof will be included in the financial reports of the State agency.

Subpart L-General Provisions

§ 25.55 Administrative responsibility of the State agency. The State agency shall establish and maintain such sys

tem of accounts (showing receipts and expenditures of the State agency with substantiating records and vouchers) as will adequately supply the information required (a) in the financial reports rendered to the United States Employment Service and (b) for post audit of expenditures by auditors of the United States Employment Service. Each voucher for expenditure of funds for State Employment Service Administration, from whatever source such funds may be derived, shall be approved by the head of the State agency or his duly authorized agent or agents. All such vouchers or certified duplicates or copies thereof shall be filed in the administrative office of the State agency.

§ 25.56 Implementing

instructions.

The Director of the United States Employment Service is hereby directed to issue such forms, procedures and instructions as are necessary to implement these standards.