 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER III--INSTITUTIONAL AID
 
   Part B--Strengthening Historically Black Colleges and Universities
 
Sec. 1063a. Applications


(a) Contents

    No part B institution shall be entitled to its allotment of Federal 
funds for any grant under section 1063 of this title for any period 
unless that institution meets the requirements of subparagraphs (C), 
(D), and (E) \1\ of section 1058(b)(1) of this title and submits an 
application to the Secretary at such time, in such manner, and 
containing or accompanied by such information, as the Secretary may 
reasonably require. Each such application shall--
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    \1\ See References in Text note below.
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        (1) provide that the payments under this chapter will be used 
    for the purposes set forth in section 1062 of this title; and
        (2) provide for making an annual report to the Secretary and 
    provide for--
            (A) conducting, except as provided in subparagraph (B), a 
        financial and compliance audit of an eligible institution, with 
        regard to any funds obtained by it under this subchapter at 
        least once every 2 years and covering the period since the most 
        recent audit, conducted by a qualified, independent organization 
        or person in accordance with standards established by the 
        Comptroller General for the audit of governmental organizations, 
        programs, and functions, and as prescribed in regulations of the 
        Secretary, the results of which shall be submitted to the 
        Secretary; or
            (B) with regard to an eligible institution which is audited 
        under chapter 75 of title 31 deeming such audit to satisfy the 
        requirements of subparagraph (A) for the period covered by such 
        audit.

(b) Approval

    The Secretary shall approve any application which meets the 
requirements of subsection (a) of this section and shall not disapprove 
any application submitted under this part, or any modification thereof, 
without first affording such institution reasonable notice and 
opportunity for a hearing.

(c) Goals for financial management and academic programs

    Any application for a grant under this part shall describe 
measurable goals for the institution's financial management and academic 
programs and include a plan of how the applicant intends to achieve 
those goals.

(Pub. L. 89-329, title III, Sec. 325, as added Pub. L. 99-498, title 
III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1296; amended Pub. L. 100-50, 
Sec. 2(a)(8), June 3, 1987, 101 Stat. 335; Pub. L. 102-325, title III, 
Sec. 303(e), July 23, 1992, 106 Stat. 475.)

                       References in Text

    Section 1058(b)(1)(E) of this title, referred to in subsec. (a), was 
repealed and section 1058(b)(1)(F) was redesignated section 
1058(b)(1)(E) by Pub. L. 102-325, title III, Sec. 302(a)(1)(B), (C), 
July 23, 1992, 106 Stat. 472.
    This chapter, referred to in subsec. (a)(1), was in the original 
``this Act'', meaning Pub. L. 89-329, as amended, known as the Higher 
Education Act of 1965. For complete classification of this Act to the 
Code, see Short Title note set out under section 1001 of this title and 
Tables.


                               Amendments

    1992--Subsec. (c). Pub. L. 102-325 added subsec. (c).
    1987--Subsec. (a)(1). Pub. L. 100-50 substituted ``section 1062 of 
this title'' for ``section 1061 of this title''.


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-325 effective Oct. 1, 1992, see section 2 
of Pub. L. 102-325, set out as a note under section 1001 of this title.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-50 effective as if enacted as part of the 
Higher Education Amendments of 1986, Pub. L. 99-498, see section 27 of 
Pub. L. 100-50, set out as a note under section 1001 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1062 of this title.
