Sec. 69.620  Administrative expenses of independent subsidiary, Schools 
          and Libraries Corporation, and Rural Health Care Corporation.

    (a) The annual administrative expenses of the independent 
subsidiary, Schools and Libraries Corporation, and Rural Health Care 
Corporation should be commensurate with the administrative expenses of 
programs of similar size and may include, but are not limited to, 
salaries of officers and operations personnel, the costs of borrowing 
funds, equipment costs, operating expenses, directors' expenses, and 
costs associated with auditing contributors or support recipients.
    (b) The independent subsidiary, Schools and Libraries Corporation, 
and Rural Health Care Corporation shall submit to the Commission 
projected quarterly budgets at least 60 days prior to the start of every 
quarter. The Commission must approve the projected quarterly budgets 
before the independent subsidiary disburses funds for administrative 
expenses to the Schools and Libraries Corporation and Rural Health Care 
Corporation. The Schools and Libraries Corporation's and Rural Health 
Care Corporation's administrative expenses shall be paid from the 
universal support mechanisms. The administrative expenses of the Schools 
and Libraries Corporation and Rural Health Care Corporation shall be 
deducted from their respective programs' annual funding, which is capped 
at $2.25 billion in the case of the schools and libraries program, as 
established in Sec. 54.507 of this chapter, and capped at $400 million 
in the case of the rural health care providers program, as established 
in Sec. 54.623 of this chapter. The Schools and Libraries Corporation 
and

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Rural Health Care Corporation shall receive payments for administrative 
expenses from the permanent Administrator under the same terms as they 
shall receive payments pursuant to this paragraph.

[ 62 FR 41310 , Aug. 1, 1997]