A State or a subgrantee may use funds under more than one program to support different parts of the same project if the State or subgrantee meets the following conditions:

1. (a) The State or subgrantee complies with the requirements of each program with respect to the part of the project assisted with funds under that program.

2. (b) The State or subgrantee has an accounting system that permits identification of the costs paid for under each program.

   (Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))