(a) Each state agency that provides housing accommodations for employees is delegated the authority and responsibility to:

(b) Agency heads may further delegate this authority and responsibility at their discretion to institution superintendents, wardens, district officers and other subordinates, subject to the basic responsibility of the agency head for compliance with these regulations. In any instance where the rental rate for an accommodation is computed by the employee to whom it is assigned, or by a subordinate of such employee, the rate must be reviewed and approved by a supervisor of the occupant.