[Federal Register Volume 59, Number 61 (Wednesday, March 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7399]


[[Page Unknown]]

[Federal Register: March 30, 1994]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 205

RIN 1510-AA40

 

Rules and Procedures for Funds Transfers

AGENCY: Financial Management Service, Fiscal Service, Treasury.

ACTION: Interim rule.

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SUMMARY: This rule amends the regulations implementing the Cash 
Management Improvement Act of 1990 (CMIA), as amended, which governs 
the transfer of funds between the Federal Government and the States 
under Federal assistance programs. It delays the date on which the 
State of New York must begin the second phase of CMIA implementation, 
thereby affording New York the same amount of time to complete the 
first phase that is allowed the other 55 States and territories. This 
rulemaking affects only New York.

DATES: This interim rule is effective March 30, 1994; comments must be 
received on or before April 14, 1994.

ADDRESSES: Send comments to the Financial Management Service (FMS), 
Director, Cash Management Policy and Planning Division, room 511, 401 
14th Street, SW., Washington, DC 20227, Facsimile number (202) 874-
6907.

FOR FURTHER INFORMATION CONTACT: Gary Grippo, (202) 874-6955.

SUPPLEMENTARY INFORMATION:

Background

    The regulations at 31 CFR part 205 established a two-stage 
implementation of the Cash Management Improvement Act of 1990 (CMIA), 
as amended, which governs the transfer of funds between the Federal 
Government and the States under Federal assistance programs.
    During the first phase of implementation, only the 20 largest 
Federal assistance programs were covered by CMIA. From the second year 
onward, the scope of CMIA expands to cover all ``major Federal 
assistance programs,'' as defined by the Single Audit Act. This second 
phase of implementation is scheduled to take effect at the start of 
each State's 1995 fiscal year, so that States can introduce the new 
cash management requirements with a new fiscal year.
    The State of New York, however, has a unique fiscal year that 
begins on April 1, which is 3 months prior to the start of the typical 
State fiscal year on July 1. Hence, New York would be subject to 
expanded CMIA requirements three months before the other States; it 
would have only 9 months for the first phase of implementation, whereas 
all other States and territories would have a year.
    This rulemaking amends 31 CFR part 205 to allow New York a full 
year for the first stage of implementation. It modifies the 
implementation schedule so that no State begins the second phase prior 
to July 1, 1994. This rulemaking makes no other changes to 31 CFR part 
205 and affects only New York.

Rulemaking Analyses

E.O. 12866

    It has been determined that this regulation is not a significant 
regulatory action as defined in E.O. 12866. Therefore, a Regulatory 
Assessment is not required.

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required for this rule, 
the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
do not apply.

Notice and Comment

    Public comment is solicited on this interim rule. The FMS will 
consider all comments made on the substance of this interim rule, and 
will determine the appropriateness of adopting it as a final rule.
    In accordance with 5 U.S.C. 553(d)(1), a delayed effective date is 
not required for this rulemaking. The FMS has determined that this 
interim rule is a substantive regulation which relieves a restriction, 
specifically an exceptional deadline that applies to New York. New 
York's April 1, 1994, deadline entails an urgency of conditions and an 
unavoidable limitation of time that would make this rule meaningless if 
the effective date were delayed. Furthermore, this interim rule places 
no burdens or requirements on any State or other entity, and there are 
no affected parties that need time to prepare to comply with or take 
other action with respect to this rule. For the convenience and 
necessity of New York, therefore, this interim rule is effective 
immediately and will continue to be effective until final rule action 
is taken.
    The FMS for good cause finds that general notice of proposed 
rulemaking is not necessary for this regulatory action, in accordance 
with 5 U.S.C. 553(b)(B). The delay created by prior notice and public 
procedure would result in serious damage to important interests, 
specifically the public benefit corporations, public institutions of 
higher education, and public not-for-profit organizations of New York, 
as well as the integrity of CMIA implementation. Application of the 
rules in 31 CFR part 205 to these entities prior to July 1, 1994, would 
affect New York's ability to implement CMIA in the current and future 
years. Failure to make this regulatory amendment would result in 
potential financial harm to New York, and unnecessary costs to the 
Federal Government.

List of Subjects in 31 CFR Part 205

    Electronic funds transfer, Grant administration, Grant programs, 
Intergovernmental relations.

Issuance

    For the reasons set forth in the preamble, 31 CFR part 205 is 
amended by this interim rule as follows:

PART 205--[AMENDED]

    1. The authority citation for 31 CFR part 205 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 31 U.S.C. 321, 3335, 6501, 6503.

    2. Paragraph (b) of Sec. 205.4 is revised to read as follows:


Sec. 205.4  Scope of subpart.

* * * * *

    (b) Threshold of materiality. From the later of July 1, 1994, or 
the beginning of a State's 1995 fiscal year, and thereafter, this 
subpart applies, at a minimum, to all programs that meet the threshold 
for major Federal assistance programs in a State.
* * * * *
    Dated: March 8, 1994.
Russell D. Morris,
Commissioner.
[FR Doc. 94-7399 Filed 3-29-94; 8:45 am]
BILLING CODE 4810-35-P