[Federal Register Volume 59, Number 167 (Tuesday, August 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21433]


[[Page Unknown]]

[Federal Register: August 30, 1994]


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DEPARTMENT OF EDUCATION
 

Office of Vocational and Adult Education; Intent to Repay to the 
Iowa State Department of Education Funds Recovered as a Result of a 
Final Audit Determination

AGENCY: U.S. Department of Education.

ACTION: Notice of intent to award grantback funds.

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SUMMARY: Under section 459 of the General Education Provisions Act 
(GEPA), 20 U.S.C. 1234h, the U.S. Secretary of Education (Secretary) 
intends to repay to the Iowa State Department of Education (Iowa), an 
amount equal to 75 percent of the principal amount of funds recovered 
by the U.S. Department of Education (Department) as a result of a final 
audit determination. This Notice describes Iowa's plan for the use of 
the repaid funds and the terms and conditions under which the Secretary 
intends to make those funds available. This Notice invites comments on 
the proposed grantback.

DATES: All comments must be received on or before September 29, 1994.

ADDRESSES: All written comments concerning this Notice should be 
addressed to Dr. Marcel R. DuVall, Chief, Finance Branch, Division of 
Vocational-Technical Education, Office of Vocational and Adult 
Education, U.S. Department of Education, 600 Independence Avenue SW., 
(Mary E. Switzer Building, Room 4320, MS-7324), Washington, D.C. 20202.

FOR FURTHER INFORMATION CONTACT: Dr. Marcel R. DuVall, (202) 205-9502. 
Individuals who use a telecommunications device for the deaf (TDD) may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339 
between 8 a.m. and 8 p.m., Eastern time, Monday through Friday.

SUPPLEMENTARY INFORMATION

A. Background

    Under a Settlement Agreement negotiated between the Department and 
Iowa, the Department recovered $127,600 from Iowa in full resolution of 
all claims arising from an audit of Iowa's State Department of 
Education, covering fiscal year (FY) 1987.
    The Department's original claim of $338,128 was contained in a 
final letter of determination issues by the Assistant Secretary for 
Vocational and Adult Education (Assistant Secretary) on September 29, 
1989. The claim arose from findings related to Iowa's allocation of 
vocational education program payroll expenditures under provisions of 
the Carl D. Perkins Vocational Education Act, 20 U.S.C. 2301, et seq. 
(1988) (Perkins I). In the September 29, 1989, letter the Assistant 
Secretary determined that Iowa had violated the Federal requirements 
that salaries of employees chargeable to more than one program o other 
cost objectives be supported by appropriate time distribution records. 
The Federal requirements are derived from Office of Management and 
Budget Circular No. A-87, Attachment B.
    The settlement negotiations which followed Iowa's appeal of the 
Assistant Secretary's September 29, 1989, determination in this matter 
culminated in a tentative Settlement Agreement being reached between 
the parties in which Iowa agreed to repay $127,600 to the Department. 
The Settlement Agreement was executed on February 5, 1991. On February 
20, 1991, the Department received full payment from Iowa in the amount 
of $127,600.

B. Authority for Awarding a Grantback

    Section 459(a) of GEPA, 20 U.S.C. 1234h(a), provides that whenever 
the Secretary has recovered funds following a final audit 
determination, the Secretary may consider those funds to be additional 
funds available for the program and may arrange to repay to the State 
or local agency affected by that determination an amount not to exceed 
75 percent of the recovered funds. The Secretary may enter into this 
grantback arrangement if the Secretary determines that:
    (1) The practices and procedures of the State or local agency that 
resulted in the audit determination have been corrected, and the State 
or local agency is, in all other respects, in compliance with the 
requirements of the applicable program;
    (2) The State or local agency has submitted to the Secretary a plan 
for the use of the funds to be awarded under the grantback arrangement 
which meets the requirements of the program and, to the extent 
possible, benefits the population that was affected by the failure to 
comply or by the misexpenditures that resulted in the audit exception; 
and
    (3) The use of the funds to be awarded under the grantback 
arrangement in accordance with the State or local agency's plan would 
serve to achieve the purposes of the program under which funds were 
originally granted.

C. Plan for Use of Funds Awarded Under a Grantback Arrangement

    Pursuant to section 459(a)(2) of GEPA, Iowa has applied for a 
grantback of $95,700--75 percent of the $127,600 repaid to the 
Department--and has submitted a plan for use of the proposed grantback 
funds, consistent with the Carl D. Perkins Vocational and Applied 
Technology Education Act of 1990 (Perkins II). Iowa plans to utilize 
the requested grantback funds, totaling $95,700, to purchase computer 
equipment, software, and printers to be used to design new systems and 
improve existing systems of administering Perkins II, including: (1) 
Reviewing local applications; (2) monitoring and evaluating program 
effectiveness; (3) providing technical assistance to grant recipients; 
(4) ensuring compliance with all applicable Federal laws, including 
required services and activities for individuals who are members of 
special populations; and (5) supporting the activities of technical 
committees established under 34 C.F.R. Sec. 403.12(b)(1). Iowa's plan 
further indicates that this equipment will supplement and enhance 
Iowa's ability to achieve the goals and objectives of the current State 
plan (FYs 1995 and 1996).
    The equipment purchased with the grantback funds will permit 
administrative activities under Perkins II funds to use a local area 
network and all personnel involved in administering the Perkins II 
programs will have direct access to that network and information 
regarding Perkins II grant awards, recipients, and applications. The 
results of the use and availability of this equipment are expected to 
be (1) Improved quality and compliance monitoring, and the evaluation 
of program effectiveness by facilitating timely access to needed 
information and standardizing report formats; (2) improved capacity for 
staff to provide, in a more timely manner, written responses to 
requests for technical assistance and to track technical issues; (3) 
shared information among staff responsible for Perkins II 
administration through use of an electronic mail system; (4) reduction 
in time spent preparing reports; and (5) facilitation of the collection 
of data and statistical analysis leading to better evaluation and 
targeting of technical assistance to programs and populations with the 
greatest needs.

D. The Secretary's Determination

    The Secretary has carefully reviewed the plan submitted by Iowa. 
Based upon that review and a review of other information, the Secretary 
has determined that the conditions under section 459 of GEPA have been 
met. This determination is based upon the best information available to 
the Secretary at the present time. If this information is not accurate 
or complete, the Secretary is not precluded from taking appropriate 
administrative action. In finding that the conditions of section 459 of 
GEPA have been met, the Secretary makes no determination concerning any 
pending audit recommendations or final audit determinations.

E. Notice of the Secretary's Intent to Enter into a Grantback 
Arrangement

    Section 459(d) of GEPA requires that, at least 30 days before 
entering into an arrangement to award funds under a grantback, the 
Secretary must publish in the Federal Register a notice of intent to do 
so, and the terms and conditions under which the payment will be made.
    In accordance with section 459(d) of GEPA, notice is hereby given 
that the Secretary intends to make funds available to Iowa under a 
grantback arrangement. The grantback award will be in the amount of 
$95,700.

F. Terms and Conditions Under Which Payments Under a Grantback 
Arrangement Would Be Made

    Iowa agrees to comply with the following terms and conditions under 
which payment under a grantback arrangement would be made:
    (1) Iowa will expend the funds awarded under the grantback in 
accordance with--
    (a) All applicable statutory and regulatory requirements;
    (b) The plan that was submitted and any amendments in that plan 
that are approved in advance of the grantback by the Secretary; and
    (c) The budget that was submitted with the plan and any amendments 
to the budget that are approved in advance of the grantback to the 
Secretary.
    (2) All funds received under the grantback arrangement must be 
obligated by September 30, 1994, in accordance with section 459(c) of 
GEPA and Iowa's plan.
    (3) Iowa will, no later than January 1, 1995, submit a report to 
the Secretary which--
    (a) Indicates that the funds awarded under the grantback have been 
spent in accordance with the proposed plan and approved budget, and
    (b) Describes the results and effectiveness of the project for 
which the funds were spent.
    (4) Separate accounting records must be maintained documenting the 
expenditures of funds awarded under the grantback arrangement.

    Dated: August 25, 1994.

Patricia W. McNeil,
Acting Assistant Secretary for Vocational and Adult Education.
(Catalog of Federal Domestic Assistance Number 84.048, Basic State 
Grants for Vocational Education)
[FR Doc. 94-21433 Filed 8-29-94; 8:45 am]
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