[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: 94-21434]


[[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 Idaho State Division of Vocational 
Education Funds Recovered As A Result of A Final Audit Determination

AGENCY: Department of Education

ACTION: Notice of intent to award grantback funds.

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SUMMARY: Under section 456 of the General Education Provisions Act 
(GEPA), 20 U.S.C. 1234e (1982) (in effect in August of 1988 when the 
final audit determination was received by the auditee), the Secretary 
of Education (Secretary) intends to repay to the Idaho State Division 
of Vocational Education (Idaho), under a grantback arrangement, 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 the 
final audit determination in this matter. The Department's recovery of 
funds followed a settlement reached between the parties under which 
Idaho refunded a total of $115,000 in principal to the Department in 
full resolution of the Department's final audit determination. This 
notice describes Idaho'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 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 S.W., (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 1-800-877-8239 
between 8 a.m. and 8 p.m., Eastern time, Monday through Friday.

SUPPLEMENTARY INFORMATION

A. Background

    Under a settlement agreement between the Department and Idaho, the 
Department recovered $115,000 from Idaho in full resolution of all 
claims arising from an audit of Idaho's State Division of Vocational 
Education, covering fiscal years (FYs) 1983 through 1985.
    The Department's original claim of $376,538 was contained in a 
final letter of determination issued by the Assistant Secretary for 
Vocational and Adult Education on August 8, 1988. The claim arose from 
findings related to Idaho's administration of its vocational education 
program under provisions of the Vocational Education Act of 1963, 20 
U.S.C. 2301, et seq. (1982) (VEA). In the August 8, 1991 letter, the 
Assistant Secretary determined that Idaho had violated the prohibition 
against supplanting State and local funds with Federal funds awarded 
under the VEA. The supplanting prohibition was contained in section 
106(a)(6) of the VEA (20 U.S.C. 2306 (a)(6))(1982), in effect at the 
time. The Assistant Secretary had also determined that Idaho had 
improperly awarded vocational education funds to local educational 
agencies (LEAs) that failed to meet the maintenance of effort (MOE) 
requirement in section 111(b)(1) of the VEA (20 U.S.C. 
2311(b)(1))(1982), in effect at that time.
    In responding to these findings, Idaho asserted that the MOE 
violations resulted when it misinterpreted the VEA's MOE requirements, 
using the wrong years when calculating MOE for compliance purposes. 
Idaho further asserted that the supplanting violations resulted from 
Idaho's attempts to mitigate potential maintenance of effort problems 
at the local level. The VEA requirements relating to local maintenance 
of effort, which were among the primary subjects of the August 8, 1988 
final letter of determination issued to Idaho, are no longer in effect. 
Under the current program authority, the Carl D. Perkins Vocational and 
Applied Technology Education Act (Perkins II), local educational 
agencies (LEAs) are not required to maintain local effort (20 U.S.C. 
2463(a).
    The settlement negotiations that followed Idaho's appeal of the 
Assistant Secretary's August 8, 1988 determination in this matter 
culminated in a settlement agreement in which Idaho agreed to repay 
$115,000 to the Department. The settlement agreement was executed on 
September 29, 1991. On December 11, 1991, the Department received full 
payment from Idaho in the amount of $115,000.

B. Authority for Awarding a Grantback

    Section 456(a) of GEPA, 20 U.S.C. 1234e(a), the authority 
applicable to this grantback request, provides that whenever the 
Secretary has recovered funds following a final audit determination 
with respect to any applicable program, the Secretary may consider 
those funds to be additional funds available for the program and may 
arrange to repay to the State or local education 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 education 
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 456(a)(2) of GEPA, Idaho has applied for a 
grantback of $86,250, or 75 percent of the $115,000 repaid to the 
Department under the settlement agreement, and has submitted a plan for 
use of the proposed grantback funds, consistent with Perkins II, 
currently in effect. Generally, Idaho plans to purchase vocational-
technical training equipment to improve vocational-technical programs 
in Idaho's State system of vocational and applied technology 
institutions.
    Specifically, Idaho plans to utilize the requested grantback funds 
totaling $86,250 to--
    (1) Replace outdated equipment in the electronics program at North 
Idaho College, School of Vocational-Technical Education by purchasing 
two Oscilloscopes ($7,000);
    (2) Purchase two Pentium Work Stations necessary for establishing 
an interdivisional CD ROM Instructional Lab at Lewis-Clark State 
College, School of Technology ($5,625);
    (3) Purchase equipment needed by Boise State University, College of 
Technology, to implement an Academic Skills Development unit at the 
Canyon County Center ($23,445);
    (4) Purchase updated equipment for the Licensed Practical Nurse and 
Welding programs at the College of Southern Idaho School of Vocational-
Technical Education ($12,500);
    (5) Purchase equipment for establishing an integrated learning 
experience laboratory at Idaho State University, School of Applied 
Technology ($22,680); and
    (6) Purchase an Eberline HBM-1 Hand/Foot counter to be used in the 
Radiation Safety program at Eastern Idaho Technical College ($15,000).
    The postsecondary institutions for which Idaho plans to purchase 
equipment with the grantback funds will participate with comprehensive 
high schools in the various regions in which the institutions are 
located throughout the State to deliver Tech-Prep programs and 
coordinate initiatives for future delivery of youth apprenticeship 
training. As is indicated in Idaho's grantback plan, the additional 
equipment Idaho plans to purchase will serve to advance the quality of 
programs delivered by, and coordinated through, the postsecondary State 
system, resulting in Statewide benefit to vocational education, and 
maximizing the impact of the grantback funds.
    Idaho's plan further indicates that these equipment purchases are 
intended to improve vocational-technical programs by maintaining high-
quality State programs with state-of-the-art training stations. These 
training stations will be of critical importance in advancing the 
development of Idaho's workforce. Laboratories in the postsecondary 
vocational-technical education system will provide preparatory training 
essential for new entrants into highly skilled occupations. In 
addition, industry upgrade and retraining of employees will be provided 
on the campuses of Idaho's postsecondary system of technical 
institutions.

D. The Secretary's Determination

    The Secretary has carefully reviewed the plan submitted by Idaho 
and other relevant documentation. Based upon that review, the Secretary 
has determined that the conditions under section 456 of GEPA have been 
met.
    These determinations are 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 at a later date. In finding that the 
conditions of section 456 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 456(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 456(d) of GEPA, notice is hereby given 
that the Secretary intends to make funds available to the Idaho State 
Division of Vocational Education under a grantback arrangement. The 
grantback award would be in the amount of $86,250 which is 75 percent--
the maximum percentage authorized by the statute--of the principal 
recovered to date by the Department as a result of the final audit 
determination and the settlement in this matter.

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

    Idaho agrees to comply with the following terms and conditions 
under which payment under a grantback arrangement would be made:
    (1) Idaho 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 by the 
Secretary.
    (2) All funds received under the grantback arrangement must be 
obligated by September 30, 1994, in accordance with section 456(c) of 
GEPA and Idaho's plan.
    (3) Idaho 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 24, 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. 94-21434 Filed 8-29-94; 8:45 am]
BILLING CODE 4000-01-P