[Federal Register Volume 60, Number 71 (Thursday, April 13, 1995)]
[Notices]
[Page 18805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9050]
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DEPARTMENT OF EDUCATION
Office of Special Education and Rehabilitative Services
Office of Administrative Law Judges; Intent to Compromise a
Claim, Resource, Inc.
AGENCY: Department of Education.
ACTION: Notice of intent to compromise a claim.
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SUMMARY: The Department intends to compromise a claim against Resource,
Inc. now pending before the Office of Administrative Law Judges (OALJ),
Docket No. 94-103-R (20 U.S.C. 1234a(j)).
DATES: Interested persons may comment on the proposed action by
submitting written data, views, or arguments on or before May 30, 1995.
ADDRESSES: All comments concerning this notice should be addressed to
Jeffrey B. Rosen, Office of the General Counsel, U.S. Department of
Education, 600 Independence Avenue SW., Room 5411, FB-10B, Washington,
D.C. 20202-2242.
FOR FURTHER INFORMATION CONTACT: Jeffrey B. Rosen. Telephone: (202)
401-6009. 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: In September 1991 the Rehabilitation
Services Administration (RSA), U.S. Department of Education (ED),
conducted a compliance review of the grantee, Resource, Inc., in
accordance with the Rehabilitation Act of 1973, as amended (the Act),
and ``RSA Procedures for the Recovery of Disallowed Costs Identified
Through Program Monitoring Activities'' (Information Memorandum RSA-IM-
92-04). The review covered the grantee's performance during fiscal year
1991 under a Projects With Industry (PWI) program grant authorized
under Title VI of the Act, 29 U.S.C 795g. RSA issued a Final Monitoring
Report on March 24, 1992.
Based upon this monitoring report, the Regional Commissioner,
Region V, RSA, and the Director, Grants Division, Grants and Contracts
Service, issued a Notice of Disallowance Decision (NDD) on May 31,
1994, in which Resource, Inc. was requested to repay $218,517 of funds
misspent under Title VI of the Act. A total of $204,416 was disallowed
because the grantee did not meet the requisite cost sharing or matching
requirement under the PWI program. In addition, ED disallowed $115,585
for the failure of the grantee to keep time distribution records for
its employees who worked on the PWI program. However, because $101,484
of these funds were included in the prior disallowance, the total cost
disallowance ($218,517) was less than the total of the costs disallowed
for each of the two findings. On June 30, 1994 Resource, Inc. filed an
appeal of the NDD with the OALJ.
On November 17, 1994 ED filed a Notice of Reduction of Claim
notifying the OALJ that, based upon new information submitted by the
grantee, the first issue concerning the matching requirement was
resolved. Thus, the total amount outstanding in the appeal was reduced
to $115,585, which is covered by the Settlement Agreement.
Under the terms of the proposed agreement, Resource, Inc. owes ED a
total of $31,682. The grantee has agreed to make payment in 2
installments over a 1-year period, the first payment to be made within
30 days of execution of the agreement by ED. Resource, Inc. would be
assessed interest at a rate of three percent per year if both
installment payments are not made in a timely fashion. Failure to make
timely payments within 40 days of the due dates would result in a late
payment fee of 10 percent of the principal. Finally, under the
agreement, the parties would jointly move for dismissal of the appeal.
For the following reasons, ED recommends approval of the proposed
Settlement Agreement.
There is clearly a litigation risk in attempting to uphold the
original finding. The evidence presented by Resource, Inc. demonstrates
that the employees in question worked a substantial portion of the time
on the PWI grant. While Resource, Inc. clearly had an obligation to
keep time distribution records, its evidence, which often was less
reliable and circumstantial, could persuade an administrative law judge
or a Federal court to rule in substantial part or in full for its
position.
Resource, Inc. has agreed to repay $31,682. Based upon the
foregoing, ED believes that it is prudent to accept the settlement
offer, which represents a recovery of over 27 percent of the original
costs disallowed in the PDD for this finding. If this issue is not
settled, ED will incur further litigation costs, and there will be some
litigation risk during the administrative process. Moreover, Resource,
Inc. also would have the right to appeal any decision to the U.S. Court
of Appeals. See 20 U.S.C. 1234g. In addition, the grantee has certified
in the Settlement Agreement that it is presently in compliance with the
time distribution requirements that gave rise to the disallowance at
issue in this agreement.
After weighing the risks in litigating the issue that is the
subject of the settlement, it is ED's assessment that the proposed
Settlement Agreement is the most advantageous resolution.
The public is invited to comment on the ED's intent to compromise
this claim. Additional information may be obtained by writing to
Jeffrey B. Rosen at the address given at the beginning of this notice.
Program Authority: 20 U.S.C. 1234a(j) (1990).
Dated: April 7, 1995.
Donald R. Wurtz,
Chief Financial Officer.
[FR Doc. 95-9050 Filed 4-12-95; 8:45 am]
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