[Federal Register Volume 60, Number 189 (Friday, September 29, 1995)]
[Rules and Regulations]
[Pages 50413-50414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24381]
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DEPARTMENT OF EDUCATION
34 CFR Part 80
Education Department General Administrative Regulations; Cost
Principles for State, Local and Indian Tribal Governments
AGENCY: Department of Education.
ACTION: Announcement regarding the revision of certain cost principles.
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SUMMARY: The Secretary announces the applicability of revised Office of
Management and Budget (OMB) Circular A-87, ``Cost Principles for State,
Local and Indian Tribal Governments,'' as revised by OMB in the Federal
Register of May 17, 1995 (60 FR 26484). This Circular establishes
principles for determining allowable costs incurred by State, local,
and Indian tribal governments under certain agreements with the Federal
Government.
While the Department has decided to make this circular apply to
grants and subgrants made on or after October 1, 1995, this notice also
permits flexibility for costs incurred after July 1, 1995.
DATES: This notice takes effect for grants and subgrants awarded on or
after on October 1, 1995.
FOR FURTHER INFORMATION CONTACT: Richard T. Mueller, U.S. Department of
Education, Grants and Contracts Service, Room 3652 ROB, 600
Independence Ave., SW. Washington, DC 20202-4201. Telephone: (202) 708-
8787. 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: On March 11, 1988, the Secretary published
34
[[Page 50414]]
CFR Part 80--Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments (53 FR 8071).
This regulatory action was the result of the Department's participation
in the common rule developed by Federal agencies for administering
grants and cooperative agreements awarded to State, local, and Indian
tribal governments. Part 80 established Circular A-87 as the cost
principles used by the Secretary of Education for determining allowable
costs of State, local, and Indian tribal governments under grants and
cooperative agreements with the Department. (34 CFR 80.22.)
When Part 80 was published, it was the practice of the Department
to adopt circulars in the regulations by citing a specific circular
publication date (See 34 CFR 80.22(b)). Now, the Department makes OMB
circulars applicable through notices such as this one. Thus, the
Department will make conforming amendments to 34 CFR 80.22 to eliminate
the obsolete publication date for Circular A-87.
On May 17, 1995, OMB published a revision of Circular A-87 (60 FR
26484). This notice announces the applicability for 34 CFR Part 80 of
the revision made by OMB, binding recipients of Department of Education
grants and cooperative agreements to the requirements of Circular A-87
as revised on May 17, 1995. These cost principles apply to State,
local, and Indian tribal governments, except to the extent that the
principles are inconsistent with specific statutes or Departmental
program or administrative regulations. The revised Circular is
effective for grants and cooperative agreements made by ED on or after
October 1, 1995 and for subgrants made under those awards on or after
that date. The cost principles in Circular A-87 are also cross-
referenced in the Department's administrative regulations applicable to
institutions of higher education, hospitals, and nonprofit
organizations, at 34 CFR 74.27(b).
The Secretary is aware that the revised circular contains areas of
flexibility which were not contained in the prior cost principles and
that could be beneficial to State, local and Indian tribal governments.
The Department has made substantial grant awards, primarily to States,
since July 1, 1995, and the recipients of these awards may desire to
benefit from the more flexible rules in the revised A-87. Considering
this, the Department has determined that it will permit recipients for
which the Department has cognizance to charge direct costs which are
consistent with the revised Circular for the period July 1, 1995
through the end of the 1996 fiscal year. However, States and other
governmental authorities that have State-wide cost allocation plans and
indirect cost rates in effect for parts of fiscal year 1996 based on
costs allowable under the prior A-87 may not amend those agreements
prior to their expiration.
Waiver of Proposed Rulemaking
It is the practice of the Secretary to offer interested parties the
opportunity to comment on proposed rules in accordance with the
Administrative Procedure Act (5 U.S.C. 553). However, since OMB
previously provided the public an opportunity for comment on the
revision of Circular A-87 on October 12, 1988 (53 FR 40352) and August
19, 1993 (58 FR 44212), the Secretary finds that soliciting further
public comment with respect to adopting the revised circular is
unnecessary and contrary to the public interest under 5 U.S. C.
553(b)(B). For the same reason, the Secretary finds good cause under 5
U.S.C. 553(d) to waive the thirty-day delayed effective date.
Nonetheless, in light of recently enacted legislation--the
Improving America's School Act, the Goals 2000: Educate America Act,
and the School-to-Work Opportunities Act--the Secretary is interested
in receiving suggestions or ideas from the States and local and Indian
tribal governments and other interested parties about improving the
application of the Circular based on the flexibility provided in these
new laws.
The Secretary has already received and is reviewing letters from
several States since the Circular's publication, concerning such areas
as time distribution and the determination of reasonable and necessary
expenditures of program funds.
The Secretary encourages States, local and Indian tribal
governments, and other interested parties, as partners in Federal
program management, to maintain an open dialogue with Department
officials about matters covered in Circular A-87, including accounting
practices that promote efficient administrative practices, support
effective delivery of program services, and conserve resources.
(Catalog of Federal Domestic Assistance Number does not apply.)
Dated: September 26, 1995.
Donald R. Wurtz,
Chief Financial Officer.
[FR Doc. 95-24381 Filed 9-28-95; 8:45 am]
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