[Federal Register Volume 61, Number 35 (Wednesday, February 21, 1996)]
[Notices]
[Pages 6750-6751]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3772]




[[Page 6749]]

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Part III





Department of Education





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Intent To Award Grantback Funds to the South Dakota Department of 
Education and Cultural Affairs; Notice

  Federal Register / Vol. 61, No. 35 / Wednesday, February 21, 1996 / 
Notices   

[[Page 6750]]


DEPARTMENT OF EDUCATION


Intent to Repay to the South Dakota Department of Education and 
Cultural Affairs 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 459 of the General Education Provisions Act 
(GEPA), 20 U.S.C. 1234h (1988), the U.S. Secretary of Education 
(Secretary) intends to repay to the South Dakota Department of 
Education and Cultural Affairs (South Dakota), under a grantback 
arrangement, an amount equal to 75 percent of the principal amount of 
Vocational Education Basic Grant funds recovered by the U.S. Department 
of Education (Department) as a result of the final audit determination 
(ACN: 08-92255) in this matter. The Department's recovery of funds 
followed a settlement reached between the parties under which South 
Dakota refunded $50,000, in principal, to the Department in full 
resolution of the Department's final audit determination for fiscal 
year (FY) 1988. This notice describes South Dakota's plan for the use 
of the repaid vocational education 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 March 22, 1996.

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 SW., (Mary E. Switzer Building, Room 
4320, MS-7324), Washington, DC 20202.

FOR FURTHER INFORMATION CONTACT: Dr. Marcel R. DuVall. Telephone: (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 between the Department and South 
Dakota, the Department recovered $50,000 from South Dakota in full 
resolution of all claims arising from an audit of the South Dakota 
Department of Education and Cultural Affairs, covering FY 1988.
    The Department's original claim of $150,000 was contained in a 
program determination letter (PDL) issued by the Assistant Secretary 
for Vocational and Adult Education on March 29, 1991. This claim arose 
from findings related to South Dakota's payment of interest charges on 
a State construction bond. The disputed funds were provided to South 
Dakota under the provisions of the Carl D. Perkins Vocational Education 
Act. 20 U.S.C. 2301 et seq. (1988) (Perkins I).
    In particular, the Assistant Secretary determined in the March 29, 
1991, PDL that South Dakota had not obtained prior approval for the use 
of these Federal funds for construction and that the $150,000 had been 
used by the State in such a way as to supplant non-Federal funds. In 
addition, the Assistant Secretary determined that the $150,000 in 
Federal funds had been used by the State to make interest payments on 
the construction bond debt, in violation of the prohibition against the 
use of Federal funds for making interest payments. See 34 CFR Part 74, 
Appendix C, Part II.D.7. (1988).
    The parties entered into a settlement agreement on August 9, 1993, 
resolving fully all claims in this matter. In accordance with the terms 
of the settlement agreement, South Dakota repaid a principal amount of 
$50,000 to the Department on August 26, 1993.

B. Authority for Awarding a Grantback

    Section 459(a) of GEPA, 20 U.S.C. 1234h(a), the authority 
applicable to this grantback request, provides that whenever the 
Secretary has recovered funds paid under an applicable program because 
the recipient made an expenditure of funds that was not allowable, or 
otherwise failed to discharge its responsibility to account properly 
for funds, the Secretary may consider those funds to be additional 
funds available for that program and may arrange to repay to the 
recipient affected by that action 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 or procedures of the recipient that resulted in 
the violation of law have been corrected, and the recipient is in all 
other respects in compliance with the requirements of that program;
    (2) The recipient has submitted to the Secretary a plan for the use 
of those funds pursuant to the requirements of that program and, to the 
extent possible, for the benefit of the population that was affected by 
the failure to comply or by the misuse of funds that resulted in the 
recovery; and
    (3) The use of the funds in accordance with that plan would serve 
to achieve the purposes of the program under which the funds were 
originally paid.

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

    Pursuant to section 459 of GEPA, South Dakota has applied for a 
grantback of $37,500, or 75 percent of the recovered funds. South 
Dakota 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), 20 U.S.C. 2301 et seq., which is 
currently in effect. South Dakota plans to implement a State mentoring 
program for new postsecondary vocational-technical education 
instructors, who are drawn, in most cases, directly from the fields of 
business and industry. These individuals possess vast technical 
knowledge but have a limited teacher education background.
    Specifically, South Dakota plans to use the requested grantback 
funds totaling $37,500 to--
    (1) Pay salary costs needed to provide one Statewide Coordinator, 
four Educational Mentor Specialists, four Division Mentor Specialists, 
four Support Mentor Specialists, and substitutes to assist with 
workshops and meetings ($12,900);
    (2) Facilitate travel to a three-day training institute for 
Coordinators and Division and Educational mentors, and for meetings 
between Education and State Coordinators and three University 
Coordinators to establish curriculum and articulation agreements 
($13,343);
    (3) Contract services to provide eight, two-hour presentations by 
means of the Rural Development Telecommunication Network (RDTN). This 
system uses two-way audio and video communication to link a single 
instructional facility to off-site locations ($1,920); and
    (4) Provide printing, postage, and materials needed to carry out 
the mentoring program objectives ($9,337).
    Southeast Technical Institute in Sioux Falls, South Dakota, will 
serve as the lead institute for organizing and delivering the mentoring 
program to all statewide program areas. The basic curriculum entitled, 
``Foundations in Postsecondary Instruction,'' will be delivered by the 
mentor specialists using two lecture hours and two lab hours per week 
for one semester and also via the RDTN to the four State-supported, 
postsecondary technical institute site locations that will be utilized 
for instruction. ``Foundations in 

[[Page 6751]]
Postsecondary Instruction'' will include the following topics: 
Classroom Discipline, Philosophy of Vocational Education, Curriculum 
Development, Teaching Styles, Teaching Applications, Outside Resources, 
Testing/Portfolio, Evaluation Feedback, and Special Populations.

D. The Secretary's Determination

    The Secretary has carefully reviewed the plan submitted by South 
Dakota and other relevant documentation. Based upon that review, 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 at a later date. 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 the South Dakota 
Department of Education and Cultural Affairs under a grantback 
arrangement. The grantback award will be in the amount of $37,500, 
which is 75 percent--the maximum percentage authorized by the statute--
of the principal amount of Vocational Education Basic Grant funds 
recovered 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 Will Be Made

    South Dakota agrees to comply with the following terms and 
conditions under which payment under a grantback arrangement will be 
made:
    (1) South Dakota 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, 1996, in accordance with section 459(c) of 
GEPA and South Dakota's plan.
    (3) South Dakota will, no later than January 1, 1997, submit a 
report to the Secretary that--
    (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 to document the 
expenditures of funds awarded under the grantback arrangement.

(Catalog of Federal Domestic Assistance Number 84.048, Basic State 
Grants for Vocational Education)

    Dated: February 13, 1996.
Patricia W. McNeil,
Acting Assistant Secretary, Office of Vocational and Adult Education.
[FR Doc. 96-3772 Filed 2-20-96; 8:45 am]
BILLING CODE 4000-01-P