[Federal Register Volume 61, Number 64 (Tuesday, April 2, 1996)]
[Notices]
[Pages 14598-14599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7970]




[[Page 14597]]

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Part II





Department of Education





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Intent to Repay to the Maine Department of Education Funds Recovered as 
a Result of a Final Audit Determination; Notice

  Federal Register / Vol. 61, No. 64 / Tuesday, April 2, 1996 / 
Notices  

[[Page 14598]]


DEPARTMENT OF EDUCATION


Intent to Repay to the Maine Department of 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: Notice is given that 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 Maine Department of 
Education, the State Educational Agency (SEA), an amount not more than 
75 percent of the funds recovered by the U.S. Department of Education 
(Department) as a result of final audit determinations. This notice 
describes the SEA's plan for the use of the repaid funds and the terms 
and conditions under which the Secretary intends to make those funds 
available. The notice invites comments on the proposed grantback.

DATES: All comments must be received on or before May 2, 1996.

ADDRESSES: Comments concerning the grantback should be addressed to 
William D. Tyrrell, Sr., U.S. Department of Education, 600 Independence 
Avenue, S.W., Room 3609, Switzer Building, Washington, D.C. 20202-6132.

FOR FURTHER INFORMATION CONTACT: William D. Tyrrell, Sr., U.S. 
Department of Education, 600 Independence Avenue, S.W., Room 3609, 
Switzer Building, Washington, D.C. 20202-6132, telephone: (202) 205-
8825. 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. Internet: William__T[email protected]

SUPPLEMENTARY INFORMATION:

A. Background

    This notice is based on the Department's recovery of funds as the 
result of three separate audits of Maine's Department of Education 
(SEA) for the periods beginning with the SEA's fiscal years July 1, 
1986 and ending in June 30, 1989. The audits are identified for the 
specified periods of time as follows:

------------------------------------------------------------------------
                                                      Amount     Amount 
              ACN No. and time period                 repaid   requested
------------------------------------------------------------------------
ACN 01-93025 (7/1/86-6/30/87)......................   $22,800    $17,100
ACN 01-93245 (7/1/87-6/30/88)......................    68,872     51,654
ACN 01-13035 (7/1/88-6/30/89)......................    82,564     61,923
------------------------------------------------------------------------

    The Federal programs repaid included the amounts of $159,636 Part B 
of the Education of Handicapped Act \1\ Part B funds, $8,800 of Chapter 
1 of Title I of the Elementary and Secondary Education Act, Grants to 
Local Educational Agencies (Chapter 1 LEA) funds, and $5,800 of Chapter 
1 Migrant funds. The SEA repayed a total $174,236 to the U.S. 
Department of Education.

    \1\ In 1990, the name of this Act was changed by Congress to 
Part B of the Individuals with Disabilities Education Act. See Pub. 
L. 101-476.
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    The Department's audits questioned the SEA's use of Part B-
Handicapped funds and Chapter 1 Migrant and Chapter 1 LEA grants funds 
for legal fees without the use of a cost allocation plan or the 
maintenance of adequate supporting documentation; and the charging of 
SEA employees' salaries to Federal programs without records of time 
distribution for each of the employees chargeable to more than one 
grant program or cost objective. These charges were not supported by 
time distribution records as required by Federal regulations. The 
audits also found that the SEA had exceeded the maximum allowable 
amount for administrative costs in the Part B program.

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 
with respect to an applicable program, the Secretary may consider those 
funds to be additional funds available for the program and may arrange 
to repay, to the SEA affected by the 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 the--
    (a) Practices and procedures of the SEA that resulted in the 
violation have been corrected, and the SEA is, in all other respects, 
in compliance with the requirements of the applicable program;
    (b) SEA has submitted to the Secretary a plan for the use of the 
funds to be awarded under the grantback arrangement that 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 recovery of funds; and
    (c) Use of funds to be awarded under the grantback arrangement, if 
used in accordance with the SEA's plan, would serve to achieve the 
purpose of the programs under which the funds were originally granted.

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

    Pursuant to section 459(a)(2) of GEPA, the SEA has applied for a 
grantback totaling $130,677, which is 75 percent of the principal 
amount of the recovered funds, and has submitted a plan for use of the 
grantback funds to meet the special education needs of children with 
disabilities, and the needs of disadvantage and migrant children in 
areas affected by the audits. Under section 459(a) of GEPA, 20 U.S.C. 
1234h(c), these funds are available until three fiscal years following 
the fiscal year in which final agency action is taken. With respect to 
the funds covered by this notice, the final agency action was the 
execution of two settlements agreements, December 2, 1991 for ACN: 01-
93025 and November 8, 1994 for ACN: 01-93245 and ACN: 01-13035. The 
funds recovered under ACN: 01-13025 are available for expenditure until 
September 30, 1996 and the funds recovered under ACN: 01-93245 and ACN: 
01-13035 are available for expenditure until September 20, 1998. The 
plan, which has been submitted by the SEA, is to use the Chapter 1 LEA 
and Migrant grantback funds to pay salaries of teachers for the 
programs in the Blueberry Harvest and Broccoli Harvest Schools. The 
funds from the Part B grantback will be used to improve the process of 
identification of the document the educational progress of special 
education students; enable more effective planning for these students 
at both the State and local levels, and provide information to local 
educational agencies in a manner that will enhance program planning and 
enhance the State's ability to analyze results for policy development 
and program planning. These changes will help address the current 
weaknesses in the Maine Educational Assessment as it relates to special 
education students and move in the direction of including these 
students in the State's effort to set standards for all students.

D. The Secretary's Determinations

    The Secretary has reviewed the plan submitted by the SEA. Based 
upon that review, the Secretary has determined that the conditions 
under section 459 of GEPA have been met.
    All determinations are based upon the best information available to 
the Secretary at the present time. If this

[[Page 14599]]
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 Maine under a 
grantback arrangement. The grantback award would total $130,677, which 
is 75 percent--the maximum percentage authorized by statute--of the 
principal amount recovered as a result of the audits.

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

    The SEA agrees to comply with the following terms and conditions 
under which payments under a grantback arrangement would be made:
    (a) The funds awarded under the grantback must be spent in 
accordance with--
    (1) All applicable statutory and regulatory requirements;
    (2) The plan that the SEA submitted and any amendments to the plan 
that are approved in advance by the Secretary; and
    (3) The budget that was submitted with the plan and any amendments 
to the budget that are approved in advance by the Secretary.
    (b) All funds received under the grantback arrangement must be 
obligated by September 30, 1996 for funds recovered through ACN: 01-
93025, and by September 30, 1998 for funds recovered through ACN: 01-
93245 and ACN: 01-13035 in accordance with section 459(c) of GEPA.
    (c) The SEA will, not later than January 1, 1999, submit a report 
to the Secretary that--
    (1) Indicates that the funds awarded under the grantback have been 
spent in accordance with the proposed plan and approved; and
    (2) Describes the results and effectiveness of the project for 
which the funds were spent.
    (d) Separate accounting records must be maintained documenting the 
expenditures of funds awarded under the grantback arrangement.
    (e) Before funds will be repaid pursuant to this notice, the SEA 
must repay to the Department any debts that become overdue, or enter 
into a repayment agreement for those debts.

(Catalog of Federal Domestic Assistance Number 84.027, Handicapped 
State Grants, 84.012, Educationally Deprived Children, and 84.011 
Chapter I--Migrant Education)

    Dated: March 27, 1996.
[FR Doc. 96-7970 Filed 4-1-96; 8:45 am]
BILLING CODE 4000-01-M