[Federal Register Volume 61, Number 92 (Friday, May 10, 1996)]
[Rules and Regulations]
[Pages 21386-21387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11607]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
49 CFR Parts 18 and 90
[OST Docket No. OST-96-1343]
RIN 2105-AC44
Audits of State and Local Governments
ACTION: Final rule.
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SUMMARY: In connection with the President's Regulatory Reform
Initiative, the Department of Transportation (DOT) is reviewing all of
its existing regulations. As a result of the review we have identified
49 CFR part 90 as an unnecessary regulation that should be removed. The
rule essentially repeats verbatim the requirements of Office Management
and Budget (OMB) Circular A-128, Audits of State and Local Governments.
The rule is being replaced by minor amendments to 49 CFR part 18, to
reference Federal audit requirements in OMB circulars.
DATES: This regulation is effective June 10, 1996.
FOR FURTHER INFORMATION CONTACT: Robert G. Taylor, U.S. Department of
Transportation, Office of Acquisition and Grant Management, M-62, 400
Seventh Street, S.W., Room 9401, Washington, D.C. 20590, (202) 366-
4289.
SUPPLEMENTARY INFORMATION:
Background
Audit requirements for State and local grantees are based on the
Single Audit Act of 1984 (31 U.S.C. 7501-7507). These requirements have
been implemented in OMB Circular A-128, Audits of State and Local
Governments (50 FR 19114-19119). These audit requirements have been
implemented in DOT in 49 CFR part 18 and in 49 CFR part 90, Audits of
State and Local Governments. Part 90 is merely a republication of OMB
Circular A-128. The Department has determined that part 90 is
unnecessary, and has decided to rescind part 90 and add a reference to
OMB Circular A-128 in Section 26, Non-Federal Audits, of part 18.
This action represents no change in DOT audit policy, but makes
implementation of OMB Circular A-128 consistent with the manner other
OMB management circulars are implemented. A copy of OMB Circular A-128
can be obtained from the information contact above.
A reference to OMB Circular A-133, ``Audits of Institutions of
Higher Education and Other Nonprofit Institutions,'' has also been
added to Section 26 of part 18 to inform subrecipients of State or
local governments who are institutions of higher education or other
nonprofit organizations of the audit requirements imposed on them. This
requirement is contained in 49 CFR part 19, Uniform Administrative
Requirements for Grants and Agreements With Institutions of Higher
Education, Hospitals, and Other Nonprofit Organizations.
Regulatory Analyses and Notices
Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures
The Department of Transportation has determined that this
rulemaking is not a significant regulatory action within the meaning of
Executive Order 12866, nor a significant regulation under the
Department's Regulatory Policies and Procedures. The action is a
reissuance of current requirements. Because of this, the Department
certifies that this regulatory action is nonsignificant under the
Department of Transportation's Regulatory Policies and Procedures.
Regulatory Flexibility Act of 1980
The Regulatory Flexibility Act (5 U.S.C. 605(b)) requires that, for
each rule with a ``significant economic impact on a substantial number
of small entities,'' an analysis be prepared describing the rule's
impact on small entities and identifying any significant alternatives
to the rule that would minimize the economic impact on small entities.
We certify that these regulations will not have a significant economic
impact on a substantial number of small entities because they do not
affect the amount of funds provided in the covered programs, but rather
reissue administrative and procedural requirements.
Executive Order 12612 (Federalism Assessment)
This action has been analyzed in accordance with the principles and
criteria contained in Executive Order 12612. The rules primarily apply
to State and local governments, but this is merely a reissuance of
current requirements. Accordingly, the Department certifies that this
action does not have sufficient Federalism implications to warrant a
full Federalism Assessment under the principles and criteria contained
in Executive Order 12612.
Paperwork Reduction Act
There are no additional collection of information requirements in
this final rule.
Justification to Issue Final Rule
Under the Administrative Procedure Act, to issue a final rule
without an NPRM, it is necessary to make a finding that issuing an NPRM
would be impractical, unnecessary, or contrary to the public interest.
This action involves no substantive change in policy, but makes
implementation of OMB Circular A-128 consistent with implementation of
other OMB Circulars. Instead of a rule that republished OMB Circular A-
128, we are incorporating the Circular by reference. Since an NPRM
would not result in the receipt of useful information, its issuance is
unnecessary. The action is in the public interest because, in
accordance with the President's regulatory reinvention efforts, we are
eliminating a duplicative regulation.
List of Subjects
49 CFR Part 18
Accounting, Contract programs, Grant programs, Grants
administration, Intergovernmental relations, Reporting and
recordkeeping requirements.List of
[[Page 21387]]
49 CFR Part 90
Audits, Grant programs, Grants administration.
Issued this 1st day of May 1996 at Washington, D.C.
Federico Pena,
Secretary of Transportation.
Accordingly, for the reasons set forth above, Subpart A of Title 49
of the Code of Federal Regulations is amended as set forth below.
PART 18--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND
COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS
1. The authority for Part 18 continues to read as follows:
Authority: 49 USC 322(a).
2. Section 18.26 is amended by adding paragraphs (d) and (e) to
read as follows:
Sec. 18.26 Non-Federal Audits.
* * * * *
(d) Governmental recipients and subrecipients are subject to the
Single Audit Act of 1984 (31 U.S.C. 7501-7507), and OMB Circular A-128,
``Audits of State and Local Governments.''
(e) Subrecipients of Federal assistance that are institutions of
higher education or other nonprofit organizations are subject to OMB
Circular A-133, Revised, ``Audits of Institutions of Higher Education
and Other Non-Profit Institutions.'' State and local governments may
choose to apply the provisions of OMB Circular A-128 to certain public
hospitals and institutions of higher education.
PART 90--[REMOVED]
3. Part 90 is hereby removed.
[FR Doc. 96-11607 Filed 5-9-96; 8:45 am]
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