[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]



=======================================================================
-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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]
BILLING CODE 4910-62-P