[Federal Register Volume 61, Number 151 (Monday, August 5, 1996)]
[Rules and Regulations]
[Page 40525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19779]


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DEPARTMENT OF THE INTERIOR

Office of the Secretary

43 CFR Part 12


Requirements for Audits of Institutions of Higher Education and 
Other Non-Profit Institutions; Clarification of Policy

AGENCY: Office of the Secretary, Interior.

ACTION: Clarification of applicability of policy.

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SUMMARY: This document provides clarification of Departmental policy 
concerning the applicability of the final version of the Office of 
Management and Budget (OMB) Circular A-133, ``Audits of Institutions of 
Higher Education and Other Non-Profit Institutions,'' published on 
April 30, 1996 (61 FR 19134-19150). It is the intent of the Department 
that this revised version of OMB Circular A-133 apply to awards made by 
the Department and its bureaus and offices as applicable.

EFFECTIVE DATE: The clarification of the applicability of the policy is 
effective August 5, 1996.

FOR FURTHER INFORMATION CONTACT: Debra E. Sonderman, (Director, 
Procurement and Property Management Systems), (202) 208-3336.

SUPPLEMENTARY INFORMATION: The Office of Management and Budget 
published a revised version of Circular A-133 on April 30, 1996 (61 FR 
19134-19150). Paragraph 6, Required Action, of the final revision of 
the Circular requires that agencies making awards to non-profit 
organizations, either directly or indirectly, shall adopt the language 
in the Circular in codified regulations not later than November 30, 
1996, unless different provisions are required by Federal statute or 
are approved by OMB. The Department already has published permanent 
regulations incorporating the Circular. See 43 CFR 12.2(b)(2) and 43 
CFR 12.2(b)(3). 43 CFR 12.2(c) also makes any changes to the Circular 
published in the Federal Register a part of the regulation.
    The Department adopted the Common Rule on ``Uniform Administrative 
Requirements for Grants and Cooperative Agreements to State and Local 
Governments'' at 43 CFR Part 12, Subpart C. In addition, promulgation 
of the regulation, ``Uniform Administrative Requirements for Grants and 
Agreements with Institutions of Higher Education, Hospitals, and other 
Non-Profit Organizations,'' in subpart F, implements OMB Circular A-
110.
    43 CFR 12.66(b)(1) requires that State or local governments 
determine whether subgrantees covered by OMB Circular A-110, ``Uniform 
Administrative Requirements for Grants and Agreements with Institutions 
of Higher Education, Hospitals, and other Non-Profit Organizations,'' 
have met audit requirements. 43 CFR 12.926 refers to the applicability 
of OMB Circular A-133. Neither regulation identifies the specific 
version of the Circular to which it is referring. Nevertheless, because 
the Department's regulatory language at 43 CFR 12.2(c) indicates that 
any changes published in the Federal Register apply, the Department 
interprets our regulation to mean that the April 30, 1996, publication 
of the revised OMB Circular A-133 applies, according to the conditions 
stated in the Circular.
    Therefore, the Department is clarifying that the April 30, 1996, 
version of the Circular is adopted without further promulgation of 
regulations. Until OMB issues another version, any reference to OMB 
Circular A-133 after the effective date for the Circular means the 
April 30, 1996, version.

    Dated: July 23, 1996.
Bonnie R. Cohen,
Assistant Secretary--Policy, Management and Budget.
[FR Doc. 96-19779 Filed 8-2-96; 8:45 am]
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