[Federal Register Volume 61, Number 189 (Friday, September 27, 1996)]
[Rules and Regulations]
[Pages 50712-50713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24725]


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DEPARTMENT OF EDUCATION

34 CFR Parts 74 and 80


Education Department's General Administrative Regulations; Cost 
Principles for Educational Institutions and Audits of Institutions of 
Higher Education and Other Non-Profit Institutions

AGENCY: Department of Education.

ACTION: Applicability of revised OMB circulars.

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SUMMARY: The Secretary announces the applicability of revised Office of 
Management and Budget (OMB) Circular A-21, ``Cost Principles for 
Educational Institutions,'' as revised by OMB in the Federal Register 
of May 8, 1996 (61 FR 20880) and Circular A-133, ``Audits of 
Institutions of Higher Education and Other Non-Profit Institutions,'' 
revised by OMB in the Federal Register of April 30, 1996 (61 FR 19134).

DATES: The revised circulars are applicable for new and continuation 
grants and subgrants awarded on or after October 1, 1996.

FOR FURTHER INFORMATION CONTACT: Kevin Taylor, U.S. Department of 
Education, 600 Independence Avenue, SW., room 3636, ROB-3, Washington

[[Page 50713]]

DC 20202-4248. Telephone: (202) 708-8558. 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: On July 6, 1994 (59 FR 34722), the Secretary 
published a revision to Part 74-- Administration of Grants and 
Agreements with Institutions of Higher Education, Hospitals, and Other 
Nonprofit Organizations. Also, on March 11, 1988 (53 FR 8071), the 
Secretary published a new Part 80-- Uniform Administrative Requirements 
for Grants and Cooperative Agreements to State and Local Governments. 
These documents established OMB Circular A-21 as the cost principles 
used by the Department of Education for educational institutions (34 
CFR 74.27, 80.22).
    After publishing proposed revisions on February 6, 1995 (60 FR 
7104), OMB published amendments to Circular A-21 on May 8, 1996 (61 FR 
20880). This notice adopts for 34 CFR Parts 74 and 80 the changes made 
by OMB on that date. The changes adopted in this announcement bind all 
recipients of Department grants and cooperative agreements to the 
requirements of Circular A-21 as amended through May 8, 1996. These 
cost principles apply to educational institutions, except to the extent 
program regulations or the Department's administrative regulations 
require a different outcome.
    OMB Circular A-21 was originally published in the Federal Register 
on March 6, 1979 (44 FR 12368). It has been amended several times prior 
to the amendment made on May 8, 1996, as follows: on August 3, 1982 (47 
FR 33658), on June 9, 1986 (51 FR 20908), on December 2, 1986 (51 FR 
43487), on October 3, 1991 (56 FR 50224), and on July 26, 1993 (58 FR 
39996).
    On January 16, 1991, the Secretary published amendments to 34 CFR 
Parts 74 and 80 to adopt OMB Circular A-133, ``Audits of Institutions 
of Higher Education and Other Nonprofit Organizations,'' as published 
in the Federal Register on March 16, 1990 (55 FR 10019). After 
publishing proposed revisions on March 17, 1995 (60 FR 14594), OMB 
published in the Federal Register on April 30, 1996 (61 FR 19134), a 
revised Circular A-133. OMB Circular A-133 establishes a uniform system 
of auditing for institutions of higher education and other non-profit 
organizations. There have been no major revisions to this Circular 
until now. The Circular, as amended April 30, 1996, is adopted by the 
Department. OMB Circular A-133 is cited in Sections 74.26 and 80.26 of 
the Education Department General Administrative Regulations.
    Both circulars are available by calling OMB's Publication Office at 
(202) 395-7332, or they can be obtained in electronic form on the OMB 
Home Page at (http://www.whitehouse.gov).

Waiver of Notice and Comment

    It is the practice of the Secretary to offer interested parties the 
opportunity to comment on proposed actions in accordance with the 
Administrative Procedure Act (5 U.S.C. 553). However, since OMB 
previously provided the public an opportunity for comment on the 
revision of Circulars A-21 and A-133, the Secretary finds that 
soliciting further public comment with respect to adopting the revised 
circulars is unnecessary and contrary to the public interest under 5 
U.S.C. 553(b)(B). For the same reasons, the Secretary waives delayed 
effective date under 5 U.S.C. 553(d).

(Catalog of Federal Domestic Assistance Number does not apply.)
Mitchell L. Laine,
Acting Chief Financial Officer.

[FR Doc. 96-24725 Filed 9-26-96; 8:45 am]
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