[Federal Register Volume 61, Number 190 (Monday, September 30, 1996)]
[Notices]
[Pages 51086-51088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24910]


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DEPARTMENT OF EDUCATION


Office of Vocational and Adult Education; Intent To Repay to the 
Vermont 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: Under Section 459 of the General Education Provisions Act 
(GEPA), 20 U.S.C. 1234h (1988), the Secretary of Education (Secretary) 
intends to repay to the State of Vermont Department of Education 
(Vermont), under a grantback arrangement, an amount equal to 75 percent 
of the principal amount of funds recovered by the U.S. Department of 
Education (Department) as a result of the final audit determination in 
this matter. The Department's recovery of funds followed a settlement 
reached between the parties under which Vermont refunded a total of 
$10,000 in principal to the Department in full resolution of the 
Department's final audit determination (ACN: 01-23119) for fiscal year 
(FY) 1990. This notice describes Vermont's plan for the use of the 
repaid funds and the terms and conditions under which the Secretary 
intends to make those funds available. This notice invites comments on 
the proposed grantback.

DATES: All comments must be received on or before October 30, 1996.

ADDRESSES: All written comments should be addressed to Dr. Marcel R. 
DuVall, Chief, Finance Branch, Division of Vocational-Technical 
Education, Office of Vocational and Adult Education, U.S. Department of 
Education, 600 Independence Avenue SW, (Mary E. Switzer Building, Room 
4320, MS-7324), Washington, D.C. 20202.

FOR FURTHER INFORMATION CONTACT: Dr. Marcel R. DuVall, (202) 205-9502. 
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 address: Marcel__DuV[email protected]).

SUPPLEMENTARY INFORMATION:

A. Background

    Under a settlement agreement negotiated between the Department and 
Vermont, the Department recovered $10,000 from Vermont in full 
resolution of all claims arising from an audit of the Vermont 
Department of Education covering FY 1990.
    The Department's original claim of $36,307 was contained in a final 
letter of determination issued by the Assistant Secretary for 
Vocational and Adult Education on November 8, 1993. The claim arose 
from findings related to Vermont's administration of its vocational 
education program under provisions of the Carl D. Perkins Vocational 
Education Act of 1984, 20 U.S.C. Sec. 2301 et seq. (1988),(Perkins I).

[[Page 51087]]

In the November 8, 1991 letter, the Assistant Secretary determined that 
Vermont had violated sections 113(b)(4) and 202(1)-(6) of Perkins I, 
implemented at 34 CFR 401.19(a)(4), 401.92(a)-(f) (1989) governing 
funds set aside for adults in need of training and retraining, single 
parents, and the incarcerated awarded under Title II, Parts A and B of 
Perkins I. Specifically, Vermont did not spend the amounts required to 
be set aside for adults, single parents, and incarcerated individuals.
    The settlement negotiations which followed Vermont's appeal of the 
Assistant Secretary's November 8, 1993 determination in this matter 
culminated in a settlement agreement in which Vermont agreed to repay 
$10,000 to the Department. The settlement agreement was executed on 
July 25, 1994, and the Department received the final payment under the 
settlement agreement on January 12, 1995.

B. Authority for Awarding a Grantback

    Section 459(a) of GEPA, 20 U.S.C. 1234(h), provides that whenever 
the Secretary has recovered funds following a final audit determination 
with respect to any applicable program, the Secretary may consider 
those funds to be additional funds available for the program and may 
arrange to repay, to the State or local agency affected by that 
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:
    (1) Practices and procedures of the recipient that resulted in the 
violation have been corrected, and that the recipient is, in all other 
respects, in compliance with the requirements of the applicable 
program;
    (2) Recipient has submitted to the Secretary a plan for the use of 
those funds pursuant to the requirements of that program and, to the 
extent possible, for the benefit of the population that was affected by 
the failure to comply or by the misexpenditures that resulted in the 
recovery of funds; and
    (3) Use of the funds, in accordance with that plan, would serve to 
achieve the purposes of the program under which funds were originally 
granted.

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

    Pursuant to section 459(a)(2) of GEPA, Vermont has applied for a 
grantback of $7,500, or 75 percent of the $10,000 repaid to the 
Department under the settlement agreement, and has submitted a plan for 
use of the proposed grantback funds, consistent with the Carl D. 
Perkins Vocational and Applied Technology Education Act Amendments of 
1990, 20 U.S.C. Sec. 2301 (Supp. IV 1992) (Perkins II), currently in 
effect.
    Vermont plans to use the requested grantback funds totaling $7,500, 
along with State funds, to implement a career preparation plan process 
that was developed in fiscal year 1994. The program is designed to 
focus on adults on public assistance and adults with disabilities. In 
addition, single parents and homemakers will qualify to participate in 
the program.
    To achieve its plan, the State will issue a Request for Proposal 
(RFP) to 17 secondary schools that meet the State criteria for regional 
technical education centers. The State plan indicates that these 
recipients are responsible for providing services to adults in Vermont. 
Of the 17 eligible regional technical education centers, the State will 
select 3 to receive grants in the amount of $2,500 each. According to 
the State's plan, each grant recipient is expected to implement a 
career planning process resulting in an individualized career plan for 
15 eligible adults. Each grant recipient will be authorized to spend 10 
percent of its grant for educational materials, 7 percent for travel 
expenses, and 83 percent for salaries and benefits.
    The State's plan provides that participants in the program will 
have the opportunity to learn about the availability of jobs in their 
geographic regions, the wages that can be expected, and the 
prerequisite experience and education necessary for job entry. 
Participants will be referred to regional workforce development 
programs available at their regional technical education centers, or 
other workforce development programs, including programs operated under 
the Job Training Partnership Act, or apprenticeship programs. The 
participants will also be provided information about resources that are 
available to help them reach their career goals.
    The State's plan points out that the program was successfully 
piloted in 4 of Vermont's 16 regional technical education regions in 
1994. According to the State, the combination of Federal grantback 
funds with State funding will result in the continuation of the program 
activities at 3 of the original pilot sites, plus the extension of the 
project to an additional 7 sites resulting in career preparation plan 
processes at a total of 10 technical education service regions.

D. The Secretary's Determination

    The Secretary has carefully reviewed the plan, amendment, and other 
relevant documentation submitted by Vermont. Based upon that review, 
the Secretary has determined that the conditions under section 459 of 
GEPA have been met.
    This determination is based upon the best information available to 
the Secretary at the present time. If this information is not accurate 
or complete, the Secretary is not precluded from taking appropriate 
administrative action at a later date. 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 the Vermont 
Department of Education under a grantback arrangement. The grantback 
award would be in the amount of $7,500, which is 75 percent--the 
maximum percentage authorized by the statute--of the principal 
recovered to date by the Department as a result of the audit 
determination and the settlement in this matter.

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

    Vermont agrees to comply with the following terms and conditions 
under which payment under a grantback arrangement would be made:
    (1) Vermont will expend the funds awarded under the grantback in 
accordance with--
    (a) All applicable statutory and regulatory requirements;
    (b) The plan that was submitted and any amendments in that plan 
that are approved in advance of the grantback by the Secretary; and
    (c) The budget that was submitted with the plan and any amendments 
to the budget that are approved in advance by the Secretary.
    (2) All funds received under the grantback arrangement must be 
obligated by September 30, 1997, in accordance with section 459(c) of 
GEPA and Vermont's plan.
    (3) Vermont will, no later than January 1, 1998, submit a report to 
the Secretary which--

[[Page 51088]]

    (a) Indicates that the funds awarded under the grantback have been 
spent in accordance with the proposed plan and approved budget, and
    (b) Describes the results and effectiveness of the project for 
which the funds were spent.
    (4) Separate accounting records must be maintained documenting the 
expenditures of funds awarded under the grantback arrangement.

(Catalog of Federal Domestic Assistance Number 84.048, Basic State 
Grants for Vocational Education)

    Dated: September 24, 1996.
Patricia W. McNeil,
Assistant Secretary for Vocational and Adult Education.
[FR Doc. 96-24910 Filed 9-27-96; 8:45 am]
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