[Federal Register Volume 61, Number 191 (Tuesday, October 1, 1996)]
[Notices]
[Pages 51306-51307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25075]


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NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES


Process for Reconsideration of Declined General Applications for 
Federal Assistance

AGENCY: National Endowment for the Arts.

ACTION: Notice.

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SUMMARY: The National Endowment for the Arts has been restructured. The 
Notices of Process for Reconsideration of Declined General Applications 
published on January 14, 1992 and March 29, 1993, are amended herein to 
reflect the agency's new structure, including new office and division 
names.

FOR FURTHER INFORMATION CONTACT: Karen K. Christensen, General Counsel 
(202) 682-5418, National Endowment for the Arts, 1100 Pennsylvania 
Avenue, NW., Room 518, Washington, DC 20506.

1. Purpose

    The processes by which the National Endowment for the Arts (the 
``Endowment'') offers financial and technical assistance have been 
designed to result in supporting projects of artistic excellence and 
merit. The Endowment relies on discipline review and advisory panel 
review of grant applications to assure that projects are of substantial 
artistic and cultural significance. Panel recommendations are 
subsequently reviewed by the National Council on the Arts, which 
provides advice to the Endowment's chairperson who then decides whether 
to approve the applications recommended by the Council.
    This Circular modifies the procedure for reconsideration of 
applications for financial and technical assistance which have been 
declined by the National Endowment for the Arts based on negative 
recommendations of the advisory panel. This procedure does not include 
reconsideration of grant amounts once a grant is awarded. This process 
does not apply to applications recommended by the advisory panel but 
rejected by the Council or Chairperson. Reconsideration of such 
applications is had at the discretion of the Chairperson only. These 
revisions are being made in light of a major restructuring of the 
Endowment and its grant making process. The provisions of this 
Circular, which updates and amends the earlier Circulars on this 
subject, dated December 16, 1992 and March 29, 1983, do not apply to 
procurement governed by the Federal Acquisition Regulations. These 
provisions will apply to all requests for reconsideration filed after 
October 1, 1996.

2. Policy

    (a) Statement. Award of financial and technical assistance is 
discretionary. Discipline and panel recommendations are made using 
criteria described in the Endowment guidelines. Criteria that involve 
subjective, qualitative judgments are not subject to reconsideration. 
Notwithstanding this fact, a Project Director, Authorizing Official, or 
individual whose application has been declined (hereafter referred to 
as ``applicant'') may obtain an explanation of the declination from the 
appropriate Endowment Discipline Director (hereafter referred to as 
``Director``). Following receipt of the explanation, if the applicant 
believes that the declination was based on one or more of the following 
Grounds for Reconsideration, reconsideration may be obtained under the 
procedure outlined in Section 3, below.
    (b) Ground(s) for Reconsideration. Reconsideration of application 
declinations is available solely for one or more of the following three 
reasons relating to procedural impropriety or error:
    (i) Discipline reviewers or advisory panel considered criteria 
other than those appearing in the relevant guidelines.
    (ii) Individual(s) with conflict of interest served as a discipline 
reviewer or on the advisory panel.
    (iii) Information relevant to the deliberations was provided by 
staff, reviewers, panelists, or others, but not including the 
applicant, which was inaccurate or incomplete, despite the fact that 
the applicant provided the Endowment staff with accurate and

[[Page 51307]]

complete information as part of the regular application process.

3. Procedure To Be Followed for Reconsideration

    (a) Explanation by Director. Within 30 days following written 
notification from the Endowment of its decision on any application, the 
applicant may request an explanation for a declined application from 
the appropriate Director. This initial request may be by telephone, in 
person or in writing. The Director will explain within 30 days 
following the applicant's request the basis for declination which may 
include a summary of the discipline review, advisory panel comments, 
applicable on-site evaluation reports, the names of all discipline 
reviewers, panel and staff members, and other information not otherwise 
exempt from disclosure requested by the applicant. If the Director 
cannot provide such explanation within 30 days, the applicant will 
receive a written explanation of the need for more time and an estimate 
of when the results can be expected.
    The Director may designate another Endowment official to provide 
the explanation for the declination to the applicant. The term 
``Director'' as used here applies to such designees.
    (b) Request for Reconsideration. If the Director's explanation 
appears to the applicant to indicate the presence of one or more of the 
``Grounds for Reconsideration'' listed in paragraph 2(b) above, the 
applicant may submit to the Deputy Chairperson for Grants and 
Partnership (hereafter referred to as ``the Deputy'') a written Request 
for Reconsideration. This written request must reference the particular 
ground(s) for reconsideration and specify the facts supporting his or 
her claim, with enough particularity to enable the Deputy to determine 
whether the claim is meritorious. A request of this nature will be 
considered only if (a) the Request for Reconsideration is based on one 
or more of the grounds listed in paragraph 2(b); (b) the applicant has 
obtained an explanation from the appropriate Director, (c) the 
applicant has specified with sufficient particularity the facts 
supporting his or her claim; and (d) the Request for Reconsideration is 
received by the Deputy within 30 days after the date of the Director's 
explanation.
    (c) Action by the Deputy.
    (i) The Deputy will review the applicant's Request for 
Reconsideration, records of the discipline review and panel 
discussions, the applicant's application file, and any other relevant 
materials to determine if the recommendations were influenced by one or 
more of the grounds listed in paragraph 2(b). In conducting this 
review, the Deputy may request additional information from the 
applicant, obtain advice from an advisory panel, or conduct additional 
investigation or review. However, no revisions or additions to the 
grant application materials will be accepted in connection with the 
Request for Reconsideration except to the extent that additional 
materials are necessary to substantiate the applicant's claim that one 
or more of the grounds listed in paragraph 2(b) exists.
    (ii) The Deputy may conduct the reconsideration personally or may 
designate another Endowment official who had no part in the initial 
evaluation to do so. The term ``the Deputy'', as used here, applies to 
such designees.
    (iii) The Deputy will provide written notification of the results 
of the reconsideration within 45 days following receipt of the Request 
for Reconsideration. If the Deputy cannot provide such notice within 45 
days, the applicant will receive a written explanation of the need for 
more time and an estimate of when the results can be expected.
    (d) Resolution of Requests for Reconsideration. Reconsideration is 
not an adversarial process and a formal hearing is not provided. The 
Endowment cannot assure applicants that reconsideration will result in 
the award of a grant even if error is established in connection with 
the initial evaluation. The Deputy shall make one of the following four 
determinations. The determinations of the Deputy shall be in writing 
and shall be final.
    (i) If the Deputy determines that none of the grounds listed in 
paragraph 2(b) existed, the declination will be affirmed.
    (ii) If the Deputy determines that one or more of the grounds 
listed in paragraph 2(b) existed, but the recommendation of the 
advisory panel was not affected materially, the declination will be 
affirmed.
    (iii) If the Deputy determines that one or more of the grounds 
listed in 2(b) existed, and he or she can determine, based on the 
materials reviewed, that but for the infirmity in the review process, 
the application would have been recommended, the application will be 
considered by the National Council on the Arts at its next regularly 
scheduled meeting. The Chairperson of the Endowment then will decide 
whether to approve applications recommended by the Council.
    (iv) If the Deputy determines that one or more of the grounds 
listed in paragraph 2(b) occurred, but he or she cannot determine 
whether, but for the infirmity, the advisory panel would have 
recommended that application, the application will be reviewed by a 
panel. If the panel recommends the application for support, the 
National Council on the Arts will review it at the next regularly 
scheduled meeting. The Chairperson of the Endowment then will decide 
whether to approve applications recommended by the Council.

4. Reporting Requirements

    The Deputy will maintain a record of Requests for Reconsideration 
in accordance with the Endowment's Records Disposition schedule. The 
record will include the date of receipt, the name of the applicant, 
including name of organization or institution where applicable, the 
application number, the determinations of the Deputy, and once the 
Deputy's review is complete, the date on which each applicant was 
notified of the results of the reconsideration, and what those results 
were.

    Dated: September 23, 1996.
Karen Christensen,
General Counsel, National Endowment for the Arts.
[FR Doc. 96-25075 Filed 9-30-96; 8:45 am]
BILLING CODE 7536-01-M