[Federal Register Volume 62, Number 19 (Wednesday, January 29, 1997)]
[Rules and Regulations]
[Pages 4165-4167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2196]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
34 CFR Part 75
RIN 1880-AA61
Direct Grant Programs
AGENCY: Department of Education.
ACTION: Final regulations.
-----------------------------------------------------------------------
SUMMARY: The Secretary amends the Department's regulations on direct
grant programs to expand the basis for selecting applications for new
grants to include a recipient's previous
[[Page 4166]]
performance under any Department grant program as well as its failure
to submit a final performance report or submission of a report of
unacceptable quality. The Secretary has decided not to amend the
regulations to change the date by which applications are considered
received by the Department of Education. These amendments to the final
regulations are part of the Department's continuing effort to improve
the discretionary grantmaking process.
EFFECTIVE DATE: These regulations take effect February 28, 1997.
FOR FURTHER INFORMATION CONTACT: Ronelle Holloman, U.S. Department of
Education, 600 Independence Avenue, S.W., Room 3636, ROB-3, Washington,
D.C. 20202-4248. Telephone: (202) 205-3501. 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 September 20, 1995, the Secretary
published in the Federal Register (60 FR 48844) a notice of proposed
rulemaking (NPRM) proposing to revise sections in the Education
Department General Administrative Regulations (EDGAR) regarding the
deadline date for applications and how the Secretary selects
applications for new grants. These proposed amendments were expected to
reduce the processing time for discretionary grants, improve the
quality of the final performance report and increase the ability of the
Department to ensure that qualified applicants receive grants.
The significant difference between the NPRM and this final
regulation is the deletion of the amendment that would have changed the
requirement for meeting the deadline date for a competition from the
postmarked date to the date the application is actually received. Most
commenters opposed this change for one or both of the following
reasons: (1) those applicants closest in proximity to the Washington,
D.C. metropolitan area would have an unfair advantage; and (2) the
change would cause additional cost burdens to recipients. Although the
Department did receive several responses in support of the change, from
commenters who felt that the change would not cause additional hardship
and would be fair if ED allowed for reasonable exceptions to the rule,
the Secretary decided not to implement this proposed change at this
time.
The final regulation changes how the Secretary selects applications
for new grants (34 CFR 75.217). The regulation expands the basis for
selection to include a recipient's prior performance under any
Department program, including use of funds and the applicant's failure
to submit a final performance report or the submission of a report of
unacceptable quality. The Department's motivation for this change is to
promote accountability and good stewardship. The change will require a
stronger commitment from a recipient to submit a final performance
report and allow ED the opportunity to inform the general public and
the educational community of successful project outcomes. The majority
of commenters who responded agreed with the change and felt that this
change would set a precedent for sound performance and accountability.
Further details of the comments received are discussed below.
Analysis of Comments and Changes
In response to the Secretary's invitation in the NPRM, 44 parties
submitted comments on the proposed regulations. An analysis of the
comments and of the resulting changes in the regulations since the
publication of the NPRM follows. Substantive issues are discussed under
the section of the regulations to which they pertain. Technical and
other minor changes--and suggested changes the Secretary is not legally
authorized to make under the applicable statutory authority--are not
addressed.
Section 75.217 How the Secretary selects applications for new
grants.
Comments: The Department received a total of 11 comments on this
section. The majority of commenters agreed with this change and felt
that an institution that received grant funds should be held
accountable for meeting the objectives of the grant.
Discussion: The Secretary agrees. Accountability is important to
ensure progress and success. The submission of a final report provides
opportunity for the general public to know that their tax dollars were
spent wisely and provides the educational community with the
opportunity to replicate a successful project. The failure to meet all
of the obligations in a previous grant would alert the Department that
something could be seriously wrong and ED would conduct a further
review before funds could be granted in the future.
Changes: None
Comments: One commenter disagreed with the proposed change because
the commenter thought it was unfair to penalize an entity for the acts
of one individual and that ED does not have standards for report
quality.
Discussion: This amendment broadened the range of information the
Secretary could consider in selecting new grants. The criteria for
selection of new grants are established in regulations of the
Department. The Secretary does not agree that there need to be separate
criteria for reports. In fact, the Secretary has avoided any effort to
narrowly circumscribe final reports. This is consistent with the
Department's new reengineered grants process that encourages a
partnership with its recipients and supports flexibility in the
administration of their projects. In filing an interim or final report
the grantee must demonstrate that it is making substantial progress
toward meeting the objectives of the grant or that it has met the
objectives of the grant. A report will be considered substandard if it
fails to address how the recipient met the objectives of a grant or, if
it failed to meet any objectives, how it will take steps to improve the
project and meet the objectives.
Changes: None
Comments: Several commenters agreed with the proposed change but
expressed two similar concerns: (1) How long will a recipient's past
poor performance be considered by the Department? (2) What mechanism
will be used to allow applicants to receive further funding?
Discussion: Generally, in most cases where poor performance has
been an issue, the Department relied on the high-risk procedures
authorized under Secs. 74.14 and 80.12 of the Education Department
General Administrative Regulations (EDGAR). Under the high-risk
regulations, ED may impose additional conditions on a recipient to help
ensure proper performance. However, there are rare cases where an
applicant poses such a risk of misuse of Federal funds that no award
should be made. This regulation is intended to be used in those rare
cases. ED is aware that recipients face unexpected challenges, some of
which can cause a recipient to perform poorly on a grant; therefore,
when making future funding decisions, ED will consider any extenuating
circumstances on a case-by-case basis.
Paperwork Reduction Act of 1995
These regulations have been examined under the Paperwork Reduction
Act of 1995 and have been found to contain no information collection
requirements.
Assessment of Educational Impact
In the notice of proposed rulemaking, the Secretary requested
comments on whether the proposed regulations would
[[Page 4167]]
require transmission of information that is being gathered by or is
available from any other agency or authority of the United States.
Based on the response to the proposed rules and on its own review,
the Department has determined that the regulations in this document do
not require transmission of information that is being gathered by or is
available from any other agency or authority of the United States.
List of Subjects in 34 CFR Part 75
Education Department, Discretionary grant programs--education,
Continuation funding, Grant administration, Incorporation by reference,
Reporting and recordkeeping requirements, Performance reports,
Unobligated funds.
Dated: January 23, 1997.
Richard W. Riley,
Secretary of Education.
(Catalog of Federal Domestic Assistance Number does not apply)
The Secretary amends Part 75 of Title 34 of the Code of Federal
Regulations as follows:
PART 75--DIRECT GRANT PROGRAMS
1. The authority citation for Part 75 continues to read as follows:
Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted.
2. Section 75.217 is amended by revising paragraph (d)(3) to read
as follows:
Sec. 75.217 How the Secretary selects applications for new grants.
* * * * *
(d) * * *
(3) Any other information--
(i) Relevant to a criterion, priority, or other requirement that
applies to the selection of applications for new grants;
(ii) Concerning the applicant's performance and use of funds under
a previous award under any Department program; and
(iii) Concerning the applicant's failure under any Department
program to submit a performance report or its submission of a
performance report of unacceptable quality.
* * * * *
[FR Doc. 97-2196 Filed 1-28-97; 8:45 am]
BILLING CODE 4000-01-P