[Federal Register Volume 62, Number 43 (Wednesday, March 5, 1997)]
[Proposed Rules]
[Pages 10009-10010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5276]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

45 CFR Parts 16, 74, 75, and 95


Indirect Cost Appeals

AGENCY: Department of Health and Human Services (HHS).

ACTION: Notice of Proposed Rulemaking (NPRM).

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SUMMARY: This NPRM would remove the informal grant appeals procedure 
for indirect cost rates and other cost issues. The regional HHS 
Divisions of Cost Allocation have been reorganized into a new Program 
Support Center and no longer report to the Regional Directors, making 
the process obsolete. The Department also sees little value in this 
formal appeals process because it frequently lengthens the time 
required for appeals. Deletion of this rule will reduce internal 
management regulations as required by Executive Order 12861.

DATES: Comments must be submitted by May 5, 1997.

ADDRESSES:  Comments must be in writing and should be mailed or faxed 
to Charles Gale, Director, Office of Grants Management, HHS, Room 517-
D, 200 Independence Ave. SW., Washington DC 20201; FAX (202) 690-8772. 
Written comments may be inspected at the identified address during 
agency business hours from 9:30 a.m. to 5:30 p.m.

FOR FURTHER INFORMATION CONTACT:
 Ronald Speck, (202) 401-2751. For the hearing impaired only: TDD (202) 
690-6415.

SUPPLEMENTARY INFORMATION: We propose to remove 45 CFR part 75, 
``Informal grant appeals procedures,'' together with all references to 
it. Part 75 provides for an informal appeals process to the Regional 
Directors (prior to formal appeals under 45 CFR part 16) for disputes 
arising from determinations made by a Director, Division of Cost 
Allocation (DCA) in the Department's regional offices, concerning 
indirect cost rates and certain other cost allocation plans. The 
Department's Divisions of Cost Allocation have been reorganized into a 
new Program Support Center and no longer report to the Regional 
Directors. Consequently the procedures in part 75 are obsolete.

    In addition, experience has shown that this informal appeals 
process actually resolves very few of the covered disputes, because 
most of these informal appeals are subsequently appealed to the 
Departmental Appeals Board established by 45 CFR part 16. Therefore, 
this informal appeals process has the effect of lengthening the total 
time required to finally resolve the subject appeals.
    Since the department sees little value in this informal appeals 
process, and this process is obsolete, we propose to eliminate part 75 
and thereby reduce internal management regulations as required by 
Executive Order 12861.

Regulatory Impact Analyses

Executive Order 12866

    In accordance with the provisions of Executive Order 12866, this 
proposed rule was not reviewed by the Office of Management and Budget.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this proposed rule before publication and, 
by approving it, certifies that it does not have a significant impact 
on a substantial number of small entities.

Paperwork Reduction Act

    This proposed rule does not contain information collection 
requirements requiring clearance under the Paperwork Reduction Act.

List of Subjects in 45 CFR Parts 16, 74, 75, and 95

    Accounting, Administrative practice and procedure, Grant programs--
health, Grant programs--social programs, Grants administration, 
Reporting and recordkeeping requirements.

(Catalog of Federal Domestic Assistance Number does not apply)

    Dated: February 25, 1997.
Donna E. Shalala,
Secretary.

    Accordingly, for the reasons set forth above, it is proposed that 
title 45 of the Code of Federal Regulations be amended as follows:

PART 16--PROCEDURES OF THE DEPARTMENTAL GRANT APPEALS BOARD

    1. The authority citation for part 16 would continue to read as 
follows:

    Authority: 5 U.S.C. 301 and secs. 1, 5, 6, and 7 of 
Reorganization Plan No. 1 of 1953, 18 FR 2053, 67 Stat. 631 and 
authorities cited in the Appendix.


Sec. 16.3  [Amended]

    2. Section 16.3 would be amended in paragraph (c) by removing the 
words ``and part 75 of this title for rate determinations and cost 
allocation plans''.

[[Page 10010]]

Appendix A to Part 16--[Amended]

    3. Section D. of appendix A would be amended by removing the last 
sentence.

PART 74--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR AWARDS AND 
SUBAWARDS TO INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER 
NONPROFIT ORGANIZATIONS, AND COMMERCIAL ORGANIZATIONS; AND CERTAIN 
GRANTS AND AGREEMENTS WITH STATES, LOCAL GOVERNMENTS AND INDIAN 
TRIBAL GOVERNMENTS

    4. The authority citation for part 74 would continue to read as 
follows:

    Authority: 5 U.S.C. 301; OMB Circular A-110 (November 29, 1993, 
58 FR 62992).


Sec. 74.62  [Amended]

    5. Section 74.62 would be amended in paragraph (b) by removing the 
numbers ``16, 75,'' and adding, in their place, the number ``16''.


Sec. 74.90  [Amended]

    6. Section 74.90 would be amended in paragraph (b) by removing the 
words ``parts 16 and 75'' and adding, in their place, the words ``part 
16''.

PART 75--[REMOVED]

    7. Part 75-- would be removed.

PART 95--GENERAL ADMINISTRATION--GRANT PROGRAMS (PUBLIC ASSISTANCE 
AND MEDICAL ASSISTANCE)

    8. The authority citation for part 95 would continue to read as 
follows:

    Authority: Sec. 452(a), 83 Stat. 2351, 42 U.S.C. 652(a); sec. 
1102, 49 Stat. 647, 42 U.S.C. 1302; sec. 7(b), 68 Stat. 658, 29 
U.S.C. 37(b); sec. 139, 84 Stat. 1323, 42 U.S.C. 2577b; sec. 144, 81 
Stat. 529, 42 U.S.C. 2678; sec. 1132, 94 Stat. 530, 42 U.S.C. 1320b-
2; 306(b), 94 Stat. 530, 42 U.S.C. 1320b-2 note, unless otherwise 
noted.


Sec. 95.513  [Removed]

    9. Section 95.513 would be removed.


Sec. 95.519  [Amended]

    10. Section 95.519 would be amended by redesignating paragraph 
(b)(1) as paragraph (b), by removing the words ``reconsideration of the 
determination under 45 CFR part 75'' and adding, in their place, the 
words `'appeal of the determination under 45 CFR part 16'', and by 
removing paragraph (b)(2).

[FR Doc. 97-5276 Filed 3-4-97; 8:45 am]
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