[Federal Register Volume 62, Number 137 (Thursday, July 17, 1997)]
[Rules and Regulations]
[Pages 38217-38218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18874]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

45 CFR Parts 16, 74, 75, and 95

RIN 0991-AA88


Indirect Cost Appeals

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

ACTION: Final rule.

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SUMMARY: This final rule removes 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 
informal 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. (45 CFR 
part 75)

DATES: Effective August 18, 1997.

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

SUPPLEMENTARY INFORMATION: On March 5, 1997, HHS published a Notice of 
Proposed Rulemaking (62 FR 10009) soliciting public comments on a 
proposal 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

[[Page 38218]]

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.
    No public comments were received concerning this proposal. Since 
the Department sees little value in this informal appeals process, and 
this process is obsolete, we are adopting the proposal to eliminate 
part 75 as final, thereby reducing internal management regulations as 
required by Executive Order 12861. (We have corrected an inadvertent 
omission in the Notice of Proposed Rulemaking's authority citation for 
45 CFR part 74.)

Regulatory Impact Analyses

Executive Order 12866

    This final rule was 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 final rule before publication and, by 
approving it, certifies that it does not have a significant impact on a 
substantial number of small entities.

Unfunded Mandates Act

    The Department has determined that this final rule is not a 
significant regulatory action within the meaning of the Unfunded 
Mandates Reform Act of 1995.

Paperwork Reduction Act

    This final 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 procedures, Grant 
programs--health, Grant programs--social programs, Grants 
administration, Reporting and recordkeeping requirements.

(Catalog of Federal Domestic Assistance Number does not apply)

    Dated: July 10, 1997.
Donna E. Shalala,
Secretary.

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

PART 16--PROCEDURES OF THE DEPARTMENTAL GRANT APPEALS BOARD

    1. Part 16 is amended as follows:
    a. The authority citation continues 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]

    b. Section 16.3(c) is amended by removing the words ``and part 75 
of this title for rate determinations and cost allocation plans''.

Appendix A to Part 16 [Amended]

    c. Section D. of appendix A is 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

    2. Part 74 is amended as follows:
    a. The authority citation continues to read as follows:

    Authority: 5 U.S.C. 301; OMB Circular A-110; Appendix J is also 
issued under 31 U.S.C. section 7505.


Sec. 74.62  [Amended]

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


Sec. 74.90  [Amended]

    c. Section 74.90(b) is amended by removing the words ``parts 16 and 
75'' and adding, in their place, the words ``part 16''.

PART 75--INFORMAL GRANT APPEALS PROCEDURES [REMOVED]

    3. Part 75 is removed.

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

    4. Part 95 is amended as follows:
    a. The authority citation continues 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; sec. 306(b), 94 Stat. 530, 42 U.S.C. 1320b-2 note, unless 
otherwise noted.


Sec. 95.513  [Removed]

    b. Section 95.513 is removed.


Sec. 95.519  [Amended]

    c. Section 95.519(b) is amended by redesignating paragraph (b)(1) 
as paragraph (b), in newly redesignated 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. 97-18874 Filed 7-16-97; 8:45 am]
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