[Federal Register Volume 63, Number 139 (Tuesday, July 21, 1998)]
[Rules and Regulations]
[Page 39034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19375]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2510, 2516, 2517, 2519, 2521, and 2540


Administrative Costs for Learn and Serve America and AmeriCorps 
Grants Programs

AGENCY: Corporation for National and Community Service.

ACTION: Interim final rule adopted as final rule.

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SUMMARY: We are adopting as a final rule, without change, an interim 
final rule that amended the Corporation's regulations relating to 
administrative costs in 45 C.F.R. Parts 2510, 2516, 2517, 2519, 2521, 
and 2540 published at 63 FR 18135, April 14, 1998. The rule amends the 
Corporation's regulations implementing a statutory limit on the 
percentage of assistance to specified national service programs that 
may be used to pay for administrative costs. The rule clarifies the 
definition of administrative costs, adds an explicit definition of 
program costs that are not subject to the limitation on administrative 
costs, and provides additional guidelines for applying the limitation 
on administrative costs.

DATES: The interim final rule was effective April 14, 1998.

FOR FURTHER INFORMATION CONTACT: Michael Kenefick, Director of Grants 
Management, Corporation for National Service, (202) 606-5000, ext. 101.

SUPPLEMENTARY INFORMATION:
    On April 14, 1998, the Corporation for National and Community 
Service (Corporation) published an interim final rule amending its 
regulations implementing provisions of the National and Community 
Service Act of 1990, as amended, under which not more than five percent 
of assistance for a fiscal year may be used to pay for administrative 
costs. This limitation applies to the following types of programs: (1) 
School-based service-learning programs; (2) community-based service-
learning programs; (3) higher education innovative programs for 
community service; and (4) national service programs assisted under 
sections 121(a) and 121(b) of the Act through grants to State 
Commissions, Indian Tribes, U.S. Territories, and national nonprofit 
organizations.
    The Act itself does not define ``administrative costs'' but directs 
the Corporation to prescribe by rule the manner and extent to which 
assistance provided may be used to pay for administrative costs and the 
distribution of such costs between grantees and sub-grantees. The final 
rule clarifies the types of costs that are considered subject to the 
five percent limitation on administrative costs. The final rule 
includes an itemization of costs that are directly related to programs 
and projects, and therefore excluded from the definition of 
administrative costs. The final rule also provides guidelines for the 
implementation of the statutory requirements, including the use of 
indirect cost rates and the use of fixed rates for administrative 
costs.
    Comments on the interim final rule were due June 15, 1998. We did 
not receive any comments. The facts presented in the interim final rule 
still provide a basis for the rule.
    This action also affirms the information contained in the interim 
rule concerning Executive Order 12866 and the Regulatory Flexibility 
Act, the Paperwork Reduction Act, the Unfunded Mandates Reform Act, and 
Executive Order 12875.

List of Subjects

45 CFR Part 2510

    Grant programs--social programs, Volunteers.

45 CFR Part 2516

    Elementary and secondary education, Grant programs--social 
programs, Indians, Nonprofit organizations, Reporting and recordkeeping 
requirements, Volunteers.

45 CFR Part 2517

    Community development, Grant programs--social programs, Nonprofit 
organizations, Reporting and recordkeeping requirements, Volunteers.

45 CFR Part 2519

    Colleges and universities, Grant programs--social programs, 
Nonprofit organizations, Reporting and recordkeeping requirements, 
Volunteers.

45 CFR Part 2521

    AmeriCorps, Grant programs--social programs, Volunteers.

45 CFR Part 2540

    Administrative practice and procedure, Grant programs--social 
programs, Reporting and recordkeeping requirements, Volunteers.

Interim Final Rule Adopted as Final Without Change

    Accordingly, the interim final rule amending 45 CFR Parts 2510, 
2516, 2517, 2519, 2521, and 2540, which was published at 63 FR 18135, 
April 14, 1998, is adopted as a final rule without change.

    Authority: 42 U.S.C. 12501 et seq.

    Dated: July 15, 1998.
Kenneth L. Klothen,
General Counsel.
[FR Doc. 98-19375 Filed 7-20-98; 8:45 am]
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