[Federal Register Volume 64, Number 99 (Monday, May 24, 1999)]
[Notices]
[Pages 27969-27971]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13086]


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DEPARTMENT OF EDUCATION

Office of Elementary and Secondary Education

Office of Special Education and Rehabilitative Services


Intent To Repay the Connecticut Department of Education; Funds 
Recovered as a Result of a Final Audit Determination

AGENCY: Department of Education.

ACTION: Notice of intent to award grantback funds.

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SUMMARY: Under section 459 of the General Education Provisions Act 
(GEPA), the Secretary of Education (Secretary) intends to repay to the 
Connecticut Department of Education, an amount equal to 75 percent of 
the $146,760.00 of previously disallowed funds recovered by the U.S. 
Department of Education under the terms of a May 29, 1996, settlement 
agreement. This notice describes the State's plan for the use of repaid 
funds and the terms and conditions under which the Secretary intends to 
make those funds available. The notice invites comments on the proposed 
grantback.

DATES: All comments must be received on or before June 23, 1999.

ADDRESSES: All comments concerning the portion of the grantback that 
provides funds under the former Chapter 1 Handicapped Program should

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be addressed to Ruth Ryder, Office of Special Education and 
Rehabilitative Services, U.S. Department of Education, 400 Maryland 
Avenue, S.W., Room 3609, Mary E. Switzer Building, Washington, D.C. 
20202-6135. Comments may also be sent through the Internet to: 
[email protected]. Commenters must include the term ``grantback 
comment'' in the subject line of any electronic message.
    All comments concerning the portion of the grantback that provides 
funds under the Migrant Education Program (MEP) should be addressed to 
Francisco Garcia, Director, Office of Migrant Education, Office of 
Elementary and Secondary Education, U.S. Department of Education, 400 
Maryland Avenue, SW, Washington, DC 20202-6135. Comments may also be 
sent through the Internet to: [email protected]. Commenters 
must include the term ``grantback comment'' in the subject line of any 
electronic message.

FOR FURTHER INFORMATION CONTACT: For the former Chapter 1 Handicapped 
Program, Martin Benton, U.S. Department of Education, 400 Maryland 
Avenue, SW, (Mary E. Switzer Building, Room 3615), Washington, DC 
20202-6135. Telephone: (202) 205-9028. For the MEP, Delores Warner, 
U.S. Department of Education, 400 Maryland Avenue, SW (FOB-6, Room 
3W330), Washington, DC 20202-6135. Telephone: (202) 260-1941. 
Individuals who use a telecommunication device for the deaf (TTD) may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8349.
    Individuals with disabilities may obtain this document in an 
alternate format (e.g., Braille, large print, audiotape, or computer 
disk) on request to the contact persons listed in the preceding 
paragraph.

SUPPLEMENTARY INFORMATION:

A. Background

    The Department has recovered $146,760 from the Connecticut 
Department of Education (Connecticut) in satisfaction of claims arising 
under program determination letters (PDLs) issued on March 31, 1992 
(Connecticut I) (Audit Control Number 01-03261G) and March 24, 1994 
(Connecticut II) (Audit Control Number 01-23237). These funds were 
recovered under the terms of a settlement agreement, entered into 
between Connecticut and the Department on May 29, 1996, which resolved 
both these audit determinations.
    Under the first PDL, Connecticut I, the Department's PDL demanded a 
refund in the amount of $575,329 for violations of applicable 
requirements in Office of Management and Budget (OMB) Circular A-87 in 
fiscal years 1988 and 1989 relating to recordkeeping for employees with 
multi-program responsibilities. Funds were disallowed for the following 
programs: Bilingual Education State Grant ($94,134); Education 
Consolidation and Improvement Act (ECIA) Migrant Education State 
Formula Grant ($108,385); Chapter 1 of the ECIA Education for 
Disadvantaged, State Administration ($36,120); Chapter 2 of the ECIA 
($263,605); Part B of the Education of the Handicapped Act ($29,272); 
and Preschool Grants for Children with Disabilities ($43,910). Based on 
documentation that Connecticut submitted after it filed its application 
for review of this PDL with the Office of Administrative Law Judges 
(OALJ), the Department withdrew its claim relating to Chapter 2 of the 
ECIA ($263,605) and the Bilingual Education State Grant program 
($94,134). With the withdrawal of these two claims, the amount at issue 
in Connecticut I was reduced from $575,329 to $217,590. Under the terms 
of the May 29, 1996, settlement agreement, the Department recovered 
from Connecticut $82,500 of these funds. Connecticut has requested a 
grantback of 75 percent of this amount, or $61,875. The grantback 
application specifies that these funds will be used under the Migrant 
Education Program (Title I, Part C of the Elementary and Secondary 
Education Act of 1965 (ESEA)), as amended by the Improving America's 
Schools Act, which has superseded the former ECIA.
    Under the second PDL, Connecticut II, the Department's PDL demanded 
a refund of $558,162 for similar recordkeeping violations in fiscal 
years 1990 and 1991 relating to the following Federal programs: 
Bilingual Education State Grant program ($100,566); Carl D. Perkins 
Vocational Education Act ($3,133); Chapter 1 Handicapped ($201,438); 
Chapter 2 of the Elementary and Secondary Education Act (ESEA) 
($234,640); and Handicapped Special Studies ($18,385). Based on 
documentation that Connecticut submitted after it filed its application 
for review of this PDL with the OALJ, the Department withdrew its 
claims relating to Chapter 2 of the ESEA ($234,640) and the Bilingual 
Education State Grant program ($100,566). With the withdrawal of these 
two claims, the amount at issue in Connecticut II was reduced from 
$558,162 to $222,956. Under the terms of the May 29, 1996, settlement 
agreement, the Department recovered from Connecticut $64,260. 
Connecticut has requested a grantback of 75 percent of this amount, or 
$48,195. The SEA's grantback application specifies that these funds 
will be used under Part B of the Individuals with Disabilities 
Education Act (IDEA), which now encompasses the Chapter 1 Handicapped 
program--one of the programs covered by the recovery of funds.

B. Authority for Awarding a Grantback

    Section 459(a) of GEPA, 20 U.S.C. 1234h(a), provides that whenever 
the Secretary has recovered program funds following a final audit 
determination, the Secretary may consider those funds to be additional 
funds available for the program and may arrange to repay to the 
recipient affected by that determination an amount not to exceed 75 
percent of the recovered funds. The Secretary may enter into a 
grantback agreement arrangement if the Secretary determines that the--
    (1) Practices or procedures of the recipient that resulted in the 
audit determination have been corrected, and the recipient is, in all 
other respects, in compliance with the applicable program;
    (2) The recipient has submitted to the Secretary a plan for the use 
of the funds to be awarded under the grantback arrangement that meets 
the requirements of the program, and to the extent possible, benefit 
the population that was affected by the failure to comply or by the 
misexpenditures that resulted in the audit exception; and
    (3) Use of funds to be awarded under the grantback arrangement in 
accordance with the recipient's plan would serve to achieve the 
purposes of the program under which the funds were originally granted.

C. Plan for Use of Funds Awarded Under a Grantback Agreement

    Pursuant to section 459(a)(2) of GEPA, the SEA has applied for a 
grantback of $110,070 which is 75 percent of the principal amount 
recovered by the Department and has submitted a plan for use of the 
grantback funds to meet the special education needs of both children 
served under the MEP and Part B of the IDEA. Specifically, the SEA has 
applied for a grantback of $61,875 of recovered MEP funds and $48,195 
of recovered Chapter 1--Handicapped Program funds.
    According to the plan, Connecticut will utilize the funds to 
provide additional services to the Title I migrant education summer 
programs located in urban school districts--Bridgeport, Hartford, 
Meriden, New Britain, New Haven, New London, Waterbury and

[[Page 27971]]

Windham--that have been identified as priority districts because of 
academic need. These funds will benefit a population (eligible migrant 
children) that is similar to the population affected by the 
misexpenditures that resulted in the recovery of funds.
    According to the plan, Connecticut will utilize the recovered 
Chapter 1 Handicapped Program funds to enhance transition services for 
secondary age youth with disabilities. This program will benefit a 
similar population (secondary age youth with disabilities) to the 
population that was affected by the misexpenditures that resulted in 
the recovery of funds. Specifically, 30 students with disabilities will 
be selected to participate in a program that is designed to provide 
work experience opportunities for young adults with disabilities to 
assist them in defining appropriate career directions. These funds will 
be expended consistent with the requirements of Part B of the IDEA, 
this supplemental program will serve the population of students that 
was eligible for services under the Chapter 1 Handicapped Program.

D. The Assistant Secretaries' Determinations

    The Assistant Secretaries have carefully reviewed the application 
and plan that Connecticut submitted. Based upon that review, the 
Assistant Secretaries have determined that the conditions set forth in 
GEPA have been met. These determinations are based upon the best 
information available to the Assistant Secretaries at the present time. 
If this information is not accurate or complete, the Assistant 
Secretaries may take other appropriate administrative action. In 
finding that the conditions of section 459 of GEPA have been met, the 
Assistant Secretaries make no determination concerning any pending 
audit recommendations or final audit determinations.

E. Notice of the Secretary's Intent To Enter Into a Grantback 
Arrangement

    Section 459(d) of GEPA requires that at least 30 days before 
entering into an arrangement to award funds under a grantback, the 
Secretary must publish in the Federal Register a notice of intent to do 
so, and the terms and conditions under which payment would be made.
    In accordance with section 459(d) of GEPA, notice is hereby given 
that the Secretary intends to make funds available to Connecticut under 
a grantback arrangement. The grantback award would be in the amount of 
$110,070; $61,875 for funds recovered under the MEP and $48,195 for 
funds recovered under the Chapter 1 Handicapped Program.

F. Terms and Conditions Under Which Payment Under a Grantback 
Arrangement Would Be Made

    Connecticut agrees to comply with the following terms and 
conditions under which payment under a grantback arrangement would be 
made:
    (1) The funds awarded under the grantback must be spent in 
accordance with--
    (a) All applicable statutory and regulatory requirements;
    (b) The plan that Connecticut submitted and any amendments to that 
plan that are approved in advance by the Secretary;
    (c) The budget that was submitted with the plan and any amendments 
to the budget that are approved in advance by the Secretary.
    (2) All funds received under the grantback arrangement must be 
obligated by September 30, 1999, in accordance with Section 459(c) of 
GEPA and Connecticut's plan.
    (3) Connecticut will, no later than December 31, 1999, submit a 
report that--
    (a) Indicates that the funds awarded under the grantback have been 
spent in accordance with the proposed plan and approved budget; and (b) 
Describes the results and effectiveness of the project for which the 
funds were spent.
    (4) Separate accounting records must be maintained documenting the 
expenditure of funds awarded under the grantback arrangement.

Electronic Access to This Document

    You may review this document, as well as other Department of 
Education documents published in the Federal Register, in text or 
Portable Document Format (PDF) on the World Wide Web at either of the 
following sites:

http://ocfo.ed.gov/fedreg.htm
http://www.ed.gov/news.html

To use the PDF you must first have the Adobe Acrobat Reader Program 
with Search, which is available free at either of the previous sites. 
If you have any questions about using the PDF, call the U.S. Government 
Printing Office, toll free at 1-888-293-6498; or in the Washington, DC 
area at (202) 512-1530.

    Note: The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at: http://
www.access.gpo.gov/nara/index.html

    (Catalog of Federal Domestic Assistance Number 84.011, Migrant 
Education Program (ESEA, Title I, Part C); and Catalog of Federal 
Domestic Assistance No. 84.027, Special Education-Grants to States 
(IDEA, Part B))

    Dated: May 17, 1999.
Judith Johnson,
Acting Assistant Secretary for Elementary and Secondary Education.

Judith E. Heumann,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 99-13086 Filed 5-21-99; 8:45 am]
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