[Federal Register Volume 66, Number 91 (Thursday, May 10, 2001)]
[Rules and Regulations]
[Pages 23860-23861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11578]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 205
[Docket No. MARAD-2000-8284]
RIN 2133-AB42
Audit Appeals; Policy and Procedure
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Final rule.
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SUMMARY: The Maritime Administration (MARAD, we, our, or us) is
updating our regulations on Audit Appeals; Policy and Procedure. The
regulations establish audit appeal procedures for parties who contract
with the Maritime Subsidy Board or MARAD. This final rule uses plain
language to update the audit procedures to reflect our current
practices. The intended effect of this rulemaking is to improve our
audit appeals process by updating and clarifying the regulations.
DATES: The effective date of this final rule is June 11, 2001.
FOR FURTHER INFORMATION CONTACT: Mr. Lennis G. Fludd, Office of
Financial and Rate Approvals, (202) 366-2324. You may send mail to Mr.
Fludd at Maritime Administration, Office of Financial and Rate
Approvals, Room 8117, 400 Seventh Street, SW, Washington, DC 20590.
SUPPLEMENTARY INFORMATION:
Background
Part 205 establishes the policy and procedure for parties to use
when seeking redress and appeals of audit decisions involving contracts
with the Maritime Subsidy Board or MARAD. Part 205 applies to contracts
of the Maritime Subsidy Board and MARAD which have included, for
example, the Operating-Differential Subsidy, Construction-Differential
Subsidy, Capital Construction Fund, Construction Reserve Fund, and
Maritime Security Program.
We published a notice of proposed rulemaking (NPRM) on November 16,
2000 at 65 FR 69279. The NPRM proposed revisions to part 205 to reflect
our current practices of making audit appeals decisions. This final
rule essentially mirrors the NPRM to which we received no public
comments. Accordingly, parties no longer appeal to the appropriate
Coast Director's office. In the past, auditors were assigned to
regional offices. However, we no longer have these auditors. MARAD
headquarters is responsible for overseeing audits as deemed
appropriate. Such audits may be performed by the Office of Inspector
General. Also, as proposed, we are eliminating the discretionary
hearing afforded appellants (under Sec. 205.2 (b)) when appealing to
the Maritime Administrator. This final rule includes provisions that
give the appellant 90 days from the date of receipt of the initial
audit findings to file an appeal with the appropriate Associate
Administrator and 30 days following the Associate Administrator's final
audit appeals decision to submit an appeal in writing to the
Administrator. However, the Administrator may, at his or her
discretion, extend the 30 days in the case of extenuating
circumstances.
Plain Language
Executive Order 12866 and a Presidential memorandum on plain
language in government writing of June 1, 1998, require each agency to
write all rules in plain language. The Department of Transportation and
MARAD are committed to plain language in government writing; therefore,
we revised part 205 using plain language to provide easier
understanding. Our goal is to improve the clarity of our regulations.
Rulemaking Analyses and Notices
Executive Order 12866 and DOT Regulatory Policies and Procedures
We have reviewed this final rule under Executive Order 12866 and
have determined that this is not a significant regulatory action.
Additionally, this final rule is not likely to result in an annual
effect on the economy of $100 million or more. The purpose of this
final rule is to update MARAD's audit appeals procedures to reflect
current MARAD practices and to rewrite the regulations in plain
language.
This final rule is also not significant under the Regulatory
Policies and Procedures of the Department of Transportation (44 FR
11034; February 26, 1979). The costs and benefits associated with this
rulemaking are considered to be so minimal that no further analysis is
necessary. Because the economic impact, if any, should be minimal,
further regulatory evaluation is not necessary.
Regulatory Flexibility Act
This final rule will not have a significant economic impact on a
substantial number of small entities. This final rule only updates
procedures for appealing audit findings and decisions to the Maritime
Administrator. Although a number of small entities may appeal audit
findings, the cost of filing an audit appeal with MARAD is minimal, if
any. Therefore, MARAD certifies that this final rule will not have a
significant economic impact on a substantial number of small entities.
Federalism
We have analyzed this final rule in accordance with the principles
and criteria contained in Executive Order 13132 (``Federalism'') and
have determined that it does not have sufficient federalism
implications to warrant the preparation of a federalism summary impact
statement. These regulations have no substantial effects on the States,
or on the current Federal-State relationship, or on the current
distribution of power and responsibilities among the various local
officials. Therefore, consultation with
[[Page 23861]]
State and local officials was not necessary.
Environmental Impact Statement
We have analyzed this final rule for purposes of compliance with
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
and have concluded that under the categorical exclusions provision in
section 4.05 of Maritime Administrative Order (``MAO'') 600-1,
``Procedures for Considering Environmental Impacts,'' 50 FR 11606
(March 22, 1985), the preparation of an Environmental Assessment, and
an Environmental Impact Statement, or a Finding of No Significant
Impact for this final rule is not required. This final rule involves
administrative and procedural regulations that have no environmental
impact.
Executive Order 13175
MARAD does not believe that this final rule will significantly or
uniquely affect the communities of Indian tribal governments when
analyzed under the principles and criteria contained in Executive Order
13175 (``Consultation and Coordination with Indian Tribal
Governments''). Therefore, the funding and consultation requirements of
this Executive Order would not apply.
Unfunded Mandates Reform Act of 1995
This final rule does not impose an unfunded mandate under the
Unfunded Mandates Reform Act of 1995. It does not result in costs of
$100 million or more, in the aggregate, to any of the following: State,
local, or Native American tribal governments, or the private sector.
This final rule is the least burdensome alternative that achieves the
objective of the rule.
Paperwork Reduction Act
This final rule does not contain information collection
requirements covered by 5 CFR Part 1320 (specifically 5 CFR 1320.3(c))
in that appellants choose the information to be provided in their
appeal and may choose to interpret the collection of information
differently.
Regulation Identifier Number (RIN)
The Department of Transportation assigns a regulation identifier
number (RIN) to each regulatory action listed in the Unified Agenda of
Federal Regulations. The Regulatory Information Service Center
publishes the Unified Agenda in April and October of each year. The RIN
number is contained in the heading of this document to cross-reference
this action with the Unified Agenda.
List of Subjects in 46 CFR Part 205
Administrative practice and procedure, Government contracts.
Accordingly, 46 CFR part 205 is revised to read as follows:
PART 205--AUDIT APPEALS; POLICY AND PROCEDURE
Sec.
205.1 Purpose.
205.2 Policy.
205.3 Procedure.
205.4 Finality of decisions.
205.5 Contracts containing disputes article.
Authority: Sec. 204, 49 Stat. 1987, 1998, 2004, 2011; 46 U.S.C.
1114, 1155, 1176, 1212.
Sec. 205.1 Purpose.
This part establishes the policy and procedure for parties to use
when seeking redress and appeals of audit decisions involving contracts
with the Maritime Subsidy Board or the Maritime Administration (MARAD,
we, our, or us). A party to a contract (you or your) may appeal MARAD's
findings, interpretations, or decisions of annual or special audits.
Sec. 205.2 Policy
If you disagree with audit findings and fail to settle any
differences with the appropriate Office Director, you may ask the
appropriate office Associate Administrator to review the audit
findings. If you disagree with the Associate Administrator, you may
appeal to the Maritime Administrator (Administrator).
Sec. 205.3 Procedure.
(a) You have 90 days from the date you receive the initial audit
findings to file a written request for review of the audit findings
with the appropriate Associate Administrator. Your written request must
state the legal or factual bases for your disagreement. The appropriate
Associate Administrator will issue a written determination.
(b) You have 30 days following the Associate Administrator's final
audit determination to submit your appeal in writing to the
Administrator. Your written appeal must set forth the legal and factual
bases for your appeal. The Administrator may, at his or her discretion,
extend the time limitation in the case of extenuating circumstances.
(c) We will notify you, in writing, if you must submit additional
facts for our consideration of the appeal. We will notify you, in
writing, once the Administrator has made a decision regarding your
appeal.
Sec. 205.4 Finality of decisions.
The Administrator's decision will be the final administrative
action on all audit appeals.
Sec. 205.5 Contracts containing disputes article.
When a contract contains a disputes article, the disputes article
will govern the bases for negotiating disputes regarding audit
findings, interpretations, or decisions made by MARAD and any appeals.
Dated: May 2, 2001.
By Order of the Acting Deputy Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 01-11578 Filed 5-9-01; 8:45 am]
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