[Federal Register Volume 67, Number 48 (Tuesday, March 12, 2002)]
[Notices]
[Pages 11200-11201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5919]



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Part III





Department of Education





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Intent To Repay to the Black Hills Special Services Cooperative Funds 
Recovered as a Result of a Final Audit Determination; Notice

  Federal Register / Vol. 67 , No. 48 / Tuesday, March 12, 2002 / 
Notices  

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DEPARTMENT OF EDUCATION


Intent To Repay to the Black Hills Special Services Cooperative 
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), 20 U.S.C. 1234h, the Secretary of Education (Secretary) intends 
to repay to the Black Hills Special Services Cooperative (Black Hills), 
both directly and through the South Dakota Department of Education and 
Cultural Affairs (DECA), under a grantback arrangement, an amount which 
represents nearly 75 percent of the amount of funds recovered by the 
Department of Education (Department) as a result of final audit 
determinations for findings covering fiscal years 1996-1999. This 
notice describes Black Hills' plan for the use of the repaid funds and 
the terms and conditions under which the Secretary intends to make 
those funds available. This notice invites comments on the proposed 
grantback.

DATES: We must receive your comments on or before April 11, 2002.

ADDRESSES: Address all comments about the proposed grantback to Cheryl 
Hannah, U.S. Department of Education, 400 Maryland Avenue SW., room 
4W211, Washington, DC, 20202-4300. If you prefer to send your comments 
through the internet, use the following address: [email protected]

FOR FURTHER INFORMATION CONTACT: Cheryl Hannah. Telephone: (202) 401-
1816.
    If you use a telecommunications device for the deaf (TDD), you may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain the document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person under FOR FURTHER 
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION:

A. Background

    The Department has recovered $106,088 from Black Hills as a result 
of the resolution of audit findings reached in an April 18, 2000, 
Agreement (the Agreement) between Black Hills and the Department 
covering federal fiscal years ending September 30, 1996, 1997, 1998 and 
1999 (Audit Control Numbers 08-96-78277, 08-97-88143, 08-98-98122, 08-
99-08185). Staff from the Department, Black Hills, the South Dakota 
Department of Legislative Audit, the South Dakota Department of 
Education and Cultural Affairs, and the South Dakota Department of 
Human Services engaged in the cooperative audit resolution of the 
findings contained in the audits referenced above under the 
Department's Cooperative Audit Resolution and Oversight Initiative 
(CAROI) in an effort to address the root causes of the problems and to 
avoid recurrence of these findings in the future. Cited in the audit 
reports and relevant to this grantback request are grants awarded under 
the Technology Innovation Challenge Grant Program (CFDA 84.303), the 
Assistive Technology Act--State Grants for Assistive Technology Program 
(CFDA 84.224), and the State Systems for Transition Services for Youth 
with Disabilities Program (CFDA 84.158A).

Technology Innovation Challenge Grant

    Claims against Black Hills included in the Agreement involved the 
``Technology in Education Challenge Grant for Rural Education'' 
(TECRAM) (CFDA 84.303), a program to integrate technology with the 
curriculum in six community-based systemic reform efforts across the 
State of South Dakota. The claims involved rental costs under related 
party leases that exceeded the amounts allowed per OMB Circular A-87, 
and associated indirect costs.

Assistive Technology Act--State Grants for Assistive Technology Program

    Included within the Agreement are claims against Black Hills under 
the Assistive Technology Act--State Grants for Assistive Technology 
Program (CFDA 84.224), which is designed to address issues raised by 
States, individuals, Protection and Advocacy providers, and other 
relevant organizations; collect data that will provide information 
about assistive technology devices and services that can be used for 
determining policy; and provide information on increased access to 
assistive technology devices, assistive technology services and other 
disability-related resources. The claims involved disallowed rental 
costs and associated indirect costs. Specifically, rental costs were 
charged to grants based on fair market value, which exceeded the 
amounts allowed due to limitations for less-than-arms-length 
transactions, and rental costs under related party leases exceeded the 
amounts allowed per Office of Management and Budget (OMB) Circular A-
87.

State Systems for Transition Services for Youth With Disabilities

    Also included within the Agreement were claims against Black Hills 
for a State Systems for Transition Services for Youth with Disabilities 
Grant (CFDA 84.158A), which is designed to develop, implement, and 
improve systems to provide transition services for youth with 
disabilities from ages 14 through the age they exit school. The claims 
involved unsupported general management costs that were charged as 
direct costs to a Federal grant.
    Based on the Agreement, Black Hills submitted a payment of $106,088 
to the Department in September 2000 in full settlement of the 
Department's claims reached in the Agreement.
    On January 8, 2000, Black Hills requested a grantback of $79,318, 
which represents nearly 75 percent of these recovered 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 funds under an applicable program because 
the recipient made an expenditure of funds that was not allowable, the 
Secretary may consider those funds to be additional funds available for 
the program and may arrange to repay to the grantee affected by that 
determination an amount not to exceed 75 percent of the recovered 
funds. The Secretary may enter into this grantback requested by Black 
Hills if the Secretary determines that--
    (a) The practices and procedures of Black Hills that resulted in 
the findings have been corrected, and Black Hills is in compliance with 
the requirements of the applicable programs;
    (b) Black Hills 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, benefits 
the population that was affected by the failure to comply or by 
misexpenditures that resulted in the recovery; and
    (c) Use of funds to be awarded under the grantback arrangement in 
accordance with Black Hills' 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 Arrangement

    Pursuant to section 459(a)(2) of GEPA, Black Hills has applied for 
a grantback totaling $79,318, which is nearly 75 percent of the 
principal amount of the recovered funds and has submitted a

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plan outlining the activities that will be supported by the grantback 
funds.
    Specifically, Black Hills plans to utilize the grantback of funds 
recovered under the Technology Innovation Challenge Grant to pay costs 
associated with continued support to local district partners and the 
collaborative development team. These efforts were intended to assist 
in capturing the results and discoveries of project activities, the 
effects of technology integration on teaching and learning, and the 
creation of formats useful for replication. In addition, staff time was 
utilized to organize and facilitate the dissemination and training 
event. Although the project period for this grant has ended, a 
grantback award is appropriate because one underlying purpose of grants 
under this program is to support sustainable activities related to the 
innovative use of technology in education. The funds will be expended 
within six months of receipt.
    Under the Assistive Technology Act--State Grants for Assistive 
Technology Program, Black Hills plans to use the grantback funds to pay 
costs related to expanded direct services to consumers, families, 
employers, and schools primarily in the northeast part of South Dakota. 
Additional personnel were assigned to the northeast part of the State 
for a six-month period to resolve a backlog of consumer referrals and 
requests for technical assistance and training. The funds will be 
expended within six months of receipt.
    Under the State Systems for Transition Services for Youth with 
Disabilities Grant, Black Hills will use the grantback, which it will 
receive through DECA, to pay costs related to providing technical 
assistance and support in the development and implementation of 
transition services funds for students with disabilities aged 16 to 21 
years served by local school districts in the Black Hills area. The 
funds will be expended within six months of receipt.

D. The Secretary's Determinations

    The Secretary has carefully reviewed the plan submitted by Black 
Hills. Based upon that review, the Secretary has determined that the 
conditions under section 459(a) of GEPA have been met.
    This determination is based upon the best information available to 
the Secretary at the present time. If this information is not accurate 
or complete, the Secretary is not precluded from taking appropriate 
administrative action. In finding that the conditions of section 459(a) 
of GEPA have been met, the Secretary makes no determination concerning 
any pending audit recommendations or final audit determinations.
    The Secretary also concludes that this grantback award will support 
the provision of services to the intended beneficiaries of the programs 
under which these grant awards were originally made. These 
beneficiaries may not have received the full benefit of the services 
intended by these programs due to the problems that gave rise to the 
audit recovery described in Section A of this notice. Thus, this 
grantback award will advance and support the policy goals of the 
statutory provisions that authorized the initial grant awards.

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 publish in the Federal Register a notice of intent to do so 
and the terms and conditions under which the payment will be made.
    In accordance with section 459(d) of GEPA, notice is hereby given 
that the Secretary intends to make funds available to the Black Hills 
Special Services Cooperative, directly and through DECA, under a 
grantback arrangement. The grantback award will be in the amount of 
$79,318, which is nearly 75 percent--the maximum percentage authorized 
by statute--of the principal amount recovered as a result of the 
Agreement.

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

    Black Hills agrees to comply with the following terms and 
conditions under which payments under a grantback arrangement will be 
made:
    (a) The funds awarded under the grantback must be spent in 
accordance with--
    (1) All applicable statutory and regulatory requirements;
    (2) The plan that Black Hills submitted and any amendments to the 
plan that are approved in advance by the Secretary; and
    (3) The budget that was submitted with the plan and any amendments 
to the budget that are approved in advance by the Secretary.
    (b) All funds received under the grantback arrangement must be 
obligated by September 30, 2003, in accordance with section 459(c) of 
GEPA.
    (c) Black Hills must, no later than December 31, 2003, submit a 
report to the Secretary that--
    (1) Indicates that the funds awarded under the grantback have been 
spent in accordance with the proposed plan and any amendments that have 
been approved in advance by the Secretary; and
    (2) Describes the results and effectiveness of the project for 
which the funds were spent.
    (d) Separate accounting records must be maintained documenting the 
expenditures of funds awarded under the grantback arrangement.
    (e) Before funds will be repaid pursuant to this notice, Black 
Hills must repay to the Department any debts that become overdue or 
enter into a repayment agreement for those debts.

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at the following site: 
www.ed.gov/legislation/FedRegister.
    To use PDF you must have Adobe Acrobat Reader, which is available 
free at this site. If you have questions about using PDF, call the U.S. 
Government Printing Office (GPO), 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 Numbers: 84.303, Technology 
Innovation Challenge Grant; 84.224, Assistive Technology Act 
Technical Assistance Program; 84.158A, State Systems for Transition 
Services for Youth with Disabilities.)

    Dated: March 6, 2002.
Mark Carney,
Deputy Chief Financial Officer.
Grover J. Whitehurst,
Assistant Secretary, Office of Educational Research and Improvement.
Loretta L. Petty,
Acting Assistant Secretary for Special Education and Rehabilitative 
Services.
[FR Doc. 02-5919 Filed 3-11-02; 8:45 am]
BILLING CODE 4000-01-U