[Federal Register Volume 67, Number 77 (Monday, April 22, 2002)]
[Rules and Regulations]
[Page 19518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8990]



[[Page 19518]]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 1000

RIN 0970-ACO8


Office of Community Services; Individual Development Accounts

AGENCY: Office of Community Services, Administration for Children and 
Families, HHS.

ACTION: Correcting amendments.

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SUMMARY: The Administration for Children and Families is correcting the 
final rule on Accounting for Amounts in Reserve Funds published on 
September 25, 2001 in the Federal Register (66 FR 48970).

DATES: Effective April 22, 2002.

FOR FURTHER INFORMATION CONTACT: Sheldon Shalit, Office of Community 
Services, (202) 401-4807, or Richard Saul, Office of Community 
Services, (202) 401-9341. Hearing impaired individuals may call the 
Federal Dual Party Relay Service at 800-877-8339 between 8:00 a.m. and 
7:00 p.m. eastern time.

SUPPLEMENTARY INFORMATION

I. Background

    On September 25, 2001, the Office of Community Services published 
the final rule on Accounting for Amounts in Reserve Funds as required 
by the Assets for Independence Act (the Act), or title IV of Pub. L. 
105-285 in the Federal Register (66 FR 48970). The final rule creates a 
new Part 1000 in the Code of Federal Regulations, defines the eligible 
entities and individuals that may participate in the Individual 
Development Account (IDA) program. The final rule also stipulates that 
grantees must comply with Departmental uniform administrative 
requirements in maintaining IDA reserve funds. The effective date of 
the rule was September 25, 2001.

II. Need for Technical Corrections in 45 CFR Part 1000

    In reviewing the final rule, we have identified technical errors 
resulting from statutory changes made by amendments to the original 
statute on December 21, 2000, through the Assets for Independence Act 
Amendments of 2000 (Pub. L. 106-554). The amendments modified 
definitions and changed allowable program expenditures for 
administrative costs. The change in allowable expenditures for 
administrative costs alters the statutorily-mandated amount grantees 
must deposit in the reserve fund. We are making these technical, 
conforming amendments to correct and clarify the regulation.

Regulatory Text

    We have made the following change to the regulatory text:
     We are revising the definition of Reserve Fund to be 
consistent with the Act, as amended. In the definition of reserve fund 
at Sec. 1000.2, the definition refers to the requirements at section 
407 of Pub.L. 105-285 that at least 90.5 percent of the Federal grant 
funds in the Reserve Funds must be used as matching contributions for 
Individual Development Accounts. This provision was amended by the 
Assets for Independence Act Amendments (AFIA) (Pub.L. 106-554) to allow 
grantees to use up to 15 percent of their grant for administrative 
costs. Therefore, no less than 85 percent of the grant can used for 
matching contributions, rather than the 90.5 percent under previous 
law. Therefore, the definition of Reserve Fund at Sec. 1000.2 is 
revised to be consistent with the statute.

Impact Analysis

    No impact analysis is needed for these technical corrections. The 
impact of the necessary corrections falls within the analysis of the 
final rule published in the Federal Register on September 25, 2001 (66 
FR 48970).

List of Subjects in 45 CFR Part 1000

    Grant Programs/Social Programs.

(Catalog of Federal Domestic Assistance Programs No. 93.602, 
Individual Development Account/Assets for Independence)

    Dated: April 8, 2002.
Ann C. Agnew,
Executive Secretary to the Department.
    For the reasons set forth in the preamble, 45 CFR part 1000 is 
amended by making the following technical corrections:

PART 1000--Individual Development Account Reserve Funds Established 
Pursuant to Grants for Assets for Independence

    1. The authority citation for Part 1000 continues to read as 
follows:

    Authority: 42 U.S.C. 604nt.

    2. Section 1000.2 is amended by revising the definition of Reserve 
Fund to read as follows:


Sec. 1000.2  Definitions.

    Reserve Fund means a fund, established by a qualified entity, that 
shall include all funds provided to the qualified entity from any 
public or private source in connection with the demonstration project 
and the proceeds from any investment made with such funds. The fund 
shall be maintained in accordance with section 407(c)(3), as amended. 
No less than 85 percent of the Federal grant funds in the Reserve Fund 
shall be used as matching contributions for Individual Development 
Accounts.
[FR Doc. 02-8990 Filed 4-19-02; 8:45 am]
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