[Federal Register Volume 68, Number 63 (Wednesday, April 2, 2003)]
[Rules and Regulations]
[Page 16162]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7887]



[[Page 16161]]

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Part IV





Department of Labor





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29 CFR Parts 96 and 99



Audit Requirements for Grants, Contracts, and Other Agreements; Audits 
of States, Local Governments, and Non-profit Organizations; Final Rules

  Federal Register / Vol. 68, No. 63 / Wednesday, April 2, 2003 / Rules 
and Regulations  

[[Page 16162]]


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DEPARTMENT OF LABOR

Office of the Secretary

29 CFR Part 96

RIN 1291-AA26


Audit Requirements for Grants, Contracts, and Other Agreements

AGENCY: Office of the Secretary, Labor.

ACTION: Final rule; no material change.

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SUMMARY: The Department of Labor hereby finalizes its regulation on 
``Audit Requirements For Grants, Contracts, and Other Agreements,'' to 
ensure consistency with previously published amendments to ``Grants and 
Agreements with Institutions of Higher Education, Hospitals, and Other 
Non-Profit Organizations, and with Commercial Organizations, Foreign 
Governments, Organizations Under the Jurisdiction of Foreign 
Governments and International Organizations'' and ``Uniform 
Administrative Requirements for Grants, and Cooperative Agreements to 
State and Local Governments.''

EFFECTIVE DATE: Effective May 2, 2003.

FOR FURTHER INFORMATION CONTACT: Jeff Saylor, Acting Director, Division 
of Acquisition Management Services, U.S. Department of Labor, 200 
Constitution Avenue, NW., Room N-5425, Washington, DC 20210. Telephone 
(202) 693-7285. E-mail: [email protected].

SUPPLEMENTARY INFORMATION: The Single Audit Act Amendments of 1996, 
(Public Law 104-156, 110 Stat. 1396), and the June 24, 1997, revision 
of OMB Circular A-133, ``Audits of States, Local Governments, and Non-
Profit Organizations'' (62 FR 35278, June 30, 1997), required agencies 
to adopt in codified regulations the standards in the revised Circular 
A-133 by August 29, 1997, so that they will apply to audits of fiscal 
years beginning after June 30, 1996. The revised Circular A-133 co-
located audit requirements for States, local governments, and non-
profit organizations. As a consequence, OMB rescinded OMB Circular A-
128, ``Audits of State and Local Governments.'' The Department's 
interim final rule has been in effect since March 25, 1999 (64 FR 
14539). No comments were received on this rule. Accordingly, the 
interim rule amending 29 CFR part 96 is being adopted as a final rule 
without change.

Paperwork Reduction Act

    This regulation is subject to the Paperwork Reduction Act. 
Information is submitted on the Standard Form SF-SAC, entitled ``Data 
Collection Form for Reporting on Audits of States, Local Governments, 
and Non-Profit Organizations for Fiscal Year Ending Dates On or After 
January 1, 2001.'' The U.S. Census Bureau is acting as the collection 
agent for OMB. OMB has issued approval number 0348-0057 for this data 
collection.

Executive Order 12866 and Significant Regulatory Actions

    This rule is considered by the Department of Labor to be a 
``significant regulatory action'' under section 3(f) of E.O. 12866. 
Accordingly this rule has been submitted to and approved by the Office 
of Management and Budget.
    This rule will not have a significant economic impact on a 
substantial number of small entities. This final rule does not affect 
the amount of funds provided in the covered programs, but rather 
increases the threshold for non-Federal entities subject to audit, 
thereby reducing burden on some small entities. Accordingly, the 
Department determined that this rule will not have a significant 
economic impact on a substantial number of small entities. The 
Department certified to this effect to the Chief Counsel for Advocacy 
of the U.S. Small Business Administration when the interim rule was 
published. Therefore, no Regulatory Flexibility Analysis was required. 
No comments were received on any aspect of the rule or these 
conclusions as set forth in the interim rule.

Small Business Regulatory Enforcement Fairness Act

    This rule is not a ``major rule'' under the Small Business 
Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 801 et seq.) 
because it is not likely to result in (1) an annual effect on the 
economy of $100 million or more; (2) a major increase in costs or 
prices for consumers, individual industries, Federal, State or local 
government agencies, or geographic regions; or (3) significant adverse 
effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic or export markets.

Effects on Families

    This rule has been assessed under section 654 of the Treasury and 
General Government Appropriations Act, 1999, for its effect on family 
well-being and we hereby certify that the rule will not adversely 
affect the well-being of families.
    Consistent with the Small Business Regulatory Enforcement Act of 
1996, DOL will submit to Congress a report regarding the issuance of 
today's final rule prior to the effective date set forth at the outset 
of this notice. The report will note the Office of Management and 
Budget's determination that this rule does not constitute a major rule 
under that Act 5 U.S.C. 801, 804.

List of Subjects in 29 CFR Part 96

    Audit Requirements For Grants, Contracts, And Other Agreements.

    Signed at Washington, DC, on March 26, 2003.
Elaine L. Chao,
Secretary of Labor.
[FR Doc. 03-7887 Filed 4-1-03; 8:45 am]
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