[Federal Register Volume 75, Number 155 (Thursday, August 12, 2010)]
[Notices]
[Pages 48921-48927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19629]


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 Notices
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  Federal Register / Vol. 75, No. 155 / Thursday, August 12, 2010 / 
Notices  

[[Page 48921]]



DEPARTMENT OF AGRICULTURE

National Institute of Food and Agriculture


Administrative Guidance for Multistate Extension Activities and 
Integrated Research and Extension Activities

AGENCY: National Institute of Food and Agriculture, USDA.

ACTION: Notice of interim guidance and request for comments.

-----------------------------------------------------------------------

SUMMARY: The National Institute of Food and Agriculture (NIFA) is 
issuing a revised Administrative Guidance for Multistate Extension 
Activities and Integrated Research and Extension Activities as interim 
with a 60-day comment period. The Administrative Guidance has been 
revised to address the findings and recommendations of the U.S. 
Department of Agriculture (USDA) Office of Inspector General (OIG) 
Audit Report no. 13001-3-Te: ``Cooperative State Research, Education, 
and Extension Service's Implementation of the Agricultural Research, 
Extension and Education Reform Act of 1998 (AREERA),'' and to clarify 
policies and procedures associated with these requirements. Section 105 
of AREERA amended the Smith-Lever Act to require that a specified 
amount of agricultural extension formula funds be expended on 
multistate extension activities. Section 204 of AREERA amended the 
Hatch Act and Smith-Lever Act to require that a specified amount of 
agricultural research and extension formula funds be expended on 
integrated research and extension activities.

DATES: The interim Administrative Guidance is effective August 12, 
2010. The Agency must receive comments by October 12, 2010 for them to 
be considered in the final Administrative Guidance.

ADDRESSES: You may submit comments identified by 2010-0025, by any of 
the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    E-mail: [email protected]. Include the Docket 
Number in the subject line of the message.
    Fax: 202-401-7752.
    Mail: paper, disk or CD-ROM submissions should be submitted to the 
National Institute of Food and Agriculture, U.S. Department of 
Agriculture, STOP 2299, 1400 Independence Avenue, SW., Washington, DC 
20250-2299.
    Hand Delivery/Courier: National Institute of Food and Agriculture, 
U.S. Department of Agriculture, Room 2247, Waterfront Centre, 800 9th 
Street, SW., Washington, DC 20024.
    Instructions: All submissions received must include the agency name 
and the docket number 2010-0025. All comments received will be posted 
without change to http://www.regulations.gov, including any personal 
information provided.

FOR FURTHER INFORMATION CONTACT: Mary Snieckus, Policy Specialist, 
Office of Extramural Programs, National Institute of Food and 
Agriculture, U.S. Department of Agriculture, STOP 2299, 1400 
Independence Avenue, SW., Washington, DC 20250-2299; Voice: 202-720-
3842; Fax: 202-401-7752; E-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background and Purpose

    The Cooperative State Research, Education, and Extension Service 
(CSREES) (now NIFA), in response to Recommendation 1 of the USDA OIG 
Audit Report no. 13001-3-Te: ``Cooperative State Research, Education, 
and Extension Service's Implementation of the Agricultural Research, 
Extension and Education Reform Act of 1998'' (often referred to as the 
AREERA Audit) is requiring 1862 Land-Grant Institutions not computing 
their base percentages to select 25 percent as the target percentage 
for multistate extension activities and for integrated research and 
extension activities or to correctly determine their base percentages 
based on actual expenditures. In FY 2000, 1862 Land-Grant Institutions 
were provided four options for establishing a Target Percentage for 
these requirements: (A) Target 25 percent which will automatically 
waive the requirements to report on the FY 1997 expenditures for 
multistate extension activities; (B) Target a percentage which is two 
times the FY 1997 expenditures for multistate extension activities 
(commonly referred to as the FY 1997 baseline) but less than 25 
percent; (C) Target a percentage that is less than 25 percent (usually 
selected when auditable expenditure data is not available); and (D) 
Phase-in Option C with a 3-year phase-in period. The USDA OIG 
determined during the audit that Options C and D did not meet the 
intent of the legislation and that the 1862 Land-Grant Institutions, if 
unable to determine their actual FY 1997 baseline expenditures for 
multistate extension and integrated research and extension activities, 
must select 25 percent, and thus, expend 25 percent of their Smith-
Lever Act funds on multistate extension activities and 25 percent on 
integrated research and extension activities and expend 25 percent of 
Hatch Act funds on integrated research and extension activities. 
However, Federal funds that are used by the institution for a fiscal 
year for integrated activities may also be counted to satisfy the 
multistate activities requirement.
    In the revised Administrative Guidance, NIFA is requesting that 
each 1862 Land-Grant Institution (in the 50 States and in the District 
of Columbia for Hatch Act funds only) review the table in Appendix A 
which identifies by State the total FY 1997 Hatch Act and Smith-Lever 
Act funds allocated, the FY 1997 expenditures reported for multistate 
extension activities and integrated activities, the Target Percentage 
selected, and whether the Target Percentages needed to be reset at 25 
percent or to be based on the actual FY 1997 expenditures. Appendix A 
is available at http://www.nifa.usda.gov/business/reporting/planrept/plansofwork.html. Although some institutions had previously established 
25 percent or a Target Percentage based on actual expenditures, NIFA is 
requesting that all institutions either reconfirm or reset their Target 
Percentages.
    The revised Administrative Guidance also clarifies the criteria for 
AREERA section 105 and 204 waiver requests and

[[Page 48922]]

describes the waiver process in more detail. NIFA also seeks to clarify 
that for purposes of determining the actual multistate extension and 
integrated amounts, only the regular allocation under the Smith-Lever 
Act (i.e., Smith-Lever Act sections 3(b)&(c)) and the Hatch Act 
allocations together (i.e., the regular Hatch Act allocation according 
to the legislative formula and the amount used to identify the matching 
amount for the Hatch Multistate Research Fund allocation) should be 
used to identify the actual expenditures required for that fiscal 
year's formula grants (i.e., formula funds).
    In complying with the Government Paperwork Elimination Act (GPEA), 
NIFA is considering an electronic business process for collecting the 
annual Form NIFA-PLAN (Rev. 07/2010) and Form NIFA-REPT (Rev. 07/2010) 
data to ensure AREERA sections 105 and 204 compliance. NIFA plans to 
integrate these requirements as part of the update to the 5-Year Plan 
of Work and Annual Report of Accomplishments and Results which will be 
entered electronically through the AREERA State Plan of Work 
Information System.

Response to Stakeholder Input

    CSREES provided a draft of the revised Administrative Guidance to 
the State Extension Directors on May 2, 2008, and provided a 60-day 
comment period. Fifteen comments were received during the comment 
period. Thirteen were from university officials and two were from USDA 
staff. Comment topics included the administrative burden associated 
with compliance, definition of integrated activities, the use of split 
appointments, use of non-Federal funds to meet these requirements, 
waivers, effective date of revised Administrative Guidance, and the use 
of intrastate activities to meet the multistate requirements. Three of 
the commenters felt that resetting and reconfirming the target 
percentages would be a significant burden to the institutions. While 
NIFA realizes this may be a significant burden to some institutions, 
institutions are required to either expend the lesser of 25 percent or 
twice the percentage amount they spent in FY 1997 of their Smith-Lever 
Act funds on multistate extension activities and the lesser of 25 
percent or twice the percentage amount they spent in FY 1997 of their 
Hatch Act and Smith-Lever Act funds on integrated activities. Three 
commenters requested clarification if two staff people need to be 
working on an activity for it to be considered ``integrated.'' Two 
people do not need to be working on an activity for it to be 
``integrated.'' The misleading text has been deleted from the 
Administrative Guidance. There were two comments about the effective 
date of the Administrative Guidance and the time period to which it 
applies. Although the Administrative Guidance is effective upon 
publication in the Federal Register, the approved revised and 
reconfirmed target percentages do not apply until FY 2011. Two 
commenters stated that although their institution may not meet the 
target percentages for multistate and extension activities with Federal 
funds, they would if the entire funding portfolio was considered (e.g., 
state and local funds). They requested that non-Federal funds be used 
to meet these requirements. While NIFA can appreciate this, the 
legislation applies to the Federal funds only. Five respondents 
commented that the use of formal agreements to document multistate 
extension activities was overly burdensome. The Administrative Guidance 
does not require formal agreements to support eligible multistate 
extension activities. One commenter asked if they could use intrastate 
activities to meet the multistate extension requirements. Institutions 
may not use intrastate activities to meet these requirements as the 
legislation requires activities that involve more than one state. 
Finally, two commenters stated that the Administrative Guidance was 
clear and helpful.

Time Line for Implementation

    Although this Interim Administrative Guidance is effective upon 
publication in the Federal Register, NIFA is requesting comments during 
a 60-day period. These comments will be considered and incorporated in 
the final version of the Administrative Guidance. NIFA is requesting 
that institutions either reset or reconfirm their target percentages 
for multistate extension and integrated activities by September 30, 
2010. NIFA will review and approve these target percentages by October 
29, 2010. These approved target percentages will be effective October 
1, 2010.

Paperwork Reduction Act

    In accordance with the Office of Management and Budget (OMB) 
regulations (5 CFR part 1320) that implement the Paperwork Reduction 
Act of 1995, as amended (44 U.S.C. Chapter 35), the information and 
recordkeeping requirements imposed by the implementation of this 
guidance were approved under OMB Information Collection No. 0524-0036, 
``Reporting Requirements for the State Plans of Work for Agricultural 
Research and Extension Formula Funds.''
    Pursuant to the requirements for multistate extension activities 
and integrated research and extension activities enacted in the 
Agricultural Research, Extension, and Education Reform Act of 1998, 
NIFA hereby implements the Administrative Guidance for Multistate 
Extension Activities and Integrated Research and Extension Activities:

Interim Administrative Guidance for Multistate Extension Activities and 
Integrated Research and Extension Activities

I. Preface and Authority
II. Definitions
III. Multistate Extension Activities
    A. Establishment of the Target Percentage
    B. Submission of the Supplement to the 5-Year Plan of Work
    C. Annual Report of Accomplishments and Results
    D. Waivers
IV. Integrated Activities (Hatch Act Funds)
    A. Establishment of the Target Percentage
    B. Submission of the Supplement to the 5-;Year Plan of Work
    C. Annual Report of Accomplishments and Results
    D. Waivers
V. Integrated Activities (Smith-Lever Act Funds only)
    A. Establishment of the Target Percentage
    B. Submission of the Supplement to the 5-Year Plan of Work
    C. Annual Report of Accomplishments and Results
    D. Waivers
VI. Submission of Forms
Appendix A--FY 1997 Hatch Act and Smith-Lever Act Allocations
Appendix B--Forms
    Form NIFA-TARG (Rev. 07/2010), Establishment of Target 
Percentages for Multistate Extension Activities and Integrated 
Activities
    Form NIFA-BASE (Rev. 07/2010), Establishment of Fiscal Year (FY) 
1997 Baselines for Multistate Extension Activities and Integrated 
Activities, Summary of FY 1997 Planned Programs/Activities and 
Expenditures
    Form NIFA-PLAN (Rev. 07/2010), Supplement to the 5-Year Plan of 
Work, Multistate Extension Activities and Integrated Extension 
Activities
    Form NIFA-REPT (Rev. 07/2010), Supplement to the Annual Report 
of Accomplishments and Results, Multistate Extension Activities and 
Integrated Activities
    Form NIFA-WAIVER (07/2010), Request for Waiver from Target 
Percentage for Multistate Extension Activities and Integrated 
Activities
Appendix C--Frequently Asked Questions
    All appendices are available at http://www.nifa.usda.gov/business/reporting/planrept/plansofwork.html.

I. Preface and Authority

    Section 105 of the Agricultural Research, Extension, and Education

[[Page 48923]]

Reform Act of 1998 (AREERA) amended the Smith-Lever Act to require that 
each institution receiving extension formula funds under sections 3(b) 
and (c) of the Smith-Lever Act expend for multistate activities in FY 
2000 and thereafter a percentage that is at least equal to the lesser 
of 25 percent or twice the percentage of funds expended by the 
institution for multistate activities in FY 1997 (7 U.S.C. 343(h)). 
Section 204 of AREERA amended both the Hatch and the Smith-Lever Acts 
to require that each institution receiving agricultural research and 
extension formula funds under the Hatch Act and sections 3(b) and (c) 
of the Smith-Lever Act expend for integrated research and extension 
activities in FY 2000 and thereafter a percentage that is at least 
equal to the lesser of 25 percent or twice the percentage of funded 
expended by the institution for integrated research and extension 
activities in FY 1997 (7 U.S.C. 343(i) & 361c(i)). These sections also 
require that the institutions include in the plan of work a description 
of the manner in which they will meet these multistate and integrated 
requirements.
    These applicable percentages apply to the Federal agricultural 
research and extension formula funds only. Federal formula funds that 
are used by the institution for a fiscal year for integrated activities 
may also be counted to satisfy the multistate activities requirement.
    The multistate extension and the integrated research and extension 
activities do not apply to the formula funds received by American 
Samoa, Guam, Micronesia, Northern Marianas, Puerto Rico, and the Virgin 
Islands. Since the Smith-Lever Act is not directly applicable, the 
multistate and integrated extension requirements do not apply to 
extension funds received by the District of Columbia.
    The amendments made by sections 105 and 204 of AREERA also provide 
that the Secretary of Agriculture may reduce the minimum percentage 
required to be expanded by the institution for multistate and 
integrated activities in the case of hardship, infeasibility, or other 
similar circumstance beyond the control of the institution.

II. Definitions

    For the purposes of implementing sections 105 and 204 of AREERA, 
the following definitions are applicable:
    Activities mean either research projects or extension programs.
    Formula Funds means, for the purpose of the multistate extension 
activities and integrated activities guidance, the Federal mean formula 
funding provided to the 1862 Land-Grant Institutions under section 3 of 
the Hatch Act of 1887, as amended (7 U.S.C. 361c) and sections 3(b)(1) 
and (c) of the Smith-Lever Act, as amended (7 U.S.C. 343(b)(1) and 
(c)).
    Integrated activities means jointly planned, funded, and interwoven 
activities between research and extension to solve problems. This 
includes the generation of knowledge and the transfer of information 
and technology.
    Multistate activities means collaborative efforts that reflect the 
programs of institutions located in at least two or more States or 
territories.
    Planned Programs means collections of research projects or 
activities and/or extension programs or activities.

III. Multistate Extension Activities

A. Reconfirm or Reset Target Percentages

    By September 30, 2010, each 1862 Land-Grant Institution must 
reconfirm or reset their Target Percentage for multistate extension 
activities. Institutions have a choice of two options: (A) Target 25 
percent which will automatically waive the requirement to report on the 
FY 1997 expenditures for multistate extensions activities; or (B) 
Target a percentage which is two times the FY 1997 expenditures for 
multistate extension activities (commonly referred to as the FY 1997 
baseline) but less than 25 percent. Institutions will use Form NIFA-
TARG (Rev. 07/2010), Establishment of Target Percentages for Multistate 
Extension Activities and Integrated Activities, to select their option. 
If an institution wishes to reconfirm their original Target Percentage, 
they should forward a copy of the original Form NIFA-TARG (Rev. 07/
2010) and Form NIFA-BASE (Rev. 07/2010) to the NIFA Formula Grants 
Section, Awards Management Branch, with a memo that the 1862 Land-Grant 
Institution is reconfirming the original Target Percentages set in FY 
2000. Institutions selecting Option B for the first time also are 
required to report by September 30, 2010, the amount of FY 1997 funds 
allocated under sections 3(b) and (c) of the Smith-Lever Act (i.e., the 
regular allocation only) and expended on multistate extension 
activities during the period from October 1, 1996, through September 
30, 1997. These institutions will use Form NIFA-BASE (Rev. 07/2010), 
Establishment of Fiscal Year (FY) 1997 Baselines for Multistate 
Extension Activities and Integrated Activities. When completing this 
form, institutions may opt to report on the planned program level which 
is a collection of extension programs or activities. Please see 
Appendix A for the total amount of Smith-Lever Act sections 3(b) and 
(c) funds that were allocated to the 1862 Land-Grant Institutions in FY 
1997. The requirement to submit Form NIFA-BASE (Rev. 07/2010) is 
automatically waived for those institutions selecting Option A. States 
who were unable to document FY 1997 baseline expenditures must select 
Option A which is 25 percent.
    The term ``Multistate activities'' means collaborative efforts that 
reflect the programs of institutions located in at least two or more 
States or territories. Each participating State or territory must be a 
collaborator towards objectives and involved in the outcomes. Evidence 
of this collaboration should have been documented through the formal 
agreements, letters of memorandum, contracts, grants, or other 
documents that provide primary evidence that a multistate relationship 
exists. Please note that formal agreements are not required. As 
mentioned in the Preface, this requirement applies to the Federal 
formula funds only and will apply to the Smith-Lever Act section 3(b) 
and (c) funds (i.e., the regular allocation only). Examples of 
multistate extension activities may include committees, projects, 
training, workshops, centers, and meetings that involve more than one 
State or territory.

B. Submission of Supplement to the 5-Year Plan of Work Update

    Each institution also is required to submit Form NIFA-PLAN (Rev. 
07/2010), Supplement to the 5-Year Plan of Work, Multistate Extension 
Activities and Integrated Activities, for all multistate extension 
activities that will be supported by the Smith-Lever Act section 3(b) 
and (c) funds used to satisfy the AREERA section 105 requirement for 
multistate extension activities. This form should be completed each 
fiscal year to reflect the 5-Year Plan of Work updated and submitted in 
the AREERA State Plan of Work Information System. Institutions should 
use the prior fiscal year amount (e.g., use the FY 2009 allocation 
amount for the FY 2011-2015 reporting requirement due in FY 2010) as a 
basis for planning programs and/or activities to meet the AREERA 
section 105 requirements. Please note that compliance with section 105 
of AREERA will be determined by the institution meeting the Target 
Percentage of the actual formula allocation for the applicable fiscal 
year. This form (NIFA-TARG (Rev. 07/2010)) is due to the NIFA Formula 
Grants

[[Page 48924]]

Section, Awards Management Branch, by April 1st each fiscal year and 
should complement the 5-Year Plan of Work. A brief statement of each 
planned program or activity is required and must be attached to this 
form. However, in lieu of these brief statements, institutions may 
refer to information on multistate extension activities reported in the 
5-Year Plan of Work, if such information clearly describes multistate 
extension planned programs and/or activities as listed on Form NIFA-
PLAN (Rev. 07/2010).

C. Annual Report of Accomplishments and Results

    Form NIFA-REPT (Rev. 07/2010), Supplement to the Annual Report of 
Accomplishments and Results, Multistate Extension Activities and 
Integrated Activities, will be due on April 1st each year and must be 
submitted as a summary of the multistate extension planned programs or 
activities that have been used to satisfy the requirements of AREERA 
section 105. The form has been designed so that each institution will 
submit only one form with attached brief summaries for each fiscal 
year. The form allows for the reporting on all three AREERA 
requirements: Hatch integrated; Smith-Lever multistate; and Smith-Lever 
integrated and includes a certification statement. One form should be 
submitted for each fiscal year; and current fiscal year funds should 
not be commingled with funds from prior fiscal years. If you are 
carrying over AREERA multistate and integrated requirements from a 
previous fiscal year and both requirements are satisfied in a later 
fiscal year, the Form NIFA-REPT (Rev. 07/2010) should be marked 
``Final'' for that fiscal year. If you are carrying over these AREERA 
requirements into the next fiscal year, the Form NIFA-REPT (Rev. 07/
2010) should be marked ``Interim'' for that fiscal year in which the 
funds were first allocated. Do not submit a ``Final'' report for any 
fiscal year until the full requirement has been met for all three 
AREERA requirements. If you know that you will be unable to meet your 
AREERA requirements for any fiscal year, please contact NIFA Formula 
Grants Section, Awards Management Branch, via email as soon as 
possible. NIFA may be required to reduce your allocation by the Target 
Percentage amount not met, as these costs will be disallowed. Brief 
statements or summaries describing the activities performed and the 
progress to date on each planned program or activity must be attached 
to this form. Although the Annual Report describes in detail the goals 
and accomplishments for an institution's entire program, a brief 
description of the Multistate Extension Activities for each program 
listed in the NIFA-REPT (Rev. 07/2010) form must be attached. Please 
note that amounts on these forms are subject to audit. This form is due 
each fiscal year on April 1st and should be submitted to the NIFA 
Formula Grants Section, Awards Management Branch.

D. Waivers

    A waiver may be requested for failure to meet the AREERA section 
105 requirement. Eligible institutions may request a waiver for this 
purpose when one of the following criteria is met: (1) Infeasibility, 
(2) hardship, or (3) other circumstances beyond control of the State. 
The waiver request and supporting documentation should be addressed to 
NIFA Director and forwarded to the NIFA Formula Grants Section, Awards 
Management Branch. Waivers can only be granted on an annual basis and 
may be processed as either a pre-waiver or a post-waiver. A pre-waiver 
must be submitted prior to October 1st of the fiscal year. A post-
waiver must be submitted with the other AREERA Section 105 reporting 
requirements due April 1st. Institutions must use Form NIFA-WAIVER (07/
2010), Request for Waiver from Target Percentage for Multistate 
Extension Activities and Integrated Activities, to request a reduction 
in the minimum percentage required to be expended for multistate 
extension activities. The waiver request should be signed by the 
appropriate institutional official (i.e., Dean or Director). To 
expedite the consideration of the waiver request, the institution 
should include the following elements in the request letter:
    (a) A request for the waiver by grant;
    (b) A statement of the fiscal year for which the waiver is 
requested;
    (c) A statement of the amount of the waiver being requested by 
fiscal year and how the amount was computed;
    (d) A statement of why the waiver is required;
    (e) Documentation supporting the need for a waiver; and
    (f) The university's efforts to meet the AREERA section 105 
requirements in the future. NIFA will approve or disapprove these 
waiver requests within 60 days of receipt. As stated above, waivers 
will be granted in cases of hardship, infeasibility, or other 
circumstances beyond the control of the States.

IV. Integrated Research and Extension Activities (Hatch Act Funds)

A. Reconfirm or Reset Target Percentages

    By September 30, 2010, each 1862 Land-Grant Institution must 
reconfirm or reset their Target Percentage for integrated research and 
extension activities authorized under the Hatch Act. Institutions have 
a choice of two options: (A) Target 25 percent which will automatically 
waive the requirement to report on the FY 1997 expenditures for 
integrated research and extension activities; or (B) Target a 
percentage which is two times the FY 1997 expenditures for integrated 
research and extension activities (commonly referred to as the FY 1997 
baseline) but less than 25 percent. Institutions will use Form NIFA-
TARG (Rev. 07/2010), Establishment of Target Percentages for Multistate 
Extension Activities and Integrated Activities, to select their option. 
If an institution wishes to reconfirm their original Target Percentage, 
they should forward a copy of the original Form NIFA-TARG (Rev. 07/
2010) and Form NIFA-BASE (Rev. 07/2010) to the NIFA Formula Grants 
Section, Awards Management Branch, with a memo that the 1862 Land-Grant 
Institution is reconfirming the original Target Percentages set in FY 
2000. Institutions selecting Option B for the first time also are 
required to report by September 30, 2010, the amount of FY 1997 funds 
allocated under the Hatch Act and expended on integrated research and 
extension activities during the period from October 1, 1996, through 
September 20, 1997. These institutions will use Form NIFA-BASE (Rev. 
07/2010), Establishment of Fiscal Year (FY) 1997 Baselines for 
Multistate Extension Activities and Integrated Activities. When 
completing this form, institutions may opt to report on the planned 
program level which is a collection of integrated research and 
extension programs or activities. Please see Appendix A for the total 
amount of the Hatch Act funds that were allocated to the 1862 Land-
Grant Institutions in FY 1997. The requirement to submit Form NIFA-BASE 
(Rev. 07/2010) is automatically waived for those institutions selecting 
Option A. States who were unable to document FY 1997 baseline 
expenditures must select Option A which is 25 percent.
    Integrated activities mean jointly planned, funded, and interwoven 
activities between research and extension to solve problems. This 
includes the generation of knowledge and the transfer of information 
and technology. As mentioned in the

[[Page 48925]]

Preface, this requirement applies to the Federal formula funds only and 
will apply to all funds authorized and allocated under the Hatch Act, 
including Hatch Multistate Research Fund. Examples of integrated 
activities include joint research and extension personnel appointments. 
In addition, integrated activities may include coordinating committees, 
workshops, training, centers, projects, and meetings as long as they 
meet the definition of ``integrated activities.''

B. Submission of Supplement to the 5-Year Plan of Work Update

    Each institution also is required to submit Form NIFA-PLAN (Rev. 
07/2010), Supplement to the 5-Year Plan of Work, Multistate Extension 
Activities and Integrated Activities, for all integrated research and 
extension activities that will be supported by the Hatch Act funds used 
to satisfy the AREERA section 204 requirement for integrated research 
and extension activities. This form should be completed each fiscal 
year to reflect the 5-Year Plan of Work updated and submitted in the 
AREERA State Plan of Work Information System. Institutions should use 
the prior fiscal year amount (e.g., use the FY 2009 allocation amount 
for the FY 2011-2015 reporting requirement due in FY 2010) as a basis 
for planning programs and/or activities to meet the AREERA section 204 
requirements. Please note that compliance with section 204 of AREERA 
will be determined by the institution meeting the Target Percentage of 
the actual formula allocation for the applicable fiscal year. This form 
(NIFA-TARG (Rev. 07/2010)) is due to the NIFA Formula Grants Section, 
Awards Management Branch, by April 1st each fiscal year and should 
complement the 5-Year Plan of Work. A brief statement of each planned 
program or activity is required and must be attached to this form. 
However, in lieu of these brief statements, institutions may refer to 
information on integrated activities reported in the 5-Year Plan of 
Work, if such information clearly describes integrated planned programs 
and/or activities as listed on Form NIFA PLAN (Rev. 07/2010).

C. Annual Report of Accomplishments and Results

    Form NIFA-REPT (Rev. 07/2010), Supplement to the Annual Report of 
Accomplishments and Results, Multistate Extension Activities and 
Integrated Activities, will be due April 1st each year and must be 
submitted as a summary of the integrated research and extension planned 
programs or activities that have been used to satisfy the requirements 
of AREERA section 204. The form has been designed so that each 
institution will submit only one form with attached brief summaries for 
each fiscal year. The form allows for the reporting on all three AREERA 
requirements: Hatch integrated; Smith-Lever multistate; and Smith-Lever 
integrated and includes a certification statement. One form should be 
submitted for each fiscal year; and current fiscal year funds should 
not be commingled with funds from prior fiscal years. If you are 
carrying over AREERA multistate and integrated requirements from a 
previous fiscal year and both requirements are satisfied in a later 
fiscal year, the Form NIFA-REPT (Rev. 07/2010) should be marked 
``Final'' for that fiscal year. If you are carrying over these AREERA 
requirements into the next fiscal year, the Form NIFA-REPT (Rev. 07/
2010) should be marked ``Interim'' for that fiscal year in which the 
funds were first allocated. Do not submit a ``Final'' report for any 
fiscal year until the full requirement has been met for all three 
AREERA requirements. If you know that you will be unable to meet your 
AREERA requirements for any fiscal year, please contact the NIFA 
Formula Grants Section, Awards Management Branch, via email as soon as 
possible. NIFA may be required to reduce your allocation by the Target 
Percentage amount not met, as these costs will be disallowed. Brief 
statements or summaries describing the activities performed and the 
progress to date on each planned program or activity must be attached 
to this form. Although the Annual Report describes in detail the goals 
and accomplishments for an institution's entire program, a brief 
description of the Integrated Research and Extension Activities for 
each program listed in the NIFA-REPT (Rev. 07/2010) form must be 
attached. Please note that amounts on these forms are subject to audit. 
This form is due each fiscal year on April 1st and should be submitted 
to the NIFA Formula Grants Section, Awards Management Branch.

D. Waivers

    A waiver may be requested for failure to meet the AREERA section 
204 requirement. Eligible institutions may request a waiver for this 
purpose when one of the following criteria is met: (1) Infeasibility, 
(2) hardship, or (3) other circumstances beyond the control of the 
State. The waiver request and supporting documentation should be 
addressed to the NIFA Director and forwarded to the NIFA Formula Grants 
Section, Awards Management Branch. Waivers can only be granted on an 
annual basis and may be processed as either a pre-waiver or a post-
waiver. A pre-waiver must be submitted prior to October 1st of the 
fiscal year. A post-waiver must be submitted with the other AREERA 
Section 204 reporting requirements due April 1st. Institutions must use 
Form NIFA-WAIVER (Rev. 07/2010), Request for Waiver from Target 
Percentage for Multistate Extension Activities and Integrated 
Activities, to request a reduction in the minimum percentage required 
to be expended for integrated research and extension activities. The 
waiver request should be signed by the appropriate institutional 
official (i.e., Dean or Director). To expedite the consideration of the 
waiver request, the institution should include the following elements 
in the requested letter:
    (a) A request for the waiver by grant;
    (b) A statement of the fiscal year for which the waiver is 
requested;
    (c) A statement of the amount of the waiver being requested by 
fiscal year and how the amount was computed;
    (d) A statement of why the waiver is required;
    (e) Documentation supporting the need for a waiver; and
    (f) The university's efforts to meet the AREERA section 204 
requirements in the future. NIFA will approve or disapprove these 
waiver requests within 60 days of receipt. As stated above, waivers 
will be granted in cases of hardship, infeasibility, or other 
circumstances beyond the control of the States.

V. Integrated Research and Extension Activities (Smith-Lever Act Funds)

A. Reconfirm or Reset Target Percentages

    By September 30, 2010, each 1862 Land-Grant Institution must 
reconfirm or reset their Target Percentage for integrated research and 
extension activities authorized under the Smith-Lever Act. Institutions 
have a choice of two options: (A) Target 25 percent which will 
automatically waive the requirement to report on the FY 1997 
expenditures for integrated research and extension activities; or (B) 
Target a percentage which is two times the FY 1997 expenditures for 
integrated research and extension activities (commonly referred to as 
the FY 1997 baseline) but less than 25 percent. Institutions will use 
Form NIFA-TARG (Rev. 07/2010), Establishment of Target Percentages for 
Multistate Extension Activities and Integrated Activities, to select 
their option. If an institution wishes to reconfirm their original 
Target

[[Page 48926]]

Percentage, they should forward a copy of the original Form NIFA-TARG 
(Rev. 07/2010) and Form NIFA-BASE (Rev. 07/2010) to the Formula Grants 
Section, Awards Management Branch, with a memo that the 1862 Land-Grant 
Institution is reconfirming the original Target Percentages set in FY 
2000. Institutions selecting Option B for the first time also are 
required to report by September 30, 2010, the amount of FY 1997 funds 
allocated under the Smith-Lever Act and expended on integrated research 
and extension activities during the period from October 1, 1996, 
through September 30, 1997. These institutions will use Form NIFA-BASE 
(Rev. 07/2010), Establishment of Fiscal Year (FY) 1997 Baselines for 
Multistate Extension Activities and Integrated Activities. When 
completing this form, institutions may opt to report on the planned 
program level which is collection of integrated research and extension 
programs or activities. Please see Appendix A for the total amount of 
Smith-Lever Act funds that were allocated to the 1862 Land-Grant 
Institutions in FY 1997. The requirement to submit Form NIFA-BASE (Rev. 
07/2010) is automatically waived for those institutions selecting 
Option A. States who were unable to document FY 1997 baseline 
expenditures must select Option A which is 25 percent.
    Integrated activities means jointly planned, funded, and interwoven 
activities between research and extension to solve problems. This 
includes the generation of knowledge and the transfer of information 
and technology. As mentioned in the Preface, this requirement applies 
to the Federal formula funds only and will apply to all funds 
authorized and allocated under the Smith-Lever Act. Examples of 
integrated activities include joint research and extension personnel 
appointments. In addition, integrated activities may include 
coordinating committees, workshops, training, centers, projects, and 
meetings as long as they meet the definition of ``integrated 
activities.''

B. Submission of Supplement to the 5-Year Plan of Work Update

    Each institution also is required to submit Form NIFA-PLAN (Rev. 
07/2010), Supplement to the 5-Year Plan of Work, Multistate Extension 
Activities and Integrated Activities, for all integrated research and 
extension activities that will be supported by the Smith-Lever Act 
funds used to satisfy the AREERA section 204 requirement for integrated 
research and extension activities. This form should be completed each 
fiscal year to reflect the 5-Year Plan of Work updated and submitted in 
the AREERA State Plan of Work Information System. Institutions should 
use the prior fiscal year amount (e.g., use the FY 2009 allocation 
amount for the FY 2011-2015 reporting requirement due in FY 2010) as a 
basis for planning programs and/or activities to meet the AREERA 
section 204 requirements. Please note that compliance with section 204 
of AREERA will be determined by the institution meeting the Target 
Percentage of the actual formula allocation for the applicable fiscal 
year. This form (NIFA-TARG (Rev. 07/2010)) is due to the NIFA Formula 
Grants Section, Awards Management Branch, by April 1st each fiscal year 
and should complement the 5-Year Plan of Work. A brief statement of 
each planned program or activity is required and must be attached to 
this form. However, in lieu of these brief statements, institutions may 
refer to information on integrated activities reported in the 5-Year 
Plan of Work, if such information clearly describes integrated planned 
programs and/or activities as listed on Form NIFA PLAN (Rev. 07/2010).

C. Annual Report of Accomplishments and Results

    Form NIFA-REPT (Rev. 07/2010) Supplement to the Annual Report of 
Accomplishments and Results, Multistate Extension Activities and 
Integrated Activities, will be due April 1st each year and must be 
submitted as a summary of the integrated research and extension planned 
programs or activities that have been used to satisfy the requirements 
of AREERA section 204. The form has been designed so that each 
institution will submit only one form with attached brief summaries for 
each fiscal year. The form allows for the reporting on all three AREERA 
requirements: Hatch integrated; Smith-Lever multistate; and Smith-Lever 
integrated and includes a certification statement. One form should be 
submitted for each fiscal year, and current fiscal year funds should 
not be commingled with funds from prior fiscal years. If you are 
carrying over AREERA multistate and integrated requirements from a 
previous fiscal year and both requirements are satisfied in a later 
fiscal year, the Form NIFA-REPT (Rev. 07/2010) should be marked 
``Final'' for that fiscal year. If you are carrying over these AREERA 
requirements into the next fiscal year, the Form NIFA-REPT (Rev. 07/
2010) should be marked ``Interim'' for that fiscal year in which the 
funds were first allocated. Do not submit a ``Final'' report for any 
fiscal year until the full requirement has been met for all three 
AREERA requirements. If you know that you will be unable to meet your 
AREERA requirements for any fiscal year, please contact NIFA Formula 
Grants Section, Awards Management Branch, via e-mail as soon as 
possible. NIFA may be required to reduce your allocation by the Target 
Percentage amount not met, as these costs will be disallowed. Brief 
statements or summaries describing the activities performed and the 
progress to date on each planned program or activity must be attached 
to this form. Although the Annual Report describes in detail the goals 
and accomplishments for an institution's entire program, a brief 
description of the Integrated Research and Extension Activities for 
each program listed in the NIFA-REPT (Rev. 07/2010) form must be 
attached. Please note that amounts on these forms are subject to audit. 
This form is due each fiscal year on April 1st and should be submitted 
to the NIFA Formula Grants Section, Awards Management Branch.

D. Waivers

    A waiver may be requested for failure to meet the AREERA section 
204 requirement. Eligible institutions may request a waiver for this 
purpose when one of the following criteria is met: (1) Infeasibility, 
(2) hardship, or (3) other circumstances beyond the control of the 
State. The waiver request and supporting documentation should be 
addressed to the NIFA Director and forwarded to the NIFA Formula Grants 
Section, Awards Management Branch. Waivers can only be granted on an 
annual basis and may be processed as either a pre-waiver or a post-
waiver. A pre-waiver must be submitted prior to October 1st of the 
fiscal year. A post-waiver must be submitted with the other AREERA 
Section 204 reporting requirements due April 1st. Institutions must use 
Form NIFA-WAIVER (Rev. 07/2010), Request for Waiver from Target 
Percentage for Multistate Extension Activities and Integrated 
Activities, to request a reduction in the minimum percentage required 
to be expended for integrated research and extension activities. The 
waiver request should be signed by the appropriate institutional 
official (i.e., Dean or Director). To expedite the consideration of the 
waiver request, the institution should include the following elements 
in the requested letter:
    (a) A request for the waiver by grant;
    (b) A statement of the fiscal year for which the waiver is 
requested;

[[Page 48927]]

    (c) A statement of the amount of the waiver being requested by 
fiscal year and how the amount was computed;
    (d) A statement of why the waiver is required;
    (e) Documentation supporting the need for a waiver; and
    (f) The university's efforts to meet the AREERA section 204 
requirements in the future. NIFA will approve or disapprove these 
waiver requests within 60 days of receipt. As stated above, waivers 
will be granted in cases of hardship, infeasibility, or other 
circumstances beyond the control of the State.

VI. Submission of Forms

    All forms collected under this Interim Administrative Guidance 
should be submitted electronically to [email protected] 
or via fax on (202) 401-7752.

    Dated: Done at Washington, DC, this 2nd day of August 2010.
Roger Beachy,
Director, National Institute of Food and Agriculture.
[FR Doc. 2010-19629 Filed 8-11-10; 8:45 am]
BILLING CODE 3410-22-P