[Federal Register Volume 86, Number 204 (Tuesday, October 26, 2021)]
[Rules and Regulations]
[Pages 59035-59039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22999]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 38

RIN 2900-AR00


Veterans Legacy Grants Program

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is establishing in 
regulation the Veterans Legacy Grants Program (VLGP), which will 
provide funding to educational institutions and other eligible entities 
to conduct cemetery research and produce educational tools for the 
public to utilize and learn about the histories of Veterans interred in 
VA national cemeteries and VA grant-funded State and Tribal Veterans' 
cemeteries.

DATES: This rule is effective November 26, 2021.

FOR FURTHER INFORMATION CONTACT: Tim Nosal, Deputy Director, Office of 
Engagement and Memorial Innovations, National Cemetery Administration, 
Department of Veterans Affairs, 810 Vermont Avenue NW, Washington, DC 
20420, (202) 443-5601. (This is not a toll-free telephone number.)

SUPPLEMENTARY INFORMATION: On March 26, 2021, VA published a proposed 
rule in the Federal Register (86 FR 16165) that would implement VA's 
statutory authority to establish the VLGP. The public comment period 
ended on May 25, 2021, and VA received 11 comments in response to the 
proposed rule. Four commenters expressed support for the rulemaking and 
the VLGP, and we appreciate the positive feedback. We agree that the 
VLGP promotes and recognizes the sacrifices of those who came before us 
and highlights Veterans' contributions. Veterans deserve final resting 
places that recognize their accomplishments and sacrifices, and the 
VLGP serves as a mechanism to support this outcome. VA agrees that 
making this grant program available to ``educational institutions'' at 
all levels of school systems promotes inclusion and diversity of 
perspective. Grants and opportunities provided by the VLGP are 
substantial ways to bring communities together in support of our 
Veterans. VA is committed to preserving Veterans' legacies through the 
award of meaningful grants that support innovative and engaging ways to 
memorialize Veterans in perpetuity. In the following discussion, we 
address questions and suggestions for this rulemaking from seven 
commenters.
    One commenter suggested that VA consider including museums as a 
type of educational institution eligible to participate in this grant 
program. We agree that museums should be eligible to participate and 
note that a museum could be considered under either Sec.  38.715(c)(3) 
as an eligible non-profit entity or Sec.  38.715(c)(5) as an eligible 
recipient if deemed appropriate by the Secretary. Specifically, under 
Sec.  38.715(c)(3), a museum that is a non-profit entity and has a 
demonstrated history of community engagement pertinent to the projects 
described in a Notice of Funding Availability (NOFA) could be eligible 
to receive a VLGP grant. Alternatively, even if a museum does not meet 
those criteria, it could nonetheless be eligible under Sec.  
38.715(c)(5) if the Secretary deems it an appropriate recipient based 
on other considerations. We note that prior to the VLGP authority, VA, 
through the Veterans Legacy Program (VLP), awarded contracts to 
museums, state historical societies, and humanities councils, and we 
will continue to afford those entities the opportunity to support VA by 
participating in the VLGP. Based on the foregoing reasons, VA will make 
no changes to the rulemaking based on this comment.
    One commenter noted a few issues in the proposed rule that were 
vague and required additional information. The commenter inquired about 
the ways in which VA intends to make the research produced through 
these grants publicly accessible. The commenter asked whether 
researchers would share information online, on tombstones, or in 
another way to ensure the public's understanding of the services 
provided by Veterans. The National Cemetery Administration (NCA) 
maintains several public resources (e.g., VA websites, social media, 
lesson plans, interactive maps, and short video vignettes) that make 
information about Veterans accessible. Examples of Veteran information 
include inscription information on gravesite markers or other digital 
exhibits of photographs and video or audio clips that showcase a 
grantee's work. Research conducted under a VLGP grant could be 
published on some of those public resources as well as other agency 
sites depending on the nature of the information and grant 
requirements.
    The commenter also questioned how the VLGP will ensure increased 
community engagement and monitor this important aspect of the grant 
program. Based on existing VLP projects, VLGP projects will continue 
community engagement through a variety of programmatic activities 
(e.g.,

[[Page 59036]]

campus fairs, Memorial Day celebrations, scholars presenting at 
national conferences, articles being published on the findings, and 
books being developed). A grant applicant's proposal for community 
engagement would be described in response to the relevant NOFA and 
within the grant application for VA review.
    Regarding the commenter's question about monitoring community 
engagement and ensuring increases in those activities, we note that 
Sec.  38.775 provides that VA will conduct compliance reviews, site 
visits, and inspections of grantee locations and records as a means of 
monitoring grant activity. Inherent in each NOFA will be VA's 
assessment of a project's need for and interest in community engagement 
and other activities that promote Veteran histories. For each 
application, NCA will review the applicant's plans to meet the 
project's purpose. For example, if a grant awardee submitted a proposal 
for VLGP funds for the purpose of presenting its research on a local 
Veterans cemetery at a conference, VA would monitor and review the 
development of materials, monitor preparation for the event, and assess 
the public's reception of the presentation to determine whether the 
grantee successfully met this requirement. By targeting community 
engagement activities in each NOFA and monitoring the grantee's post-
award fulfilment of that grant requirement through site visits, 
compliance reviews, and other interactions, VA can measure and monitor 
increases and outcomes of those activities. For the foregoing reasons, 
VA will make no changes to the rulemaking based on this comment.
    One commenter suggested that VA needs to make sure that the 
community is interested in these stories and that educators are wanting 
to receive this information. VA intends to share these stories and 
products of the VLGP research through multiple promotional outlets, 
which include but are not limited to news releases, fact sheets, 
websites, social media pages, and email listservs. These promotional 
tools target individuals and Veteran communities interested in learning 
the stories of our nation's Veterans and promote products of the VLGP 
to members of the public who may not be familiar with our Veterans' 
stories. This commenter also encouraged VA to create awareness of the 
Veterans' stories through publications informing the community. As 
mentioned, the VLGP will utilize articles, interactive guides, 
curricula, and various tools to publish findings across multiple 
platforms. The purpose of the VLGP is to foster interest and engagement 
in the history of service and sacrifice of Veterans interred in VA 
national cemeteries. VLGP seeks to provide educational programs in 
which teachers or professors introduce their students to researching 
Veterans and then share that research with the community.
    The commenter also contended that VA does not want educators to 
replace their courses of instruction with information on soldiers' 
backgrounds, which could deter educators from using this data in the 
classroom. The commenter suggested that VA should ``look into using 
this data on the Army or Air Force's website or at recruitment fairs'' 
to inform the public of military tasks and duties. We appreciate the 
commenter's concerns and suggestions. To clarify, VLGP grant-funded 
projects will not substitute educational instruction or courses of 
study, but educators are encouraged to incorporate information or data 
generated from such projects in courses of instruction. To the extent 
VA collaborates with its Department of Defense partners, information 
and data gathered from VLGP grant-funded research could be utilized to 
promote recruitment and for other purposes. VA hopes that VLGP grant-
funded projects may serve as the basis for other creative outlets that 
reach a wide variety of audiences. We thank the commenter for the 
expressed opinions about the purpose and use of VLGP grant research, 
but VA will make no changes to the rulemaking based on this comment.
    Two commenters expressed the need for clarity about the origination 
of funds for this grant program and sought understanding on the overall 
grants process for the VLGP. VA is authorized to award grants from 
operational funds not to exceed $500,000. We appreciate the commenters' 
concerns but will make no changes based on these comments.
    One commenter inquired about the impact of the 2020 pandemic on the 
potential pool of grants and questioned funding availability for new or 
expanded Veteran projects. The VLP continued normal operations during 
the pandemic and has not encountered significant impacts. Once the 
final rule becomes effective, VA will fund the VLGP through operational 
funds, and by law, grant awards may not exceed $500,000. VA will make 
no changes to the rulemaking based on this comment.
    VA appreciates the commenter who suggested that the VLGP recognize 
fallen first responders and police officers who were killed in the line 
of duty in the same way as fallen soldiers. The commenter added that 
students should be taught about officers who gave their lives to 
protect them and made other contributions to their community to help 
rebuild relationships. Because VA's mission and scope of programs and 
services are limited to those with qualifying military service and 
their eligible spouses and dependents, expanding the scope to include 
first responders and police officers without qualifying military 
service would not be supported by current authorities. However, there 
is nothing that would prevent VA from highlighting a Veteran's 
contributions to his or her local community through service in the 
police force or other meaningful ways as part of a VLGP grant project. 
No changes to the regulatory text will be made based on this comment.
    Accordingly, the proposed rule is adopted as a final rule without 
change.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
The Office of Information and Regulatory Affairs has determined that 
this final rule is not a significant regulatory action under Executive 
Order 12866. The Regulatory Impact Analysis associated with this 
rulemaking can be found as a supporting document at 
www.regulations.gov.

Paperwork Reduction Act

    This final rule includes provisions at 38 CFR 38.730 constituting a 
new collection of information under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3521) that require approval by the Office of Management 
and Budget (OMB). Accordingly, under 44 U.S.C. 3507(d), VA submitted a 
copy of this rulemaking action to OMB for review and approval. OMB has 
reviewed and approved this new collection of information and assigned 
OMB control number 4040-0004.

Regulatory Flexibility Act

    The Secretary hereby certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as they are

[[Page 59037]]

defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. Receiving 
or not receiving a grant is unlikely to have a significant economic 
impact on small entity applicants, specifically non-profit 
institutions. Therefore, pursuant to 5 U.S.C. 605(b), the initial and 
final regulatory flexibility analysis requirements of 5 U.S.C. 603 and 
604 do not apply.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and Tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This final rule will have no such effect on 
State, local, and Tribal governments, or on the private sector.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number and title for the 
program affected by this document is 64.204, Veterans Legacy Grant 
Program.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

List of Subjects in 38 CFR Part 38

    Administrative practice and procedure, Cemeteries, Veterans.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, approved this 
document on October 8, 2021, and authorized the undersigned to sign and 
submit the document to the Office of the Federal Register for 
publication electronically as an official document of the Department of 
Veterans Affairs.

Jeffrey M. Martin,
Assistant Director, Office of Regulation Policy & Management, Office of 
General Counsel, Department of Veterans Affairs.
    For the reasons set out in the preamble, VA amends 38 CFR part 38 
as follows:

PART 38--NATIONAL CEMETERIES OF THE DEPARTMENT OF VETERANS AFFAIRS

0
1. The authority citation for part 38 is revised to read as follows:

    Authority:  38 U.S.C. 107, 501, 512, 2306, 2400, 2402, 2403, 
2404, 2407, 2408, 2411, 7105.

0
2. Add an undesignated center heading, ``Veterans Legacy Grants 
Program'', and Sec. Sec.  38.710 through 38.785 to read as follows:
* * * * *

Veterans Legacy Grants Program

Sec.
38.710 Purpose and use of grant funds.
38.715 Definitions.
38.720 Grants--general.
38.725 Notice of Funding Availability (NOFA).
38.730 Applications.
38.735 Additional factors for deciding applications.
38.740 Scoring and selection.
38.745 Disposition of applications.
38.750 Withdrawal of grant application.
38.755 Grant agreement.
38.760 Payments under the grant.
38.765 Grantee reporting requirements.
38.770 Recovery of funds by VA.
38.775 Compliance review requirements.
38.780 Financial management.
38.785 Recordkeeping.

Veterans Legacy Grants Program


Sec.  38.710  Purpose and use of grant funds.

    Sections 38.710 through 38.785 establish the Veterans Legacy Grants 
Program (VLGP). Under this program, VA may provide grants to eligible 
entities defined in Sec.  38.715 to:
    (a) Conduct research related to national, State, or Tribal 
Veterans' cemeteries;
    (b) Produce educational materials that teach about the history of 
Veterans interred in national, State, or Tribal Veterans' cemeteries;
    (c) Contribute to the extended memorialization of Veterans interred 
in national, State, or Tribal Veterans' cemeteries by presenting 
grantee research on national, State, or Tribal Veterans' cemeteries 
through site hosting and other digital technologies; and,
    (d) Promote community engagement with the histories of Veterans 
interred in national, State, or Tribal Veterans' cemeteries.

(Authority: 38 U.S.C. 501(d), 2400 note)


Sec.  38.715  Definitions.

    For purposes of this part and any Notice of Funding Availability 
(NOFA) issued pursuant to this part:
    (a) Applicant means an eligible entity that submits a VLGP grant 
application that is announced in a NOFA.
    (b) Community engagement means strategic interaction with 
identified groups of people, whether they are connected by geographic 
location, special interest, or affiliation, to identify and address 
issues related to the legacy of Veterans.
    (c) Eligible recipient (or entity) means one of the following:
    (1) An institution of higher learning;
    (2) A local educational agency;
    (3) A non-profit entity that the Secretary determines has a 
demonstrated history of community engagement that pertains to the 
projects described in the relevant NOFA;
    (4) An educational institution; or
    (5) Another recipient (or entity) the Secretary deems appropriate.
    (d) Institution of higher learning (IHL) means a college, 
university, or similar institution, including a technical or business 
school, offering postsecondary level academic instruction that leads to 
an associate or higher degree if the school is empowered by the 
appropriate State education authority under State law to grant an 
associate or higher degree.
    (e) Educational institution means any public or private elementary 
school, secondary school, vocational school, correspondence school, 
business school, junior college, teachers' college, college, normal 
school, professional school, university, or scientific or technical 
institution, or other institution furnishing education for adults.
    (f) Local educational agency (LEA) means any public agency or 
authority, including a state educational agency, that has 
administrative control or direction over public elementary or secondary 
schools under 20 U.S.C. 7801(30). The term would also include any 
Bureau of Indian Education school, as covered in 20 U.S.C. 7801(30)(C).
    (g) State educational agency (SEA) means the agency primarily 
responsible for the State supervision of public elementary schools and 
secondary schools.
    (h) Non-profit entity means any organization chartered under 26 
U.S.C. 501(c)(3).
    (i) Educational materials means a framework of digital 
instructional materials relevant to the grade level of K-12 students 
involved (e.g., lesson plans) that can be used for outreach and other 
purposes.
    (j) Grantee means an eligible recipient that is awarded a VLGP 
grant under this part.
    (k) Notice of Funding Availability (NOFA) means a Notice of Funding 
Availability published in the OMB-designated government-wide website in 
accordance with Sec.  38.725 and 2 CFR 200.203 regulations.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.720  Grants--general.

    (a) Grants. VA may award VLGP grants to eligible recipients 
selected under Sec.  38.730 of this part.

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    (b) Maximum amounts. The maximum grant amount to be awarded to each 
grantee and the total maximum amount for all grants will be specified 
in the annually published NOFA.
    (c) Number of grants awarded. The number of grants VA will award 
will depend on the total amount of grant funding available at VA's 
discretion and the funding amount awarded to each grantee, which is 
based on each grantee's proposal.
    (d) Grant is not a course buyout. The grant funds shall not be used 
to substitute a class that an instructor is required to teach during an 
academic year.
    (e) Matching requirement. VA will determine whether a grantee must 
provide matching funds as a condition of receiving a VLGP grant as set 
forth in the NOFA.
    (f) Grant is not Veterans' benefit. The VLGP grant is not a 
Veterans' benefit. VA decisions on VLGP applications are final and not 
subject to the same appeal rights as Veterans' benefits decisions.

(Authority: 38 U.S.C. 501(d), 2400 note)


Sec.  38.725  Notice of Funding Availability (NOFA).

    When funds are available for VLGP grants, VA will publish a NOFA in 
the Federal Register and in Grants.gov (http://www.grants.gov). The 
NOFA will identify:
    (a) The location for obtaining VLGP grant applications, including 
the specific forms that will be required;
    (b) The date, time, and place for submitting completed VLGP grant 
applications;
    (c) The estimated total amount of funds available and the maximum 
funds available to a single grantee;
    (d) The minimum number of total points and points per category that 
an applicant must receive to be considered for a grant and information 
regarding the scoring process;
    (e) Any timeframes and manner for payments under the VLGP grant;
    (f) A description of eligible entities or other eligibility 
requirements necessary to receive the grant; and
    (g) Other information necessary for the VLGP grant application 
process, as determined by VA, including contact information for the 
office that will oversee the VLGP within VA.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.730  Applications.

    To apply for a grant, an eligible entity must submit to VA a 
complete application package, as described in the NOFA. Applications 
will be accepted only through Grants.gov (http://www.grants.gov). A 
complete grant application, as further described in the NOFA, includes 
standard forms specified in the NOFA and the following:
    (a) Project description. Each project must serve a minimum of one 
VA national cemetery, State Veterans' cemetery, or Tribal Veterans' 
cemetery. The applicant must provide a narrative project description 
that demonstrates the best approach for attaining required results as 
set forth in the NOFA;
    (b) Project team. If applicable, the applicant must provide a 
narrative description of anticipated project team and any work 
partner(s), including the responsibilities of the principal 
investigator, the co-principal investigators, and any extramural 
partner entity;
    (c) Project plan. The applicant must include a detailed timeline 
for the tasks outlined in the project description and proposed 
milestones;
    (d) Expertise and capacity. The applicant must provide a 
description of the applicant's ability and capacity to administer the 
project. This may include evidence of past experience with projects 
similar in scope as defined by the NOFA, to include descriptions of the 
engagement model, examples of successful leadership and management of a 
project of similar scale and budget (or greater), or related work in 
this field;
    (e) Match. If specified as a requirement in the NOFA, the applicant 
must provide evidence of secured cash matching (1:1) funds or of its 
ability to secure commitments to receive such funds;
    (f) Proposed budget. The applicant's proposed budget should 
identify all costs and proposed expenditures, to include additional 
compensation and honoraria (and to whom); equipment costs; production 
costs; and travel costs. The applicant must provide a budget that 
specifies costs and payments, as well as indirect and other relevant 
costs. The budget will be submitted in a format specified in the NOFA; 
and
    (g) Additional information. Any additional information as deemed 
appropriate by VA and set forth in the NOFA.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.735  Additional factors for deciding applications.

    (a) Applicant's performance on prior award. VA may consider the 
applicant's noncompliance with requirements applicable to prior VA or 
other Federal agency awards as reflected in past written evaluation 
reports and memoranda on performance and the completeness of required 
prior submissions.
    (b) Applicant's fiscal integrity. Applicants must meet and maintain 
standards of fiscal integrity for participation in Federal grant 
programs as reflected in 2 CFR 200.205.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.740  Scoring and selection.

    (a) Scoring. VA will only score complete applications received from 
eligible applicants by the deadline established in the NOFA. The 
applications must meet the minimum criteria set forth in Sec.  38.730 
and will be scored as specified in the NOFA, as set forth in Sec.  
38.725.
    (b) Selection of recipients. All complete applications will be 
scored using the criteria in paragraph (a) of this section and ranked 
in order of highest to lowest total score. NOFA announcements may also 
clarify the selection criteria in paragraph (a) of this section. The 
relative weight (point value) for each selection will be specified in 
the NOFA. VA will award any VLGP grant on the primary basis of the 
scores but will also consider a risk assessment evaluation.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.745  Disposition of applications.

    (a) Disposition of applications. Upon review of an application and 
dependent on availability of funds, VA will:
    (1) Approve the application for funding, in whole or in part, for 
such amount of funds, and subject to such conditions that VA deems 
necessary or desirable;
    (2) Determine that the application is of acceptable quality for 
funding, in that it meets minimum criteria, but disapprove the 
application for funding because it does not rank sufficiently high in 
relation to other applications to qualify for an award based on the 
level of funding available, or for another reason as provided in the 
decision document; or
    (3) Defer action on the application for such reasons as lack of 
funds or a need for further review.
    (b) Notification of disposition. VA will notify the applicant in 
writing of the disposition of the application. A signed grant agreement 
form, as defined in Sec.  38.755, will be issued to the applicant of an 
approved application.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.750  Withdrawal of grant application.

    Applicants may withdraw a VLGP application submitted through

[[Page 59039]]

Grants.gov by writing the specified VA point of contact and including 
rationale for the withdrawal request within a certain number of days as 
determined in the NOFA.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.755  Grant agreement.

    After a grant is approved for award, VA will draft a grant 
agreement to be executed by VA and the grantee. Upon execution of the 
grant agreement, VA will obligate the grant amount. The grant agreement 
will provide that the recipient agrees, and will ensure that each 
subrecipient (if applicable) agrees, to:
    (a) Operate the program in accordance with the provisions of 
Sec. Sec.  38.710 through
    38.785, 2 CFR part 200, and the applicant's VLGP application;
    (b) Comply with such other terms and conditions, including 
recordkeeping and reports for program monitoring and evaluation 
purposes, as VA may establish in the Terms and Conditions of the grant 
agreement for purposes of carrying out the VLGP project in an effective 
and efficient manner; and
    (c) Provide additional information that VA requests with respect 
to:
    (1) Program effectiveness, as defined in the Terms and Conditions 
of the grant agreement;
    (2) Compliance with the Terms and Conditions of the grant 
agreement; and
    (3) Criteria for evaluation, as defined in the Terms and Conditions 
of the grant agreement.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.760   Payments under the grant.

    (a) Grantees are to be paid in accordance with the timeframes and 
manner set forth in the NOFA.
    (b) Availability of grant funds. Federal financial assistance will 
become available subsequent to the effective date of the grant as set 
forth in the grant agreement. Recipients may be reimbursed for costs 
resulting from obligations incurred before the effective date of the 
grant, if such costs are authorized by VA in the NOFA or the grant 
agreement or authorized subsequently by VA in writing, and otherwise 
would be allowable as costs of the grant under applicable guidelines, 
regulations, and terms and conditions of the grant agreement.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.765  Grantee reporting requirements.

    (a) Final report. All grantees must submit to VA, not later than 60 
days after the last day of grant period for which a grant is provided 
under this part, a final report that meets the requirement set forth in 
the NOFA.
    (b) Additional reporting. Additional reporting requirements may be 
requested by VA to allow VA to assess program effectiveness.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.770  Recovery of funds by VA.

    (a) Recovery of funds. VA may recover from the grantee any funds 
that are not used in accordance with a grant agreement. If VA decides 
to recover such funds, VA will issue to the grantee a notice of intent 
to recover grant funds, and the grantee will then have 30 days to 
return the grant funds or submit documentation demonstrating why the 
grant funds should not be returned. After review of all submitted 
documentation, VA will determine whether action will be taken to 
recover the grant funds.
    (b) Prohibition of additional VLGP payments. When VA makes a final 
decision to recover grant funds from the grantee, VA must stop further 
payments of grant funds under this part until the grant funds are 
recovered and the condition that led to the decision to recover grant 
funds has been resolved.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.775   Compliance review requirements.

    (a) Site visits. VA may conduct, as needed, site visits to grantee 
locations to review grantee accomplishments and management control 
systems.
    (b) Inspections. VA may conduct, as needed, inspections of grantee 
records to determine compliance with the provisions of this part. All 
visits and evaluations will be performed with minimal disruption to the 
grantee to the extent practicable.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.780   Financial management.

    (a) Compliance. All recipients will comply with applicable 
requirements of the Single Audit Act Amendments of 1996, as implemented 
by 2 CFR part 200.
    (b) Financial Management. All grantees must use a financial 
management system that complies with 2 CFR part 200. Grantees must meet 
the applicable requirements of the Office of Management and Budget's 
regulations on Cost Principles at 2 CFR 200.400-200.475.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.400-200.475)


Sec.  38.785   Recordkeeping.

    Grantees must ensure that records are maintained in accordance with 
2 CFR 200.333. Grantees must produce such records at VA's request.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.333)

[FR Doc. 2021-22999 Filed 10-25-21; 8:45 am]
BILLING CODE 8320-01-P