[Federal Register: April 2, 1996 (Volume 61, Number 64)]
[Notices]
[Page 14597-14599]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[[Page 14597]]
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Part II
Department of Education
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Intent to Repay to the Maine Department of Education Funds Recovered as
a Result of a Final Audit Determination; Notice
[[Page 14598]]
DEPARTMENT OF EDUCATION
Intent to Repay to the Maine Department of Education 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: Notice is given that under section 459 of the General
Education Provisions Act (GEPA), 20 U.S.C. 1234h, the U.S. Secretary of
Education (Secretary) intends to repay to the Maine Department of
Education, the State Educational Agency (SEA), an amount not more than
75 percent of the funds recovered by the U.S. Department of Education
(Department) as a result of final audit determinations. This notice
describes the SEA's plan for the use of the repaid funds and the terms
and conditions under which the Secretary intends to make those funds
available. The notice invites comments on the proposed grantback.
DATES: All comments must be received on or before May 2, 1996.
ADDRESSES: Comments concerning the grantback should be addressed to
William D. Tyrrell, Sr., U.S. Department of Education, 600 Independence
Avenue, S.W., Room 3609, Switzer Building, Washington, D.C. 20202-6132.
FOR FURTHER INFORMATION CONTACT: William D. Tyrrell, Sr., U.S.
Department of Education, 600 Independence Avenue, S.W., Room 3609,
Switzer Building, Washington, D.C. 20202-6132, telephone: (202) 205-
8825. Individuals who use a telecommunications device for the deaf
(TDD) may call the Federal Information Relay Service (FIRS) at 1-800-
877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through
Friday. Internet: William__Tyrrell@ed.gov
SUPPLEMENTARY INFORMATION:
A. Background
This notice is based on the Department's recovery of funds as the
result of three separate audits of Maine's Department of Education
(SEA) for the periods beginning with the SEA's fiscal years July 1,
1986 and ending in June 30, 1989. The audits are identified for the
specified periods of time as follows:
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Amount Amount
ACN No. and time period repaid requested
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ACN 01-93025 (7/1/86-6/30/87)...................... $22,800 $17,100
ACN 01-93245 (7/1/87-6/30/88)...................... 68,872 51,654
ACN 01-13035 (7/1/88-6/30/89)...................... 82,564 61,923
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The Federal programs repaid included the amounts of $159,636 Part B
of the Education of Handicapped Act \1\ Part B funds, $8,800 of Chapter
1 of Title I of the Elementary and Secondary Education Act, Grants to
Local Educational Agencies (Chapter 1 LEA) funds, and $5,800 of Chapter
1 Migrant funds. The SEA repayed a total $174,236 to the U.S.
Department of Education.
\1\ In 1990, the name of this Act was changed by Congress to
Part B of the Individuals with Disabilities Education Act. See Pub.
L. 101-476.
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The Department's audits questioned the SEA's use of Part B-
Handicapped funds and Chapter 1 Migrant and Chapter 1 LEA grants funds
for legal fees without the use of a cost allocation plan or the
maintenance of adequate supporting documentation; and the charging of
SEA employees' salaries to Federal programs without records of time
distribution for each of the employees chargeable to more than one
grant program or cost objective. These charges were not supported by
time distribution records as required by Federal regulations. The
audits also found that the SEA had exceeded the maximum allowable
amount for administrative costs in the Part B program.
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 following a final audit determination
with respect to an applicable program, the Secretary may consider those
funds to be additional funds available for the program and may arrange
to repay, to the SEA affected by the determination, an amount not to
exceed 75 percent of the recovered funds. The Secretary may enter into
this grantback arrangement if the Secretary determines that the--
(a) Practices and procedures of the SEA that resulted in the
violation have been corrected, and the SEA is, in all other respects,
in compliance with the requirements of the applicable program;
(b) SEA 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 the
misexpenditures that resulted in the recovery of funds; and
(c) Use of funds to be awarded under the grantback arrangement, if
used in accordance with the SEA's plan, would serve to achieve the
purpose of the programs 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, the SEA has applied for a
grantback totaling $130,677, which is 75 percent of the principal
amount of the recovered funds, and has submitted a plan for use of the
grantback funds to meet the special education needs of children with
disabilities, and the needs of disadvantage and migrant children in
areas affected by the audits. Under section 459(a) of GEPA, 20 U.S.C.
1234h(c), these funds are available until three fiscal years following
the fiscal year in which final agency action is taken. With respect to
the funds covered by this notice, the final agency action was the
execution of two settlements agreements, December 2, 1991 for ACN: 01-
93025 and November 8, 1994 for ACN: 01-93245 and ACN: 01-13035. The
funds recovered under ACN: 01-13025 are available for expenditure until
September 30, 1996 and the funds recovered under ACN: 01-93245 and ACN:
01-13035 are available for expenditure until September 20, 1998. The
plan, which has been submitted by the SEA, is to use the Chapter 1 LEA
and Migrant grantback funds to pay salaries of teachers for the
programs in the Blueberry Harvest and Broccoli Harvest Schools. The
funds from the Part B grantback will be used to improve the process of
identification of the document the educational progress of special
education students; enable more effective planning for these students
at both the State and local levels, and provide information to local
educational agencies in a manner that will enhance program planning and
enhance the State's ability to analyze results for policy development
and program planning. These changes will help address the current
weaknesses in the Maine Educational Assessment as it relates to special
education students and move in the direction of including these
students in the State's effort to set standards for all students.
D. The Secretary's Determinations
The Secretary has reviewed the plan submitted by the SEA. Based
upon that review, the Secretary has determined that the conditions
under section 459 of GEPA have been met.
All determinations are based upon the best information available to
the Secretary at the present time. If this
[[Page 14599]]
information is not accurate or complete, the Secretary is not precluded
from taking appropriate administrative action. In finding that the
conditions of section 459 of GEPA have been met, the Secretary makes no
determination concerning any pending audit recommendations or final
audit determinations.
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 must 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 Maine under a
grantback arrangement. The grantback award would total $130,677, which
is 75 percent--the maximum percentage authorized by statute--of the
principal amount recovered as a result of the audits.
F. Terms and Conditions Under Which Payments Under a Grantback
Arrangement Would Be Made
The SEA agrees to comply with the following terms and conditions
under which payments under a grantback arrangement would 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 the SEA 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, 1996 for funds recovered through ACN: 01-
93025, and by September 30, 1998 for funds recovered through ACN: 01-
93245 and ACN: 01-13035 in accordance with section 459(c) of GEPA.
(c) The SEA will, not later than January 1, 1999, 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 approved; 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, the SEA
must repay to the Department any debts that become overdue, or enter
into a repayment agreement for those debts.
(Catalog of Federal Domestic Assistance Number 84.027, Handicapped
State Grants, 84.012, Educationally Deprived Children, and 84.011
Chapter I--Migrant Education)
Dated: March 27, 1996.
[FR Doc. 96-7970 Filed 4-1-96; 8:45 am]
BILLING CODE 4000-01-M