[Federal Register: March 12, 2002 (Volume 67, Number 48)]
[Notices]
[Page 11199-11201]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12mr02-100]
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Part III
Department of Education
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Intent To Repay to the Black Hills Special Services Cooperative Funds
Recovered as a Result of a Final Audit Determination; Notice
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DEPARTMENT OF EDUCATION
Intent To Repay to the Black Hills Special Services Cooperative
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: Under section 459 of the General Education Provisions Act
(GEPA), 20 U.S.C. 1234h, the Secretary of Education (Secretary) intends
to repay to the Black Hills Special Services Cooperative (Black Hills),
both directly and through the South Dakota Department of Education and
Cultural Affairs (DECA), under a grantback arrangement, an amount which
represents nearly 75 percent of the amount of funds recovered by the
Department of Education (Department) as a result of final audit
determinations for findings covering fiscal years 1996-1999. This
notice describes Black Hills' plan for the use of the repaid funds and
the terms and conditions under which the Secretary intends to make
those funds available. This notice invites comments on the proposed
grantback.
DATES: We must receive your comments on or before April 11, 2002.
ADDRESSES: Address all comments about the proposed grantback to Cheryl
Hannah, U.S. Department of Education, 400 Maryland Avenue SW., room
4W211, Washington, DC, 20202-4300. If you prefer to send your comments
through the internet, use the following address: Cheryl.Hannah@ed.gov
FOR FURTHER INFORMATION CONTACT: Cheryl Hannah. Telephone: (202) 401-
1816.
If you use a telecommunications device for the deaf (TDD), you may
call the Federal Information Relay Service (FIRS) at 1-800-877-8339.
Individuals with disabilities may obtain the document in an
alternative format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION:
A. Background
The Department has recovered $106,088 from Black Hills as a result
of the resolution of audit findings reached in an April 18, 2000,
Agreement (the Agreement) between Black Hills and the Department
covering federal fiscal years ending September 30, 1996, 1997, 1998 and
1999 (Audit Control Numbers 08-96-78277, 08-97-88143, 08-98-98122, 08-
99-08185). Staff from the Department, Black Hills, the South Dakota
Department of Legislative Audit, the South Dakota Department of
Education and Cultural Affairs, and the South Dakota Department of
Human Services engaged in the cooperative audit resolution of the
findings contained in the audits referenced above under the
Department's Cooperative Audit Resolution and Oversight Initiative
(CAROI) in an effort to address the root causes of the problems and to
avoid recurrence of these findings in the future. Cited in the audit
reports and relevant to this grantback request are grants awarded under
the Technology Innovation Challenge Grant Program (CFDA 84.303), the
Assistive Technology Act--State Grants for Assistive Technology Program
(CFDA 84.224), and the State Systems for Transition Services for Youth
with Disabilities Program (CFDA 84.158A).
Technology Innovation Challenge Grant
Claims against Black Hills included in the Agreement involved the
``Technology in Education Challenge Grant for Rural Education''
(TECRAM) (CFDA 84.303), a program to integrate technology with the
curriculum in six community-based systemic reform efforts across the
State of South Dakota. The claims involved rental costs under related
party leases that exceeded the amounts allowed per OMB Circular A-87,
and associated indirect costs.
Assistive Technology Act--State Grants for Assistive Technology Program
Included within the Agreement are claims against Black Hills under
the Assistive Technology Act--State Grants for Assistive Technology
Program (CFDA 84.224), which is designed to address issues raised by
States, individuals, Protection and Advocacy providers, and other
relevant organizations; collect data that will provide information
about assistive technology devices and services that can be used for
determining policy; and provide information on increased access to
assistive technology devices, assistive technology services and other
disability-related resources. The claims involved disallowed rental
costs and associated indirect costs. Specifically, rental costs were
charged to grants based on fair market value, which exceeded the
amounts allowed due to limitations for less-than-arms-length
transactions, and rental costs under related party leases exceeded the
amounts allowed per Office of Management and Budget (OMB) Circular A-
87.
State Systems for Transition Services for Youth With Disabilities
Also included within the Agreement were claims against Black Hills
for a State Systems for Transition Services for Youth with Disabilities
Grant (CFDA 84.158A), which is designed to develop, implement, and
improve systems to provide transition services for youth with
disabilities from ages 14 through the age they exit school. The claims
involved unsupported general management costs that were charged as
direct costs to a Federal grant.
Based on the Agreement, Black Hills submitted a payment of $106,088
to the Department in September 2000 in full settlement of the
Department's claims reached in the Agreement.
On January 8, 2000, Black Hills requested a grantback of $79,318,
which represents nearly 75 percent of these recovered funds.
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 under an applicable program because
the recipient made an expenditure of funds that was not allowable, the
Secretary may consider those funds to be additional funds available for
the program and may arrange to repay to the grantee affected by that
determination an amount not to exceed 75 percent of the recovered
funds. The Secretary may enter into this grantback requested by Black
Hills if the Secretary determines that--
(a) The practices and procedures of Black Hills that resulted in
the findings have been corrected, and Black Hills is in compliance with
the requirements of the applicable programs;
(b) Black Hills 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
misexpenditures that resulted in the recovery; and
(c) Use of funds to be awarded under the grantback arrangement in
accordance with Black Hills' plan would serve to achieve the purposes
of the program 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, Black Hills has applied for
a grantback totaling $79,318, which is nearly 75 percent of the
principal amount of the recovered funds and has submitted a
[[Page 11201]]
plan outlining the activities that will be supported by the grantback
funds.
Specifically, Black Hills plans to utilize the grantback of funds
recovered under the Technology Innovation Challenge Grant to pay costs
associated with continued support to local district partners and the
collaborative development team. These efforts were intended to assist
in capturing the results and discoveries of project activities, the
effects of technology integration on teaching and learning, and the
creation of formats useful for replication. In addition, staff time was
utilized to organize and facilitate the dissemination and training
event. Although the project period for this grant has ended, a
grantback award is appropriate because one underlying purpose of grants
under this program is to support sustainable activities related to the
innovative use of technology in education. The funds will be expended
within six months of receipt.
Under the Assistive Technology Act--State Grants for Assistive
Technology Program, Black Hills plans to use the grantback funds to pay
costs related to expanded direct services to consumers, families,
employers, and schools primarily in the northeast part of South Dakota.
Additional personnel were assigned to the northeast part of the State
for a six-month period to resolve a backlog of consumer referrals and
requests for technical assistance and training. The funds will be
expended within six months of receipt.
Under the State Systems for Transition Services for Youth with
Disabilities Grant, Black Hills will use the grantback, which it will
receive through DECA, to pay costs related to providing technical
assistance and support in the development and implementation of
transition services funds for students with disabilities aged 16 to 21
years served by local school districts in the Black Hills area. The
funds will be expended within six months of receipt.
D. The Secretary's Determinations
The Secretary has carefully reviewed the plan submitted by Black
Hills. Based upon that review, the Secretary has determined that the
conditions under section 459(a) of GEPA have been met.
This determination is based upon the best information available to
the Secretary at the present time. If this information is not accurate
or complete, the Secretary is not precluded from taking appropriate
administrative action. In finding that the conditions of section 459(a)
of GEPA have been met, the Secretary makes no determination concerning
any pending audit recommendations or final audit determinations.
The Secretary also concludes that this grantback award will support
the provision of services to the intended beneficiaries of the programs
under which these grant awards were originally made. These
beneficiaries may not have received the full benefit of the services
intended by these programs due to the problems that gave rise to the
audit recovery described in Section A of this notice. Thus, this
grantback award will advance and support the policy goals of the
statutory provisions that authorized the initial grant awards.
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 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 the Black Hills
Special Services Cooperative, directly and through DECA, under a
grantback arrangement. The grantback award will be in the amount of
$79,318, which is nearly 75 percent--the maximum percentage authorized
by statute--of the principal amount recovered as a result of the
Agreement.
F. Terms and Conditions Under Which Payments Under a Grantback
Arrangement Would Be Made
Black Hills agrees to comply with the following terms and
conditions under which payments under a grantback arrangement will 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 Black Hills 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, 2003, in accordance with section 459(c) of
GEPA.
(c) Black Hills must, no later than December 31, 2003, 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 any amendments that have
been approved in advance by the Secretary; 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, Black
Hills must repay to the Department any debts that become overdue or
enter into a repayment agreement for those debts.
Electronic Access to This Document
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Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
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Regulations is available on GPO Access at: http://
www.access.gpo.gov/nara/index.html
(Catalog of Federal Domestic Assistance Numbers: 84.303, Technology
Innovation Challenge Grant; 84.224, Assistive Technology Act
Technical Assistance Program; 84.158A, State Systems for Transition
Services for Youth with Disabilities.)
Dated: March 6, 2002.
Mark Carney,
Deputy Chief Financial Officer.
Grover J. Whitehurst,
Assistant Secretary, Office of Educational Research and Improvement.
Loretta L. Petty,
Acting Assistant Secretary for Special Education and Rehabilitative
Services.
[FR Doc. 02-5919 Filed 3-11-02; 8:45 am]
BILLING CODE 4000-01-U