[Federal Register Volume 60, Number 40 (Wednesday, March 1, 1995)]
[Notices]
[Pages 11076-11077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5039]
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DEPARTMENT OF EDUCATION
Office of Administrative Law Judges
AGENCY: Department of Education.
ACTION: Notice of intent to compromise a claim.
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SUMMARY: The U.S. Department of Education (the Department) intends to
compromise a claim against the Washington State Board for Vocational
Education (Washington) now pending before the Office of Administrative
Law Judges (OALJ). Docket No. 93-42-R. (20 U.S.C. 1234a(j)).
DATES: Interested persons may comment on the proposed action by
submitting written data, views, or arguments on or before April 17,
1995.
ADDRESSES: Comments should be addressed to Kathleen Ryan, Office of the
General Counsel, U.S. Department of Education, 600 Independence Avenue
SW. (Room 5335, FB 10B), Washington, D.C. 20202.
FOR FURTHER INFORMATION CONTACT: Kathleen Ryan, Esq., Telephone: (202)
401-8292. 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.
SUPPLEMENTARY INFORMATION: The claim in question arose from an audit of
the financial affairs and operations of Washington for the fiscal year
ending June 30, 1990. The audit was performed by the Washington State
Auditor, to fulfill the requirements of Office of Management and Budget
Circular A-128. The audit included the evaluation of the internal
control systems, including applicable internal administrative controls,
used in administering Federal financial assistance programs.
Among the systems examined were Washington's procedures for
reviewing and approving applications from community colleges for funds
awarded under section 201 of the Carl D. Perkins Vocational Education
Act (Perkins Act), 20 U.S.C. 2331 (1988), for handicapped and
disadvantaged vocational education students. Sections 201(c)(1) and (2)
of the Perkins Act and the implementing regulations (34 CFR 401.52(a)
and [[Page 11077]] 401.53(a)(1)(1990)) provide that funds reserved for
the handicapped and disadvantaged may only be used for the Federal
share of the costs of providing ``supplemental or additional staff,
equipment, materials, and services not provided to other individuals in
vocational education that are essential for [handicapped and
disadvantaged] individuals to participate in vocational education.''
Under section 201(h)(1) of the Perkins Act (20 U.S.C. 2331(h)(1)) and
the implementing regulations (34 CFR 401.58(a)(1)(1990)), these excess
costs may include basic skills instruction for handicapped and
disadvantaged individuals who are enrolled in vocational education
programs.
During the course of the audit, the auditors found that Washington
had approved applications from community colleges for unallowable
activities under section 201, and that the colleges had improperly
charged the costs of these activities to the handicapped and
disadvantaged setasides under the Vocational Education Opportunities
Program implemented at 34 CFR 401.51-401.58 (1990). The auditors found
that the colleges used funds from the setasides to support the costs of
services, activities and equipment for handicapped and disadvantaged
students not enrolled in vocational education programs, including the
provision of basic skills instruction to students not enrolled in
vocational education programs. In addition, the auditors found that the
colleges used setaside funds to support the costs of activities for
students who were not handicapped or disadvantaged.
On March 31, 1993, the U.S. Department of Education's Assistant
Secretary for Vocational and Adult Education (Assistant Secretary)
issued a program determination letter (PDL) sustaining the auditors'
findings and requiring Washington to repay $135,248 in disallowed costs
to the Department.
The State filed a timely request for review of the Assistant
Secretary's determination with the OALJ. Thereafter, the Administrative
Law Judge assigned to the appeal granted the parties' joint motion for
a stay of this proceeding for purposes of mediation.
The Department proposes to compromise the $135,248 claim for
$50,000. In mediation sessions before the Federal Mediation and
Conciliation Service, Washington provided additional information and
documentation concerning the numbers of handicapped and disadvantaged
vocational education students being served and the types of services,
activities and equipment involved. Washington also submitted
documentary evidence concerning the necessity of the services,
activities and equipment to the participation of the handicapped and
disadvantaged students in vocational education, and the non-
availability of these services and activities for non-handicapped and
non-disadvantaged vocational students.
Given the amount that would be repaid by Washington under the
settlement agreement, the additional documentation submitted during
mediation, and the litigation risks and costs of proceeding through the
appeal process, the Department has determined that it would not be
practical or in the public interest to continue this proceeding.
Rather, under the authority provided in 20 U.S.C. 1234a(j)(1), the
Department has determined that a compromise of this claim for $50,000
would be appropriate.
The public is invited to comment on the Department's intent to
compromise this claim. Additional information may be obtained by
writing to Kathleen Ryan at the address given at the beginning of this
notice.
Program Authority: 20 U.S.C. 1234a(j).
Dated: February 22, 1995.
Donald R. Wurtz,
Chief Financial Officer.
[FR Doc. 95-5039 Filed 2-28-95; 8:45 am]
BILLING CODE 4000-01-P
