[Federal Register Volume 60, Number 77 (Friday, April 21, 1995)]
[Notices]
[Pages 19898-19899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9849]
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DEPARTMENT OF EDUCATION
Office of Special Education and Rehabilitative Services;
Paperwork Burden Reduction
AGENCY: Department of Education.
ACTION: Notice of Paperwork Burden Reduction.
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SUMMARY: The Assistant Secretary, Office of Special Education and
Rehabilitative Services (OSERS), provides notice that prior approval is
no longer required for certain categories of costs for formula grant
programs authorized by the Rehabilitation Act of 1973, as amended (the
Rehabilitation Act) and the Individuals with Disabilities Education Act
(IDEA). This change is intended to reduce paperwork burdens on
grantees.
EFFECTIVE DATE: This change takes effect on April 21, 1995.
FOR FURTHER INFORMATION CONTACT: Greg March, U.S. Department of
Education, 600 Independence Avenue, SW, Room 3124 Switzer Building,
Washington, DC 20202-2551. Telephone: (202) 205-8441. 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 Education Department General
Administrative Regulations (EDGAR), in 34 CFR 74.27 and 80.30(b),
require prior approval from the Secretary before various categories of
otherwise allowable costs may be charged to any ED grant or subgrant.
The following formula grant programs authorized by the Rehabilitation
Act are covered by this requirement: Vocational Rehabilitation (VR)
State Grants (Title I); Client Assistance Program (Title I, Part B);
Innovation and Expansion (Title I, Part C), which is currently
unfunded; Protection and Advocacy of Individual Rights (Title V,
Section 509); Supported Employment (Title VI-C); Independent Living
State Grants (Title VII-B); Centers for Independent Living (Title VII-
C, Section 723); and Independent Living Services for Older Individuals
Who Are Blind (Title VII, Chapter 2), once the appropriation level
reaches $13 million. The following formula grant programs authorized by
IDEA are also covered by this requirement: Assistance to States for the
Education of Children with Disabilities (Part B); Preschool Grants for
Children with Disabilities (Section 619); and Early Intervention
Program for Infants and Toddlers with Disabilities (Part H). The
Assistant Secretary, OSERS, believes that it is no longer necessary to
require prior approval for these formula grant programs with respect to
certain cost categories and has authority, under a delegation from the
Secretary, to exempt these programs from this paperwork requirement.
The Assistant Secretary has decided that the prior approval is no
longer required for seven cost categories and, under certain
conditions, for an eighth cost category. The seven cost categories
are--(1) Automatic data processing; (2) Capital expenditures; (3)
Management studies; (4) Professional services; (5) Building space and
related facilities; (6) Insurance and indemnification; and (7) Proposal
costs.
[[Page 19899]]
An eighth cost category that requires prior approval is the pre-
agreement or pre-award cost category. The Assistant Secretary has
determined that prior approval for this cost category is no longer
required to the extent that it does not create interest liabilities for
the Federal Government under the Cash Management Improvement Act
(CMIA). Interest liabilities are incurred under the CMIA when a State
disburses its own funds for Federal program purposes before the date
that Federal funds are deposited to the State's bank account for those
obligations. Interest liabilities are not incurred, however, when a
State uses its own funds to meet a program matching or maintenance of
effort requirement. Thus, for programs subject to the CMIA (see the
implementing Treasury Department regulations in 31 CFR part 205,
Subpart A and check with the appropriate CMIA contact person for the
State to determine coverage), the Assistant Secretary is no longer
requiring prior approval for pre-agreement costs used to meet matching
or maintenance of effort requirements. For programs in a State not
subject to CMIA interest liabilities, the Secretary is no longer
requiring prior approval for any pre-agreement costs.
The Assistant Secretary rarely has declined to approve requests for
prior approval for these cost categories. Also, the Assistant Secretary
does not believe that grantees will use grant funds inappropriately in
these categories if prior approval is no longer required, and believes
that grantees should be relieved of this paperwork burden. Under the
authority of 34 CFR 74.27 and 80.30(b), the Assistant Secretary
therefore exempts the OSERS formula grant programs covered by this
notice from the requirement for prior approval for the eight cost
categories as previously described.
The Assistant Secretary also notes that this policy change affects
only the requirement to obtain prior approval from the Department of
Education. If, upon audit or otherwise, it is determined that the
claimed expenditures do not meet other requirements or tests for
allowability specified by the applicable cost principles, such as
reasonableness and necessity, the costs may be disallowed.
(20 U.S.C. 1221e-3 and 3474; OMB Circulars A-102 and A-110)
Dated: April 14, 1995.
Howard R. Moses,
Acting Assistant Secretary for Special Education and Rehabilitative
Services.
[FR Doc. 95-9849 Filed 4-20-95; 8:45 am]
BILLING CODE 4000-01-P
