[Federal Register Volume 59, Number 101 (Thursday, May 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12905]
[[Page Unknown]]
[Federal Register: May 26, 1994]
_______________________________________________________________________
Part V
Department of Education
_______________________________________________________________________
Intent To Award Grantback Funds to New Jersey Department of Labor;
Notice
DEPARTMENT OF EDUCATION
Intent To Repay to the New Jersey Department of Labor, Division
of Vocational Rehabilitation Services (DOL/DVRS), Funds Recovered as a
Result of a Final Audit Determination
AGENCY: Education.
ACTION: Notice of intent to award grantback funds.
-----------------------------------------------------------------------
SUMMARY: Under Section 459 of the General Education Provisions Act
(GEPA), 20 U.S.C 1234h (1990), the U.S. Secretary of Education
(Secretary) intends to repay to the New Jersey Department of Labor,
Division of Vocational Rehabilitation Services (State agency), under a
grantback arrangement, an amount equal to 75 percent of the funds
recovered by the Department of Education (Department) as a result of a
final action taken by the Department on February 11, 1993, on an audit
determination. This notice describes the State agency's plans for the
use of the repaid funds and the terms and conditions under which the
Secretary intends to make these funds available to the State agency.
This notice invites comments on the proposed grantback.
DATES: All comments must be received on or before June 27, 1994.
ADDRESSES: Comments concerning the grantback should be addressed to Peg
Covello, U.S. Department of Education, 400 Maryland Avenue SW., room
3222, Switzer Building, Washington, DC 20202-2735.
FOR FURTHER INFORMATION CONTACT: Peg Covello. Telephone: (202) 205-
5539. 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
A. Background
The Department has recovered $627,778 from the New Jersey
Department of Labor, Division of Vocational Rehabilitation Services, in
response to a claim arising from an audit conducted by the Department's
Office of Inspector General (OIG). The audit covered Federal fiscal
years (FYs) 1989, 1990, and 1991.
The claim involved the State agency's administration of The State
Vocational Rehabilitation Services Program under Title I of the
Rehabilitation Act of 1973, as amended. The final audit determination
of the Regional Commissioner, which was issued on August 19, 1992,
found that during FYs 1989, 1990, and 1991 the State agency had
violated the regulatory requirements in 34 CFR 361.44, including its
assurance in section 8.9 of the approved State Plan, concerning the
procedures for authorizing client services. The OIG found instances in
which the agency charged to one Federal fiscal year the costs of client
services that had been initiated or completed in the prior Federal
fiscal year by deferring the issuance of the agency's authorization
form. As a result of these violations, the State agency had charged
expenditures to the wrong Federal fiscal years, thereby failing to
preserve the integrity of Federal accountability requirements. The
final determination sought the recovery of $2,176,802 from the State
agency.
The State agency appealed the Regional Commissioner's determination
to the Department's Office of Administrative Law Judges (OALJ)
(Application of the State of New Jersey Department of Labor: Docket No.
92-103-R) on September 21, 1992. In a Joint Notice of Reduction of
Claim and Motion to Dismiss, filed with the OALJ on February 11, 1993,
both parties agreed that, based upon an analysis of all the evidence in
the case, the amount of the disallowance should be reduced to $627,778.
The notice also certified that the State agency had returned the
$627,778 to the Department on January 22, 1993. On February 18, 1993,
the OALJ dismissed the case.
New Jersey DOL/DVRS has submitted a request for a grantback of
$470,833 (75 percent) of the $627,778 recovered by the Department of
Education. In its request, DOL/DVRS provided documentation of the
actions taken to correct the practices of the State agency that
resulted in the final audit determination.
Following the audit, the State agency issued a new policy directive
to field staff on the procedures for authorizing and approving client
services. The purpose of the new directive was to prevent charging case
service expenditures to the wrong Federal fiscal years. A subsequent
site review of the State agency by the Department resulted in the
agency strengthening further its policies governing the procedures for
case service authorizations.
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 that program and may arrange
to repay to the State agency affected by that determination an amount
not to exceed 75 percent of the recovered funds. The Secretary may
enter into this so-called ``grantback'' arrangement if the Secretary
determines that--
(a) The practices and procedures of the State agency that resulted
in the final audit determination have been corrected and the State
agency is, in all other respects, in compliance with requirements of
the applicable program;
(b) The State agency 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 audit exception; and
(c) The use of funds to be awarded under the grantback arrangement
in accordance with the State agency's plan would serve to achieve the
purposes of the program under which funds were originally granted.
C. Plan for Use of Funds Awarded Under a Grantback Arrangement
In its December 13, 1993, request for a grantback, the State agency
submitted a plan, in accordance with section 459(a)(2) of GEPA, for the
proposed use of the requested funds. In its plan, the State proposes to
use the grantback of $470,833 plus the required State matching funds in
the amount of $127,430 to supplement current program services to
eligible individuals with disabilities under The State Vocational
Rehabilitation Services Program. The grantback and State matching funds
would be used to provide time-limited employment site job coaching and
support services through traditional community rehabilitation programs
to increase the number of competitive placements in integrated settings
made by these traditional programs.
There are currently 32 traditional programs that are CARF (Council
on Accreditation of Rehabilitation Facilities) accredited and approved
to provide work adjustment training and extended employment to DOL/
DVRS. These traditional programs, also known as sheltered workshops,
most frequently serve individuals with the most severe disabilities. In
the majority of the cases, these individuals are rehabilitated as
extended employees of the programs. According to the agency, 402
individuals were placed in competitive work in integrated settings
during or at the conclusion of work adjustment training in FY 1993. By
initiating time-limited employment site job coaching and support
services through these programs, DOL/DVRS expects placements in
competitive work in integrated settings to increase by at least 10
percent in both FY 1995 and FY 1996 compared to the number placed in FY
1993.
Initiatives facilitating placements of individuals with
disabilities in competitive work in integrated work settings were
identified as needs during public hearings concerning the
reauthorization of the Rehabilitation Act and DOL/DVRS' State and
Strategic Plans.
D. The Secretary's Determinations
The Secretary has reviewed the State agency's request for the
repayment of funds, the State agency's plan (as outlined in section C
of this notice), and other information submitted by the State agency.
Based upon that review, the Secretary has determined that the
conditions contained in section 459 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, at a later date,
discovered to have been inaccurate or incomplete, the Secretary will
not be precluded from taking appropriate administrative action at that
time. On finding that the conditions of section 459 of GEPA have been
met, the Secretary makes no determination concerning any pending audit
recommendation or final audit determination.
E. Notice of the Secretary's Intent To Enter Into a Grantback
Arrangement
Section 459(d) of GEPA requires that, at least 30 days prior to
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 New Jersey
Department of Labor, Division of Vocational Rehabilitation Services,
under a grantback arrangement, as authorized by section 459. The
grantback award will be in the amount of $470,833. This amount is 75
percent--the maximum percentage authorized by section 459--of the
amount of funds recovered by the Department. The Secretary's intent to
award the maximum amount of grantback funds possible under section 459
is based upon the determination outlined in section D of this notice.
F. Terms and Conditions Under Which Payments Under a Grantback
Arrangement Will Be Made
The State agency 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 and the required State
matching funds must be expended in accordance with--
(1) All applicable statutory and regulatory requirements of the
Title I, State Vocational Rehabilitation Services Program including
those provisions relating to an order of selection if such an order is
in effect during the grantback period;
(2) The plan and the request for the grantback that were submitted
on December 13, 1993, and any other amendments to that plan that are
approved in advance of the grantback award 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) Pursuant to section 459(c) of GEPA, all funds received under
this grantback arrangement must be obligated not later than September
30, 1996.
(c) The State agency must, not later than January 1, 1995, January
1, 1996, and January 1, 1997, submit reports to the Secretary that--
(1) Indicate how the funds awarded under the grantback and the
State matching funds have been expended in accordance with the proposed
plan; and
(2) Describe the results and effectiveness of the project for which
the funds were expended.
(d) The State matching funds expended under the grantback
arrangement will be counted for maintenance of effort purposes under
the Title I State Vocational Rehabilitation Services Program.
(e) Separate accounting records must be maintained documenting the
expenditure of all funds under the grantback arrangement.
(f) Before funds will be repaid pursuant to this notice, the State
agency 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 84.126,
Rehabilitation Services--Basic Support)
Dated: May 23, 1994.
Andrew J. Pepin,
Acting Assistant Secretary, for Special Education and Rehabilitative
Services.
[FR Doc. 94-12905 Filed 5-25-94; 8:45 am]
BILLING CODE 4000-01-P
