[Federal Register Volume 63, Number 109 (Monday, June 8, 1998)]
[Notices]
[Pages 31202-31203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15068]
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DEPARTMENT OF EDUCATION
Office of Elementary and Secondary Education; Intent To Repay to
the State of New Mexico Department of Education Funds Recovered as a
Result of Two Final Audit Determinations
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 U.S. Department of Education (Department)
intends to repay to the State of New Mexico Department of Education,
the State educational agency (SEA), an amount equal to 75 percent of
the principal amount of funds returned to the Department as the result
of final audit determinations. The Department's recovery of funds
followed the SEA's issuance of a final letter of determination dated
April 10, 1996 to Roswell Independent School District (RISD) requiring
the return of $62,957.83, which was subsequently sent to the Department
on June 11, 1996. This notice describes the SEA's plan, submitted on
behalf of RISD, the local educational agency (LEA), for the use of the
repaid funds and the terms and conditions under which the Department
intends to make those funds available. The notice invites comments on
the proposed grantback.
DATES: All Comments must be received on or before July 8, 1998.
ADDRESSES: All written comments should be addressed to Mary Jean
LeTendre, Director, Compensatory Education Programs, Office of
Elementary and Secondary Education, U.S. Department of Education, 600
Independence Avenue, SW, Portals Building, Room 4400, Washington, D.C.
20202-6132. Comments may also be sent through the Internet to:
comments@ed.gov.
FOR FURTHER INFORMATION CONTACT: S. Colene Nelson, U.S. Department of
Education, 600 Independence Avenue, SW, Portals Building, Room 4400,
Washington, D.C. 20202-6132. Telephone: (202) 260-0979. 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 address:
Colene__Nelson@ed.gov.
Individuals with disabilities may obtain this document in an
alternate format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed in the preceding
paragraph.
SUPPLEMENTARY INFORMATION:
A. Background
The Department has recovered $62,957.83 from the New Mexico SEA in
satisfaction of claims arising from an audit of Roswell Independent
School District (LEA) covering fiscal years (FY) 1993 and 1994.
The claims involved the LEA's administration of Chapter 1 of Title
I of the Elementary and Secondary Education Act of 1965, as amended in
1988, a program providing financial assistance to State and local
educational agencies to address the special educational needs of
educationally deprived children in areas with high concentrations of
children from low-income families (Chapter 1). Specifically, the audit
determinations, made by an independent auditor acting under the Single
Audit Act of 1984 and upheld by the SEA, found that for FY 1993,
$30,769.72 representing partial salaries of six associates at
Washington Avenue Elementary was allocated to the Chapter 1 program.
However, the LEA did not maintain appropriate time distribution records
to support the allocation. Also, for the following FY 1994, $32,188.11
representing partial salaries of six associates at Washington Avenue
Elementary was allocated to the Chapter 1 program. In this instance,
only the August and September time distribution reports were available.
The auditors found that no additional time and attendance reports were
maintained during the year demonstrating the actual time that staff
spent on Chapter 1 activities. In the absence of appropriate support
documentation to substantiate the salaries and wages chargeable to the
Chapter 1 program, as required by Office of Management and Budget
Circular A-87, ``Cost Principles for State and Local Governments,'' the
SEA required the LEA to reimburse the Federal Government in the amount
of $62,957.83 for both audited years.
B. Authority for Awarding a Grantback
Section 459(a) of GEPA, 20 U.S.C. 1234h, provides that whenever the
Secretary has recovered program funds following a final audit
determination, the Secretary may consider those funds to be additional
funds available for the program and may arrange to repay to the SEA or
LEA affected by that 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--
(1) Practices or procedures of the SEA or LEA that resulted in the
audit determination have been corrected, and the SEA or LEA is, in all
other respects, in compliance with the requirements of the applicable
program, provided that the SEA or LEA was notified of any noncompliance
with such requirements and given a reasonable period of time to remedy
that noncompliance;
(2) 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 audit exception; and
(3) Use of funds to be awarded under the grantback arrangement in
accordance with the SEA's 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, the SEA has applied for a
grantback of $47,218--75 percent of the principal
[[Page 31203]]
amount recovered by the Department--and has submitted a plan on behalf
of the LEA for use of the grantback funds to meet the special
educational needs of educationally deprived children in programs
administered under Title I, Part A, of ESEA, successor to Chapter 1.
According to the plan, the LEA will use the grantback funds under
Title I to provide summer enrichment programs for educationally
deprived children at three sites, in June and July 1998. Program
services to be provided are as follows:
(1) Washington Avenue Elementary--Approximately 120 students would
receive instruction in reading, math, and writing. Students would also
receive 30 minutes of computer instruction, fitness activities, and
music instruction. Services at this site would run from June 8, 1998 to
July 7, 1998 with an estimated budget of $29,210.
(2) Berrendo Elementary--Approximately 60 to 70 students would
receive instruction in reading with a focus on phonics instruction as
well as literature. Also, math skills would be reinforced and students
would receive computer assisted instruction. Services at this site
would run from June 22, 1998 to July 17, 1998 with an estimated budget
of $15,678.
(3) Del Norte Elementary--Approximately 60 students would receive
instruction in reading. Students needing assistance in math would
receive help on an as needed basis. Services at this site would run
from June 8, 1998 to July 3, 1998 with an estimated budget of $11,705.
The total estimated cost of the LEA's summer enrichment program is
$56,593. The additional funds ($9,375) would come from the LEA's
current Title I allocation for 1997-98.
D. The Assistant Secretary's Determination
The Assistant Secretary has carefully reviewed the plan submitted
by the SEA. Based upon that review, the Assistant Secretary has
determined that the conditions under section 459 of GEPA have been met.
These determinations are based upon the best information available to
the Assistant Secretary at the present time. If this information is not
accurate or complete, the Assistant Secretary may take appropriate
administrative action. In finding that the conditions of section 459 of
GEPA have been met, the Assistant Secretary makes no determination
concerning any pending audit recommendations or final audit
determinations.
E. Notice of the Assistant 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
Department must publish in the Federal Register a notice of intent to
do so, and the terms and conditions under which payment will be made.
In accordance with section 459(d) of GEPA, notice is hereby given
that the Assistant Secretary intends to make funds available to the SEA
under a grantback arrangement. The grantback award would be in the
amount of $47,218.
F. Terms and Conditions Under Which Payments Under a Grantback
Arrangement Would Be Made
The SEA and LEA agree to comply with the following terms and
conditions under which payment under a grantback arrangement would be
made:
(1) The funds awarded under the grantback must be spent in
accordance with--
(a) All applicable statutory and regulatory requirements;
(b) The plan that the SEA submitted and any amendments to that plan
that are approved in advance by the Assistant Secretary; and
(c) The budget that was submitted with the plan and any amendments
to the budget that are approved in advance by the Assistant Secretary.
(2) All funds received under the grantback arrangement must be
obligated in accordance with the SEA's plan but, in no event, after
September 30, 1999 as required under 459(c) of GEPA.
(3) The SEA, on behalf of the LEA, will, not later than December
31, 1998, submit a report to the Assistant Secretary that--
(a) Indicates that the funds awarded under the grantback have been
spent in accordance with the proposed plan and approved budget; and
(b) Describes the results and effectiveness of the project for
which the funds were spent.
(4) Separate accounting records must be maintained documenting the
expenditures of funds awarded under the grantback arrangement.
Electronic Access to This Document
Anyone may view this document, as well as all other Department of
Education documents published in the Federal Register, in text or
portable document format (pdf) on the World Wide Web at either of the
following sites:
http://ocfo.ed.gov/fedreg.htn
http://www.ed.gov/news.html
To use the pdf you must have the Adobe Acrobat Reader Program with
Search, which is available free at either of the previous sites. If you
have questions about using the pdf, call the U.S. Government Printing
Office toll free at 1-888-293.6498.
(Catalog of Federal Domestic Assistance Number 84.010, Title I,
Improving Basic Programs Operated by Local Education Agencies)
Dated: May 21, 1998.
Gerald N. Tirozzi,
Assistant Secretary for Elementary and Secondary Education.
[FR Doc. 98-15068 Filed 6-5-98; 8:45 am]
BILLING CODE 4000-01-P
