96-19273. Office of Vocational and Adult Education; Intent To Repay the Colorado State Board for Vocational Education Funds Recovered as a Result of Two Final Audit Determinations  

  • [Federal Register Volume 61, Number 147 (Tuesday, July 30, 1996)]
    [Notices]
    [Pages 39796-39797]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-19273]
    
    
    
    [[Page 39795]]
    
    
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    Part V
    
    
    
    
    
    Department of Education
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    Office of Vocational and Adult Education; Intent To Repay the Colorado 
    State Board for Vocational Education Funds Recovered as a Result of Two 
    Final Audit Determinations; Notice
    
    Federal Register / Vol. 61, No. 147 / Tuesday, July 30, 1996 / 
    Notices
    
    [[Page 39796]]
    
    
    
    DEPARTMENT OF EDUCATION
    
    
    Office of Vocational and Adult Education; Intent To Repay the 
    Colorado State Board for Vocational Education Funds Recovered as a 
    Result of Two Final Audit Determinations
    
    AGENCY: Department of 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, the U.S. Secretary of Education (Secretary) 
    intends to repay to the Colorado Community College and Occupational 
    Education System (Colorado), under a grantback arrangement, an amount 
    equal to 75 percent of the principal amount of funds recovered by the 
    U.S. Department of Education (Department) as a result of final audit 
    determinations (ACNs: 08-72109 and 08-82000). The Department's recovery 
    of funds followed a settlement reached between the parties under which 
    Colorado refunded $87,500 to the Department in full resolution of the 
    Department's final audit determinations for fiscal years (FYs) 1985 and 
    1986. This notice describes Colorado's 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.
    
    DATE: All comments must be received on or before August 29, 1996.
    
    ADDRESSES: All written comments should be addressed to Dr. Marcel R. 
    DuVall, Chief, Finance Branch, Division of Vocational-Technical 
    Education, Office of Vocational and Adult Education, U.S. Department of 
    Education, 600 Independence Avenue S.W., Mary E. Switzer Building, Room 
    4320, MS-7324, Washington, D.C. 20202.
    
    FOR FURTHER INFORMATION CONTACT: Dr. Marcel R. DuVall, U.S. Department 
    of Education, 600 Independence Avenue S.W., Mary E. Switzer Building, 
    Room 4320, MS-7324, Washington, D.C. 20202, telephone: (202) 205-9502. 
    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: Marcel __ DuVall@ed.gov.
    
    SUPPLEMENTARY INFORMATION
    
    A. Background
    
        Under a settlement agreement between the Department and Colorado, 
    the Department recovered $87,500 from Colorado in full resolution of 
    all claims arising from audits of Colorado covering FYs 1985 and 1986.
        The Department's original claims of $538,930.30 (ACN: 08-72109 (FY 
    1985)) and $395,085.10 (ACN: 08-82000 (FY 1986)) were contained in 
    final letters of determination issued by the Assistant Secretary for 
    Vocational and Adult Education on August 31, 1989 and June 28, 1990 
    respectively. These claims arose from findings related to Colorado's 
    administration of its vocational education program under the provisions 
    of the Carl D. Perkins Vocational Education Act. 20 U.S.C. 2301 et seq. 
    (1988) (Perkins I).
        In both the August 31, 1989 and June 28, 1990 letters, the 
    Assistant Secretary determined that, among other things, Colorado 
    violated the Federal regulations governing payroll expenditures and 
    maintenance of time distribution records. For the applicable programs, 
    Colorado improperly allocated payroll expenditures based on 
    predetermined budgets and failed to maintain appropriate time 
    distribution records for employees who worked on more than one cost 
    objective, thus violating provisions of the cost principles implemented 
    at 34 CFR Part 74, Appendix C, II, B., 10., b (1985).
        The settlement negotiations resulting from Colorado's appeal of the 
    Assistant Secretary's August 31, 1989 and June 28, 1990 determinations 
    culminated in a single settlement agreement for a total repayment of 
    $87,500. The settlement agreement was executed on March 28, 1994. The 
    Department received full payment for the determinations on March 29, 
    1994.
    
    B. Authority for Awarding a Grantback
    
        Section 459(a) of GEPA, 20 U.S.C. 1234(h), provides that whenever 
    the Secretary has recovered funds following a final audit determination 
    with respect to any applicable program, the Secretary may consider 
    those funds to be additional funds available for the program and may 
    arrange to repay, to the State or local educational agency (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 recipient that resulted in the 
    violation have been corrected, and that the recipient is, in all other 
    respects, in compliance with the requirements of the applicable 
    program;
        (2) Recipient has submitted to the Secretary a plan for the use of 
    those funds pursuant to the requirements of that program and, to the 
    extent possible, for the benefit of the population that was affected by 
    the failure to comply or by the misexpenditures that resulted in the 
    recovery of funds; and
        (3) Use of the funds, in accordance with that 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, Colorado has applied for a 
    grantback of $65,625, or 75 percent, of the $87,500 repaid to the 
    Department under the settlement agreement, and has submitted a plan for 
    use of the proposed grantback funds, consistent with the Carl D. 
    Perkins Vocational and Applied Technology Education Act (Perkins II), 
    which is the successor statute to Perkins I and is currently in effect. 
    Colorado plans to purchase curriculum materials that will support the 
    integration of academic and vocational education.
        Specifically, Colorado plans to utilize the requested grantback 
    funds, totaling $65,625 to--
        (1) Purchase an applied economics curriculum package entitled 
    Workplace Economics from the Agency for Instructional Technology (AIT). 
    The package will contain: instructional videodiscs; instructional video 
    cassettes, including a teacher training video and a teleconference 
    video; student, teacher, and workshop resource guidebooks; computer 
    software; duplication licenses for the right to copy video cassettes 
    and computer software; preferred pricing for additional copies of 
    instructional materials; pre-paid travel and accommodations for two 
    Colorado representatives to attend an AIT National Consortium Meeting; 
    one pre-paid site registration for the North American Teleconference 
    held for teacher trainers and curriculum coordinators across North 
    America; and four pre-paid individual registrations to attend the 
    Workplace Economics Education Institutes ($22,226);
        (2) Purchase a Workplace Readiness curriculum package, entitled 
    Workplace Readiness: Education for Employment from AIT, that teaches 
    skills such as problem solving, teamwork, and goal setting. The 
    curriculum is designed primarily for secondary vocational education 
    students but may be utilized for post-secondary students as well. The 
    package will contain: one master set of project materials that includes 
    instructional video programs for both instructors and students; 
    computer software; instructional videodiscs; printed materials; and 
    unlimited,
    
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    unrestricted rights to duplicate course materials for distribution to 
    LEAs ($31,399); and
        (3) Purchase an applied mathematics curriculum package entitled 
    Applied Geometry from the Center for Occupational Research and 
    Development (CORD). This package will augment Applied Math I and 
    Applied Math II, two other CORD curriculum packages which the State has 
    purchased and which are currently in use by a large number of the 
    State's LEAs. Applied Geometry will enhance the geometry-related 
    concepts contained in Applied Math II by focusing greater attention on 
    the areas of logic, spatial visualization, coordinate geometry, and 
    transformations (geometric operations and congruity). These four units 
    will enhance the algebra and geometry content of vocationally focused 
    mathematics courses currently offered by the State. The curriculum 
    package will contain: an introductory motivational video that 
    demonstrates how the curriculum relates to the world of work; student 
    texts that use ``real world'' examples and activities that facilitate 
    understanding of the mathematical concepts being taught; and a 
    selection of three hands-on laboratories that use measuring equipment 
    in applications relevant to the mathematic concepts ($12,000).
        Colorado plans to disseminate copies of each of the above 
    curriculum programs to its LEAs at a low cost, allowing LEAs that could 
    not otherwise afford to purchase the curriculum to do so. Large numbers 
    of vocational education students will benefit from these curriculum 
    programs, advancing the quality of programs delivered by, and 
    coordinated throughout, the secondary and post-secondary State system, 
    resulting in Statewide benefit to vocational education, and maximizing 
    the impact of the grantback funds.
    
    D. The Secretary's Determination
    
        The Secretary has carefully reviewed the plan, amendment, and other 
    relevant documentation submitted by Colorado. Based upon that review, 
    the Secretary has determined that the conditions under 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 not accurate 
    or complete, the Secretary is not precluded from taking appropriate 
    administrative action at a later date. In finding that the conditions 
    of section 459 of GEPA have been met, the Secretary makes no 
    determination concerning any pending audit recommendations or final 
    audit determinations.
    
    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 must 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 Colorado 
    State Board for Community Colleges and Occupational Education under a 
    grantback arrangement. The grantback award would be in the amount of 
    $65,625, which is 75 percent--the maximum percentage authorized by the 
    statute--of the principal recovered to date by the Department as a 
    result of the final audit determinations and the settlement in this 
    matter.
    
    F. Terms and Conditions Under Which Payments Under a Grantback 
    Arrangement Would Be Made
    
        Colorado Community College and Occupational Education System agrees 
    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 was submitted and any amendments in that plan 
    that are approved in advance by the Secretary; and
        (c) The budget that was submitted with the plan and any amendments 
    to the budget that are approved in advance by the Secretary.
        (2) All funds received under the grantback arrangement must be 
    obligated by September 30, 1997, in accordance with section 459(c) of 
    GEPA and Colorado's plan.
        (3) Colorado will, no later than December 30, 1997, submit a report 
    to the Secretary which--
        (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.
    
    (Catalog of Federal Domestic Assistance Number 84.048, Basic State 
    Grants for Vocational Education)
    
        Dated: July 23, 1996.
    Patricia W. McNeil,
    Assistant Secretary for Vocational and Adult Education.
    [FR Doc. 96-19273 Filed 7-29-96; 8:45 am]
    BILLING CODE 4000-01-P
    
    
    

Document Information

Published:
07/30/1996
Department:
Education Department
Entry Type:
Notice
Action:
Notice of intent to award grantback funds.
Document Number:
96-19273
Dates:
All comments must be received on or before August 29, 1996.
Pages:
39796-39797 (2 pages)
PDF File:
96-19273.pdf