[Federal Register Volume 59, Number 61 (Wednesday, March 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7399]
[[Page Unknown]]
[Federal Register: March 30, 1994]
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DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 205
RIN 1510-AA40
Rules and Procedures for Funds Transfers
AGENCY: Financial Management Service, Fiscal Service, Treasury.
ACTION: Interim rule.
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SUMMARY: This rule amends the regulations implementing the Cash
Management Improvement Act of 1990 (CMIA), as amended, which governs
the transfer of funds between the Federal Government and the States
under Federal assistance programs. It delays the date on which the
State of New York must begin the second phase of CMIA implementation,
thereby affording New York the same amount of time to complete the
first phase that is allowed the other 55 States and territories. This
rulemaking affects only New York.
DATES: This interim rule is effective March 30, 1994; comments must be
received on or before April 14, 1994.
ADDRESSES: Send comments to the Financial Management Service (FMS),
Director, Cash Management Policy and Planning Division, room 511, 401
14th Street, SW., Washington, DC 20227, Facsimile number (202) 874-
6907.
FOR FURTHER INFORMATION CONTACT: Gary Grippo, (202) 874-6955.
SUPPLEMENTARY INFORMATION:
Background
The regulations at 31 CFR part 205 established a two-stage
implementation of the Cash Management Improvement Act of 1990 (CMIA),
as amended, which governs the transfer of funds between the Federal
Government and the States under Federal assistance programs.
During the first phase of implementation, only the 20 largest
Federal assistance programs were covered by CMIA. From the second year
onward, the scope of CMIA expands to cover all ``major Federal
assistance programs,'' as defined by the Single Audit Act. This second
phase of implementation is scheduled to take effect at the start of
each State's 1995 fiscal year, so that States can introduce the new
cash management requirements with a new fiscal year.
The State of New York, however, has a unique fiscal year that
begins on April 1, which is 3 months prior to the start of the typical
State fiscal year on July 1. Hence, New York would be subject to
expanded CMIA requirements three months before the other States; it
would have only 9 months for the first phase of implementation, whereas
all other States and territories would have a year.
This rulemaking amends 31 CFR part 205 to allow New York a full
year for the first stage of implementation. It modifies the
implementation schedule so that no State begins the second phase prior
to July 1, 1994. This rulemaking makes no other changes to 31 CFR part
205 and affects only New York.
Rulemaking Analyses
E.O. 12866
It has been determined that this regulation is not a significant
regulatory action as defined in E.O. 12866. Therefore, a Regulatory
Assessment is not required.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required for this rule,
the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
do not apply.
Notice and Comment
Public comment is solicited on this interim rule. The FMS will
consider all comments made on the substance of this interim rule, and
will determine the appropriateness of adopting it as a final rule.
In accordance with 5 U.S.C. 553(d)(1), a delayed effective date is
not required for this rulemaking. The FMS has determined that this
interim rule is a substantive regulation which relieves a restriction,
specifically an exceptional deadline that applies to New York. New
York's April 1, 1994, deadline entails an urgency of conditions and an
unavoidable limitation of time that would make this rule meaningless if
the effective date were delayed. Furthermore, this interim rule places
no burdens or requirements on any State or other entity, and there are
no affected parties that need time to prepare to comply with or take
other action with respect to this rule. For the convenience and
necessity of New York, therefore, this interim rule is effective
immediately and will continue to be effective until final rule action
is taken.
The FMS for good cause finds that general notice of proposed
rulemaking is not necessary for this regulatory action, in accordance
with 5 U.S.C. 553(b)(B). The delay created by prior notice and public
procedure would result in serious damage to important interests,
specifically the public benefit corporations, public institutions of
higher education, and public not-for-profit organizations of New York,
as well as the integrity of CMIA implementation. Application of the
rules in 31 CFR part 205 to these entities prior to July 1, 1994, would
affect New York's ability to implement CMIA in the current and future
years. Failure to make this regulatory amendment would result in
potential financial harm to New York, and unnecessary costs to the
Federal Government.
List of Subjects in 31 CFR Part 205
Electronic funds transfer, Grant administration, Grant programs,
Intergovernmental relations.
Issuance
For the reasons set forth in the preamble, 31 CFR part 205 is
amended by this interim rule as follows:
PART 205--[AMENDED]
1. The authority citation for 31 CFR part 205 continues to read as
follows:
Authority: 5 U.S.C. 301; 31 U.S.C. 321, 3335, 6501, 6503.
2. Paragraph (b) of Sec. 205.4 is revised to read as follows:
Sec. 205.4 Scope of subpart.
* * * * *
(b) Threshold of materiality. From the later of July 1, 1994, or
the beginning of a State's 1995 fiscal year, and thereafter, this
subpart applies, at a minimum, to all programs that meet the threshold
for major Federal assistance programs in a State.
* * * * *
Dated: March 8, 1994.
Russell D. Morris,
Commissioner.
[FR Doc. 94-7399 Filed 3-29-94; 8:45 am]
BILLING CODE 4810-35-P
