[Federal Register: July 30, 1996 (Volume 61, Number 147)]
[Notices]
[Page 39795-39797]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[[Page 39795]]
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Part V
Department of Education
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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
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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.
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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,
[[Page 39797]]
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