[Federal Register: May 24, 1999 (Volume 64, Number 99)]
[Notices]
[Page 27969-27971]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24my99-48]
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DEPARTMENT OF EDUCATION
Office of Elementary and Secondary Education
Office of Special Education and Rehabilitative Services
Intent To Repay the Connecticut Department of Education; Funds
Recovered as a Result of a Final Audit Determination
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), the Secretary of Education (Secretary) intends to repay to the
Connecticut Department of Education, an amount equal to 75 percent of
the $146,760.00 of previously disallowed funds recovered by the U.S.
Department of Education under the terms of a May 29, 1996, settlement
agreement. This notice describes the State's plan for the use of repaid
funds and the terms and conditions under which the Secretary intends to
make those funds available. The notice invites comments on the proposed
grantback.
DATES: All comments must be received on or before June 23, 1999.
ADDRESSES: All comments concerning the portion of the grantback that
provides funds under the former Chapter 1 Handicapped Program should
[[Page 27970]]
be addressed to Ruth Ryder, Office of Special Education and
Rehabilitative Services, U.S. Department of Education, 400 Maryland
Avenue, S.W., Room 3609, Mary E. Switzer Building, Washington, D.C.
20202-6135. Comments may also be sent through the Internet to:
ruth__ryder@ed.gov. Commenters must include the term ``grantback
comment'' in the subject line of any electronic message.
All comments concerning the portion of the grantback that provides
funds under the Migrant Education Program (MEP) should be addressed to
Francisco Garcia, Director, Office of Migrant Education, Office of
Elementary and Secondary Education, U.S. Department of Education, 400
Maryland Avenue, SW, Washington, DC 20202-6135. Comments may also be
sent through the Internet to: franscisco__garcia@ ed.gov. Commenters
must include the term ``grantback comment'' in the subject line of any
electronic message.
FOR FURTHER INFORMATION CONTACT: For the former Chapter 1 Handicapped
Program, Martin Benton, U.S. Department of Education, 400 Maryland
Avenue, SW, (Mary E. Switzer Building, Room 3615), Washington, DC
20202-6135. Telephone: (202) 205-9028. For the MEP, Delores Warner,
U.S. Department of Education, 400 Maryland Avenue, SW (FOB-6, Room
3W330), Washington, DC 20202-6135. Telephone: (202) 260-1941.
Individuals who use a telecommunication device for the deaf (TTD) may
call the Federal Information Relay Service (FIRS) at 1-800-877-8349.
Individuals with disabilities may obtain this document in an
alternate format (e.g., Braille, large print, audiotape, or computer
disk) on request to the contact persons listed in the preceding
paragraph.
SUPPLEMENTARY INFORMATION:
A. Background
The Department has recovered $146,760 from the Connecticut
Department of Education (Connecticut) in satisfaction of claims arising
under program determination letters (PDLs) issued on March 31, 1992
(Connecticut I) (Audit Control Number 01-03261G) and March 24, 1994
(Connecticut II) (Audit Control Number 01-23237). These funds were
recovered under the terms of a settlement agreement, entered into
between Connecticut and the Department on May 29, 1996, which resolved
both these audit determinations.
Under the first PDL, Connecticut I, the Department's PDL demanded a
refund in the amount of $575,329 for violations of applicable
requirements in Office of Management and Budget (OMB) Circular A-87 in
fiscal years 1988 and 1989 relating to recordkeeping for employees with
multi-program responsibilities. Funds were disallowed for the following
programs: Bilingual Education State Grant ($94,134); Education
Consolidation and Improvement Act (ECIA) Migrant Education State
Formula Grant ($108,385); Chapter 1 of the ECIA Education for
Disadvantaged, State Administration ($36,120); Chapter 2 of the ECIA
($263,605); Part B of the Education of the Handicapped Act ($29,272);
and Preschool Grants for Children with Disabilities ($43,910). Based on
documentation that Connecticut submitted after it filed its application
for review of this PDL with the Office of Administrative Law Judges
(OALJ), the Department withdrew its claim relating to Chapter 2 of the
ECIA ($263,605) and the Bilingual Education State Grant program
($94,134). With the withdrawal of these two claims, the amount at issue
in Connecticut I was reduced from $575,329 to $217,590. Under the terms
of the May 29, 1996, settlement agreement, the Department recovered
from Connecticut $82,500 of these funds. Connecticut has requested a
grantback of 75 percent of this amount, or $61,875. The grantback
application specifies that these funds will be used under the Migrant
Education Program (Title I, Part C of the Elementary and Secondary
Education Act of 1965 (ESEA)), as amended by the Improving America's
Schools Act, which has superseded the former ECIA.
Under the second PDL, Connecticut II, the Department's PDL demanded
a refund of $558,162 for similar recordkeeping violations in fiscal
years 1990 and 1991 relating to the following Federal programs:
Bilingual Education State Grant program ($100,566); Carl D. Perkins
Vocational Education Act ($3,133); Chapter 1 Handicapped ($201,438);
Chapter 2 of the Elementary and Secondary Education Act (ESEA)
($234,640); and Handicapped Special Studies ($18,385). Based on
documentation that Connecticut submitted after it filed its application
for review of this PDL with the OALJ, the Department withdrew its
claims relating to Chapter 2 of the ESEA ($234,640) and the Bilingual
Education State Grant program ($100,566). With the withdrawal of these
two claims, the amount at issue in Connecticut II was reduced from
$558,162 to $222,956. Under the terms of the May 29, 1996, settlement
agreement, the Department recovered from Connecticut $64,260.
Connecticut has requested a grantback of 75 percent of this amount, or
$48,195. The SEA's grantback application specifies that these funds
will be used under Part B of the Individuals with Disabilities
Education Act (IDEA), which now encompasses the Chapter 1 Handicapped
program--one of the programs covered by the recovery of funds.
B. Authority for Awarding a Grantback
Section 459(a) of GEPA, 20 U.S.C. 1234h(a), 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
recipient affected by that determination an amount not to exceed 75
percent of the recovered funds. The Secretary may enter into a
grantback agreement arrangement if the Secretary determines that the--
(1) Practices or procedures of the recipient that resulted in the
audit determination have been corrected, and the recipient is, in all
other respects, in compliance with the applicable program;
(2) The recipient 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, benefit
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 recipient'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 Agreement
Pursuant to section 459(a)(2) of GEPA, the SEA has applied for a
grantback of $110,070 which is 75 percent of the principal amount
recovered by the Department and has submitted a plan for use of the
grantback funds to meet the special education needs of both children
served under the MEP and Part B of the IDEA. Specifically, the SEA has
applied for a grantback of $61,875 of recovered MEP funds and $48,195
of recovered Chapter 1--Handicapped Program funds.
According to the plan, Connecticut will utilize the funds to
provide additional services to the Title I migrant education summer
programs located in urban school districts--Bridgeport, Hartford,
Meriden, New Britain, New Haven, New London, Waterbury and
[[Page 27971]]
Windham--that have been identified as priority districts because of
academic need. These funds will benefit a population (eligible migrant
children) that is similar to the population affected by the
misexpenditures that resulted in the recovery of funds.
According to the plan, Connecticut will utilize the recovered
Chapter 1 Handicapped Program funds to enhance transition services for
secondary age youth with disabilities. This program will benefit a
similar population (secondary age youth with disabilities) to the
population that was affected by the misexpenditures that resulted in
the recovery of funds. Specifically, 30 students with disabilities will
be selected to participate in a program that is designed to provide
work experience opportunities for young adults with disabilities to
assist them in defining appropriate career directions. These funds will
be expended consistent with the requirements of Part B of the IDEA,
this supplemental program will serve the population of students that
was eligible for services under the Chapter 1 Handicapped Program.
D. The Assistant Secretaries' Determinations
The Assistant Secretaries have carefully reviewed the application
and plan that Connecticut submitted. Based upon that review, the
Assistant Secretaries have determined that the conditions set forth in
GEPA have been met. These determinations are based upon the best
information available to the Assistant Secretaries at the present time.
If this information is not accurate or complete, the Assistant
Secretaries may take other appropriate administrative action. In
finding that the conditions of section 459 of GEPA have been met, the
Assistant Secretaries make 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 payment would be made.
In accordance with section 459(d) of GEPA, notice is hereby given
that the Secretary intends to make funds available to Connecticut under
a grantback arrangement. The grantback award would be in the amount of
$110,070; $61,875 for funds recovered under the MEP and $48,195 for
funds recovered under the Chapter 1 Handicapped Program.
F. Terms and Conditions Under Which Payment Under a Grantback
Arrangement Would Be Made
Connecticut 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 Connecticut submitted and any amendments to that
plan that are approved in advance by the Secretary;
(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, 1999, in accordance with Section 459(c) of
GEPA and Connecticut's plan.
(3) Connecticut will, no later than December 31, 1999, submit a
report 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
expenditure of funds awarded under the grantback arrangement.
Electronic Access to This Document
You may review this document, as well as other Department of
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http://ocfo.ed.gov/fedreg.htm
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Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO Access at: http://
www.access.gpo.gov/nara/index.html
(Catalog of Federal Domestic Assistance Number 84.011, Migrant
Education Program (ESEA, Title I, Part C); and Catalog of Federal
Domestic Assistance No. 84.027, Special Education-Grants to States
(IDEA, Part B))
Dated: May 17, 1999.
Judith Johnson,
Acting Assistant Secretary for Elementary and Secondary Education.
Judith E. Heumann,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 99-13086 Filed 5-21-99; 8:45 am]
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