[Federal Register: March 25, 1996 (Volume 61, Number 58)]
[Notices]
[Page 12061]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
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DEPARTMENT OF EDUCATION
Intent To Compromise Two Audit Claims Against Connecticut State
Board of Education
AGENCY: Department of Education.
ACTION: Notice of intent to compromise two audit claims.
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SUMMARY: The U.S. Department of Education (the Department) intends to
compromise two audit claims against the Connecticut State Board of
Education (Connecticut) now pending before the Office of Administrative
Law Judges (OALJ). Docket Nos. 92-53-R and 94-68-R (20 U.S.C.
1234a(j)).
DATES: Interested persons may comment on the proposed action by
submitting written data, views, or arguments May 9, 1996.
ADDRESSES: Comments should be addressed to Effie Forde, Office of the
General Counsel, U.S. Department of Education, 600 Independence Avenue,
SW., (Room 5200, FB 10), Washington, DC 20202.
FOR FURTHER INFORMATION CONTACT: Effie Forde, Esq., Telephone (202)
401-8292. 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.
SUPPLEMENTARY INFORMATION: The claims in question arose from two
separate audits of the financial affairs and operations of Connecticut
for fiscal years 1988 through 1991. The audits were performed by the
State of Connecticut Auditor of Public Accounts to fulfill the
requirements of Office of Management and Budget (OMB) Circular A-128.
The audits included the evaluation of the internal control systems,
including applicable internal administrative controls used in
administering Federal financial assistance programs. Among the systems
examined, the auditors reviewed Connecticut's procedures for allocating
among programs costs for individual employees who had multi-program
responsibilities.
Department officials issued two separate program determination
letters (PDLs) to Connecticut. The first PDL was issued on March 31,
1992 demanding a refund in the amount of $575,329 (Connecticut I) for
violations of the requirements in OMB Circular A-87 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 ($108,358); Chapter 1 of the
ECIA, Education for the 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 submitted by Connecticut
during the course of its appeal before the OALJ, the Department has
withdrawn its claims relating to Chapter 2 of the ECIA ($263,605) and
the Bilingual Education State Grant ($94,134). With the withdrawal of
these two claims, the funds remaining at issue in Connecticut I have
been reduced from $575,329 to $217,590.
The Department issued the second PDL on March 25, 1994 (Connecticut
II) disallowing a total of $558,162 for similar recordkeeping
violations 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 submitted
by Connecticut after it filed its application for review with the OALJ,
the Department has withdrawn its claims relating to Chapter 2 of the
ESEA ($234,640) and the Bilingual Education State Grant ($100,566). As
a result, the amount of funds remaining at issue in Connecticut II is
$222,956.
Connecticut filed timely requests for review of the two PDLs with
the OALJ. Thereafter, the Administrative Law Judge assigned to the
appeals granted the parties' joint motion to enter into settlement
negotiations.
The Department proposes to compromise the amount remaining at issue
in Connecticut I ($217,590) for $82,500 and the amount at issue in
Connecticut II ($222,956) for $64,260. Under the proposed compromise,
Connecticut therefore would repay a total principal amount of $147,760,
plus accrued interest, in three equal installments. Although
Connecticut I and II are being resolved together through one settlement
agreement, they involve separate PDLs and claims for purposes of the
dollar limitation in 20 U.S.C. 1234a(j)(1) on the Secretary's authority
to compromise claims.
During settlement negotiations, Connecticut provided substantial
additional documentation and information relating to the individual
employees at issue, their job duties, and how they spent their time.
Furthermore, Connecticut raised additional legal and factual issues
that could reduce or eliminate the remaining amounts at issue.
Given the amount that would be repaid by Connecticut under the
settlement agreement, the additional documentation submitted during
settlement discussions, and the litigation risks and costs of
proceeding through the appeal process for both appeals, the Department
has determined that it would not be practical or in the public interest
to continue these proceedings. Rather, under the authority provided in
20 U.S.C. 1234a(j)(1), the Department has determined that compromise of
these claims for $146,760 would be appropriate.
The public is invited comment on the Department's intent to
compromise these claims. Additional information may be obtained by
writing to Effie Forde at the address given at the beginning of this
notice.
Program Authority: 20 U.S.C. 1234a(j).
Dated: March 19, 1996.
Donald R. Wurtz,
Chief Financial Officer.
[FR Doc. 96-7161 Filed 3-22-96; 8:45 am]
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