Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations 45937

DEPARTMENT OF AGRICULTURE

7 CFR Parts 3016 and 3019

DEPARTMENT OF ENERGY

10 CFR Part 600

SMALL BUSINESS ADMINISTRATION

13 CFR Part 143

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

14 CFR Parts 1260 and 1273

DEPARTMENT OF COMMERCE

15 CFR Part 24

OFFICE OF NATIONAL DRUG

CONTROL POLICY

21 CFR Part 1403

DEPARTMENT OF STATE

22 CFR Parts 135 and 145

INTERNATIONAL DEVELOPMENT

COOPERATION AGENCY

Agency for International Development

22 CFR Part 226

UNITED STATES INFORMATION

AGENCY

22 CFR Part 518

DEPARTMENT OF JUSTICE

28 CFR Parts 66 and 70

DEPARTMENT OF LABOR

29 CFR Parts 95 and 97

FEDERAL MEDIATION AND

CONCILIATION SERVICE

29 CFR Part 1470

DEPARTMENT OF DEFENSE

32 CFR Part 33

DEPARTMENT OF EDUCATION

34 CFR Parts 74 and 80

NATIONAL ARCHIVES AND RECORDS

ADMINISTRATION

36 CFR Parts 1207 and 1210

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 43

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Parts 30 and 31

GENERAL SERVICES

ADMINISTRATION

41 CFR 105–71 and 105–72

DEPARTMENT OF THE INTERIOR

43 CFR Part 12

FEDERAL EMERGENCY

MANAGEMENT AGENCY

44 CFR Part 13

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

45 CFR Parts 74 and 92

NATIONAL SCIENCE FOUNDATION

45 CFR Part 602

NATIONAL FOUNDATION ON THE

ARTS AND THE HUMANITIES

National Endowment for the Arts

45 CFR Part 1157

National Endowment for the

Humanities

45 CFR Part 1174

Institute of Museum and Library

Services

45 CFR Part 1183

CORPORATION FOR NATIONAL AND

COMMUNITY SERVICE

45 CFR Parts 2541 and 2543

DEPARTMENT OF TRANSPORTATION

49 CFR Parts 18 and 19

Grants and Cooperative Agreements to

State and Local Governments,

Universities, Hospitals, and Other NonProfit Organizations

AGENCIES: Department of Agriculture,

Department of Commerce, Department

of Defense, Department of Education,

Department of Energy, Department of

Health and Human Services,

Department of the Interior, Department

of Justice, Department of Labor,

Department of State, Department of

Transportation, Department of Veterans

Affairs, Agency for International

Development (IDCA), Corporation for

National and Community Service,

Environmental Protection Agency,

Federal Emergency Management

Agency, Federal Mediation and

Conciliation Service, General Services

Administration, Institute of Museum

and Library Services (NFAH), National

Aeronautics and Space Administration,

National Archives and Records

Administration, National Endowment

for the Arts (NFAH), National

Endowment for the Humanities (NFAH),

National Science Foundation, Office of

National Drug Control Policy, Small

Business Administration, United States

Information Agency.

ACTION: Interim final rule with request

for comments.

SUMMARY: This interim final revision to

the agencies’ grants management

common rule, ‘‘Uniform Administrative

Requirements for Grants and

Cooperative Agreements to State and

Local Governments,’’ and the agencies’

codification of Office of Management

and Budget (OMB) Circular A–110,

‘‘Uniform Administrative Requirements

for Grants and Agreements with

Institutions of Higher Education,

Hospitals, and Other Non-Profit

Organizations,’’ is issued to implement

the Single Audit Act Amendments of

1996 and the June 24, 1997, revision of

OMB Circular A–133, ‘‘Audits of States,

Local Governments, and Non-Profit

Organizations.’’ The agencies’ rules

provide uniform fiscal and

administrative requirements applicable

to all types of grants and cooperative

agreements to State and local

governments, institutions of higher
45938 Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations

education, hospitals, and other nonprofit organizations.

DATES: This interim final rule is

effective September 29, 1997. Comments

must be received on or before October

28, 1997 in order to be assured of

consideration.

ADDRESSES: Persons wishing to submit

comments on this interim final rule

should send them to Charles Gale,

Director, Office of Grants Management,

Department of Health and Human

Services, A–102 Rulemaking Docket,

Room 517D, Hubert H. Humphrey

Building, 200 Independence Avenue,

S.W., Washington, DC 20201. A copy of

each communication submitted will be

available for public inspection and

copying during regular business hours

(9:00 a.m.–5:30 p.m. eastern standard

time) at the above address.

FOR FURTHER INFORMATION CONTACT:

For general issues regarding this interim

final rule, contact Charles Gale,

Director, Office of Grants Management,

Department of Health and Human

Services (202) 690–6377. For agencyspecific issues, see contact persons for

individual agencies in preambles of the

individual agencies below.

SUPPLEMENTARY INFORMATION:

Background

The Single Audit Act Amendments of

1996 (Public Law 104–156, 110 Stat.

1396) and the June 24, 1997, revision of

Office of Management and Budget

(OMB) Circular A–133, ‘‘Audits of

States, Local Governments, and NonProfit Organizations,’’ (62 FR 35278,

June 30, 1997) require agencies to adopt

in codified regulations the standards in

the revised Circular A–133 by August

29, 1997, so that they will apply to

audits of fiscal years beginning after

June 30, 1996. The revised Circular A–

133 co-locates audit requirements for

States, local governments, and nonprofit organizations. As a consequence,

OMB rescinded OMB Circular A–128,

‘‘Audits of State and Local

Governments.’’

This interim final rule amends the

agencies’ grants management common

rule, ‘‘Uniform Administrative

Requirements for Grants and

Cooperative Agreements to State and

Local Governments,’’ and the agencies’

codification of OMB Circular A–110,

‘‘Uniform Administrative Requirements

for Grants and Agreements with

Institutions of Higher Education,

Hospitals, and Other Non-Profit

Organizations,’’ to implement the Single

Audit Act Amendments of 1996 and the

revised OMB Circular A–133. Some

agencies codified only one of the two

rules and these agencies will only be

amending their appropriate rules.

Under the provisions of section 7(o) of

the Department of Housing and Urban

Development Act (42 U.S.C. 3535(o)),

any Department of Housing and Urban

Development (HUD) proposed or

interim final rule that is issued for

public comment is subject to

prepublication Congressional review for

a period of 15 days. Therefore, HUD is

not joining in today’s common rule but

is adopting the common amendments in

a separate rulemaking.

The existing agency rules refer to the

Single Audit Act of 1984 which was

replaced by the Single Audit Act

Amendments of 1996, the rescinded

OMB Circular A–128, the former title of

OMB Circular A–133, and the prior

threshold that triggers an audit

requirement. This interim final rule

corrects these references. Additional

changes were made to conform with the

Act and revised Circular A–133, such as

to reflect that all non-profit hospitals are

now subject to the Act, and to reflect the

General Accounting Office’s revised

terminology for financial audits in

accordance with generally accepted

government auditing standards.

Under the Administrative Procedure

Act, to issue an interim final rule

without a prior notice of proposed

rulemaking, it is necessary to make a

finding that issuing a proposed rule

would be impractical, unnecessary, and

contrary to the public interest. Since the

Single Audit Act Amendments of 1996

and revised OMB Circular A–133,

which provide standards applicable to

non-Federal entities, are effective for

audits of fiscal years beginning after

June 30, 1996, a proposed rule would be

impractical, unnecessary, and contrary

to the public interest.

Impact Analysis

Executive Order 12866

Executive Order 12866 requires that a

regulatory impact analysis be prepared

for ‘‘major’’ rules, which are defined in

the Order as any rule that has an annual

effect on the national economy of $100

million or more, or certain other

specified effects.

The participating agencies do not

believe that this modification to the

agencies’ grant rules will have an

annual impact of $100 million or more

or the other effects listed in the Order.

However, the interim final rule would

result in some savings to organizations

administering grants or subgrants,

primarily due to the increase in the

threshold (from $25,000 to $300,000)

that triggers an audit requirement. For

this reason, the participating agencies

have determined that this interim final

rule would not create a major rule

within the meaning of the Order.

Regulatory Flexibility Act of 1980

The Regulatory Flexibility Act (5

U.S.C. 605(b)) requires that, for each

rule with a ‘‘significant economic

impact on a substantial number of small

entities,’’ an analysis must be prepared

describing the rule’s impact on small

entities and identifying any significant

alternatives to the rule that would

minimize the economic impact on small

entities.

The participating agencies certify that

this interim final rule will not have a

significant economic impact on a

substantial number of small entities.

The interim final rule does not affect the

amount of funds provided in the

covered programs, but rather increases

the threshold for non-Federal entities

subject to audit, thereby reducing

burden on some small entities.

Unfunded Mandates Act of 1995

The Unfunded Mandates Act of 1995

(Pub. L. 104–4) requires agencies to

prepare several analytic statements

before proposing any rule that may

result in annual expenditures of $100

million of State, local, and Indian tribal

governments or the private sector. Since

this interim final rule will not result in

expenditures of this magnitude, the

agencies certify that such statements are

not necessary.

Paperwork Reduction Act

The participating agencies certify that

this interim final rule will impose

additional reporting or recordkeeping

requirements under the Paperwork

Reduction Act of 1995 (44 U.S.C.

Chapter 35) after OMB finalizes the new

SF–SAC, ‘‘Data Collection Form for

Reporting on Audits of States, Local

Governments, and Non-Profit

Organizations.’’ On June 30, 1997, OMB

requested public comments on the

proposed SF–SAC (62 FR 35302).

Text of the Common Interim Final Rule

The text of the common interim final

rule as amended in this document

appears below:

PART ll—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. Section ll.26 is amended by

revising paragraphs (a), (b) introductory

text, and (b)(1) to read as follows:
Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations 45939

ll.26 Non-Federal audit.

(a) Basic Rule. Grantees and

subgrantees are responsible for

obtaining audits in accordance with the

Single Audit Act Amendments of 1996

(31 U.S.C. 7501–7507) and revised OMB

Circular A–133, ‘‘Audits of States, Local

Governments, and Non-Profit

Organizations.’’ The audits shall be

made by an independent auditor in

accordance with generally accepted

government auditing standards covering

financial audits.

(b) Subgrantees. State or local

governments, as those terms are defined

for purposes of the Single Audit Act

Amendments of 1996, that provide

Federal awards to a subgrantee, which

expends $300,000 or more (or other

amount as specified by OMB) in Federal

awards in a fiscal year, shall:

(1) Determine whether State or local

subgrantees have met the audit

requirements of the Act and whether

subgrantees covered by OMB Circular

A–110, ‘‘Uniform Administrative

Requirements for Grants and

Agreements with Institutions of Higher

Education, Hospitals, and Other NonProfit Organizations,’’ have met the

audit requirements of the Act.

Commercial contractors (private forprofit and private and governmental

organizations) providing goods and

services to State and local governments

are not required to have a single audit

performed. State and local governments

should use their own procedures to

ensure that the contractors has complied

with laws and regulations affecting the

expenditure of Federal funds;

* * * * *

PART ll—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND AGREEMENTS

WITH INSTITUTIONS OF HIGHER

EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

2. Section ll.26 is amended by

revising paragraphs (a), (b) and (c) to

read as follows:

ll.26 Non-Federal audits.

(a) Recipients and subrecipients that

are institutions of higher education or

other non-profit organizations

(including hospitals) shall be subject to

the audit requirements contained in the

Single Audit Act Amendments of 1996

(31 U.S.C. 7501–7507) and revised OMB

Circular A–133, ‘‘Audits of States, Local

Governments, and Non-Profit

Organizations.’’

(b) State and local governments shall

be subject to the audit requirements

contained in the Single Audit Act

Amendments of 1996 (31 U.S.C. 7501–

7507) and revised OMB Circular A–133,

‘‘Audits of States, Local Governments,

and Non-Profit Organizations.’’

(c) For-profit hospitals not covered by

the audit provisions of revised OMB

Circular A–133 shall be subject to the

audit requirements of the Federal

awarding agencies.

* * * * *

Adoption of Common Interim Final

Rule

The adoption of the common interim

final rule by the agencies in this

document appears below.

DEPARTMENT OF AGRICULTURE

(USDA)

Office of the Secretary

7 CFR Parts 3016 and 3019

RIN 0505–AA10

FOR FURTHER INFORMATION CONTACT:

Patricia Wensel, Director, Office of the

Chief Financial Officer, Planning and

Accountability Division, 202–720–1175.

ADDITIONAL SUPPLEMENTARY INFORMATION:

USDA is joining other Federal agencies

in making the common rule

amendments in 7 CFR Part 3016,

‘‘Uniform Administrative Requirements

for Grants and Agreements to State and

Local Governments,’’ and 7 CFR Part

3019, ‘‘Uniform Administrative

Requirements for Grants and

Agreements with Institutions of Higher

Education, Hospitals, and Other NonProfit Organizations.’’ USDA is adding

amendments in Parts 3016 and 3019 to

cross reference that the revised Circular

A–133 is codified verbatim in a new

Part 3052 of title 7, ‘‘Audits of States,

Local Governments, and Non-Profit

Organizations.’’ The new Part 3052 and

amendments to remove the existing

audit requirements from 7 CFR Part

3015, ‘‘Uniform Federal Assistance

Regulations,’’ and 7 CFR Part 3051,

‘‘Audits of Institutions of Higher

Education and Other Nonprofit

Institutions,’’ are published as an

interim final rule elsewhere in this

Federal Register. Additionally, USDA

has published a notice in this Federal

Register to withdraw a Notice of

Proposed Rulemaking (NPRM)

published in the Federal Register on

October 17, 1995, because the Single

Audit Act Amendments of 1996 and the

revised Circular A–133 have replaced

the provisions in that NPRM.

List of Subjects

7 CFR Part 3016

Accounting, Audit requirements,

Grant programs—Agriculture, reporting

and recordkeeping requirements.

7 CFR Part 3019

Accounting, Audit requirements,

Grant programs—Agriculture, reporting

and recordkeeping requirements.

Issued at Washington, D.C., on August 21,

1997.

Approved:

Irvin T. David,

Acting Chief Financial Officer.

Dan Glickman,

Secretary of Agriculture.

Parts 3016 and 3019 of title 7 of the

Code of Federal Regulations are

amended as follows:

PART 3016—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 3016

continues to read as follows:

Authority: 5 U.S.C. 301.

2. Section 3016.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

3. Section 3016.26 is amended by

adding paragraph (a)(1) and by adding

and reserving paragraph (a)(2) to read as

follows:

§ 3016.26 Non-Federal audit.

(a) * * *

(1) In USDA, revised OMB Circular

A–133 is implemented in 7 CFR Part

3052, ‘‘Audits of States, Local

Governments, and Non-Profit

Organizations.’’

(2) [Reserved]

* * * * *

PART 3019—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND AGREEMENTS

WITH INSTITUTIONS OF HIGHER

EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

4. The authority for part 3019

continues to read as follows:

Authority: 5 U.S.C. 301.

5. Section 3019.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

6. Section 3019.26 is further amended

by adding paragraph (e) to read as

follows:

§ 3019.26 Non-Federal audits.

* * * * *

(e) In USDA, revised OMB Circular

A–133 is implemented in 7 CFR Part

3052, ‘‘Audits of States, Local

Governments, and Non-Profit

Organizations.’’
45940 Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations

DEPARTMENT OF ENERGY

10 CFR Part 600

RIN 1991–AB38

FOR FURTHER INFORMATION CONTACT:

Cherlyn Seckinger, Procurement

Analyst, Office of Procurement and

Assistance Policy, U.S. Department of

Energy, Washington, DC 20585, (202)

586–8246.

List of Subjects

10 CFR Part 600

Accounting, Administrative practice

and procedure. Audit requirements,

Government contracts, Grant programs,

Intergovernmental relations, Reporting

and recordkeeping requirements.

Dated: July 8, 1997.

Richard H. Hopf,

Deputy Assistance Secretary for Procurement

and Assistance Management.

Part 600 of title 10 of the Code of

Federal Regulations is amended as

follows:

PART 600—FINANCIAL ASSISTANCE

RULES

1. The authority citation for part 600

continues to read as follows:

Authority: Sections 644 and 646, Pub. L.

95–91, 91 Stat. 599 (42 U.S.C. 7254 and

7256); Pub. L. 97–258, 96 Stat. 1003–1005 (31

U.S.C. 630–6308).

Subpart B—Uniform Administrative

Requirements for Grants and

Cooperative Agreements With

Institutions of Higher Education,

Hospitals, Other Non-Profit

Organizations and Commercial

Organizations

§ 600.126 [ll.26] [Amended]

2. Section 600.126 [ll.26] is

amended as set forth in amendatory

instruction 2 at the end of the common

preamble.

Subpart C—Uniform Administrative

Requirements for Grants and

Cooperative Agreements to State and

Local Governments

§ 600.226 [ll.26] [Amended]

3. Section 600.226 [ll.26] is

amended as set forth in amendatory

instruction 1 at the end of the common

preamble.

SMALL BUSINESS ADMINISTRATION

13 CFR Part 143

FOR FURTHER INFORMATION CONTACT:

David R. Kohler, Associate General

Counsel for General Law, Office of the

General Counsel, U.S. Small Business

Administration, Washington, DC 20416,

(202) 205–6642.

List of Subjects in 13 CFR Part 143

Accounting, Audit requirements,

Grant programs—Small business,

Reporting and recordkeeping

requirements.

Part 143 of title 13 of the Code of

Federal Regulations is amended as

follows:

PART 143—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority citation for part 143

would continue to read as follows:

Authority: 15 U.S.C. 634(b)(6)

§ 143.26 [Amended]

2. Section 143.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

Antonella Pianalto,

Acting Administrator.

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

14 CFR Parts 1260 and 1273

RIN 2700–AA95

FOR FURTHER INFORMATION CONTACT:

Richard Kall, Procurement Analyst,

Contract Management Division (Code

HK), Office of Procurement, National

Aeronautics and Space Administration,

Washington, DC 20546, (202) 358–0459.

List of Subjects

14 CFR 1260

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

14 CFR 1273

Accounting, Audit requirements,

Reporting and recordkeeping

requirements.

Laura Layton,

Director, Contract Management Division.

Parts 1273 and 1260 of title 14 of the

Code of Federal Regulations are

amended as follows:

PART 1273—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 1273

continues to read as follows:

Authority: 42 U.S.C. 2473(c)(5)

§ 1273.26 [Amended]

2. Section 1273.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

PART 1260—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND AGREEMENTS

WITH INSTITUTIONS OF HIGHER

EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

3. The authority for part 1260

continues to read as follows:

Authority: 42 U.S.C. 2473(c)(5)

§ 1260.126 [ll.26] [Amended]

4. Section 1260.126 [ll.26] is

amended as set forth in amendatory

instruction 2 at the end of the common

preamble.

DEPARTMENT OF COMMERCE

15 CFR Part 24

[Docket No. 970820199–7199–01]

RIN 0605–AA11

FOR FURTHER INFORMATION CONTACT: John

J. Phelan, III., Director, Office of

Executive Assistance Management, U.S.

Department of Commerce, Office of

Executive Assistance Management,

Room 6020, 14th Street and

Constitution Avenue N.W., Washington,

D.C. 20230, Telephone Number 202–

482–4115.

List of Subjects in 15 CFR Part 24

Accounting, Audit requirements,

Grant programs, Grant administration,

Insurance reporting, Reporting and

recordkeeping requirements.

Sonya G. Stewart,

Director for Executive Budgeting and

Assistance Management.

Part 24 of title 15 of the Code of

Federal Regulations is amended as

follows:

PART 24—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO

STATE AND LOCAL GOVERNMENTS

1. The authority for part 24 continues

to read as follows:

Authority: 5 U.S.C. 301.

§ 24.26 [Amended]

2. Section 24.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.
Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations 45941

OFFICE OF NATIONAL DRUG

CONTROL POLICY

21 CFR Part 1403

RIN 3201–ZA01

FOR FURTHER INFORMATION CONTACT:

Richard Yamamoto, Program Director,

High Intensity Drug Trafficking Areas

Program, Office of National Drug

Control Policy, Washington, DC. 20503,

(202) 395–6755.

List of Subjects in 21 CFR Part 1403

Accounting, Audit requirements,

Contract programs, Grant programs,

Reporting and recordkeeping

requirements.

Barry McCaffrey,

Director.

Part 1403 of title 21 of the Code of

Federal Regulations is amended as

follows:

PART 1403—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for Part 1403

continues to read as follows:

Authority: 5 U.S.C. 301.

§ 1403.26 [Amended]

2. Section 1403.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

DEPARTMENT OF STATE

22 CFR Parts 135 and 145

RIN 1400–AA87

FOR FURTHER INFORMATION CONTACT:

Gladys Gines, Procurement Analyst,

Office of the Procurement Executive,

Policy Division, U.S. Department of

State, Washington, D.C. 20520, (703)

516–1691.

List of Subjects

22 CFR Part 135

Accounting, Audit requirements,

Grant programs, Contract programs,

Reporting and recordkeeping

requirements.

22 CFR Part 145

Accounting, Audit requirements,

Grant programs, Contract programs,

Reporting and recordkeeping

requirements.

Robert E. Lloyd,

Procurement Executive, Acting.

Parts 135 and 145 of title 22 of the

Code of Federal Regulations are

amended as follows:

PART 135—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 135

continues to read as follows:

Authority: 22 U.S.C. 2658.

§ 135.26 [Amended]

2. Section 135.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

PART 145—GRANTS AND

AGREEMENTS WITH INSTITUTIONS

OF HIGHER EDUCATION, HOSPITALS,

AND OTHER NON-PROFIT

ORGANIZATIONS

3. The authority for part 145

continues to read as follows:

Authority: 22 U.S.C. 2658.1.

§ 145.26 [Amended]

4. Section 145.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

INTERNATIONAL DEVELOPMENT

COOPERATION AGENCY

Agency for International Development

22 CFR Part 226

RIN 0412–AA36

FOR FURTHER INFORMATION CONTACT: M/

OP/P, Diana Esposito (703) 875–1529.

List of Subjects

22 CFR Part 226

Accounting, Audit requirements,

Grant Programs, Reporting and

recordkeeping requirements.

Marcus L. Stevenson,

Director, Office of Procurement.

Part 226 of Title 22 of the Code of

Federal Regulations is amended as

follows:

PART 226—ADMINISTRATION OF

ASSISTANCE AWARDS TO U.S. NONGOVERNMENTAL ORGANIZATIONS

1. The authority for part 226

continues to read as follows:

Authority: Sec. 621, Pub. L. 87–195, 75

Stat. 445, (22 U.S.C. 2381) as amended; E.O.

12163, Sept. 29, 1979, 44 FR 56673; 3 CFR

1979 Comp., p. 435.

§ 226.26 [Amended]

2. Section 226.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

UNITED STATES INFORMATION

AGENCY

22 CFR Part 518

RIN 3116–AA13

FOR FURTHER INFORMATION CONTACT:

Fannie L. Allen, Chief, Grants Division,

Office of Contracts, U.S. Information

Agency, Washington, DC 20547, (202)

205–5477 or Connie L. Stinson, Senior

Grants Officer, Office of Contracts,

Grants Division, Washington, DC 20547

on (202) 205–8383.

List of Subjects

22 CFR Part 518

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

Edward G. Mu ̈ller,

Acting Agency Procurement Executive.

Part 518 of title 22 of the Code of

Federal Regulations is amended as

follows:

PART 518—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND AGREEMENTS

WITH INSTITUTIONS OF HIGHER

EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

1. The authority for part 518

continues to read as follows:

Authority: 22 U.S.C. 2658; 31 U.S.C. 503

and 1111; Reorganization Plan No. 2 of 1977,

42 FR 62461, 3 CFR, 1977 Comp. p. 200; E.O.

12048, 43 FR 13361, 3 CFR, 1978 Comp. p.

168.

§ 518.26 [Amended]

2. Section 518.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

DEPARTMENT OF JUSTICE

28 CFR Parts 66 and 70

[A.G. Order No. 2107–97]

RIN 1121–AA–45

FOR FURTHER INFORMATION CONTACT:

James McKay, Director, Financial

Management Division, Office of Justice

Programs, U.S. Department of Justice,

Washington, DC 20531, (202) 616–2687.

ADDITIONAL SUPPLEMENTARY INFORMATION:

DOJ’s existing 28 CFR Part 70, § 70.26,

includes provision for commercial

organizations to follow OMB Circular

A–133. DOJ is including this

requirement in the amended rule.
45942 Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations

List of Subjects

28 CFR Part 66

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

28 CFR Part 70

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping.

Janet Reno,

Attorney General.

Parts 66 and 70 of title 28 of the Code

of Federal Regulations are amended as

follows:

PART 66—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO

STATE AND LOCAL GOVERNMENTS

1. The authority for part 66 continues

to read as follows:

Authority: The Omnibus Crime Control

and Safe Streets Act of 1968, 42 U.S.C. 3711,

et seq. (as amended); Juvenile Justice and

Delinquency Prevention Act of 1974, 42

U.S.C. 5601, et seq. (as amended); Victims of

Crime Act of 1984, 42 U.S.C. 10601, et seq.

(as amended); 18 U.S.C. 4042; and U.S.C.

4351–4353.

§ 66.26 [Amended]

2. Section 66.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

PART 70—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

AGREEMENTS WITH INSTITUTIONS

OF HIGHER EDUCATION, HOSPITALS

AND OTHER NON-PROFIT

ORGANIZATIONS

3. The authority for part 70 continues

to read as follows:

Authority: 5 U.S.C. 301; The Omnibus

Crime Control and Safe Streets Act of 1968,

42 U.S.C. 3711, et seq. (as amended); Juvenile

Justice and Delinquency Prevention Act of

1974, 42 U.S.C. 5601, et seq. (as amended);

Victims of Crime Act of 1984, 42 U.S.C.

10601, et seq. (as amended); 18 U.S.C. 4042;

and U.S.C. 4351–4353.

4. Section 70.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

5. Section 70.26 is further amended

by adding paragraph (d) to read as

follows:

§ 70.26 Non-Federal Audits.

* * * * *

(d) Commercial organizations must

follow the audit threshold in revised

OMB Circular A–133 in determining

whether to conduct an audit in

accordance with Government Auditing

Standards.

DEPARTMENT OF LABOR

29 CFR Parts 95 and 97

RIN 1291–AA25

FOR FURTHER INFORMATION CONTACT: Al

Stewart, Director, Office of the

Acquisition Advocate, U.S. Department

of Labor, Washington, DC 20210, (202)

219–9174.

List of Subjects

29 CFR Part 95

Accounting, Audit requirements,

Contract programs, Grant programs,

Reporting and recordkeeping.

29 CFR Part 97

Accounting, Audit requirements,

Contract programs, Grant programs,

Reporting and recordkeeping

requirements.

Patricia W. Lattimore,

Acting Assistant Secretary for Administration

and Management.

Parts 95 and 97 of title 29 of the Code

of Federal Regulations are amended as

follows:

PART 95—GRANTS AND

AGREEMENTS WITH INSTITUTIONS

OF HIGHER EDUCATION, HOSPITALS,

AND OTHER NON-PROFIT

ORGANIZATIONS, AND WITH

COMMERCIAL ORGANIZATIONS,

FOREIGN GOVERNMENTS,

ORGANIZATIONS UNDER THE

JURISDICTION OF FOREIGN

GOVERNMENTS AND

INTERNATIONAL ORGANIZATIONS

1. The authority for part 95 continues

to read as follows:

Authority: 5 U.S.C. 301; OMB Circular A–

110; Secretary of Labor’s Order 4–76.

§ 95.26 [Amended]

2. Section 95.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

PART 97—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO

STATE AND LOCAL GOVERNMENTS

1. The authority for part 97 continues

to read as follows:

Authority: 5 U.S.C. 301; OMB Circular A–

102.

§ 97.26 [Amended]

2. Section 97.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

FEDERAL MEDIATION AND

CONCILIATION SERVICE

29 CFR Part 1470

RIN 3076–AA01

FOR FURTHER INFORMATION CONTACT:

Peter L. Regner, Director of Program

Services, Federal Mediation and

Conciliation Service, Washington, DC

20427 (202) 606–8181.

List of Subjects

29 CFR Part 1470

Accounting Audit Requirements,

Grant Programs, Reporting and

Recordkeeping requirements.

John Calhoun Wells,

Director of Federal Mediation and

Conciliation Service.

PART 1470—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 1470

continues to read as follows:

Authority: 29 U.S.C. 175a.

§ 1470.26 [Amended]

2. Section 1470.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 33

RIN 0790–AG49

FOR FURTHER INFORMATION CONTACT:

Mark Herbst; ODDR&E(R); 3080 Defense

Pentagon; Washington, DC 20301–3080,

(703) 325–4132.

List of Subjects

32 CFR Part 33

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

Linda M. Bynum,

Alternate OSD Federal Register Liaison

Officer, Department of Defense.

Part 33 of title 32 of the Code of

Federal Regulations is amended as

follows:

PART 33—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO

STATE AND LOCAL GOVERNMENTS

1. The authority for part 33 continues

to read as follows:

Authority: 5 U.S.C. 301; 10 U.S.C. 113.
Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations 45943

§ 33.26 [Amended]

2. Section 33.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

DEPARTMENT OF EDUCATION

34 CFR Parts 74 and 80

RIN 1890–AA04

FOR FURTHER INFORMATION CONTACT:

Kathy Thomas, U.S. Department of

Education, 600 Independence Avenue,

S.W., Room 3652, ROB–3, Washington,

D.C. 20202–4258. Telephone: (202) 708–

7227. Internet: kathylthomas@ed.gov.

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.

List of Subjects

34 CFR Part 74

According, Audit requirements,

Colleges and universities, Grant

programs, Hospitals, Nonprofit

organizations, Reporting and

recordkeeping.

34 CFR Part 80

Accounting, Audit requirements,

Grant programs, Indians,

Intergovernmental relations, Loan

programs, Reporting and recordkeeping

requirements.

Richard W. Riley,

Secretary of Education.

Parts 74 and 80 of title 34 of the Code

of Federal Regulations are amended as

follows:

PART 74—ADMINISTRATION OF

GRANTS AND AGREEMENTS WITH

INSTITUTIONS OF HIGHER

EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

1. The authority for part 74 continues

to read as follows:

Authority: 20 U.S.C. 1221e–3 and 3474;

OMB Circular A–110, unless otherwise

noted.

§ 74.26 [Amended]

2. Section 74.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

PART 80—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO

STATE AND LOCAL GOVERNMENTS

3. The authority for part 80 continues

to read as follows:

Authority: 20 U.S.C. 1221e–3(a)(1) and

3474, OMB Circular A–102, unless otherwise

noted.

§ 80.26 [Amended]

4. Section 80.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

Appendix to Part 80 [Removed]

5. The Appendix to part 80 is

removed.

NATIONAL ARCHIVES AND RECORDS

ADMINISTRATION

36 CFR Parts 1207 and 1210

RIN 3095–AA78

FOR FURTHER INFORMATION CONTACT:

Nancy Allard, NARA Regulatory

Contact, at 301–713–7360, ext. 226.

List of Subjects

36 CFR Part 1207

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

36 CFR Part 1210

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

John W. Carlin,

Archivist of the United States.

Parts 1207 and 1210 of title 36 of the

Code of Federal Regulations are

amended as follows:

PART 1207—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 1207 is

revised to read:

Authority: 44 U.S.C. 2104(a); 44 U.S.C.

2501–2506.

§ 1207.26 [Amended]

2. Section 1207.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

PART 1210—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS WITH INSTITUTIONS

OF HIGHER EDUCATION, HOSPITALS,

AND OTHER NON-PROFIT

ORGANIZATIONS

3. The authority for part 1210

continues to read:

Authority: 44 U.S.C. 2104(a); 44 U.S.C.

2501–2506.

§ 1210.26 [Amended]

4. Section 1210.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 43

RIN 2900–AJ00

FOR FURTHER INFORMATION CONTACT:

Nancy Tackett, Office of Assistant

Secretary for Policy and Planning (008),

Department of Veterans Affairs, 810

Vermont Avenue, NW., Washington, DC

20420, (202) 273–5033.

List of Subjects

38 CFR Part 43

Accounting, Audit requirements,

Grant programs, Indians,

Intergovernmental relations, Reporting

and recordkeeping requirements.

Approved: August 20, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

Part 43 of title 38 of the Code of

Federal Regulations is amended as

follows:

PART 43—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO

STATE AND LOCAL GOVERNMENTS

1. The authority for part 43 continues

to read as follows:

Authority: 38 U.S.C. 501, 1712.

§ 43.26 [Amended]

2. Section 43.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Parts 30 and 31

[FRL–5881–5]

RIN 2030–AA54

FOR FURTHER INFORMATION CONTACT:

Peggy Louise Anthony, Grant Policy

Specialist, Office of Grants and

Debarment, U.S. Environmental

Protection Agency, Washington, D.C.

20460, (202) 564–5364.

List of Subjects

40 CFR Part 30

Accounting, Audit requirements,

Grant programs—environment,

protection of public health, pollution

control, Reporting and recordkeeping

requirements.
45944 Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations

40 CFR Part 31

Accounting, Audit requirements,

Grant programs—environment,

protection of public health, pollution

control, Reporting and recordkeeping

requirements.

Dated: August 19, 1997.

Carol M. Browner,

Administrator, U.S. Environmental Protection

Agency.

Parts 30 and 31 of title 40 of the Code

of Federal Regulations are amended as

follows:

PART 31—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO

STATE AND LOCAL GOVERNMENTS

1. The authority for part 31 continues

to read as follows:

Authority: 33 U.S.C. 1251 et seq.; 42 U.S.C.

7401 et seq.; 42 U.S.C. 6901 et seq.; 42 U.S.C.

300f et seq.; 7 U.S.C. 136 et seq.; 15 U.S.C.

2601 et seq.; 42 U.S.C. 9601 et seq.; 20 U.S.C.

4011 et seq.; 33 U.S.C. 1401 et seq.

§ 31.26 [Amended]

2. Section 31.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

PART 30—GRANTS AND

AGREEMENTS WITH INSTITUTIONS

OF HIGHER EDUCATION, HOSPITALS,

AND OTHER NON-PROFIT

ORGANIZATIONS

3. The authority for part 30 continues

to read as follows:

Authority: 7 U.S.C. 135 et seq.; 15 U.S.C.

2601 et seq.; 33 U.S.C. 1251 et seq.; 42 U.S.C.

241, 242b, 243, 246, 300f, 300j–1, 300j–2,

300j–3; 42 U.S.C. 1857 et seq.; 42 U.S.C. 7401

et seq.; 42 U.S.C. 6901 et seq.; 42 U.S.C. 9601

et seq.

§ 30.26 [Amended]

4. Section 30.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

GENERAL SERVICES

ADMINISTRATION

41 CFR Parts 105–71 and 105–72

RIN 3090–AG59

FOR FURTHER INFORMATION CONTACT:

Susan Dobrow, Public Buildings

Service, General Services

Administration, Washington, DC 20405,

(202) 501–1542.

List of Subjects

41 CFR 105–71

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

41 CFR 105–72

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

Paul Chistolini,

Deputy Commissioner, Public Buildings

Service.

Parts 105–71 and 105–72 of title 41 of

the Code of Federal Regulations are

amended as follows:

PART 105–71—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 105–71

continues to read as follows:

Authority: Sec. 205(c), 63 Stat. 390 (40

U.S.C. 486(c)).

§ 105–71.126 [ll.26] [Amended]

2. Section 105–71.126 [ll.26] is

amended as set forth in amendatory

instruction 1 at the end of the common

preamble.

PART 105–72—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND AGREEMENTS

WITH INSTITUTIONS OF HIGHER

EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

3. The authority for part 105–72

continues to read as follows:

Authority: Sec. 205(c), 63 Stat. 390 (40

U.S.C. 486(c)).

§ 105–72.306 [ll.26] [Amended]

4. Section 105–72.306 [ll.26] is

amended as set forth in amendatory

instruction 2 at the end of the common

preamble.

DEPARTMENT OF THE INTERIOR

Office of the Secretary

43 CFR Part 12

RIN 1090–AA62

FOR FURTHER INFORMATION CONTACT:

Debra E. Sonderman, (Director,

Procurement and Property Management

Systems), (202) 208–3336.

ADDITIONAL SUPPLEMENTARY INFORMATION:

Although the Department is joining in

the publication of this common rule,

several other changes in addition to

those which will amend regulations

implementing the grants management

common rule, ‘‘Uniform Administrative

Requirements for Grants and

Cooperative Agreements to State and

Local Governments,’’ and Office of

Management and Budget (OMB)

Circular A–110, ‘‘Uniform

Administrative Requirements for Grants

and Agreements with Institutions of

Higher Education, Hospitals, and Other

Non-Profit Organizations,’’ are required

to be made to 43 CFR Part 12.

Specifically, several references to the

previous version of OMB Circular A–

133 have to be revised to reflect the new

title, the references to the previous OMB

Circular A–128 have to be deleted, and

other changes have to be made to reflect

changes in Part 12 since the original

publication of Subpart A. In addition,

the Department’s implementation of

OMB Circular A–128 at Subpart B must

be removed now that the Circular has

been rescinded.

List of Subjects 43 CFR Part 12

Accounting, Administrative practice

and procedure, Audit requirements,

Cooperative agreements, Grant

programs, Grants administration,

Reporting and recordkeeping

requirements.

Dated: August 18, 1997.

Robert T. Lamb,

Acting Assistant Secretary-Policy,

Management and Budget.

Part 12 of title 43 of the Code of

Federal Regulations is amended as

follows:

PART 12—ADMINISTRATIVE AND

AUDIT REQUIREMENTS AND COST

PRINCIPLES FOR ASSISTANCE

PROGRAMS

1. The authority for part 12 is revised

to read as follows:

Authority: 5 U.S.C. 301; 31 U.S.C. 6101

note, 7501; 41 U.S.C. 252a, 701 et seq; sec.

501, Pub. L. 104–206, 110 Stat. 2984; sec.

307, Pub. L. 104–208, 110 Stat. 3009; E.O.

12549, 3 CFR, 1986 Comp., p. 189; E.O.

12674, 3 CFR, 1989 Comp., 215; E.O. 12689,

3 CFR, 1989 Comp., p. 235; E.O. 12731, 3

CFR, 1990 Comp., p. 306; OMB Circular A–

102; OMB Circular A–110; and OMB Circular

A–133.

Subpart A—Administrative and Audit

Requirements and Cost Principles for

Assistance Programs

2. Section 12.2 is amended by revising

paragraphs (a) and (b) to read as follows:

§ 12.2 Policy.

(a) All financial assistance awards and

subawards, in the form of grants and

cooperative agreements, in accordance

with paragraph (b) of this section, are

subject to subparts C, D, E, and F of this

part, OMB Circulars A–102, ‘‘Grants and

Cooperative Agreements with State and

Local Governments,’’ A–110, ‘‘Grants

and Other Agreements with Institutions

of Higher Education, Hospitals, and

Other Non-Profit Organizations,’’ A–87,
Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations 45945

‘‘Cost Principles for State and Local

Governments,’’ A–21, ‘‘Cost Principles

for Educational Institutions,’’ A–122,

‘‘Cost Principles for Non-Profit

Organizations,’’ and A–133, ‘‘Audits of

States, Local Governments, and NonProfit Organizations.’’

(b)(1) Governmental recipients and

subrecipients are subject to subparts C,

D, and E of this part, Circulars A–87 and

A–133.

(2) Institutions of higher education

which are recipients or subrecipients

are subject to subparts D, E, and F of

this part, Circulars A–110, A–21, and

A–133.

(3) Non-profit organizations which are

recipients or subrecipients are subject to

subparts D, E, and F of this part,

Circulars A–110, A–122, and A–133.

* * * * *

Subpart B—[Removed and reserved]

3. Subpart B (§§ 12.11 through 12.31

and appendix to subpart) is removed

and reserved.

Subpart C—Uniform Administrative

Requirements for Grants and

Cooperative Agreements to State and

Local Governments

§ 12.66 [ll.26] [Amended]

4. Section 12.66 [ll.26] is amended

as set forth in amendatory instruction 1

at the end of the common preamble.

Subpart F—Uniform Administrative

Requirements for Grants and

Agreements With Institutions of Higher

Education, Hospitals, and Other NonProfit Organizations

§ 12.926 [ll.26] [Amended]

5. The text of § 12.926 [ll.26] is

revised to read as set forth following

amendatory instruction 2 at the end of

the common preamble.

FEDERAL EMERGENCY

MANAGEMENT AGENCY

44 CFR Part 13

RIN 3067–AC70

FOR FURTHER INFORMATION CONTACT:

Charles F. McNulty, Federal Emergency

Management Agency, 500 C Street SW.,

Washington, DC 20472, 202–646–3422.

List of Subjects in 44 CFR Part 13

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

James L. Witt,

Director.

Part 13 of title 44 of the code of

Federal Regulations is amended as

follows:

PART 13—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO

STATE AND LOCAL GOVERNMENTS

1. The authority citation for Part 13 is

amended to read as follows:

Authority: Reorganization Plan No. 3 of

1978; 43 FR 41943, 3 CFR, 1978 Comp., p.

329; E.O. 12148, 44 FR 43239, 3 CFR, 1979

Comp., p. 412.

§ 13.26 [Amended]

2. Section 13.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

45 CFR Parts 74 and 92

RIN 0991–AA92

FOR FURTHER INFORMATION CONTACT:

Charles Gale, Director, Office of Grants

Management, 202–690–6377; for the

hearing impaired only: TDD 202–690–

6415.

ADDITIONAL SUPPLEMENTARY INFORMATION:

In order to maintain the Department’s

rules for audits of commercial

organizations which receive HHS

awards (currently at 45 CFR 74.26(a)(2)

and (3)) we are adding that text to the

common rule amendment at 45 CFR

74.26(d). Commercial organizations are

not covered by OMB Circular A–133.

We are removing part 74’s discussion

of hospitals which are not affiliated

with an institution of higher education

(currently at 45 CFR 74.26(b)(1) and (2))

because those hospitals are now covered

by Circular A–133. We are also

removing the instructions for

submission of audit reports (currently at

45 CFR 74.26(d)) because that topic is

covered by the new Circular.

Additionally, we have added a

parenthetical in 45 CFR 74.26(d)(1) that

makes clear that for-profit hospitals are

included in the scope of that section.

List of Subjects

45 CFR Part 74

Accounting, Administrative practice

and procedures, Audit requirements,

Grants administration, Grant programs,

Reporting and recordkeeping

requirements.

45 CFR Part 92

Accounting, Administrative practice

and procedures, Audit requirements,

Grants administration, Grant programs,

Reporting and recordkeeping

requirements.

(Catalog of Federal Domestic Assistance does

not apply.)

Dated: August 18, 1997.

Donna E. Shalala,

Secretary.

Parts 92 and 74 of title 45 of the Code

of Federal Regulations are amended as

follows:

PART 92—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO

STATE AND LOCAL GOVERNMENTS

1. The authority for part 92 continues

to read as follows:

Authority: 5 U.S.C. 301.

§ 92.26 [Amended]

2. Section 92.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

PART 74—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR AWARDS AND

SUBAWARDS TO INSTITUTIONS OF

HIGHER EDUCATION, HOSPITALS,

OTHER NONPROFIT ORGANIZATIONS,

AND COMMERCIAL ORGANIZATIONS;

AND CERTAIN GRANTS AND

AGREEMENTS WITH STATES, LOCAL

GOVERNMENTS AND INDIAN TRIBAL

GOVERNMENTS

1. The authority for part 74 continues

to read as follows:

Authority: 5 U.S.C. 301; OMB Circular A–

110 (58 FR 62992, November 29, 1993).

2. Section 74.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

3. Section 74.26(d) is revised to read

as follows:

§ 74.26 Non-Federal audits.

* * * * *

(d)(1) Recipients and subrecipients

that are commercial organizations

(including for-profit hospitals) have two

options regarding audits:

(i) A financial related audit (as

defined in the Government Auditing

Standards, GPO Stock #020–000–00–

265–4) of a particular award in

accordance with Government Auditing

Standards, in those cases where the

recipient receives awards under only

one HHS program; or, if awards are

received under multiple HHS programs,

a financial related audit of all HHS

awards in accordance with Government

Auditing Standards; or

(ii) An audit that meets the

requirements contained in OMB

Circular A–133.

(2) Commercial organizations that

receive annual HHS awards totaling less

than OMB Circular A–133’s audit

requirement threshold are exempt from

requirements for a non-Federal audit for
45946 Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations

that year, but records must be available

for review by appropriate officials of

Federal agencies.

NATIONAL SCIENCE FOUNDATION

45 CFR Part 602

RIN 3145–AA35

FOR FURTHER INFORMATION CONTACT: Jean

Feldman, Head, Policy Office, Division

of Contracts, Policy & Oversight, 703–

306–1243, e-mail jfeldman@nsf.gov.

List of Subjects

45 CFR Part 602

Accounting, Audit requirements,

Contract programs, Grant programs,

Reporting and recordkeeping

requirements.

Joseph L. Kull,

Chief Financial Officer.

Part 602 of title 42 of the Code of

Federal Regulations is amended as

follows:

PART 602—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 602

continues to read as follows:

Authority: 42 U.S.C. 1870(a).

§ 602.26 [Amended]

2. Section 602.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

NATIONAL FOUNDATION ON THE

ARTS AND THE HUMANITIES

National Endowment for the Arts

45 CFR Part 1157

RIN 3135–AA14

FOR FURTHER INFORMATION CONTACT: Ms.

Donna M. DiRicco, Grants and Contracts

Officer, National Endowment for the

Arts, (202) 682–5403.

List of Subjects in 45 CFR Part 1157

Accounting, Audit requirements,

Contract programs, Grant programs,

Reporting and recordkeeping

requirements.

Laurence M. Baden,

Director of Administration.

Part 1157 of title 45 of the Code of

Federal Regulations is amended as

follows:

PART 1157—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 1157

continues to read as follows:

Authority: 20 U.S.C. 959.

§ 1157.26 [Amended]

2. Section 1157.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

NATIONAL ENDOWMENT FOR THE

HUMANITIES

45 CFR Part 1174

RIN 3136–AA23

FOR FURTHER INFORMATION CONTACT:

David J. Wallace, Director, Grants

Office, National Endowment for the

Humanities, (202) 606–8494.

List of Subjects

45 CFR Part 1174

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

Sheldon Hackney,

Chairman.

Part 1174 of title 45 of the Code of

Federal Regulations is amended as

follows:

PART 1174—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 1174

continues to read as follows:

Authority: 20 U.S.C. 959(a)(1).

§ 1174.26 [Amended]

2. Section 1174.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

INSTITUTE OF MUSEUM AND

LIBRARY SERVICES

45 CFR Part 1183

RIN 3137–AA09

FOR FURTHER INFORMATION CONTACT:

Mary Estelle Kennelly, Acting Program

Director, Office of Museum Services,

Institute of Museum and Library

Services, Washington, DC 20560, 202/

606–8547.

List of Subjects

45 CFR Part 1183

Accounting, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

Diane B. Frankel,

Director, IMLS.

Part 1183 of title 45 of the Code of

Federal Regulations is amended as

follows:

PART 1183—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 1183

continues to read as follows:

Authority: 20 U.S.C. 961.

§ 1183.26 [Amended]

2. Section 1183.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

CORPORATION FOR NATIONAL AND

COMMUNITY SERVICE

45 CFR Parts 2541 and 2543

RIN 3045–AA14

FOR FURTHER INFORMATION CONTACT:

Organizations receiving assistance

under the National and Community

Service Act should contact Michael

Kenefick at (202) 606–5000, ext. 101.

Organizations receiving assistance

under the Domestic Volunteer Service

Act should contact Larry Floyd at (214)

767–5461.

List of Subjects

45 CFR Part 2541

Accounting, Audit requirements,

Grant programs, Indians,

Intergovernmental relations, Reporting

and recordkeeping requirements.

45 CFR Part 2543

Accounting, Administrative practice

and procedures, Audit requirements,

Grant programs—health, Grant

programs—social, Grants

administration, Reporting and

recordkeeping requirements.

John Gomperts,

Acting Chief Operating Officer.

Parts 2541 and 2543 of title 45 of the

Code of Federal Regulations are

amended as follows:
Federal Register / Vol. 62, No. 168 / Friday, August 29, 1997 / Rules and Regulations 45947

PART 2541—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND COOPERATIVE

AGREEMENTS TO STATE AND LOCAL

GOVERNMENTS

1. The authority for part 2541

continues to read as follows:

Authority: 42 U.S.C. 4950 et seq. and

12501 et seq.

§ 2541.260 [ll.26] [Amended]

2. Section 2541.260 [ll.26] is

amended as set forth in amendatory

instruction 1 at the end of the common

preamble.

PART 2543—UNIFORM

ADMINISTRATIVE REQUIREMENTS

FOR GRANTS AND AGREEMENTS

WITH INSTITUTIONS OF HIGHER

EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

3. The authority for part 2543

continues to read as follows:

Authority: 42 U.S.C. 12501 et seq.

§ 2543.26 [Amended]

4. Section 2543.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

49 CFR Parts 18 and 19

RIN 2105–AC66

FOR FURTHER INFORMATION CONTACT:

Robert G. Taylor, U.S. Department of

Transportation, Office of Acquisition

and Grant Management, M–62, 400

Seventh Street, S.W., Room 9401,

Washington, DC 20590, (202) 366–4289.

ADDITIONAL SUPPLEMENTAL INFORMATION:

Additional Departmental clarifying

audit requirements contained in 49 CFR

part 18.26 (d) and (e) are no longer

required, and are being deleted as part

of this rulemaking. These paragraphs

make references to audit requirements

that have been superseded by OMB

Circular A–133.

List of Subjects

49 CFR Part 18

Accounting, Audit requirements,

Contract programs, Grant programs,

Intergovernmental relations, Reporting

and recordkeeping requirements.

52 CFR Part 19

Accounting, Administrative practices

and procedures, Audit requirements,

Grant programs, Reporting and

recordkeeping requirements.

Rodney E. Slater,

Secretary of Transportation.

Parts 18 and 19 of title 49 of the Code

of Federal Regulations are amended as

follows:

PART 18—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO

STATE AND LOCAL GOVERNMENTS

1. The authority for part 18 continues

to read as follows:

Authority: 49 U.S.C. 322(a).

§ 18.26 [Amended]

2. Section 18.26 is amended as set

forth in amendatory instruction 1 at the

end of the common preamble.

3. Section 18.26 is further amended

by removing paragraphs (d) and (e).

PART 19—UNIFORM ADMINISTRATIVE

REQUIREMENTS FOR GRANTS AND

AGREEMENTS WITH INSTITUTIONS

OF HIGHER EDUCATION, HOSPITALS,

AND OTHER NON-PROFIT

ORGANIZATIONS

4. The authority for part 19 continues

to read as follows:

Authority: 49 U.S.C. 322(a).

§ 19.26 [Amended]

5. Section 19.26 is amended as set

forth in amendatory instruction 2 at the

end of the common preamble.

[FR Doc. 97–22829 Filed 8–28–97; 8:45 am]

BILLING CODES 3410–KS–M; 6450–01–M; 7510–01–M;

3180–02–M; 4710–05–M; 6116–01–M; 8230–01–M; 4410–

18–M; 4510–23–M; 6372–01–M; 5000–04–M; 4000–01–M;

7515–01–M; 8320–01–M; 6560–50–M; 6820–23–M; 4310–

RF–M; 6718–01–M; 4150–04–M; 7555–01–M; 7537–01–M;

7536–01–M; 5900–04–M; 6050–28–M

DEPARTMENT OF AGRICULTURE

Office of the Chief Financial Officer

7 CFR Chapter XXX and Parts 3015,

3051, and 3052

RIN 0505–AA10

Grants and Cooperative Agreements to

State and Local Governments,

Universities, Hospitals, and Other NonProfit Organizations

AGENCY: Office of the Chief Financial

Officer, USDA.

ACTION: Interim final rule.

SUMMARY: This interim final rule

amendment is issued to implement the

Single Audit Act Amendments of 1996

(Public Law 104–156, 110 Stat. 1396)

and the June 24, 1997, revision of OMB

Circular A–133, ‘‘Audits of States, Local

Governments, and Non-Profit

Organizations’’ and to replace the

existing audit requirements that are

superseded by Public Law 104–156 and

the revised A–133.

DATES: This interim final rule is

effective September 29, 1997. Comments

must be received on or before October

28, 1997 in order to be assured of

consideration.

ADDRESSES: Persons wishing to submit

comments on this interim final rule

should send them to Patricia Wensel,

Director, Planning and Accountability

Division, Department of Agriculture,

1400 Independence Avenue, S.W.,

Room 3027 South Building,

Washington, D.C. 20250. A copy of each

communication submitted will be

available for public inspection during

regular business hours (8:30 a.m.–5:00

p.m.) at the above address.

FOR FURTHER INFORMATION CONTACT:

Patricia Wensel, Director, Office of the

Chief Financial Officer, Planning and

Accountability Division, 202–720–1175.

SUPPLEMENTARY INFORMATION:

Background

USDA is (1) removing existing audit

requirements from 7 CFR Part 3015,

‘‘Uniform Federal Assistance

Regulations,’’ and 7 CFR Part 3051,

‘‘Audits of Institutions of Higher

Education and Other Nonprofit

Institutions,’’ and (2) codifying revised

Office of Management and Budget

(OMB) Circular A–133, ‘‘Audits of

States, Local Governments, and NonProfit Organizations’’ (62 FR 35278,

June 30, 1997) in a new 7 CFR Part

3052, ‘‘Audits of States, Local

Governments, and Non-Profit

Organizations.’’ Elsewhere in this

Federal Register, USDA has published

an interim final rule to amend the

common rule sections on audit in 7 CFR

Parts 3016, ‘‘Uniform Administrative

Requirements for Grants and

Agreements to State and Local

Governments,’’ and 3019, ‘‘Uniform

Administrative Requirements for Grants

and Agreements with Institutions of

Higher Education, Hospitals, and Other

Non-Profit Organizations,’’ and a notice

to withdraw the October 17, 1995 (60 FR

53717), proposed rule whose audit

provisions have been superseded by the

Single Audit Act Amendments of 1996

(Public Law 104–156, 110 Stat. 1396)

and the June 24, 1997, revision of OMB

Circular A–133.

On November 10, 1981, the

Department of Agriculture published 7

CFR Part 3015, as a final rule to provide

Departmentwide policies and standards

for the administration of grants and

cooperative agreements. Part 3015