[Federal Register Volume 63, Number 109 (Monday, June 8, 1998)]
[Notices]
[Pages 31202-31203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15068]


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DEPARTMENT OF EDUCATION


Office of Elementary and Secondary Education; Intent To Repay to 
the State of New Mexico Department of 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. Department of Education (Department) 
intends to repay to the State of New Mexico Department of Education, 
the State educational agency (SEA), an amount equal to 75 percent of 
the principal amount of funds returned to the Department as the result 
of final audit determinations. The Department's recovery of funds 
followed the SEA's issuance of a final letter of determination dated 
April 10, 1996 to Roswell Independent School District (RISD) requiring 
the return of $62,957.83, which was subsequently sent to the Department 
on June 11, 1996. This notice describes the SEA's plan, submitted on 
behalf of RISD, the local educational agency (LEA), for the use of the 
repaid funds and the terms and conditions under which the Department 
intends to make those funds available. The notice invites comments on 
the proposed grantback.

DATES: All Comments must be received on or before July 8, 1998.

ADDRESSES: All written comments should be addressed to Mary Jean 
LeTendre, Director, Compensatory Education Programs, Office of 
Elementary and Secondary Education, U.S. Department of Education, 600 
Independence Avenue, SW, Portals Building, Room 4400, Washington, D.C. 
20202-6132. Comments may also be sent through the Internet to: 
<a href="/cdn-cgi/l/email-protection#fc9f9391919992888fbc9998d29b938a"><span class="__cf_email__" data-cfemail="4c2f2321212922383f0c2928622b233a">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: S. Colene Nelson, U.S. Department of 
Education, 600 Independence Avenue, SW, Portals Building, Room 4400, 
Washington, D.C. 20202-6132. Telephone: (202) 260-0979. 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: 
Colene__N<a href="/cdn-cgi/l/email-protection#72171e011d1c3217165c151d04"><span class="__cf_email__" data-cfemail="e88d849b8786a88d8cc68f879e">[email protected]</span></a>.
    Individuals with disabilities may obtain this document in an 
alternate format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed in the preceding 
paragraph.

SUPPLEMENTARY INFORMATION:

A. Background

    The Department has recovered $62,957.83 from the New Mexico SEA in 
satisfaction of claims arising from an audit of Roswell Independent 
School District (LEA) covering fiscal years (FY) 1993 and 1994.
    The claims involved the LEA's administration of Chapter 1 of Title 
I of the Elementary and Secondary Education Act of 1965, as amended in 
1988, a program providing financial assistance to State and local 
educational agencies to address the special educational needs of 
educationally deprived children in areas with high concentrations of 
children from low-income families (Chapter 1). Specifically, the audit 
determinations, made by an independent auditor acting under the Single 
Audit Act of 1984 and upheld by the SEA, found that for FY 1993, 
$30,769.72 representing partial salaries of six associates at 
Washington Avenue Elementary was allocated to the Chapter 1 program. 
However, the LEA did not maintain appropriate time distribution records 
to support the allocation. Also, for the following FY 1994, $32,188.11 
representing partial salaries of six associates at Washington Avenue 
Elementary was allocated to the Chapter 1 program. In this instance, 
only the August and September time distribution reports were available. 
The auditors found that no additional time and attendance reports were 
maintained during the year demonstrating the actual time that staff 
spent on Chapter 1 activities. In the absence of appropriate support 
documentation to substantiate the salaries and wages chargeable to the 
Chapter 1 program, as required by Office of Management and Budget 
Circular A-87, ``Cost Principles for State and Local Governments,'' the 
SEA required the LEA to reimburse the Federal Government in the amount 
of $62,957.83 for both audited years.

B. Authority for Awarding a Grantback

    Section 459(a) of GEPA, 20 U.S.C. 1234h, 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 SEA or 
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 SEA or LEA that resulted in the 
audit determination have been corrected, and the SEA or LEA is, in all 
other respects, in compliance with the requirements of the applicable 
program, provided that the SEA or LEA was notified of any noncompliance 
with such requirements and given a reasonable period of time to remedy 
that noncompliance;
    (2) SEA 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, benefits 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 SEA'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 Arrangement

    Pursuant to section 459(a)(2) of GEPA, the SEA has applied for a 
grantback of $47,218--75 percent of the principal

[[Page 31203]]

amount recovered by the Department--and has submitted a plan on behalf 
of the LEA for use of the grantback funds to meet the special 
educational needs of educationally deprived children in programs 
administered under Title I, Part A, of ESEA, successor to Chapter 1.
    According to the plan, the LEA will use the grantback funds under 
Title I to provide summer enrichment programs for educationally 
deprived children at three sites, in June and July 1998. Program 
services to be provided are as follows:
    (1) Washington Avenue Elementary--Approximately 120 students would 
receive instruction in reading, math, and writing. Students would also 
receive 30 minutes of computer instruction, fitness activities, and 
music instruction. Services at this site would run from June 8, 1998 to 
July 7, 1998 with an estimated budget of $29,210.
    (2) Berrendo Elementary--Approximately 60 to 70 students would 
receive instruction in reading with a focus on phonics instruction as 
well as literature. Also, math skills would be reinforced and students 
would receive computer assisted instruction. Services at this site 
would run from June 22, 1998 to July 17, 1998 with an estimated budget 
of $15,678.
    (3) Del Norte Elementary--Approximately 60 students would receive 
instruction in reading. Students needing assistance in math would 
receive help on an as needed basis. Services at this site would run 
from June 8, 1998 to July 3, 1998 with an estimated budget of $11,705.
    The total estimated cost of the LEA's summer enrichment program is 
$56,593. The additional funds ($9,375) would come from the LEA's 
current Title I allocation for 1997-98.

D. The Assistant Secretary's Determination

    The Assistant Secretary has carefully reviewed the plan submitted 
by the SEA. Based upon that review, the Assistant Secretary has 
determined that the conditions under section 459 of GEPA have been met. 
These determinations are based upon the best information available to 
the Assistant Secretary at the present time. If this information is not 
accurate or complete, the Assistant Secretary may take appropriate 
administrative action. In finding that the conditions of section 459 of 
GEPA have been met, the Assistant Secretary makes no determination 
concerning any pending audit recommendations or final audit 
determinations.

E. Notice of the Assistant 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 
Department must publish in the Federal Register a notice of intent to 
do so, and the terms and conditions under which payment will be made.
    In accordance with section 459(d) of GEPA, notice is hereby given 
that the Assistant Secretary intends to make funds available to the SEA 
under a grantback arrangement. The grantback award would be in the 
amount of $47,218.

F. Terms and Conditions Under Which Payments Under a Grantback 
Arrangement Would Be Made

    The SEA and LEA agree 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 the SEA submitted and any amendments to that plan 
that are approved in advance by the Assistant Secretary; and
    (c) The budget that was submitted with the plan and any amendments 
to the budget that are approved in advance by the Assistant Secretary.
    (2) All funds received under the grantback arrangement must be 
obligated in accordance with the SEA's plan but, in no event, after 
September 30, 1999 as required under 459(c) of GEPA.
    (3) The SEA, on behalf of the LEA, will, not later than December 
31, 1998, submit a report to the Assistant Secretary 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 
expenditures of funds awarded under the grantback arrangement.

Electronic Access to This Document

    Anyone may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or 
portable document format (pdf) on the World Wide Web at either of the 
following sites:

http://ocfo.ed.gov/fedreg.htn
http://www.ed.gov/news.html

    To use the pdf you must have the Adobe Acrobat Reader Program with 
Search, which is available free at either of the previous sites. If you 
have questions about using the pdf, call the U.S. Government Printing 
Office toll free at 1-888-293.6498.

(Catalog of Federal Domestic Assistance Number 84.010, Title I, 
Improving Basic Programs Operated by Local Education Agencies)

    Dated: May 21, 1998.
Gerald N. Tirozzi,
Assistant Secretary for Elementary and Secondary Education.
[FR Doc. 98-15068 Filed 6-5-98; 8:45 am]
BILLING CODE 4000-01-P


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