[Federal Register Volume 60, Number 94 (Tuesday, May 16, 1995)]
[Notices]
[Pages 26028-26029]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11970]



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DEPARTMENT OF EDUCATION


Intent To Repay to the Oregon 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: Notice is given that 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 Oregon Department of 
Education, the State educational agency (SEA), an amount nearly equal 
to 75 percent of the principal amount of funds recovered by the U.S. 
Department of Education (Department) as a result of a final audit 
determination. This notice describes the SEA's plan for the use of the 
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 15, 1995.

ADDRESSES: Comments concerning the grantback should be addressed to 
William D. Tyrrell, Sr., U.S. Department of Education, 600 Independence 
Avenue, SW., room 3609, Switzer Building, Washington, DC 20202-6132.

FOR FURTHER INFORMATION CONTACT: William D. Tyrrell, Sr., U.S. 
Department of Education, 600 Independence Avenue, SW, room 3609, 
Switzer Building, Washington, DC 20202-6132, telephone: (202) 205-8825. 
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:

A. Background

    This notice is based on the Department's recovery of funds 
following an independent audit of the Klamath County School District 
(LEA) for the school year 1989-90. The SEA reviewed the audit and, on 
August 24, 1992, requested a refund of $23,760.91 of Chapter 1 
Handicapped funds. The LEA returned these Federal funds to the SEA on 
September 1, 1992. On September 15, 1992, the SEA returned the Chapter 
1 Handicapped funds, as well as $42,634.31 of funds from other Federal 
programs that are not part of this grantback notice, to the U.S. 
Department of Education. The audit questioned the LEA's use of 
$23,760.91 of Chapter 1 Handicapped funds to pay 91% and 50% of the 
salaries and fringe benefits of two employees. These charges were not 
supported by time distribution records as required by Federal 
regulations.

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 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, [[Page 26029]] in compliance with the requirements of 
the applicable program;
    (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 totaling $17,820, which is slightly less than 75 percent of 
the principal 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 education needs of children with disabilities. Under section 
459(c) of GEPA, 20 U.S.C. 1234h(c), these funds are available for 
expenditure until September 30, 1995. According to the plan, the LEA 
will use grantback funds to supplement its current program of providing 
instructional assistants assigned to eligible students in either one-
on-one or small groups. This allows many students more opportunities 
for further participation with their non-disabled peers. The LEA 
already supplements the related services for the students in the areas 
of counseling, speech, occupational and physical therapy. The grantback 
funds will provide for the acquisition of augmentative communication 
devices, adaptive equipment, and materials to allow these children 
enhanced opportunities to participate with their non-disabled peers to 
the maximum extent appropriate.

D. The Secretary's Determinations

    The Secretary has carefully reviewed the plan submitted by the SEA. 
Based upon that review, the 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 Secretary at the present time. If this information is not 
accurate or complete, the Secretary may take appropriate administrative 
action. 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 SEA under a 
grantback arrangement. The grantback award would be in the amount of 
$17,820.

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 payments 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 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, 1995, in accordance with section 459(c) of 
GEPA;
    (3) The SEA, on behalf of the LEA, will, not later than December 
31, 1995, submit a report to the 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.

(Catalog of Federal Domestic Assistance Number 84.027, Handicapped 
State Grants and 84.009, State Operated Programs for the 
Handicapped)

    Dated: May 10, 1995.
Judith E. Heumann,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 95-11970 Filed 5-15-95; 8:45 am]
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