Federal Register / Vol. 60, No. 57 / Friday, March 24, 1995 / Rules and Regulations 15481

Law States). The interim rule provided

additional flexibility by permitting

States with laws that contain

exemptions or some other provision that

did not fully comply with the criterion,

to demonstrate compliance through the

use of data.

As a result of the changes made in the

interim final rule, three States qualified

for funding under the 0.02 supplemental

criterion that were not able to qualify

previously. These States included

California, Ohio and Virginia.

Advocates did not oppose the

amendment contained in the interim

rule, but expressed some reservations.

Advocates stated, ‘‘We are not

convinced * * * that a 30-day period of

suspension is sufficient to make an

effective impression on under age 21

drivers. * * * We believe that there is

a strong argument for requiring a 90-day

suspension for under age 21

supplemental grants even for states that

meet the basic grant criteria without an

ALR law.’’

NHTSA adopted the 30-day hard

suspension criterion for both

administrative license suspension laws

(for first offenders who submit to and

fail a chemical test) and for 0.02 laws for

youth because that is the sanction that

is recommended in the Uniform Vehicle

Code concerning license suspension

laws (see § 6–215, Limited License) and

because most States with demonstrated

effective license suspension laws

provide for a 30-day hard suspension

period. NHTSA is not aware of any

evidence that State zero tolerance laws

which provide for a 90-day hard

suspension are any more effective than

State zero tolerance laws which provide

for a 30-day hard suspension. Of course,

States that provide for a hard

suspension period of longer than 30

days could qualify for grant funding

under this criterion.

Both NAGHSR and Advocates also

objected to NHTSA’s use of an interim

final rule without providing for prior

notice and an opportunity for public

comment. As explained in that

document, the changes were published

as an interim final rule, because the

regulation relates to a grant program, to

which the requirements of the

Administrative Procedure Act (APA), 5

U.S.C. 553, are not applicable.

Moreover, the agency explained that,

even if the notice and comment

provisions of the APA did apply, there

is good cause for finding that providing

notice and comment in connection with

the rulemaking action was

impracticable, unnecessary and contrary

to the public interest, since it would

have prevented States from qualifying

for grant funds in fiscal year 1994.

The agency’s finding was based also

on its view that the amendments made

in the interim final rule rectified an

inequity in the regulation, provided

additional flexibility for the States and

were consistent with other provisions in

the section 410 implementing

regulation, which was promulgated

subject to notice and a full opportunity

for the public to comment.

The agency stated there would be

little benefit gained by following the

notice and comment procedures with

regard to the revisions made by the

interim final rule.

NHTSA believes its assessment was

correct, as demonstrated by the small

number of comments received in

response to the interim final rule.

However, NHTSA wishes to ensure that

the public has a full opportunity to be

heard. Therefore, the agency has

decided to reopen the comment period

to provide the public with an additional

opportunity to comment on the agency’s

action.

The regulation, as amended by the

interim final rule, remains in effect and

binding. Following the close of the

reopened comment period, NHTSA will

publish a notice responding to any

additional comments it receives and, if

appropriate, will amend the provisions

of this rule.

Issued on: March 20, 1995.

Ricardo Martinez,

Administrator, National Highway Traffic

Safety Administration.

[FR Doc. 95–7264 Filed 3–24–95; 8:45 am]

BILLING CODE 4910–59–P

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 44 and 45

[Docket No. R–95–1777; FR–3767–F–01]

RIN 2501–AB85

Non-Federal Audit Report Submission

Requirements

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

SUMMARY: HUD is amending the single

audit requirements for the submission of

audit reports. HUD’s current regulations

require recipients of Federal financial

assistance from HUD to submit a copy

of their audit report to HUD. This rule

describes the circumstances under

which a ‘‘no finding’’ report need not be

submitted.

EFFECTIVE DATE: April 24, 1995.

FOR FURTHER INFORMATION CONTACT:

Peter Bell, Office of the Inspector

General, Room 8180, Department of

Housing and Urban Development, 451

Seventh Street SW., Washington, D.C.

20410, telephone (202) 708–0383.

Hearing or speech-impaired individuals

may call HUD’s TDD number (202) 708–

9300 (These telephone numbers are not

toll free.)

SUPPLEMENTARY INFORMATION:

I. Background

HUD is amending the single audit

requirements for the submission of audit

reports found at 24 CFR 44.10(f) and 24

CFR 45.4.

A. 24 CFR Part 44

Part 44 implements the general audit

requirements for recipient organizations

in OMB Circular A–128 ‘‘Audits of State

and local governments.’’ The OMB

Circular was issued under the Single

Audit Act of 1984 (31 U.S.C. 7501–

7507) (the Act). The Act requires State

or local governments that receive

$100,000 or more a year in Federal

financial assistance to have an audit

conducted according to the Act’s

standards.

State or local governments that

receive between $25,000 and $100,000 a

year have the option of having an audit

conducted according to the Act’s

standards or having a grant specific

financial audit performed. The

requirements for conducting these grant

specific audits are described in 24 CFR

44.1(c)(2). State or local governments

that receive less than $25,000 a year are

exempt from the audit requirements.

Section 7505 of the Act requires the

Office of Management and Budget

(OMB) to establish procedures and

guidelines to implement the Act. It

specifies that OMB shall assign an

overseeing, or cognizant, Federal agency

to each recipient in order to facilitate

the auditing process and ensure that the

audit requirements are met. The

responsibilities of cognizant agencies

are set forth in 24 CFR 44.8.

B. 24 CFR Part 45

Part 45 implements the audit

requirements for recipient organizations

in OMB Circular A–133 ‘‘Audits of

Institutions of Higher Education and

Other Nonprofit Institutions.’’ Section

45.1 requires that nonprofit institutions

whose receipts of Federal financial

assistance and outstanding Federal

direct, guaranteed, or insured loan

balances total $100,000 or more a year

have an audit conducted in accordance

with the requirements of OMB Circular

A–133.
15482 Federal Register / Vol. 60, No. 57 / Friday, March 24, 1995 / Rules and Regulations

Nonprofit institutions which meet the

$100,000 requirement but participate in

only one Federal financial assistance

program may elect to have an audit

conducted in compliance with the OMB

Circular’s requirements or have a

program specific audit performed.

Nonprofit institutions whose total

receipt of Federal financial assistance

and outstanding Federal direct,

guaranteed, or insured loan balances are

between $25,000 and $100,000 a year

are given the same choice. The

requirements for conducting these

program specific audits are described in

24 CFR 45.1(b)(2).

Nonprofit institutions that have

annual receipts of Federal financial

assistance and outstanding Federal

direct, guaranteed or insured loan

balances totalling less than $25,000 are

exempt from the audit requirements.

HUD programs listed in 24 CFR 45.1(c)

are also excused from the audit report

requirements.

C. The Amendments

HUD’s single audit requirements for

the submission of audit reports are

contained in 24 CFR 44.10(f) and 24

CFR 45.4. These regulations require

recipients of Federal financial assistance

from HUD to submit a copy of their

audit reports to HUD. The audit report

must be submitted regardless of whether

HUD is the recipient’s cognizant agency

or the report is a ‘‘no finding’’ audit

report. A ‘‘no finding’’ report is one

which expresses an unqualified opinion

on the financial statements; identifies

no material instances of noncompliance;

identifies no material weakness in

internal controls; contains no schedule

of findings and questioned costs

applicable to a HUD program; identifies

no potential illegal act which could

result in a criminal prosecution; and

contains no uncorrected significant

finding from a prior audit.

HUD believes that it is not necessary

in all cases for recipients to provide it

with copies of ‘‘no finding’’ audit

reports. A new paragraph (f)(2) has been

added to 24 CFR 44.10 and a new

paragraph (b)(1) added to 24 CFR 45.4

which permit HUD to provide by

program notice that the recipient is not

required to submit a copy of the audit

report if HUD is not the cognizant

agency for the recipient and if the report

is a ‘‘no finding’’ report. HUD also

believes that even where it is the

cognizant agency that the provision of

information about the content of certain

reports being submitted would effect

greater efficiency in their processing.

A new paragraph (f)(5) has been

added to 24 CFR 44.10 and a new

paragraph (b)(2) added to 24 CFR 45.4

which set forth the requirements a

recipient must fulfill in lieu of

submitting a copy of the audit report to

HUD.

II. Justification for Final Rule Making

In general, the Department publishes

rules for public comment before their

issuance for effect, in accordance with

its own regulations on rulemaking, 24

CFR part 10. However, part 10 provides

exceptions from that general rule where

the agency finds good cause to omit

advance notice and public participation.

The good cause requirement is satisfied

when prior public procedure is

‘‘impracticable, unnecessary, or contrary

to the public interest’’ (24 CFR 10.1).

The Department finds that good cause

exists to publish this rule for effect

without first soliciting public comment,

in that prior public procedure is

unnecessary because the Department is

merely alleviating an administrative

burden imposed on recipients and

program offices by modifying its audit

report submission requirements.

III. Other Matters

A. Environmental Impact

In accordance with 40 CFR 1508.4 of

the regulations of the Council on

Environmental Quality and 24 CFR

50.20(k) of the HUD regulations, the

policies and procedures contained in

this rule relate only to HUD

administrative procedures and,

therefore, are categorically excluded

from the requirements of the National

Environmental Policy Act.

B. Executive Order 12612, Federalism

The General Counsel, as the

Designated Official under section 6(a) of

Executive Order 12612, Federalism, has

determined that the policies contained

in this rule will not have substantial

direct effects on states or their political

subdivisions, or the relationship

between the federal government and the

states, or on the distribution of power

and responsibilities among the various

levels of government. Specifically, the

requirements of this rule involve the

submission of audit reports by state and

local governments that receive federal

financial assistance through HUD

programs. It effects no changes in the

current relationships between the

federal government, the states and their

political subdivisions in connection

with these programs.

C. Executive Order 12606, the Family

The General Counsel, as the

Designated Official under Executive

Order 12606, The Family, has

determined that this rule does not have

potential for significant impact on

family formation, maintenance, and

general well-being, and, thus is not

subject to review under the order. This

rule applies only to the submission of

audit reports from governmental entities

and nonprofit institutions to HUD. No

change in existing HUD policies or

programs will result from promulgation

of this rule, as those policies and

programs relate to family concerns.

D. Regulatory Flexibility Act

The Secretary, in accordance with the

Regulatory Flexibility Act (5 U.S.C.

605(b)) has reviewed and approved this

rule, and in so doing certifies that this

rule will not have a significant

economic impact on a substantial

number of small entities. This rule

alleviates an administrative burden

imposed on governmental entities and

nonprofit institutions. Accordingly, the

rule will not have a significant

economic impact on a substantial

number of small entities.

E. Regulatory Agenda

This final rule was not listed in the

Department’s Semiannual Agenda of

Regulations published on November 14,

1994 (59 FR 57632) in accordance with

Executive Order 12866 and the

Regulatory Flexibility Act.

List of Subjects

24 CFR Part 44

Accounting, Grant programs, Indians,

Intergovernmental relations, Loan

programs, Reporting and recordkeeping

requirements.

24 CFR Part 45

Accounting, Colleges and universities,

Grant programs, Loan programs,

Nonprofit organizations, Reporting and

recordkeeping requirements.

Accordingly, 24 CFR parts 44 and 45

are amended as follows:

PART 44—NON-FEDERAL AUDIT

REQUIREMENTS FOR STATE AND

LOCAL GOVERNMENT

1. The authority citation for 24 CFR

part 44 continues to read as follows:

Authority: 31 U.S.C. 7501–7507; 42 U.S.C.

3535(d).

2. Section 44.10 is amended by

revising paragraph (f) to read as follows:

§ 44.10 Audit reports.

* * * * *

(f) (1) In accordance with generally

accepted government audit standards,

reports shall be submitted by the auditor

to the organization audited and to those

requiring or arranging for the audit. In

addition, the recipient shall submit

copies of the reports to each Federal
Federal Register / Vol. 60, No. 57 / Friday, March 24, 1995 / Rules and Regulations 15483

department or agency that provided

Federal Financial assistance funds to

the recipient, except as provided in

paragraph (f)(2) of this section.

(2) HUD may provide by program

notice that:

(i) Reports are not required to be sent

to HUD if HUD is not the cognizant

agency for the recipient and if the report

meets all the following conditions: an

unqualified opinion was expressed on

the financial statements; the report

identified no material instances of

noncompliance; the report identified no

reportable condition or material

weakness in internal controls; the report

contains no schedule of findings and

questioned costs applicable to a HUD

program; the report identified no

potential illegal act which could result

in a criminal prosecution; and the report

contained no uncorrected significant

finding from a prior audit; and

(ii) Reports are required to be sent to

HUD in all cases where HUD is the

cognizant agency; however in those

cases where a report meets the

conditions specified in paragraph (f)(2)

of this section, the report shall be

accompanied by a transmittal letter

indicating that such conditions have

been met.

(3) Subrecipients shall submit copies

to recipients that provided them Federal

assistance funds.

(4) The reports shall be sent within 30

days after completion of the audit, but

no later than one year after the end of

the audit period, unless a longer period

is agreed to with the cognizant agency.

(5) If no report is required to be

submitted as provided in paragraph

(f)(2)(i) of this section, the recipient

must notify the appropriate HUD office

in writing that the report met the

conditions set forth in paragraph (f)(2)

of this section; indicate the report date,

fiscal year audited, and identifying

information on the independent auditor;

and attach a copy of the Schedule of

Federal Financial Assistance.

* * * * *

PART 45—NON-FEDERAL AUDIT

REQUIREMENTS FOR INSTITUTIONS

OF HIGHER EDUCATION AND OTHER

NONPROFIT INSTITUTIONS

3. The authority citation for part 45

continues to read as follows:

Authority: 42 U.S.C. 3535(d).

4. Section 45.4 is revised to read as

follows:

§ 45.4 Submission of reports.

(a) Except for the organizations

subject to the requirements set forth in

§ 45.1(c), the report shall be due within

30 days after the completion of the

audit, but the audit should be

completed and the report submitted not

later than 13 months after the end of the

recipient’s fiscal year unless a longer

period is agreed to with the cognizant or

oversight agency.

(b)(1) HUD may provide by program

notice that:

(i) Reports are not required to be sent

to HUD if HUD is not the cognizant

agency for the recipient and if the report

meets all the following conditions: an

unqualified opinion was expressed on

the financial statements; the report

identified no material instances of

noncompliance; the report identified no

reportable condition of material

weakness in internal controls; the report

contains no schedule of findings and

questions applicable to a HUD program;

the report identified no potential illegal

act which could result in criminal

prosecution; and the report contained

no uncorrected significant finding from

a prior audit; and

(ii) Reports are required to be sent to

HUD in all cases where HUD is the

cognizant agency; however in those

cases where a report meets the

conditions specified in paragraph (b)(1)

of this section, the report shall be

accompanied by a transmittal letter

indicating that such conditions have

been met.

(2) If no report is required to be

submitted as provided in paragraph

(b)(1)(i) of this section, the recipient

must notify the appropriate HUD office

in writing that report met the conditions

set forth in paragraph (b)(1) of this

section; indicate the report date, fiscal

year audited, and identifying

information on the independent auditor;

and attach a copy of the Schedule of

Federal Financial Assistance.

Dated: March 16, 1995.

Henry G. Cisneros,

Secretary.

[FR Doc. 95–7331 Filed 3–23–95; 8:45 am]

BILLING CODE 4210–32–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[DC 13–1–6552a; FRL–5177–7]

Approval and Promulgation of Air

Quality Implementation Plans; District

of Columbia; Disapproval of New

Source Review Regulations

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Direct final rule.

SUMMARY: EPA is disapproving a State

Implementation Plan (SIP) revision

submitted by the District of Columbia

pertaining to the regulation of major

new and major modified sources in the

District of Columbia. The intended

effect of this action is to disapprove the

District of Columbia regulations because

they do not meet the requirements of the

Clean Air Act. This action is being taken

under section 110 of the Clean Air Act.

DATES: This action will become effective

May 23, 1995 unless adverse comments

are received on or before April 24, 1995.

If the effective date is delayed, timely

notice will be published in the Federal

Register.

ADDRESSES: Comments may be mailed to

Marcia L. Spink, Associate Director, Air

Programs (3AT00), U.S. Environmental

Protection Agency, Region III, 841

Chestnut Building, Philadelphia,

Pennsylvania 19107. Copies of the

documents relevant to this action are

available for public inspection during

normal business hours at the Air,

Radiation, and Toxics Division, U.S.

Environmental Protection Agency,

Region III, 841 Chestnut Building,

Philadelphia, Pennsylvania 19107 and

the District of Columbia Department of

Consumer and Regulatory Affairs, 2100

Martin Luther King Ave, SE.,

Washington, DC 20020.

FOR FURTHER INFORMATION CONTACT:

Cynthia H. Stahl, (215) 597–9337, at the

EPA Region III address.

SUPPLEMENTARY INFORMATION: On June

21, 1985 and October 22, 1993, the

District of Columbia submitted a formal

revision to its State Implementation

Plan (SIP). Only the portions of those

submittals pertaining to the permitting

of new sources is being addressed in

this rulemaking. The SIP submittal

being addressed consists of District of

Columbia Municipal Regulations

(DCMR) Title 20, Sections 199

(definitions—only those pertaining to

the permitting of new sources), 200,

201, 202 and 204 (permitting), and 299

(reference to the applicability of

definitions in Section 199).

The District of Columbia (the District)

is part of the Washington D.C. ozone

nonattainment area, which includes

portions of Maryland and Virginia.

Washington D.C. is a nonattainment

area classified as serious for ozone and

moderate for carbon monoxide and, as

such, is required to implement certain

requirements including those pertaining

to the permitting of major new and

major modified sources. The Clean Air

Act required that areas such as the

District submit adopted regulations

applying to the permitting of these

major sources by no later than

November 15, 1992. In addition, section

184 of the Clean Air Act requires that