[Federal Register Volume 60, Number 77 (Friday, April 21, 1995)]
[Notices]
[Pages 19898-19899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9849]



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DEPARTMENT OF EDUCATION

Office of Special Education and Rehabilitative Services; 
Paperwork Burden Reduction

AGENCY: Department of Education.

ACTION: Notice of Paperwork Burden Reduction.

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SUMMARY: The Assistant Secretary, Office of Special Education and 
Rehabilitative Services (OSERS), provides notice that prior approval is 
no longer required for certain categories of costs for formula grant 
programs authorized by the Rehabilitation Act of 1973, as amended (the 
Rehabilitation Act) and the Individuals with Disabilities Education Act 
(IDEA). This change is intended to reduce paperwork burdens on 
grantees.

EFFECTIVE DATE: This change takes effect on April 21, 1995.

FOR FURTHER INFORMATION CONTACT: Greg March, U.S. Department of 
Education, 600 Independence Avenue, SW, Room 3124 Switzer Building, 
Washington, DC 20202-2551. Telephone: (202) 205-8441. Individuals who 
use a telecommunications device for the deaf (TDD) may call the Federal 
Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 
p.m., Eastern time, Monday through Friday.

SUPPLEMENTARY INFORMATION: The Education Department General 
Administrative Regulations (EDGAR), in 34 CFR 74.27 and 80.30(b), 
require prior approval from the Secretary before various categories of 
otherwise allowable costs may be charged to any ED grant or subgrant. 
The following formula grant programs authorized by the Rehabilitation 
Act are covered by this requirement: Vocational Rehabilitation (VR) 
State Grants (Title I); Client Assistance Program (Title I, Part B); 
Innovation and Expansion (Title I, Part C), which is currently 
unfunded; Protection and Advocacy of Individual Rights (Title V, 
Section 509); Supported Employment (Title VI-C); Independent Living 
State Grants (Title VII-B); Centers for Independent Living (Title VII-
C, Section 723); and Independent Living Services for Older Individuals 
Who Are Blind (Title VII, Chapter 2), once the appropriation level 
reaches $13 million. The following formula grant programs authorized by 
IDEA are also covered by this requirement: Assistance to States for the 
Education of Children with Disabilities (Part B); Preschool Grants for 
Children with Disabilities (Section 619); and Early Intervention 
Program for Infants and Toddlers with Disabilities (Part H). The 
Assistant Secretary, OSERS, believes that it is no longer necessary to 
require prior approval for these formula grant programs with respect to 
certain cost categories and has authority, under a delegation from the 
Secretary, to exempt these programs from this paperwork requirement. 
The Assistant Secretary has decided that the prior approval is no 
longer required for seven cost categories and, under certain 
conditions, for an eighth cost category. The seven cost categories 
are--(1) Automatic data processing; (2) Capital expenditures; (3) 
Management studies; (4) Professional services; (5) Building space and 
related facilities; (6) Insurance and indemnification; and (7) Proposal 
costs.
[[Page 19899]]

    An eighth cost category that requires prior approval is the pre-
agreement or pre-award cost category. The Assistant Secretary has 
determined that prior approval for this cost category is no longer 
required to the extent that it does not create interest liabilities for 
the Federal Government under the Cash Management Improvement Act 
(CMIA). Interest liabilities are incurred under the CMIA when a State 
disburses its own funds for Federal program purposes before the date 
that Federal funds are deposited to the State's bank account for those 
obligations. Interest liabilities are not incurred, however, when a 
State uses its own funds to meet a program matching or maintenance of 
effort requirement. Thus, for programs subject to the CMIA (see the 
implementing Treasury Department regulations in 31 CFR part 205, 
Subpart A and check with the appropriate CMIA contact person for the 
State to determine coverage), the Assistant Secretary is no longer 
requiring prior approval for pre-agreement costs used to meet matching 
or maintenance of effort requirements. For programs in a State not 
subject to CMIA interest liabilities, the Secretary is no longer 
requiring prior approval for any pre-agreement costs.
    The Assistant Secretary rarely has declined to approve requests for 
prior approval for these cost categories. Also, the Assistant Secretary 
does not believe that grantees will use grant funds inappropriately in 
these categories if prior approval is no longer required, and believes 
that grantees should be relieved of this paperwork burden. Under the 
authority of 34 CFR 74.27 and 80.30(b), the Assistant Secretary 
therefore exempts the OSERS formula grant programs covered by this 
notice from the requirement for prior approval for the eight cost 
categories as previously described.
    The Assistant Secretary also notes that this policy change affects 
only the requirement to obtain prior approval from the Department of 
Education. If, upon audit or otherwise, it is determined that the 
claimed expenditures do not meet other requirements or tests for 
allowability specified by the applicable cost principles, such as 
reasonableness and necessity, the costs may be disallowed.

(20 U.S.C. 1221e-3 and 3474; OMB Circulars A-102 and A-110)

    Dated: April 14, 1995.
Howard R. Moses,
Acting Assistant Secretary for Special Education and Rehabilitative 
Services.
[FR Doc. 95-9849 Filed 4-20-95; 8:45 am]
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