49286 Federal Register / Vol. 82, No. 205 / Wednesday, October 25, 2017 / Rules and Regulations 

1 81 FR 94932 (Dec. 27, 2016). 

2Public Law 114–185, 130 Stat. 538 (enacted June 

30, 2016). 

§ 3560.302 Accounting, bookkeeping, 

budgeting, and financial management 

systems. 

(a) General. Borrowers must establish 

the accounting, bookkeeping, budgeting 

and financial management procedures 

necessary to conduct housing project 

operations in a financially safe and 

sound manner. Borrowers must 

maintain records in a manner suitable 

for an audit, and must be able to report 

accurate operational results to the 

Agency from these accounts and 

records. 

(b) * * * 

(1) Borrowers are required to use the 

accrual method of accounting in 

preparing annual financial reports, as 

identified in § 3560.308. 

(2) Borrowers must describe their 

accounting, bookkeeping, budget 

preparation, and financial reporting 

procedures in their management plan. 

* * * * * 

(e) * * * 

(1) Borrowers must retain all housing 

project financial records, books, and 

supporting material for at least three 

years after the issuance of their financial 

reports. Upon request, these materials 

will immediately be made available to 

the Agency, its representatives, the 

USDA Office of Inspector General (OIG), 

or the Government Accountability 

Office (GAO). 

* * * * * 

■ 5. Amend § 3560.303 by revising 

paragraph (b)(1)(vi)(Q)to read as follows: 

§ 3560.303 Housing project budgets. 

* * * * * 

(b) * * * 

(1) * * * 

(vi) * * * 

(Q) Professional service contracts 

(audits, owner-certified submissions in 

accordance with § 3560.308(a)(2), tax 

returns, energy audits, utility 

allowances, architectural, construction, 

rehabilitation and inspection contracts, 

etc.) 

* * * * * 

■ 6. Amend § 3560.308 by: 

■ a. Revising paragraph (a). 

■ b. Removing paragraph (b). 

■ c. Redesignating paragraphs (c) and 

(d) as (b) and (c) respectively. 

■ d. Revising the newly redesignated 

paragraph (b) introductory text. 

■ e. Adding paragraphs (b)(8),(b)(9), and 

(b)(10). 

■ f. Revising the newly redesignated 

paragraph (c)(1). 

The revisions and additions read as 

follows: 

§ 3560.308 Annual financial reports. 

(a) General. (1) For-profit borrowers 

that receive $500,000 or more in 

combined Federal financial assistance 

must include an independent auditor’s 

report that includes, financial 

statements and notes to the financial 

statements, supplemental information 

containing Agency approved forms for 

project budgets and borrower balance 

sheets, a report on internal control over 

financial reporting and on compliance 

and other matters based on an audit of 

financial statements in accordance with 

Government Auditing Standards; a 

report on compliance for each major 

program and internal control over 

compliance (if applicable). Federal 

Financial Assistance is defined in 

accordance with 2 CFR 200.40. 

(2) Non-profit borrowers that receive 

$750,000 or more in combined Federal 

financial assistance must meet the audit 

requirements set forth by OMB, Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards, found at 2 CFR parts 

200 and 400. Borrowers must provide a 

copy of this audit to RHS in compliance 

with these financial reporting 

requirements. 

(3) Non-profit borrowers that receive 

less than $750,000, and for-profit 

borrowers that receive less than 

$500,000in combined Federal financial 

assistance will submit annual owner 

certified prescribed forms on the accrual 

method of accounting in accordance 

with the Statements on Standards for 

Accounting and Review Services 

promulgated by the Accounting and 

Review Services Committee of the 

American Institute of Certified Public 

Accountants (AICPA). Borrowers may 

use a CPA to prepare this compilation 

report of the prescribed forms. 

(b) Performance standards. All 

Borrowers must certify that the housing 

meets the performance standards below: 

* * * * * 

(8) There have been no changes in 

project ownership other than those 

approved by the Agency and identified 

in the certification. 

(9) Real estate taxes are paid in 

accordance with state and/or local 

requirements and are current. 

(10) Replacement Reserve accounts 

have been used for only authorized 

purposes. 

(c) * * * 

(1) Non-profit and public borrower 

entities subject to OMB Uniform 

Guidance: Cost Principles, Audit, and 

Administrative Requirements for 

Federal Awards, must submit audits in 

accordance with 2 CFR parts 200 and 

400. 

* * * * * 

Dated: September 28, 2017. 

Richard A. Davis, 

Acting Administrator, Rural Housing Service. 

[FR Doc. 2017–23082 Filed 10–24–17; 8:45 am] 

BILLING CODE 3410–XV–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 261 

[Docket No. R–1556] 

RIN 7100–AE65 

Rules Regarding Availability of 

Information 

AGENCY: Board of Governors of the 

Federal Reserve System (‘‘Board’’). 

ACTION: Final rule. 

SUMMARY: The Board is finalizing its 

interim final rule amending its 

regulations for processing requests 

under the Freedom of Information Act 

(‘‘FOIA’’) pursuant to the FOIA 

Improvement Act of 2016 (the ‘‘Act’’). 

The amendments clarify and update 

procedures for requesting information 

from the Board, extend the deadline for 

administrative appeals, and add 

information on dispute resolution 

services. The interim final rule became 

effective on December 27, 2016. This 

rulemaking finalizes the interim rule 

with minor edits. 

DATES: This final rule is effective on 

November 24, 2017. 

FOR FURTHER INFORMATION CONTACT: 

Katherine Wheatley, Associate General 

Counsel, (202) 452–3779, or Misty 

Mirpuri, Counsel, (202) 452–2597, 

Board of Governors of the Federal 

Reserve System, 20th and C Streets 

NW., Washington, DC 20551. Users of 

telecommunications device for the 

hearing impaired, please call (202) 263– 

4869. 

SUPPLEMENTARY INFORMATION: 

I. Overview of Final Rule 

On December 27, 2016, the Board 

published an interim final rule 1

amending its existing Rules found at 12 

CFR part 261, in order to comply with 

the statutory changes required by the 

FOIA Improvement Act of 2016 

(‘‘Improvement Act’’).2 Amendments to 

the Rules adopted statutory exemptions 

and exceptions as required by the 

Improvement Act. The interim final rule 

became effective on December 27, 2016, 

and the Board accepted comments 

through February 27, 2017. The Board is 

finalizing the interim rule with minor 


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Federal Register / Vol. 82, No. 205 / Wednesday, October 25, 2017 / Rules and Regulations 49287 

3The Board received a second comment 

requesting that it amend the rule in a manner 

unrelated to the amendments required by the 

Improvement Act. While the Board intends to make 

more extensive amendments to its FOIA Rule at a 

later time, the interim final rule only addressed the 

matters required by the Improvement Act, and 

further changes to the Rule will be preceded by a 

request for public comment. 

changes to paragraph 261.13(i)(4) in 

response to a public comment. 

II. Summary of Public Comments and 

Final Rule 

Interested persons were afforded the 

opportunity to participate in the 

rulemaking process through submission 

of written comments on the interim 

final rule during the open comment 

period. The Board is adopting a minor 

revision to the interim final rule in 

response to a comment from the Office 

of Government Information Services 

within the National Archives and 

Records Administration (‘‘OGIS’’).3

OGIS asked the Board to revise 

section 261.13(i)(4) of the Rules to 

require that a determination letter on an 

appeal inform appellants of the 

availability of OGIS’s dispute resolution 

services. Although not required by the 

FOIA statute, this change is consistent 

with guidance issued by the Department 

of Justice’s Office of Information Policy. 

Accordingly, the Board has determined 

to edit the language in paragraph (i)(4) 

of section 261.13 to notify an appealing 

party of the availability of OGIS’s 

dispute resolution services as a 

nonexclusive alternative to litigation. 

The Board has determined not to 

adopt two other suggestions by OGIS. 

OGIS’s proposed amendment would add 

a statement that ‘‘[d]ispute resolution is 

a voluntary process.’’ This sentence 

appears to be unnecessary and repetitive 

given that the Board is already advising 

appellants that dispute resolution 

services are available as a ‘‘nonexclusive 

alternative to litigation.’’ OGIS also 

proposed language stating that the 

Board will ‘‘actively engage as a partner 

to the process in an attempt to resolve 

the dispute’’ if the Board participates in 

the OGIS dispute resolution process. 

Although active engagement in 

attempting to resolve a FOIA dispute is 

of course not unreasonable, the 

proposed sentence could create 

additional legal obligations not required 

under the FOIA. Accordingly, aside 

from adding in language regarding the 

availability of OGIS’s dispute resolution 

services as a nonexclusive alternative to 

litigation, the Board is adopting section 

261.13(i)(4) in the final rule without any 

further change. 

III. Regulatory Requirements 

As the Board noted in its interim rule, 

Congress required that the substantive 

changes to the Board’s Rules under the 

Improvement Act become effective by 

December 27, 2016, and the other 

amendments to the Board’s Rules were 

technical in nature. Thus, the Board 

determined that the prior notice and 

comment requirements of the 

Administrative Procedure Act, 5 U.S.C. 

553(b), did not apply to the rule. 

Because no notice of proposed 

rulemaking is required, these 

regulations are not a ‘‘rule’’ as defined 

by the Regulatory Flexibility Act, 5 

U.S.C. 601(2), and no initial or final 

regulatory flexibility analysis is 

required. 

List of Subjects in 12 CFR Part 261 

Administrative practice and 

procedure, Confidential business 

information, Freedom of information, 

Reporting and recordkeeping 

requirements. 

Authority and Issuance 

For the reasons stated above, the 

Board of Governors of the Federal 

Reserve System adopts the interim final 

rule published on December 27, 2016, at 

81 FR 94932, as final with the following 

change: 

PART 261—RULES REGARDING 

AVAILABILITY OF INFORMATION 

■ 1. The authority citation for part 261 

continues to read as follows: 

Authority: 5 U.S.C. 552; 12 U.S.C. 248(i) 

and (k), 321 et seq., 611 et seq., 1442, 1467a, 

1817(a)(2)(A), 1817(a)(8), 1818(u) and (v), 

1821(o), 1821(t), 1830, 1844, 1951 et seq., 

2601, 2801 et seq., 2901 et seq., 3101 et seq., 

3401 et seq.; 15 U.S.C. 77uuu(b), 78q(c)(3); 29 

U.S.C. 1204; 31 U.S.C. 5301 et seq.; 42 U.S.C. 

3601; 44 U.S.C. 3510. 

■ 2. In § 261.13 paragraph (i)(4) is 

revised to read as follows: 

§ 261.13 Processing requests. 

* * * * * 

(i) * * * 

(4) The Board shall make a 

determination regarding any appeal 

within 20 working days of actual receipt 

of the appeal by the Freedom of 

Information Office. If an adverse 

determination is upheld on appeal, in 

whole or in part, the determination 

letter shall notify the appealing party of 

the right to seek judicial review and of 

the availability of dispute resolution 

services from the Office of Government 

Information Services as a nonexclusive 

alternative to litigation. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, October 19, 2017. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2017–23095 Filed 10–24–17; 8:45 am] 

BILLING CODE P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 770 

[EPA–HQ–OPPT–2017–0245; FRL–9962–84] 

RIN 2070–AK36 

Voluntary Consensus Standards 

Update; Formaldehyde Emission 

Standards for Composite Wood 

Products 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Direct final rule. 

SUMMARY: EPA is taking direct final 

action on a revision to the formaldehyde 

standards for composite wood products 

final rule, published in the Federal 

Register on December 12, 2016. The 

revision will update multiple voluntary 

consensus standards that have been 

updated, superseded, or withdrawn 

since publication of the notices of 

proposed rulemaking on June 10, 2013 

and will amend an existing regulatory 

provision regarding the correlation of 

quality control test methods. 

DATES: This final rule is effective on 

December 11, 2017 without further 

notice, unless EPA receives relevant 

adverse comment by November 9, 2017. 

If EPA receives adverse comment, the 

Agency will publish a timely 

withdrawal in the Federal Register 

informing the public that the rule will 

not take effect. The incorporation by 

reference of certain publications listed 

in the regulations is approved by the 

Director of the Federal Register as of 

December 11, 2017. 

ADDRESSES: The docket for this action, 

identified by docket identification (ID) 

number EPA–HQ–OPPT–2017–0245, is 

available at http://www.regulations.gov 

or at the Office of Pollution Prevention 

and Toxics Docket (OPPT Docket), 

Environmental Protection Agency 

Docket Center (EPA/DC), West William 

Jefferson Clinton Bldg., Rm. 3334, 1301 

Constitution Ave. NW., Washington, 

DC. The Public Reading Room is open 

from 8:30 a.m. to 4:30 p.m., Monday 

through Friday, excluding legal 

holidays. The telephone number for the 

Public Reading Room is (202) 566–1744, 

and the telephone number for the OPPT 

Docket is (202) 566–0280. Please review 

the visitor instructions and additional 


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