Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Notices 64845

Bldg. 2122

Ft. George G. Meade

Ft. Meade Co: Anne Arundel MD 20755–

Landholding Agency: Army.

Property Number: 21200140086.

Status: Unutilized.

Comment: 9092 sq. ft., presence of asbestos/

lead paint, most recent use—admin., offsite use only.

Bldg. 3000

Ft. George G. Meade

Ft. Meade Co: Anne Arundel MD 20755–

Landholding Agency: Army.

Property Number: 21200140087.

Status: Unutilized.

Comment: 10,663 sq. ft., presence of

asbestos/lead paint, most recent use—

storehouse, off-site use only.

Bldg. 4283

Ft. George G. Meade

Ft. Meade Co: Anne Arundel MD 20755–

Landholding Agency: Army.

Property Number: 21200140088.

Status: Unutilized.

Comment: 2609 sq. ft., presence of asbestos/

lead paint, most recent use—admin., offsite use only.

Ohio

Quarters 120

Defense Supply Center

Columbus Co: Franklin OH 43216–5000,

Landholding Agency: Army.

Property Number: 21200140089.

Status: Unutilized.

Comment: 5670 sq. ft., needs repair, presence

of lead paint, most recent use—residence,

off-site use only.

Texas

Federal Courthouse

512 Starr Street

Corpus Christi Co: Nueces TX 78401–

Landholding Agency: GSA.

Property Number: 54200140011.

Status: Excess.

Comment: 6000 sq. ft., needs maintenance,

eligible for Nat’l Register of Historic Places.

GSA Number: 7–G–TX–1049.

Land (by State)

Arizona

WC–1–2c & WC–1–2f

Range 1 East

Peoria Co: Maricopa AZ 85382–

Landholding Agency: Interior.

Property Number: 61200140007.

Status: Excess.

Comment: 10 acres, portion of parcels,

remote location, no utilities.

Suitable/Unavailable Properties

Buildings (by State)

Georgia

Bldg. 2410

Fort Gordon

Ft. Gordon Co: Richmond GA 30905–

Landholding Agency: Army.

Property Number: 21200140076.

Status: Unutilized.

Comment: 8480 sq. ft., needs rehab, potential

asbestos/lead paint, most recent use—

storage, off-site use only.

Unsuitable Properties

Buildings (by State)

California

Solstice Canyon House

Santa Monica Mountains

Malibu Co: Los Angeles CA 90265–

Landholding Agency: Interior.

Property Number: 61200140003.

Status: Unutilized.

Reason: Extensive deterioration.

Screen House

Rt 140/RT 120

Yosemite Co: Mariposa CA 95389–

Landholding Agency: Interior.

Property Number: 61200140004.

Status: Unutilized.

Reason: Extensive deterioration.

Florida

U.S. Customs House

1700 Spangler Boulevard

Hollywood Co: Broward FL 33316–

Landholding Agency: GSA.

Property Number: 54200140012.

Status: Surplus.

Reason: Within 2000 ft. of flammable or

explosive material Secured Area.

GSA Number: 4–G–FL–1173.

Storage Bldg.

75th Street

Bradenton Co: Manatee FL 34209–

Landholding Agency: Interior.

Property Number: 61200140005.

Status: Unutilized.

Reason: Extensive deterioration.

[FR Doc. 01–30644 Filed 12–13–01; 8:45 am]

BILLING CODE 4210–29–M

DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

RIN 1018–AH69

U.S. Fish and Wildlife Service Manual

Chapters on Audits

AGENCY: Fish and Wildlife Service,

Interior.

ACTION: Notice and request for

comments.

SUMMARY: The U.S. Fish and Wildlife

Service (Service) plans to establish

policy on State audits accomplished by

its Division of Federal Aid by issuing

U.S. Fish and Wildlife Service Manual

Chapters on the subject. The Service is

requesting comments and suggestions

on the chapters as described below.

DATES: Comments must be received by

February 12, 2002.

ADDRESSES: Comments should be

addressed to Kris E. LaMontagne, Chief,

Division of Federal Aid, Attn: Audit

Chapters, U.S. Fish and Wildlife

Service, 4401 North Fairfax Drive, Suite

140, Arlington, Virginia 22203. Send eMail comments to

Fw9_Federal_Aid@fws.gov, with ‘‘Audit

Chapter Comment’’ in the subject line.

FOR FURTHER INFORMATION CONTACT:

Doug Alcorn, Region 7 Chief, Division

of Federal Aid, U.S. Fish and Wildlife

Service, Telephone: (907) 786–3545.

SUPPLEMENTARY INFORMATION:

Background

Through the Federal Aid in Sport Fish

and Wildlife Restoration Program, the

Service disburses funds to States in the

form of grants to restore and manage the

Nation’s fish and wildlife resources. The

States use the funds to conduct

research, surveys and management;

purchase and restore habitat; operate

fish hatcheries; build boat access sites;

and provide education, outreach and

communications.

The Program is authorized by the

Federal Aid in Sport Fish Restoration

Act, 16 U.S.C. 777 et seq., enacted in

1950 and the Federal Aid in Wildlife

Restoration Act, 16 U.S.C. 669 et seq.,

enacted in 1937. The Program’s

regulations can be found in Title 50

Code of Federal Regulations, part 80,

‘‘Administrative Requirements, Federal

Aid in Fish and Federal Aid in Wildlife

Restoration Acts;’’ Title 43 Code of

Federal Regulations, part 12,

‘‘Administrative and Cost Principles for

Assistance Programs;’’ and other

applicable regulations. Various Office of

Management and Budget (OMB)

circulars, and guidance in the form of

Service policy also apply to these

chapters.

Funds for the Program are derived

from excise and import taxes on fishing

equipment, firearms, archery equipment

and certain motorboat fuels paid into

the Sport Fish Restoration Account or

the Federal Aid to Wildlife Restoration

Fund. The manufacturer or U.S.

Customs (on imports) collects these

taxes and pays it to the U.S. Department

of the Treasury, who transfers the

money to the Service for distribution to

the States.

Periodically the Service conducts

audits of our State partners, testing for

compliance with applicable Acts,

regulations, accounting principles, and

Service policy. The purpose of these

proposed chapters is to clarify the

processes and guidelines for conducting

an audit, from beginning through closeout of the audit process and resolution

of any findings or other issues.

Generally our State partners are: The

50 States, the District of Columbia, the

Commonwealths of Puerto Rico and the

Northern Mariana Islands, Guam, the

U.S. Virgin Islands, and American

Samoa.

We are inviting comments on all

chapters. Comments are welcome

regarding completeness of the content of

material in chapters; clear, easy to

64846 Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Notices

understand language; any burden placed

on any Division of the Service, the

Department of the Interior, or a State

partner; or any other aspect of these

documents. Comments must be written,

but e-mailed comments are acceptable.

The administrative record for this rule

is available for viewing, by appointment

only, Monday through Friday, 9 a.m. to

3 p.m., in the Division of Federal Aid,

4401 North Fairfax Drive, Suite 140,

Arlington, Virginia 22203.

The draft chapters are as follows:

Chapter 1, Policy and Responsibilities

for Grantee Audits, Part 417 Fish and

Wildlife Service Manual (417 FW 1)

1.1 What Is the Purpose of This

Chapter?

This chapter establishes policy and

responsibilities for grantee audits,

defines terms associated with audits,

and provides an overview of the audit

process. Other chapters in this Part

(417) establish policy and procedures

for audit scoping and planning,

conducting and reporting, resolution,

and appeals.

1.2 To What Program Does This Part

Apply?

This Part applies to audits of grantees

who receive grants through the Federal

Aid Program.

1.3 What Authorities Govern the

Conduct of Grantee Audits?

A. OMB Circular A–50, Audit Followup

B. OMB Circular A–87, Cost Principles

for State, Local and Indian Tribal

Governments

C. OMB Circular A–133, Audits of

States, Local Governments, and NonProfit Organizations

D. 43 CFR 12, Uniform Administrative

Requirements for Grants and

Cooperative Agreements to State and

Local Governments

E. 50 CFR 80, Administrative

Requirements, Federal Aid in Sport Fish

and Federal Aid in Wildlife Restoration

Acts

F. Part 360 (Departmental Audits),

Department Manual

G. Part 361(Audit Followup),

Department Manual

H. Part 415 (Departmental Audits), Fish

and Wildlife Service Manual

I. Government Auditing Standards

(Yellow Book)

J. Wildlife and Sport Fish Restoration

Programs Improvement Act of 2000

1.4 What Is the Service’s Policy

Regarding Grantee Audits?

We will:

A. Audit each grantee, once in each

five-year period, as specified in the

Wildlife and Sport Fish Restoration

Programs Improvement Act of 2000. The

Regional Director notifies the grantee(s),

in writing, of the five-year audit

schedule.

B. Provide adequate oversight and

financial resources to ensure timely

audit completion.

C. Cooperate and coordinate fully

with grantees, auditors, the Office of the

Inspector General (OIG), and Office of

Financial Management (PFM).

1.5 What Are the Objectives of the

Federal Aid Program Grantee Audit?

The Federal Aid Audit Program

supplements single statewide audits

performed according to the

requirements of OMB Circular A–133

(see 417 FW 6). The objectives of

Federal Aid grantee audits are to:

A. Promote economy, efficiency, and

effectiveness in administration of

programs and operations.

B. Aid in the prevention and

detection of fraud and abuse in

programs and operations.

C. Assure financial integrity,

accountability, and financial controls of

the Federal Aid Program in accordance

with generally accepted accounting

principles.

D. Assure compliance with applicable

Federal laws, rules, and regulations.

1.6 Who Is Responsible for

Administering the Federal Aid Audit

Program?

A. Director

(1) Oversees the Federal Aid Audit

Program.

(2) Makes the final decision on

internal Service disagreements

associated with resolving audit findings

and preparing Corrective Action Plans

(CAP).

(3) Makes the final decision on all

grantee appeals to the Service.

B. Regional Directors

(1) Ensure that Federal Aid Program

staff receive the training necessary to

oversee audits.

(2) Provide information to the auditor

on Region-specific issues proposed for

audit.

(3) Provide guidance and interpret

laws, rules, regulations, and policies for

the auditor during an audit.

(4) Work with the grantee and auditor

throughout the audit to resolve issues as

they arise and to identify those issues

with potential national implications.

(5) Negotiate with grantees to develop

corrective actions to resolve audit

findings. Approve, distribute, and

monitor implementation of the CAP.

(6) Request closeout of the audit when

the grantee has resolved all findings.

(7) Maintain records pertaining to

grantee audits, including the CAP and

all appeals.

C. Assistant Director—Migratory Birds

and State Programs

(1) Ensures consistent interpretation

and application of rules, regulations,

and laws concerning the Federal Aid

Audit Program.

(2) Establishes the national audit

schedule pursuant to the Wildlife and

Sport Fish Restoration Programs

Improvement Act of 2000.

(3) Coordinates Washington Office

review of the CAP prior to signature by

the Regional Director.

(4) Provides an objective

representation of issues when there is a

disagreement between the Regional

Director and the Assistant Director on

the CAP.

(5) Evaluates the Federal Aid Audit

Program for efficiency, timeliness, and

effectiveness prior to initiating each

national audit cycle. The Assistant

Director produces a written report at

least once every five years, for the

Director identifying issues and making

recommendations for improving the

Audit Program.

D. Chief, Division of Federal Aid

(Washington Office)

(1) Advises the Assistant Director—

Migratory Birds and State Programs on

scheduling of grantee audits.

Coordinates audits and provides an

independent auditor to conduct the

audit.

(2) Ensures that audits are in

accordance with Federal policies,

regulations, and laws.

(3) Identifies national audit training

needs and makes training available.

Ensures that appropriate Washington

Office Federal Aid Program staff receive

the training necessary to oversee audits.

(4) Establishes the scope of the Audit

Program in accordance with

Government Auditing Standards

(Yellow Book).

(5) Provides technical assistance on

audit issues to the Regional Office staff

and the Assistant Director—Migratory

Birds and State Programs prior to and

during the development of the CAP’s.

(6) Coordinates with the Chief,

Division of Policy and Directives

Management and the OIG to determine

appropriate means of responding to

audit-related Freedom of Information

Act (FOIA) requests and for distributing

final audit reports and final CAP’s.

E. Chief, Division of Policy and

Directives Management

(1) Oversees activities of the Service

Audit Liaison Officer, who, in turn,

Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Notices 64847

serves as liaison to PFM and OIG

regarding Federal Aid grantee audit

followup.

(2) Advises Service officials on audit

liaison matters.

(3) Tracks the implementation of

audit recommendations and reports to

the Directorate and PFM on grantee

audit followup.

1.7 Who Maintains Audit Resolution

Files?

The Regional Director is responsible

for maintaining audit resolution files in

accordance with the Service’s records

schedule. The office or Region that

administers the grant being audited will

maintain the following documents in

the audit resolution file:

A. All audit-related correspondence,

incoming and outgoing.

B. OIG final audit report.

C. Approved CAP for both tracked

and nontracked audit findings.

D. Documentation provided by the

grantee and used by the Regional

Director to verify that the grantee

resolved each finding or implemented

the auditor’s recommendation.

E. Documentation that the audit has

been officially closed out.

1.8 What Are the Definitions for Terms

Used in This Part?

A. Appeal

A deliberative process that the grantee

initiates when he/she does not agree

with the Regional Director’s

determinations, corrective actions, or

the resolutions contained in the CAP.

B. Audit

Examination of Federal Aid Program

grantees conducted by the Department

of the Interior, OIG, other Federal

agencies, and independent public

accountants.

C. Auditor

The OIG’s designee to conduct the

audit.

D. Corrective Action

Specific action(s) to resolve an audit

finding in a manner consistent with the

Service determination.

E. Corrective Action Plan

Management’s two-part plan for

addressing all audit findings and

implementing all recommendations

contained in audit reports. The first part

addresses all audit findings and

recommendations identified in the

OIG’s transmittal memorandum with the

final audit report. The second part,

called the addendum, addresses all

other audit findings in the final audit

report not specifically identified in the

OIG’s transmittal memorandum. The

audit resolution plan in each part

contains four components: Auditor’s

Findings and Recommendations,

Service Determination, Corrective

Action, and Resolution.

F. Draft Audit Report

Any report prepared by the auditor for

review and comment by the Service or

the grantee prior to issuance of the final

audit report by the OIG.

G. Engagement Letter

The official notification of a pending

audit from the auditor to the grantee.

H. Entrance Conference

The meeting involving the auditor,

the Service, the grantee, and others, if

needed, that officially begins the onsite

portion of the audit.

I. Exit Conference

The meeting involving the auditor,

the Service, the grantee, and others, if

needed, to review the draft audit report

and end the field audit.

J. Federal Aid Program

A Program that administers the

responsibilities of the Secretary of the

Interior under the Federal Aid in Sport

Fish Restoration Act, Federal Aid in

Wildlife Restoration Act, Clean Vessel

Act, Coastal Wetlands Act, the

Partnerships for Wildlife Act, and other

Acts that establish grant programs. The

Service’s Division of Federal Aid fulfills

these responsibilities.

K. Field Audit

Work that the auditor performs while

on the grantee’s premises or project

sites.

L. Final Action

The completion of all actions,

including documentation, necessary to

implement a specific audit

recommendation and resolve an audit

finding.

M. Final Audit Report

The auditor’s final report of findings

for an audit of a grantee, issued by the

OIG. It includes the auditor’s

recommendations, the grantee’s

response to the draft audit report, and

the auditor’s rejoinder.

N. Grantee

The entity to which the Service

awards a grant and who is accountable

for use of the Federal funds provided.

O. Office of Financial Management

The Department of the Interior

organization under the Assistant

Secretary—Policy, Management and

Budget that tracks audit

recommendations to final action.

P. Office of the Inspector General

The Department of the Interior

organization responsible for conducting,

supervising, and coordinating audits,

investigations, and other activities in

the Department designed to promote

economy and efficiency or prevent and

detect fraud, waste, and abuse.

Q. Planning

Helps to ensure that we conduct

audits in an economical and efficient

manner.

R. Rejoinder

The auditor’s answer to the grantee’s

response to an audit finding and

recommendation.

S. Resolution

A process to address and resolve each

finding and recommendation in the

audit report.

T. Scoping

The process to identify programmatic

and financial elements to be audited.

U. Service Audit Liaison Officer

The Washington Office representative

that serves as the point of contact for

certain followup activities pertaining to

grantee audits.

V. Service Determination

The Service decision to sustain

(accept) or not sustain (reject) the

auditor’s finding and recommendation.

W. Single Audit Report

An audit of a grantee completed in

accordance with the requirements of the

Single Audit Act of 1984 and OMB

Circular A–133. These audits are

separate from Federal Aid Program

specific audits (grantee audits).

X. We/Us

As used throughout this Part, the

terms we or us refer to the Fish and

Wildlife Service.

1.9 What Phases Are Included in a

Federal Aid Program Grantee Audit?

A. Scoping and Planning, Part 417 Fish

and Wildlife Service Manual, Chapter 2

(417 FW 2)

During the scoping phase, the auditor

identifies programmatic and financial

elements to be audited, establishes the

period to be audited, identifies issues of

potential concern, and ensures that the

audit meets Government standards. The

planning phase helps to ensure a

nationally consistent, effective, and

timely audit process. Audit planning

64848 Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Notices

establishes the audit schedule, identifies

who will conduct the audit, identifies

point(s) of contact, sets milestones, and

describes logistical requirements.

B. Conducting and Reporting, Part 417

Fish and Wildlife Service Manual,

Chapter 3 (417 FW 3)

The audit conduct and reporting

phase helps to ensure independent

examination of grantees consistent with

Government auditing standards.

C. Resolution, Part 417 Fish and

Wildlife Service Manual, Chapter 4 (417

FW 4)

The audit resolution phase ensures

that all findings and recommendations

are tracked and resolved in a timely and

efficient manner.

D. Appeals, Part 417 Fish and Wildlife

Service Manual, Chapter 5 (417 FW 5)

The appeals process allows a grantee

to appeal Service determinations,

corrective actions, or resolutions.

E. Single Audit Act Audits, Part 417

Fish and Wildlife Service Manual,

Chapter 6 (417 FW 6)

Policy for resolving findings from

audits conducted under the Single

Audit Act.

Chapter 2, Scoping and Planning, Part

417 Fish and Wildlife Service Manual

(417 FW 2)

2.1 What Is the Purpose of This

Chapter?

This chapter describes the audit

scoping and planning processes. See

417 FW 1 for authorities,

responsibilities, and definitions. Other

chapters in this Part establish policy

and procedures for audit conducting

and reporting, resolution, and appeals.

2.2 What Is Audit Scoping?

This process identifies the

programmatic and financial elements to

be audited.

2.3 Who Determines the Scope of an

Audit?

The Chief, Division of Federal Aid

(Washington Office) establishes the

overall scope of grantee audits

nationwide. Through discussions with

the grantee and the auditor, Regional

Directors help define the scope of

specific audits. However, the auditor,

supplementing and building upon other

audits of the grantee, is responsible for

identifying the depth and coverage of

the audit.

2.4 What Could an Audit Include?

An audit may include one or more of

the following components.

A. A financial compliance component

to determine if:

(1) A grantee properly conducts

financial operations,

(2) Financial reports conform with

generally accepted accounting

principles, and

(3) Operations comply with

applicable laws and regulations.

B. A component to determine whether

or not the grantee accomplished the

work approved in the grant.

C. An economy and efficiency

component to determine whether or not

the grantee efficiently and economically

managed resources; e.g., personnel,

property, space, etc.

2.5 What Steps Are Involved In Audit

Scoping?

A. Pre-Audit Coordination

After consulting with the Chief,

Division of Federal Aid (Washington

Office), the Regional Director, and the

grantee about the appropriate time

frames for the audit, the auditor

schedules a pre-audit coordination

meeting with the Regional Director to:

(1) Define the period of the audit,

identify specific concerns, and (2) to

become familiar with grants that were

active during the audit period.

B. Coordination With State Auditor

The auditor contacts the audit agency

or group that performed the Statewide

audit to obtain access to audit work

papers. The auditor reviews prior audits

of the grantee’s program to: (1) Aid in

identifying issues to be evaluated, (2)

obtain a general understanding of the

grantee’s accounting and internal

control systems; and (3) avoid

duplication of effort.

C. Engagement Letter

The auditor is responsible for

notifying a grantee of a pending audit.

The auditor sends an engagement letter

to the grantee, with a copy to the

Regional Director, at least 30 calendar

days prior to the audit entrance

conference. This letter informs the

grantee of the audit objectives, the audit

period, the key program elements being

audited, the information and documents

the grantee must make available, and

the logistical needs for conducting the

field audit.

2.6 Can a Grantee Appeal the Scope of

An Audit?

No. An audit is an independent

examination of the grantee’s Federal Aid

Program.

2.7 Will the Auditor Review Past Audit

Findings?

Yes. Using Government Auditing

Standards, the auditor is required to

review corrective actions from prior

audits to determine if the grantee has

implemented them or if additional

actions are needed.

2.8 Can the Scope of the Audit

Change?

Yes. The scope of the audit may

change when new information becomes

available as the audit progresses. We

expect the depth and coverage of work

to change throughout the course of the

audit. This is a routine aspect of the

audit, not a change in scope. The most

significant change in scope that we

normally encounter is the need to

change the period being audited.

2.9 Who Can Change the Audit Period?

The auditor provides a written

recommendation to change the audit

period to the Chief, Division of Federal

Aid (Washington Office). The Chief, in

consultation with the Regional Director,

determines whether or not to change the

audit period. The Regional Director

provides the grantee written notification

of any change in the period and the

reason for the change.

2.10 What Is Audit Planning and Why

Do It?

Audit planning helps to ensure that

we have a nationally consistent,

effective, and timely audit process.

Audit planning establishes the audit

schedule, identifies who will conduct

the audit, identifies point(s) of contact

for the grantee, sets audit milestones,

and describes logistical requirements.

The auditor coordinates with the

grantee and Service representatives

during audit planning.

2.11 Who Ensures That Audit

Planning is Accomplished?

The Assistant Director—Migratory

Birds and State Programs ensures

collaboration among Service staff, the

auditor, and the grantee by monitoring

audit progress through the Chief,

Division of Federal Aid (Washington

Office).

2.12 What Steps Does Audit Planning

Involve?

A. Grantee’s Initial Reply to the Auditor

The grantee will acknowledge the

auditor’s engagement letter within 30

calendar days providing as much

information as possible. See paragraph

2.13.

Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Notices 64849

B. Consultation With the Service

Prior to starting the field audit, the

auditor meets with Service Regional

Federal Aid staff to discuss specific

program audit concerns. Regional

Federal Aid staff solicit grantee input

during this process.

2.13 What Is the Content of the

Grantee’s Initial Reply to the

Engagement Letter?

The grantee acknowledges the

auditor’s engagement letter by providing

a written response, including as much

requested data as is practical at that

time. The grantee notifies the auditor of

any information that is not available and

estimates the date when the information

will be available or explains why he/she

cannot provide the information. Auditor

review of data prior to arriving onsite

will help to ensure a more timely and

efficient onsite audit with minimal

disruption of the grantee’s normal

operations.

Chapter 3, Conducting and Reporting

on Grantee Audits, Part 417 Fish and

Wildlife Service Manual (417 FW 3)

3.1 What Is the Purpose of This

Chapter?

This chapter provides procedures for

conducting and reporting on audits of

Federal Aid Program grantees. See 417

FW 1 for authorities, responsibilities,

and definitions. Other chapters in this

Part establish policy and procedures for

audit scoping and planning, resolution,

and appeals.

3.2 What Is the Objective of the

Conduct and Reporting Phase?

To ensure independent examination

of grantees consistent with Government

auditing standards. This examination

results in a final audit report issued by

the OIG.

3.3 What Steps Does the Conducting

and Reporting Phase Involve?

A. Audit Entrance Conference

This meeting marks the official

beginning of the field audit.

B. Field Audit

Field audits usually take three to four

months to complete, including site

visits. The auditor, the grantee, and the

Regional Director communicate

regularly to resolve potential audit

findings and recommendations before

the auditor prepares the draft audit

report.

C. Draft Audit Report

Following the field audit, the auditor

prepares a draft audit report for review

by the Chief, Division of Federal Aid

(Washington Office) and the Regional

Director. This review may result in

revisions or requests for further audit

work before the draft audit report is

provided to the grantee.

D. Audit Exit Conference

After the auditor releases the draft

audit report, he/she schedules an audit

exit conference with the Regional

Director and the grantee. This

conference provides an opportunity for

the grantee and Service representatives

to ask for or provide further clarification

as well as to address any other concerns.

The conclusion of the conference marks

the completion of the field audit.

E. Auditor Issues Draft Audit Report to

OIG

The auditor includes both the

grantee’s response and the auditor’s

rejoinder in the draft audit report, and

submits the report to the OIG for review

and approval.

F. OIG’s Final Audit Report

If the OIG accepts the auditor’s draft

audit report, the OIG assigns an OIG

number to the audit report and issues

the report to the Regional Director.

3.4 What Is An Audit Entrance

Conference?

The auditor schedules this conference

in consultation with the grantee and the

Regional Director to mark the official

beginning of the field audit. Participants

include the auditor and representatives

from the grantee and the Region. The

auditor will explain the audit objectives

and process, address logistical needs,

establish a tentative schedule, and

answer questions.

3.5 Who Provides Technical Guidance

to the Auditor on Interpretation and

Application of Federal Aid Program

Rules and Regulations?

The Regional Director provides

guidance and interprets laws, rules,

regulations, and policies for the auditor

during the conduct of the audit. The

Assistant Director—Migratory Birds and

State Programs ensures consistent

interpretation and application of rules,

regulations, and laws nationwide.

3.6 Will the Auditor Issue Status

Reports?

Yes. During the field audit, the

auditor provides monthly status reports

to the Regional Director and the Chief,

Division of Federal Aid (Washington

Office). The status report contains a

brief description of preliminary findings

and how the audit is progressing.

3.7 How Does the Service Process

Monthly Status Reports?

The Regional Director forwards a copy

of the status report to the grantee and

maintains a copy in the audit file. If the

Regional Director or the Chief, Division

of Federal Aid (Washington Office), has

a concern about potential findings by

the auditor, he/she contacts the

Assistant Director, the auditor, or the

grantee to deal with the issue(s) as soon

as practicable. If the Regional Director

or the Chief believe that an issue is of

national concern, he/she notifies the

Assistant Director—Migratory Birds and

State Programs. The Assistant Director

determines the appropriate action for

national application and issue

resolution and issues written guidance

to the Regional Directors where the

issue is relevant.

3.8 Is the Service Required To Share

Monthly Status Reports?

No. The auditor’s monthly status

reports are proprietary, and we will

share these reports with the grantee

only.

3.9 Will the Auditor Consult With the

Service on Potential Findings While the

Audit is in Progress?

Yes. The auditor must report all

potential findings to the Regional

Director as soon as possible or at least

monthly in the status reports. However,

in the case of illegal activity or

suspected fraud, the auditor must

immediately report such findings to the

OIG.—Division of Investigations

without notice to the Service.

3.10 Can Audit Findings Be Resolved

While the Field Audit is Still in

Progress?

Yes. When practical and feasible, we

work with grantees to resolve audit

findings while the auditor is still onsite

so that he/she can verify and document

the resolution in audit work papers, and

report the resolution in the final audit

report. The auditor must document all

reportable conditions, including those

resolved during the audit, to meet

Government Auditing Standards.

3.11 Will the Service Have An

Opportunity To Review Audit Findings

Before the Draft Audit Report is

Available to the Grantee?

Yes. Following the field audit, the

auditor prepares a draft audit report for

review by the Assistant Director—

Migratory Birds and State Programs and

the Regional Director. We have 30

calendar days from receipt of the draft

audit report to complete this review.

This review may result in revisions or

request for further audit work. After the

64850 Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Notices

review is complete, the Regional

Director will provide the draft audit

report to the grantee at least 30 calendar

days prior to the audit exit conference.

3.12 Who Schedules the Audit Exit

Conference and When Does It Occur?

The auditor schedules the audit exit

conference with the Service and the

grantee, to occur on a mutually

agreeable date. This conference is a

formal opportunity for the grantee and

the Service to request or provide further

clarification on the potential findings

and to address any other concerns

relating to the conduct of the audit and

the draft audit report. Participants

include the auditor and representatives

of the Service and the grantee.

3.13 Can Audit Findings Change as a

Result of the Exit Conference?

Yes. The auditor takes information

received during the exit conference

under advisement. The auditor may

modify the findings or

recommendations before submitting the

draft audit report to the OIG.

3.14 Will the Grantee Have An

Opportunity To Review and Respond to

Audit Findings and Recommendations

Before the Auditor Submits the Draft

Audit Report to the Office of Inspector

General for Approval?

Yes.

A. After the exit conference, the

grantee has 30 calendar days to:

(1) Concur with the audit findings and

recommendations, or

(2) Disagree with audit findings or

recommendations, and provide

additional information, if appropriate,

to support the grantee’s position on

specific audit findings.

B. The auditor will summarize the

grantee’s response in the final report

and include the complete text of the

grantee’s response as an attachment.

The grantee may ask the Regional

Director for additional review time. This

written request must include supporting

justification. The Regional Director

responds to the grantee’s request and

instructs the auditor and the grantee

accordingly, in writing.

3.15 Will the Auditor Respond to the

Grantee’s Written Comments on Draft

Audit Findings and Recommendations?

Yes. The auditor answers the grantee

in the draft audit report in the auditor’s

rejoinder.

3.16 When Is the Auditor’s Report

Submitted to the OIG?

After the grantee’s response and the

auditor’s rejoinder are incorporated, the

auditor submits the draft audit report to

the OIG.

3.17 Who Issues the Final Audit Report

and To Whom Is It Issued?

After reviewing the auditor’s draft

audit report, the OIG issues the final

audit report to the Regional Director via

a transmittal memorandum. The auditor

sends copies of the report to the Chief,

Division of Federal Aid (Washington

Office), the Service Audit Liaison

Officer, and all other Regional Directors.

3.18 Who Provides the Final Audit

Report to the Grantee?

The Regional Director transmits a

copy of the final audit report to the

grantee within 10 working days of

receipt of the report from the OIG.

3.19 Who Can Distribute the Final

Audit Report to the Public?

The OIG originates the final audit

report and is responsible for

distribution. The Regional Director may,

with permission from the OIG,

distribute this report to the public, but

only after the grantee has received the

report. The grantee may release the

report at its discretion.

3.20 Will You Post the Final Audit

Report on the Internet?

The Chief, Division of Federal Aid

(Washington Office) will coordinate

with the Chief, Division of Policy and

Directives Management, and the OIG to

determine if posting a specifically

requested document on the Internet is

appropriate.

Chapter 4, Audit Resolution, Part 417

Fish and Wildlife Service Manual (417

FW 4)

4.1 What Is the Purpose of this Chapter?

This chapter establishes policy and

procedures for tracking and resolving

findings and implementing

recommendations from audits of Federal

Aid Program grantees. See 417 FW 1 for

authorities, responsibilities, and

definitions. Other chapters in this Part

establish policy and procedures for

audit scoping, planning, conducting and

reporting, and appeals.

4.2 When Does Audit Resolution Begin?

The formal audit resolution process

begins on the date the OIG issues the

final audit report. However, the

Regional Director will work with the

grantee while the audit is in progress to

resolve issues that the auditor identifies.

Exhibit 1 provides the maximum time

frames for each phase of the audit

resolution process.

4.3 What Is the Purpose of the OIG’s

Transmittal Memorandum?

The OIG’s transmittal memorandum

transmits the final audit report to the

Service and is the document of record

for identifying the audit findings that

we must address specifically in the CAP

and report to the OIG.

4.4 Who Prepares the CAP?

The Regional Director and the grantee

negotiate the terms of the CAP through

written and oral discussions of the

auditor’s findings and

recommendations, the grantee’s

response, the auditor’s rejoinder, and

the Service’s determination. The

Regional Chief, Division of Federal Aid,

in coordination with the grantee and the

Washington Office Division of Federal

Aid, prepares the CAP for the Regional

Director’s signature.

4.5 How Much Time Does the Service

Have To Prepare a CAP?

The Service has 90 calendar days

from the date the OIG issues the final

audit report to resolve all audit findings

with the grantee and to prepare the

CAP.

4.6 Can the Service Request Additional

Time To Prepare the CAP?

Either we or a grantee may need

additional time to gather information

necessary to develop the CAP. Requests

are made as follows:

A. If the grantee needs an extension,

he/she must notify the Regional Director

in writing at least 15 calendar days prior

to the 90 calendar day deadline and

provide a justification for the extension.

B. We can make one request to the

OIG for 30 additional calendar days to

prepare the CAP. If the Regional

Director requests additional time, he/

she will explain why the additional

time is necessary and provide a copy of

the request to the grantee.

4.7 What Are the Content and Format

for a CAP?

A. Include a cover page that clearly

identifies the grantee audited, the years

audited, and the report number. Obtain

this information from the title of the

OIG’s final audit report.

B. The CAP contains two parts. The

first part addresses all audit findings

and recommendations that the OIG

identifies in the transmittal

memorandum. The second part, called

the addendum, addresses any other

findings in the final audit report. Each

part contains:

(1) Auditor’s Findings and

Recommendations. The OIG reports

these for resolution. The OIG’s

transmittal memorandum identifies

questioned costs or procedures and the

auditor’s recommendations that we

must address in the CAP. It assigns titles

and numbers to the auditor’s

Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Notices 64851

recommendations for tracking in the

CAP.

(2) Service Determination. The

Service sustains (accepts) or does not

sustain (rejects) the auditor’s finding

and recommendation. Sustained

recommendations from the final audit

report must result in planned corrective

actions. If the Regional Director does not

sustain an audit finding, he or she

explains the basis, including legal

citations, for that determination. The

CAP addresses both sustained and

nonsustained findings.

(3) Corrective Action. This component

identifies specific corrective action(s) to

resolve the finding consistent with the

Service Determination. It specifies

necessary actions, target dates, and the

person responsible for carrying out each

action. It also specifies how the grantee

should implement the corrective actions

to resolve the issues.

(4) Resolution. This component

describes documentation that we

require of the grantee to verify

implementation of the corrective

action(s) and target dates.

4.8 Who Must Review and Concur

With the CAP?

The Assistant Director—Migratory

Birds and State Programs will review

the draft CAP and decide whether to

concur or not concur within 30 calendar

days from the date the Region forwards

the CAP to the Washington Office.

4.9 What Happens if the Assistant

Director Does Not Concur With the

Region’s Draft CAP?

The Assistant Director will work with

the Regional Director to resolve any

disagreements with the CAP. If they

cannot resolve their differences, the

Director will make the final decision.

The Assistant Director may request a 30

calendar day extension from the OIG if

needed and if we have not requested a

previous extension.

4.10 Who Reviews and Concurs With

the CAP at the Department Level?

The Assistant Secretary for Policy,

Management and Budget is the audit

followup official for the Department of

the Interior and makes final

determination on audit resolution. The

Office of Financial Management (PFM)

is the Departmental office delegated

authority by the Assistant Secretary to

deal with audit resolution. The PFM

notifies the Director whether or not it

concurs with the Service’s

determination.

4.11 Are All Audit Recommendations

Tracked by the Department?

No.

A. The OIG identifies the

recommendations that we must resolve

and describes them in the final audit

report transmittal memorandum. If we

have not resolved the identified

recommendations within the 90

calendar days specified in the

memorandum (or 120 calendar days if

an extension has been granted), the OIG

will refer them to PFM for tracking. The

PFM reports back to the OIG when those

recommendations are resolved.

B. Nontracked audit

recommendations are all other

recommendations in the final audit

report. We do not report resolution of

nontracked recommendations to the

OIG. However, the Regional Director is

responsible for resolving all audit

recommendations-both tracked and

nontracked.

4.12 How Are Nontracked Audit

Recommendations Resolved?

The Regional Director negotiates and

documents resolution of nontracked

recommendations in the CAP

addendum. The addendum follows the

same format as part 1 of the CAP. The

Regional Director retains the addendum

and tracks corrective actions outlined

therein. Resolution and issue closure

documentation must meet the same

standards as those described for part 1.

These records are retained in Regional

Federal Aid audit files. A grantee may

appeal the actions contained in the CAP

addendum by initiating the process

described in 417 FW 5.

4.13 How Much Time Does the Grantee

Have To Implement the CAP?

The corrective action for each finding

has a specific deadline as negotiated

during development of the CAP. A

grantee may request additional time

from the Regional Director. The request

must be in writing and justify the time

requested. The Regional Director

responds in writing within 10 working

days and copies the Chief, Division of

Federal Aid (Washington Office). The

Chief notifies the Audit Liaison Officer

of the change.

4.14 Who Monitors Implementation of

the CAP?

The Regional Director monitors,

tracks, and documents implementation

of the CAP and keeps the Director,

through the Chief, Division of Policy

and Directives Management, informed

of implementation progress.

4.15 Who Forwards the CAP to the

OIG?

Within 2 weeks of the Washington

Office decision, the Regional Director

signs and forwards the CAP,

A. Excluding the addendum, to the

OIG, and

B. Including the addendum, to the

grantee for implementation, and

provides a copy to the Chief, Division of

Federal Aid (Washington Office).

4.16 Who Can Distribute the CAP to

the Public?

The Regional Director originates the

CAP and makes it available to the public

upon request, but only after the grantee

has received a copy. A grantee may

release a copy of the CAP at his or her

discretion.

4.17 Will You Publish a Copy of the

CAP on the Internet?

The Chief, Division of Federal Aid

(Washington Office) will coordinate

with the Chief, Division of Policy and

Directives Management, and the OIG to

determine if posting a specifically

requested document on the Internet is

appropriate.

4.18 How Can a Final CAP Be

Modified?

The final CAP may only be modified

by the Director of the Service or the

Secretary, Department of the Interior as

the result of an appeal completed in

accordance with Part 417 FW 5 or 50

CFR 80.7 except that deadlines for

implementation of corrective actions

may be changed upon written approval

by the Regional Director in accordance

with paragraph 4.13 and after

consultation with the Chief, Division of

Federal Aid (Washington Office).

4.19 Can a Grantee Appeal a Service

Determination or Corrective Action in

the Final CAP?

Yes. A grantee may appeal a Service

determination, corrective action, or

resolution contained in the final CAP by

the appeals process described in 417

FW 5.

4.20 Are Status Reports Required

During Implementation of the CAP?

If the PFM requires us to submit

status reports on specific corrective

actions, we will request status reports

from the grantee.

4.21 How Is an Audit Closed?

The Regional Director sends a

memorandum to the Director

documenting that final action is

complete (all corrective actions have

been implemented) and requesting the

audit be closed. The memorandum is

routed through the Chief, Division of

Federal Aid (Washington Office) and the

Chief, Division of Policy and Directives

Management for review and

concurrence. When all concerns are

64852 Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Notices

satisfied, the Service Audit Liaison

Officer forwards the memorandum to

PFM. If PFM concurs that all action has

been implemented, PFM notifies the

Service Audit Liaison Officer that the

audit is closed. The Service Audit

Liaison Officer notifies the Chief,

Division of Federal Aid (Washington

Office) who conveys the message of

acceptance and audit closure to the

appropriate Regional Director. The

Regional Director notifies the grantee

after the PFM concurs that the audit

findings are resolved and closed.

Time Frames

Audit Resolution Process for Federal

Aid Grant Audits

Note: The OIG allows 90 calendar days for

bureaus to prepare a corrective action plan.

The number of days indicated below is the

established maximum time period for each

resolution phase.

Calendar day Responsible organization Action/comments

1 ...................................................... OIG OIG issues final audit report. (Resolution time tracking process

starts.)

2–45 ................................................ RO/State/ WO (FA) RO prepares draft CAP in coordination with State and WO Division of

Federal Aid. Submits the draft CAP to the AD–MBSP, attention:

FA. (RO must complete action with 45 calendar days from OIG

issuance of final report.)

46—75 ............................................. WO (FA/AD–MBSP) FA reviews the draft CAP and submits to the AD–MBSP for concurrence and return to the RO. (WO must complete action within 30

calendar days of date that RO forwards report to WO.)

76—90 ............................................. AD–MBSP/D OIG If disagreement exists between the RO and WO, the AD–MBSP forwards the draft CAP to the Director for decision and formally requests a 30-day extension from the OIG. (WO must complete action prior to 90-day resolution time frame.)

76—120 ........................................... RO RO prepares final CAP for Regional Director signature. RO transmits

original to OIG with copies to the WO and the State within 2 weeks

of WO decision. (RO must complete action within 2 weeks of WO

decision.) *

90–120 ............................................ OIG OIG reviews the final CAP and notifies PFM that either:

—Recommendations are placed in tracking with PFM, or

—FWS has failed to resolve the audit.

120+ ................................................ PFM/FWS PFM works with FWS to track audit until all resolution actions are

complete.

* Appeal Process: If the Region cannot resolve the audit, the State may appeal to the Director, Fish and Wildlife Service (see 417 FW 6).

Legend:

AD–MBSP—Assistant Director—

Migratory Birds and State Programs

D—Director

FA—Division of Federal Aid, WO

FWS—Fish and Wildlife Service

OIG—Office of the Inspector General

PFM—Office of Financial Management

(Department)

RD—Regional Director

RO—Regional Office

State—State fish and game agency

WO—Washington Office

Chapter 5, Audit Appeals, Part 417 Fish

and Wildlife Service Manual (417 FW

5)

5.1 What Is the Purpose of This

Chapter?

This chapter establishes policy and

procedures for appealing audit findings

or corrective actions for Federal Aid

Program grantee audits. See 417 FW 1

for authorities, responsibilities, and

definitions. Other chapters in this Part

establish policy and procedures for

audit scoping, planning, conducting and

reporting, and resolution.

5.2 Who May Appeal?

A grantee impacted by a CAP may

appeal Service determinations,

corrective actions, or resolutions in the

CAP.

5.3 How Much Time Does the Grantee

Have To Appeal?

A grantee must file a written appeal

to the Director within 21 calendar days

from the date the Regional Director

approved the CAP.

5.4 What Does the Appeal Contain?

The appeal must:

A. Specify which Service

determinations, corrective actions, or

resolutions they are appealing.

B. Provide information as to why an

appeal is being made and include

justification and citations supporting

their position. This justification

supplements information that the

grantee provided in the original

response to the audit findings.

C. Include a brief summary of prior

discussions or negotiations with the

Service on the action being appealed.

5.5 Who Makes the Final Decision on

an Appeal to the Service?

The Director makes the final decision

on each appeal after consultation with

technical experts. The Director will

work with the grantee(s), appropriate

Service Region(s), Washington Office

staff, and others as needed to resolve the

appeal within 30 calendar days after

receipt of all pertinent documents.

5.6 Can a Grantee Appeal the Service

Director’s Decision?

Yes. A grantee may appeal the Service

Director’s decision within 30 days of the

date of mailing of the adverse decision.

It must be directed to the Department of

the Interior, Director, Office of Hearings

and Appeals. The Director, Office of

Hearings and Appeals, an Ad Hoc

Appeals Board appointed by that

Director, or an Administrative Law

Judge of that office, will review the

record, hold a hearing on all or part of

the record, or listen to oral arguments,

and make disposition of the appeal.

Such an appeal should be made

pursuant to 43 CFR 4.700—4.704.

Chapter 6, Single Audit Act Report

Resolution, Part 417 Fish and Wildlife

Service Manual (417 FW 6)

6.1 What Is the Purpose of This

Chapter?

This chapter establishes Service

policy for resolving findings and

implementing recommendations from

audits of Federal Aid Program grantees

under the Single Audit Act. See 417 FW

1 for authorities, responsibilities, and

definitions.

Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Notices 64853

6.2 To what Program Does This

Chapter Apply?

This chapter applies to Single Audit

Act audits of grantees that receive funds

through the Federal Aid Program. These

audits are separate from the Federal Aid

Program specific audits.

6.3 Is the Service Responsible for

Resolving All Audit Findings?

No. We are only responsible for

resolving findings, recommendations,

and questioned costs that directly relate

to funds that we provide to the grantee.

6.4 Does the OIG Notify the Service

When Audits Are Completed?

The OIG will provide excerpts from

the Single Audit Report to the Director

or Regional Director if there are issues

that we must address. The OIG’s

transmittal memorandum will identify

the specific findings and questioned

costs that we must resolve. The OIG

does not notify us if the Single Audit

Report contains no findings directly

related to funds that we provide to the

grantee.

6.5 What happens When the Service

Receives a Single Audit Report?

A. OIG Provides Report to Washington

Office

The Service Audit Liaison Officer:

(1) Notifies the Chief, Division of

Federal Aid (Washington Office) and

other Service offices, as needed, that we

have received a Single Audit report that

contains findings that we must resolve.

(2) Forwards the documents to the

Chief, Division of Federal Aid

(Washington Office) for review and

transmittal to the appropriate Regional

Director for action.

B. OIG Forwards Reports to the Regional

Office

The Chief, Division of Federal Aid

(Regional Office) will notify and provide

a copy to the Chief, Division of Federal

Aid (Washington Office) and the Service

Audit Liaison Officer. The Service

Audit Liaison Officer will coordinate

with other affected offices, as necessary.

6.6 How Much Time Does the Service

Have To Respond to the Single Audit

Report?

The OIG establishes a deadline in the

transmittal memorandum submitted

with the Single Audit Report. The

Regional Director may, with

concurrence of the Assistant Director—

Migratory Birds and State Programs,

request that the OIG provide additional

time for response. The request will

include a justification for the extension.

6.7 How Are Findings Resolved?

The Regional Director is responsible

for overseeing and monitoring the

Service response to Single Audit

Reports in accordance with procedures

in 417 FW 4.

6.8 Who Maintains Single Audit

Report Resolution Files?

The Regional Director will maintain

all files related to resolution of Single

Audit Act audit findings. These files

will include, but not be limited to:

A. Copies of all relevant

correspondence.

B. Single Audit Report and OIG

transmittal memorandum.

C. Service response to OIG’s

transmittal memorandum.

D. CAP and revised corrective actions,

when appropriate.

E. Documentation that the grantee has

resolved the audit findings and

questioned costs in accordance with

approved corrective actions.

6.9 Can the Grantee Appeal a

Corrective Action?

Yes. Grantees may appeal using the

procedures outlined in 417 FW 5.

Dated: November 2, 2001.

Joseph E. Doddridge,

Assistant Secretary for Fish and Wildlife and

Parks.

[FR Doc. 01–30905 Filed 12–13–01; 8:45 am]

BILLING CODE 4310–55–P

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

Electric Utility Power Rate and Service

Fee Adjustment, Mission Valley Power

AGENCY: Bureau of Indian Affairs,

Interior.

ACTION: Notice of proposed rate

adjustment.

SUMMARY: The Bureau of Indian Affairs

(BIA) proposes to adjust the electric

power rates for operation and

maintenance assessed to customers of

the Mission Valley Power Utility. We

request your comments on the proposed

rate adjustment.

DATES: Interested parties may submit

comments on the proposed rate

adjustment. Comments must be

submitted on or before February 12,

2002.

ADDRESSES: All comments on the

proposed rate adjustment must be in

writing and addressed to: Terrance

Virden, Director, Office of Trust

Responsibilities, Attn.: Irrigation and

Power, MS–3061–MIB, Code 210, 1849

C Street, NW, Washington, DC 20240,

Telephone (202) 208–5480.

FOR FURTHER INFORMATION CONTACT:

Stanley Speaks, Regional Director,

Bureau of Indian Affairs, Northwest

Region Office, 911 NE 11th Avenue,

Portland, Oregon 97232–4169,

Telephone (503) 231–6702.

SUPPLEMENTARY INFORMATION:

What Is Mission Valley Power (MVP)?

MVP is a tribal enterprise of the

Confederated Salish and Kootenai

Tribes (CSKT) operating and

maintaining the federally-owned power

utility on the Flathead Indian

Reservation under the authority of a

Public Law 93–638 contract (25 U.S.C.

450f).

Where Can Information on the

Regulatory and Legal Citations in This

Notice Be Obtained?

You can contact the Northwest

Regional Director’s office at the location

stated above or you can use the Internet

site for the Government Printing Office

at http://www.gpo.gov.

What Is the Purpose of This Notice?

This notice is to notify you that we

propose to adjust the power rates and

service fees for one of our power

utilities. We are publishing this notice

in accordance with the BIA’s regulations

governing its power rates and service

fees of power utilities, specifically, 25

CFR 175.10–175.12. These sections

provide for the fixing and announcing of

power rates and related information for

BIA Indian Electric Power Utilities.

What Authorizes Us To Issue This

Notice?

Our authority to issue this notice is

vested in the Secretary of the Interior by

5 U.S.C. 301, and the Act of August 7,

1946 (60 Stat. 895; 25 U.S.C. 385). The

Secretary has delegated this authority to

the Assistant Secretary—Indian Affairs

under Part 209, Chapter 8.1A, of the

Department of the Interior’s

Departmental Manual, and by

memorandum dated January 25, 1994,

from the Chief of Staff, Department of

the Interior, to Assistant Secretaries, and

Heads of Bureaus and Offices.

When Will the Rate Adjustment Be

Effective?

The rate adjustment will be in effect

starting on, and retroactive to,

November 1, 2001.

How Do We Calculate Our Rates?

We calculate rates in accordance with

25 CFR 175.10 by estimating the cost of

normal operation and maintenance at

our power utility for which you receive