[Federal Register: July 3, 2000 (Volume 65, Number 128)]
[Notices]
[Page 41061-41062]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03jy00-68]
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DEPARTMENT OF EDUCATION
Office of Vocational and Adult Education; Intent To Repay the
Commonwealth of Massachusetts Department of Education Funds Recovered
as a Result of a Final Audit Determination
AGENCY: Department of Education.
ACTION: Notice of intent to award grantback funds.
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SUMMARY: Under section 459 of the General Education Provisions Act
(GEPA), 20 U.S.C. 1234h, the Secretary of Education (Secretary) intends
to repay to the Commonwealth of Massachusetts Department of Education
(Massachusetts), under a grantback arrangement, an amount equal to 75
percent of the principal amount of funds recovered by the U.S.
Department of Education (Department) as a result of the final audit
determination in this matter (ACN: 01-33145G). The Department's
recovery of funds followed the settlement reached between the parties
under which Massachusetts refunded $2,111,810 to the Department in full
resolution of the Department's final audit determination for State
fiscal year (FY) 1992. This notice describes Massachusetts' plan for
the use of the repaid funds and the terms and conditions under which
the Secretary intends to make those funds available. This notice
invites comments on the proposed grantback.
DATES: All comments must be received on or before August 2, 2000.
ADDRESSES: All written comments should be addressed to Ron Castaldi,
Chief, Division of Vocational-Technical Education, Office of Vocational
and Adult Education, U.S. Department of Education, 400 Maryland Avenue
SW, Mary E. Switzer Building, Room 4317, MS 7323, Washington, DC 20202.
FOR FURTHER INFORMATION CONTACT: Ron Castaldi. Telephone: (202) 205-
9444. If you use a telecommunications device for the deaf (TDD), you
may call the Federal Information Relay Service (FIRS) at 1-800-877-
8339.
SUPPLEMENTARY INFORMATION
A. Background
Under the settlement agreement between the Department and the
Commonwealth of Massachusetts, the Department recovered $2,111,810 from
Massachusetts in full resolution of all claims arising from an audit of
Massachusetts covering FY 1992 (ACN: 01-33145G).
The Department's original claim of $4,604,211 was contained in a
program determination letter (PDL) issued by the Assistant Secretary
for Vocational and Adult Education on March 31, 1995. This claim arose
from findings related to Massachusetts' administration of its
vocational education program under the provisions of the Carl D.
Perkins Vocational and Applied Technology Education Act. 20 U.S.C. 2301
et seq. (1988) (Perkins II).
In the March 31, 1995 PDL, the Assistant Secretary determined that
Massachusetts violated the Federal requirements governing maintenance
of fiscal effort. Specifically, the Assistant Secretary concluded that
Massachusetts failed to expend non-Federal funds at an appropriate
level to maintain fiscal effort on either an aggregate or per pupil
basis, thus violating section 502(a) of Perkins II (20 U.S.C. 2463(a)).
The settlement negotiations resulting from Massachusetts' appeal of
the Assistant Secretary's March 31, 1995 PDL culminated in a settlement
agreement for a total repayment of a principal amount of $2,111,810.
The settlement agreement was executed on August 15, 1997. The
Department received full payment for this determination in September
1997.
B. Authority for Awarding a Grantback
Section 459(a) of GEPA, 20 U.S.C. 1234h(a), provides that whenever
the Secretary has recovered funds following a final audit determination
with respect to any applicable program, the Secretary may consider
those funds to be additional funds available for the program and may
arrange to repay to the State or local educational agency affected by
that determination an amount not to exceed 75 percent of the recovered
funds. The Secretary may enter into this grantback arrangement if the
Secretary determines that--
(1) The practices or procedures of the recipient that resulted in
the violation of law have been corrected, and that the recipient is in
all other respects in compliance with the requirements of that program;
(2) The recipient has submitted to the Secretary a plan for the use
of those funds pursuant to the requirements of that program and, to the
extent possible, for the benefit of the population that was affected by
the failure to comply or by the misuse of funds that resulted in the
recovery; and
(3) The use of the funds in accordance with that plan would serve
to achieve the purposes of the program under which the funds were
originally paid.
C. Plan for Use of Funds Awarded Under a Grantback Arrangement
Pursuant to section 459(a)(2) of GEPA, Massachusetts has applied
for a grantback of $1,583,858, or 75 percent of the $2,111,810 repaid
to the Department under the settlement agreement, and has submitted a
plan for use of the proposed grantback funds, consistent with the Carl
D. Perkins Vocational and Technical Education Act of 1998 (Perkins
III), which is the successor statute to Perkins II and is currently in
effect. Massachusetts plans to establish new career and technical
education programs in high-wage, high-demand emerging career fields
where there is a critical shortage of skilled workers, and to assist
existing career and technical programs seeking national program
certification.
Specifically, Massachusetts plans to utilize the requested
grantback funds, totaling $1,583,858, to offer a competitive Request
for Proposal for Perkins-eligible secondary schools with career and
technical programs. Funds will be used either to begin a career and
technical education program in a new and emerging field, or to update
an existing program using the National Program Standards as a
framework. The award of grants will be weighed in favor of schools with
a higher concentration
[[Page 41062]]
of special populations. Massachusetts expects to award 20-25 grants
ranging from $50,000 to $100,000 each. Grant recipients will be
required to match on a dollar for dollar basis the total grant request
from State, local, business and industry, or other non-Perkins Federal
funding source. The Request for Proposal will include a stipulation
that schools include enrollment figures for new proposed programs or
grant-impacted programs, and also include the number of students who
are members of special populations. Grant funds awarded under this
Request for Proposal cannot be used to supplant activities that are
currently being funded.
D. The Secretary's Determination
The Secretary has carefully reviewed the plan submitted by
Massachusetts and other relevant documentation. Based upon that review,
the Secretary has determined that the conditions under section 459 of
GEPA have been met.
This determination is based upon the best information available to
the Secretary at the present time. If this information is not accurate
or complete, the Secretary is not precluded from taking appropriate
administrative action at a later date. In finding that the conditions
of section 459 of GEPA have been met, the Secretary makes no
determination concerning any pending audit recommendations or final
audit determinations.
E. Notice of the Secretary's Intent To Enter Into a Grantback
Arrangement
Section 459(d) of GEPA requires that, at least 30 days before
entering into an arrangement to award funds under a grantback, the
Secretary must publish in the Federal Register a notice of intent to do
so, and the terms and conditions under which the payment will be made.
In accordance with section 459(d) of GEPA, notice is hereby given
that the Secretary intends to make funds available to the Massachusetts
Department of Education under a grantback arrangement. The grantback
award would be in the amount of $1,583,858, which is 75 percent--the
maximum percentage authorized by the statute--of the principal
recovered by the Department as a result of the final audit
determination and the settlement in this matter.
F. Terms and Conditions Under Which Payments Under a Grantback
Arrangement Would Be Made
Massachusetts agrees to comply with the following terms and
conditions under which payment under a grantback arrangement would be
made:
(1) Massachusetts will expend the funds awarded under the grantback
in accordance with--
(a) All applicable statutory and regulatory requirements;
(b) The plan that was submitted and any amendments to the plan that
are approved in advance by the Secretary; and
(c) The budget that was submitted with the plan and any amendments
to the budget that are approved in advance by the Secretary.
(2) All funds received under the grantback arrangement must be
obligated by September 30, 2000, for ACN: 01-33145G, in accordance with
section 459(c) of GEPA and Massachusetts' plan.
(3) Massachusetts will, no later than January 1, 2002, submit a
report to the Secretary which--
(a) Indicates that the funds awarded under the grantback have been
expended in accordance with the proposed plan and approved budget; and
(b) Describes the results and effectiveness of the project for
which the funds were spent.
(4) Separate accounting records must be maintained documenting the
expenditures of funds awarded under the grantback arrangement.
Electronic Access to This Document
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Note: The official version of a document is the document
published in the Federal Register. Free Internet access to the
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Regulations is available on GPO Access at:http://
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(Catalog of Federal Domestic Assistance Number 84.048, Basic State
Grants for Vocational Education)
Dated: June 28, 2000.
Patricia W. McNeil,
Assistant Secretary for Vocational and Adult Education.
[FR Doc. 00 16750 6-30-; 8:45 am]
BILLING CODE 4000-01-U