[Federal Register Volume 80, Number 140 (Wednesday, July 22, 2015)]
[Rules and Regulations]
[Pages 43320-43323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17416]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Parts 17, 39, 48, 49, 51, 52, 53, 59, 61, 62, and 64

RIN 2900-AP22


Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards; Updating References

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is amending its 
regulations with updated citations and references to Office of 
Management and Budget (OMB) authorities for Federal grant programs. OMB 
has issued final guidance, located in Title 2 of the Code of Federal 
Regulations (CFR), which streamlines and supersedes requirements 
previously found in various OMB Circulars. VA has adopted OMB's 
guidance, and this rule replaces the obsolete OMB references in VA's 
regulations.

DATES: This final rule is effective July 22, 2015.

FOR FURTHER INFORMATION CONTACT: Brian McCarthy, Office of Regulatory 
and Administrative Affairs (10B4), Veterans Health Administration, 
Department of Veterans Affairs, 810 Vermont Ave. NW., Washington, DC 
20420, (202) 461-6345. (This is not a toll-free telephone number.)

SUPPLEMENTARY INFORMATION: The Office of Management and Budget (OMB) is 
streamlining the Federal government's guidance on Administrative 
Requirements, Cost Principles, and Audit Requirements for Federal 
awards. In a document published in the Federal Register on December 26, 
2013 (78 FR 78590), OMB adopted final guidance, Uniform Administrative 
Requirements, Cost Principles, and Audit Requirements for Federal 
Awards (Uniform Guidance), that supersedes and streamlines requirements 
from OMB Circulars A-21, A-87, A-110, and A-122 (which have been placed 
in OMB guidances); Circulars A-89, A-102, and A-133; and the guidance 
in Circular A-50 on Single Audit Act follow-up. The final guidance is 
located in title 2 of the Code of Federal Regulations (CFR).
    On December 19, 2014, OMB published a joint interim final rule in 
the Federal Register (79 FR 75871). OMB made technical corrections to 
the Uniform Guidance, and Federal awarding agencies, including VA, 
implemented the guidance in their respective chapters of title 2 of the 
CFR. VA amended title 2 of the CFR to add part 802. Section 802.101 of 
title 2 CFR now provides, ``The Uniform Administrative Requirements, 
Cost Principles, and Audit Requirements for Federal Awards set forth in 
2 CFR part 200 shall apply to the Department of Veterans Affairs.'' VA 
also removed parts 41 and 43 from title 38 CFR. Those parts codified 
OMB Circulars that were superseded by the Uniform Guidance.
    Because of these changes, existing references in VA's regulations 
to the superseded OMB guidance documents and to parts 41 and 43 are 
obsolete. Accordingly, we are amending various VA regulations located 
in 38 CFR parts 17, 39, 48, 51, 52, 53, 59, 61, 62, and 64 to replace 
the obsolete references with references to the current authority. For 
the same reason, we are removing part 49 of title 38 CFR, which 
codified OMB Circular A-110, and amending VA's regulations referencing 
part 49 to reference 2 CFR part 200 instead.

Administrative Procedure Act

    The Secretary of Veterans Affairs finds there is good cause under 
the provisions of 5 U.S.C. 553(b)(B) and (d)(3) to publish this rule 
without prior

[[Page 43321]]

opportunity for public comment and with an immediate effective date. 
This rule does not amend the substantive content of the regulations 
cited. We are merely making technical revisions to replace obsolete OMB 
references and citations in existing VA regulations because 2 CFR part 
200, which VA is adopting, supersedes OMB's previous guidance. We are 
also deleting existing references to parts 41 and 43 of 38 CFR, which 
were removed from 38 CFR by the interim final rule published on 
December 19, 2014 (79 FR 75871), and removing part 49 of title 38 CFR 
and existing references to part 49, which codified OMB guidance that 
was superseded by the Uniform Guidance. Because these changes are 
merely technical, advance notice and public comment are unnecessary and 
we find good cause to make these necessary changes effective 
immediately upon publication.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action,'' which requires review by OMB, unless 
OMB waives such review, as ``any regulatory action that is likely to 
result in a rule that may: (1) Have an annual effect on the economy of 
$100 million or more or adversely affect in a material way the economy, 
a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order.''
    The economic, interagency, budgetary, legal, and policy 
implications of this regulatory action have been examined, and it has 
been determined not to be a significant regulatory action under 
Executive Order 12866. VA's impact analysis can be found as a 
supporting document at http://www.regulations.gov, usually within 48 
hours after the rulemaking document is published. Additionally, a copy 
of the rulemaking and its impact analysis are available on VA's Web 
site at http://www.va.gov/orpm/, by following the link for ``VA 
Regulations Published From FY 2004 Through Fiscal Year to Date.''

Regulatory Flexibility Act

    The Secretary hereby certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as they are defined in the Regulatory Flexibility Act (5 U.S.C. 601-
612) because the amendments are merely technical in nature. Therefore, 
pursuant to 5 U.S.C. 605(b), this final rule is exempt from the final 
regulatory flexibility analysis requirements of section 604.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This final rule will have no such effect on 
State, local, and tribal governments, or on the private sector.

Paperwork Reduction Act

    This final rule contains no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers and titles for 
the programs affected by this document are 64.005, Grants to States for 
Construction of State Home Facilities; 64.024, VA Homeless Providers 
Grant and Per Diem Program; 64.026, Veterans State Adult Day Health 
Care; 64.033, VA Supportive Services for Veteran Families Program; 
64.034, VA Assistance to United States Paralympic Integrated Adaptive 
Sports Program; 64.037, VA U.S. Paralympics Monthly Assistance 
Allowance Program; 64.038, Grants for the Rural Veterans Coordination 
Pilot; 64.100, Automobiles and Adaptive Equipment for Certain Disabled 
Veterans and Members of the Armed Forces; 64.201, National Cemeteries; 
and 64.203, State Cemetery Grants.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Robert L. 
Nabors II, Chief of Staff, Department of Veterans Affairs, approved 
this document on July 7, 2015, for publication.

List of Subjects

38 CFR Part 17

    Administrative practice and procedure, Grant programs--health, 
Grant programs--veterans, Health care, Health facilities, Nursing 
homes, Reporting and recordkeeping requirements, Travel and 
transportation expenses, Veterans.

38 CFR Part 39

    Cemeteries, Grant programs--veterans, Veterans.

38 CFR Part 48

    Administrative practice and procedure, Drug abuse, Grant programs, 
Loan programs, Reporting and recordkeeping requirements.

38 CFR Part 49

    Uniform Administrative Requirements for Grants and Agreements.

38 CFR Parts 51 and 52

    Administrative practice and procedure, Day care, Grant programs--
health, Grant programs--veterans, Health care, Health facilities, 
Nursing homes, Reporting and recordkeeping requirements, Veterans.

38 CFR Part 53

    Administrative practice and procedure, Grant programs--health, 
Grant programs--veterans, Health care, Health facilities, Health 
professions, Nursing homes, Reporting and recordkeeping requirements, 
Scholarships and fellowships, Veterans.

38 CFR Part 59

    Administrative practice and procedure, Day care, Grant programs--
health, Grant programs--veterans, Health care, Health facilities, 
Nursing homes, Reporting and recordkeeping requirements, Veterans.

38 CFR Part 61

    Administrative practice and procedure, Alcohol abuse, Alcoholism, 
Drug abuse, Grant programs--health, Grant programs--veterans, Health 
care, Health facilities, Homeless, Mental

[[Page 43322]]

health programs, Reporting and recordkeeping requirements, Travel and 
transportation expenses, Veterans.

38 CFR Part 62

    Administrative practice and procedure, Claims, Grant programs--
health, Grant programs--social services, Grant programs--
transportation, Grant programs--veterans, Grants--housing and community 
development, Heath care, Homeless, Housing, Housing assistance 
payments, Indian--lands, Individuals with disabilities, Low and 
moderate income housing, Manpower training program, Medicare, Medicaid, 
Public assistance programs, Public housing, Relocation assistance, Rent 
subsidies, Reporting and recordkeeping requirements, Rural areas, 
Social security, Supplemental security income (SSI), Travel and 
transportation expenses, Unemployment compensation, Veterans.

38 CFR Part 64

    Administrative practice and procedure, Disability benefits, Claims, 
Grant programs--health, Grant programs--veterans, Health care, Health 
records, Reporting and recordkeeping requirements, Veterans.

    Dated: July 13, 2015.
William F. Russo,
Acting Director, Office of Regulation Policy & Management, Office of 
the General Counsel, Department of Veterans Affairs.
    For the reasons set forth in the preamble, VA amends 38 CFR parts 
17, 39, 48, 49, 51, 52, 53, 59, 61, 62, and 64 as follows:

PART 17--MEDICAL

0
1. The authority citation for part 17 continues to read as follows:

    Authority: 38 U.S.C. 501, and as noted in specific sections.


Sec.  17.200  [Amended]

0
2. Amend Sec.  17.200 by removing ``Single Audit Act of 1984 (part 41 
of this chapter).'' and adding in its place ``Uniform Administrative 
Requirements, Cost Principles, and Audit Requirements for Federal 
Awards under 2 CFR part 200.''.

0
3. Amend Sec.  17.715 by revising paragraph (b) to read as follows:


Sec.  17.715  Grant Agreements.

* * * * *
    (b) Additional requirements. Grantees and identified subrecipients 
are subject to the Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards under 2 CFR part 
200, and subject to 2 CFR parts 25 and 170, if applicable.
* * * * *

PART 39--AID FOR THE ESTABLISHMENT, EXPANSION, AND IMPROVEMENT, OR 
OPERATION AND MAINTENANCE OF VETERANS CEMETERIES

Subpart B--Establishment, Expansion, and Improvement Projects

0
4. The authority citation for part 39 continues to read as follows:

    Authority: 25 U.S.C. 450b(1); 38 U.S.C. 101, 501, 2408, 2411, 
3765.


Sec.  39.31  [Amended]

0
5. Amend Sec.  39.31(c)(6) by removing ``parts 180 and 801 and 38 CFR 
part 43'' and adding in its place ``parts 180, 200, and 801''.


Sec.  39.32  [Amended]

0
6. Amend Sec.  39.32 introductory text by removing ``the provisions of 
Office of Management and Budget (OMB) Circular No. A-87.'' and removing 
``OMB Circular No. A-102, Revised.'' and adding in each place ``2 CFR 
part 200.''.

Subpart C--Operation and Maintenance Projects


Sec.  39.81  [Amended]

0
7. Amend Sec.  39.81(d)(2) by removing ``parts 180 and 801 and 38 CFR 
part 43'' and adding in its place ``parts 180, 200, and 801''.


Sec.  39.82  [Amended]

0
8. Amend Sec.  39.82:
0
a. In paragraph (a)(2), by removing ``the provisions of OMB Circular 
No. A-87'' and adding in its place ``2 CFR part 200''.
0
b. In paragraph (a)(3), by removing ``OMB Circular No. A-102, 
Revised.'' and adding in its place ``2 CFR part 200.''.

Subpart D--Grant Recipient Responsibilities, Inspections, and 
Reports Following Project Completion


Sec.  39.122  [Amended]

0
9. Amend Sec.  39.122(a) by removing ``(see Part 41 of this chapter)''.

PART 48--GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE 
(FINANCIAL ASSISTANCE)

Subpart F--Definitions

0
10. The authority citation for part 48 continues to read as follows:

    Authority: 41 U.S.C. 701, et seq.; 38 U.S.C 501.


Sec.  48.605  [Amended]

0
11. Amend Sec.  48.605(a)(2) by removing ``the Governmentwide rule 38 
CFR part 43 that implements OMB Circular A-102 (for availability, see 5 
CFR 1310.3) and specifies uniform administrative requirements.'' and 
adding in its place ``2 CFR part 200.''.

PART 49--[REMOVED]

0
12. Under the authority of 38 U.S.C. 501, remove part 49.

PART 51--PER DIEM FOR NURSING HOME CARE OF VETERANS IN STATE HOMES

Subpart C--Per Diem Payments

0
13. The authority citation for part 51 continues to read as follows:

    Authority: 38 U.S.C. 101, 501, 1710, 1720, 1741-1743, and as 
stated in specific sections.


Sec.  51.43  [Amended]

0
14. Amend Sec.  51.43(e) by removing ``the Office of Management and 
Budget (OMB) Circular number A-87, dated May 4, 1995, ``Cost Principles 
for State, Local, and Indian Tribal Governments.'' '' and adding in its 
place ``2 CFR part 200.''.

PART 52--PER DIEM FOR ADULT DAY HEALTH CARE OF VETERANS IN STATE 
HOMES

Subpart C--Per Diem Payments

0
15. The authority citation for part 52 continues to read as follows:

    Authority: 38 U.S.C. 101, 501, 1741-1743, unless otherwise 
noted.


Sec.  52.40  [Amended]

0
16. Amend Sec.  52.40(b) by removing ``the Office of Management and 
Budget (OMB) Circular number A-87, dated May 4, 1995, ``Cost Principles 
for State, Local, and Indian Tribal Governments'' (OMB Circulars are 
available at the addresses in 5 CFR 1310.3).'' and adding in its place 
``2 CFR part 200.''.

PART 53--PAYMENTS TO STATES FOR PROGRAMS TO PROMOTE THE HIRING AND 
RETENTION OF NURSES AT STATE VETERANS HOMES

0
17. The authority citation for part 53 continues to read as follows:

    Authority: 38 U.S.C. 101, 501, 1744.


Sec.  53.31  [Amended]

0
18. Amend Sec.  53.31(b) by removing ``Single Audit Act of 1984 (see 38 
CFR

[[Page 43323]]

part 41)'' and adding in its place ``Uniform Administrative 
Requirements, Cost Principles, and Audit Requirements for Federal 
Awards under 2 CFR part 200''.

PART 59--GRANTS TO STATES FOR CONSTRUCTION OR ACQUISITION OF STATE 
HOMES

0
19. The authority citation for part 59 continues to read as follows:

    Authority: 38 U.S.C. 101, 501, 1710, 1742, 8105, 8131-8137.


Sec.  59.124  [Amended]

0
20. Amend Sec.  59.124(a) by removing ``Single Audit Act of 1984 (see 
part 41 of this chapter)'' and adding in its place ``Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards under 2 CFR part 200''.

PART 61--VA HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM

0
21. The authority citation for part 61 continues to read as follows:

    Authority: 38 U.S.C. 501, 2001, 2002, 2011, 2012, 2061, 2064.

Subpart B--Capital Grants


Sec.  61.16  [Amended]

0
22. Amend Sec.  61.16(a) by removing ``OMB Circular A-122 as codified 
at 2 CFR part 230.'' and adding in its place ``the Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards under 2 CFR part 200.''.

Subpart E--Technical Assistance Grants

0
23. Amend Sec.  61.50 by revising paragraph (b)(3)(i) to read as 
follows:


Sec.  61.50  Technical assistance grants- general.

* * * * *
    (b) * * *
    (3) * * *
    (i) Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards under 2 CFR part 200;
* * * * *

Subpart F--Awards, Monitoring, and Enforcement of Agreements


Sec.  61.61  [Amended]

0
24. Amend Sec.  61.61(a) by removing ``VA common grant rules at 38 CFR 
parts 43 and 49 and the OMB Circulars, including those cited in Sec.  
61.66.'' and adding in its place ``Uniform Administrative Requirements, 
Cost Principles, and Audit Requirements for Federal Awards under 2 CFR 
part 200.''.

0
25. Revise Sec.  61.66 to read as follows:


Sec.  61.66  Financial management.

    (a) All recipients must comply with applicable requirements of the 
Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards under 2 CFR part 200.
    (b) All entities receiving assistance under this part must use a 
financial management system that follows generally accepted accounting 
principles and meets the requirements set forth under 2 CFR part 200. 
All recipients must implement the requirements of 2 CFR part 200 when 
determining costs reimbursable under all awards issued under this part.

(Authority: 38 U.S.C. 501)

Sec.  61.67  [Amended]

0
26. Amend Sec.  61.67:
0
a. In paragraph (c) by removing ``38 CFR 49.32'' and adding in its 
place ``2 CFR part 200''.
0
b. In paragraph (f) by removing ``38 CFR 49.34'' and adding in its 
place ``2 CFR part 200''.

PART 62--SUPPORTIVE SERVICES FOR VETERANS FAMILIES PROGRAM

0
27. The authority citation for part 62 continues to read as follows:

    Authority: 38 U.S.C. 501, 2044, and as noted in specific 
sections.

0
28. Amend Sec.  62.70:
0
a. By revising paragraph (a).
0
b. In paragraph (b) by removing ``OMB Circular A-110, Subpart C, 
Section 21 (codified at 2 CFR 215.21) and 38 CFR 49.21.'' and adding in 
its place ``2 CFR part 200.''.
0
c. In paragraph (c) by removing ``OMB Circular A-122, Cost Principles 
for Non-Profit Organizations, codified at 2 CFR part 235.'' and adding 
in its place ``2 CFR part 200.''.
    The revision reads as follows:


Sec.  62.70  Financial management and administrative costs.

    (a) Grantees must comply with applicable requirements of the 
Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards under 2 CFR part 200.
* * * * *

PART 64--GRANTS FOR THE RURAL VETERANS COORDINATION PILOT (RVCP)

0
29. The authority citation for part 64 continues to read as follows:

    Authority: 38 U.S.C. 501, 523 note.


0
30. Amend Sec.  64.14 by revising paragraph (b)(2) to read as follows:


Sec.  64.14  RVCP grant agreement.

* * * * *
    (b) * * *
    (2) Abide by the Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards under 2 CFR part 
200, and 2 CFR parts 25 and 170, if applicable.
* * * * *
[FR Doc. 2015-17416 Filed 7-21-15; 8:45 am]
BILLING CODE 8320-01-P