[Federal Register Volume 61, Number 147 (Tuesday, July 30, 1996)]
[Pages 39796-39797]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19273]

[[Page 39795]]


Part V

Department of Education


Office of Vocational and Adult Education; Intent To Repay the Colorado 
State Board for Vocational Education Funds Recovered as a Result of Two 
Final Audit Determinations; Notice

Federal Register / Vol. 61, No. 147 / Tuesday, July 30, 1996 / 

[[Page 39796]]


Office of Vocational and Adult Education; Intent To Repay the 
Colorado State Board for Vocational Education Funds Recovered as a 
Result of Two Final Audit Determinations

AGENCY: Department of Education.

ACTION: Notice of intent to award grantback funds.


SUMMARY: Under section 459 of the General Education Provisions Act 
(GEPA), 20 U.S.C. 1234h, the U.S. Secretary of Education (Secretary) 
intends to repay to the Colorado Community College and Occupational 
Education System (Colorado), 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 final audit 
determinations (ACNs: 08-72109 and 08-82000). The Department's recovery 
of funds followed a settlement reached between the parties under which 
Colorado refunded $87,500 to the Department in full resolution of the 
Department's final audit determinations for fiscal years (FYs) 1985 and 
1986. This notice describes Colorado's 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.

DATE: All comments must be received on or before August 29, 1996.

ADDRESSES: All written comments should be addressed to Dr. Marcel R. 
DuVall, Chief, Finance Branch, Division of Vocational-Technical 
Education, Office of Vocational and Adult Education, U.S. Department of 
Education, 600 Independence Avenue S.W., Mary E. Switzer Building, Room 
4320, MS-7324, Washington, D.C. 20202.

of Education, 600 Independence Avenue S.W., Mary E. Switzer Building, 
Room 4320, MS-7324, Washington, D.C. 20202, telephone: (202) 205-9502. 
Individuals who use a telecommunications device for the deaf (TDD) may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339 
between 8 a.m. and 8 p.m., Eastern time, Monday through Friday. 
Internet address: Marcel __ DuV[email protected].


A. Background

    Under a settlement agreement between the Department and Colorado, 
the Department recovered $87,500 from Colorado in full resolution of 
all claims arising from audits of Colorado covering FYs 1985 and 1986.
    The Department's original claims of $538,930.30 (ACN: 08-72109 (FY 
1985)) and $395,085.10 (ACN: 08-82000 (FY 1986)) were contained in 
final letters of determination issued by the Assistant Secretary for 
Vocational and Adult Education on August 31, 1989 and June 28, 1990 
respectively. These claims arose from findings related to Colorado's 
administration of its vocational education program under the provisions 
of the Carl D. Perkins Vocational Education Act. 20 U.S.C. 2301 et seq. 
(1988) (Perkins I).
    In both the August 31, 1989 and June 28, 1990 letters, the 
Assistant Secretary determined that, among other things, Colorado 
violated the Federal regulations governing payroll expenditures and 
maintenance of time distribution records. For the applicable programs, 
Colorado improperly allocated payroll expenditures based on 
predetermined budgets and failed to maintain appropriate time 
distribution records for employees who worked on more than one cost 
objective, thus violating provisions of the cost principles implemented 
at 34 CFR Part 74, Appendix C, II, B., 10., b (1985).
    The settlement negotiations resulting from Colorado's appeal of the 
Assistant Secretary's August 31, 1989 and June 28, 1990 determinations 
culminated in a single settlement agreement for a total repayment of 
$87,500. The settlement agreement was executed on March 28, 1994. The 
Department received full payment for the determinations on March 29, 

B. Authority for Awarding a Grantback

    Section 459(a) of GEPA, 20 U.S.C. 1234(h), 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 (LEA) 
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 the--
    (1) Practices or procedures of the recipient that resulted in the 
violation have been corrected, and that the recipient is, in all other 
respects, in compliance with the requirements of the applicable 
    (2) 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 misexpenditures that resulted in the 
recovery of funds; and
    (3) Use of the funds, in accordance with that plan, would serve to 
achieve the purposes of the program under which the funds were 
originally granted.

C. Plan for Use of Funds Awarded Under a Grantback Arrangement

    Pursuant to section 459(a)(2) of GEPA, Colorado has applied for a 
grantback of $65,625, or 75 percent, of the $87,500 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 Applied Technology Education Act (Perkins II), 
which is the successor statute to Perkins I and is currently in effect. 
Colorado plans to purchase curriculum materials that will support the 
integration of academic and vocational education.
    Specifically, Colorado plans to utilize the requested grantback 
funds, totaling $65,625 to--
    (1) Purchase an applied economics curriculum package entitled 
Workplace Economics from the Agency for Instructional Technology (AIT). 
The package will contain: instructional videodiscs; instructional video 
cassettes, including a teacher training video and a teleconference 
video; student, teacher, and workshop resource guidebooks; computer 
software; duplication licenses for the right to copy video cassettes 
and computer software; preferred pricing for additional copies of 
instructional materials; pre-paid travel and accommodations for two 
Colorado representatives to attend an AIT National Consortium Meeting; 
one pre-paid site registration for the North American Teleconference 
held for teacher trainers and curriculum coordinators across North 
America; and four pre-paid individual registrations to attend the 
Workplace Economics Education Institutes ($22,226);
    (2) Purchase a Workplace Readiness curriculum package, entitled 
Workplace Readiness: Education for Employment from AIT, that teaches 
skills such as problem solving, teamwork, and goal setting. The 
curriculum is designed primarily for secondary vocational education 
students but may be utilized for post-secondary students as well. The 
package will contain: one master set of project materials that includes 
instructional video programs for both instructors and students; 
computer software; instructional videodiscs; printed materials; and 

[[Page 39797]]

unrestricted rights to duplicate course materials for distribution to 
LEAs ($31,399); and
    (3) Purchase an applied mathematics curriculum package entitled 
Applied Geometry from the Center for Occupational Research and 
Development (CORD). This package will augment Applied Math I and 
Applied Math II, two other CORD curriculum packages which the State has 
purchased and which are currently in use by a large number of the 
State's LEAs. Applied Geometry will enhance the geometry-related 
concepts contained in Applied Math II by focusing greater attention on 
the areas of logic, spatial visualization, coordinate geometry, and 
transformations (geometric operations and congruity). These four units 
will enhance the algebra and geometry content of vocationally focused 
mathematics courses currently offered by the State. The curriculum 
package will contain: an introductory motivational video that 
demonstrates how the curriculum relates to the world of work; student 
texts that use ``real world'' examples and activities that facilitate 
understanding of the mathematical concepts being taught; and a 
selection of three hands-on laboratories that use measuring equipment 
in applications relevant to the mathematic concepts ($12,000).
    Colorado plans to disseminate copies of each of the above 
curriculum programs to its LEAs at a low cost, allowing LEAs that could 
not otherwise afford to purchase the curriculum to do so. Large numbers 
of vocational education students will benefit from these curriculum 
programs, advancing the quality of programs delivered by, and 
coordinated throughout, the secondary and post-secondary State system, 
resulting in Statewide benefit to vocational education, and maximizing 
the impact of the grantback funds.

D. The Secretary's Determination

    The Secretary has carefully reviewed the plan, amendment, and other 
relevant documentation submitted by Colorado. 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 

    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 Colorado 
State Board for Community Colleges and Occupational Education under a 
grantback arrangement. The grantback award would be in the amount of 
$65,625, which is 75 percent--the maximum percentage authorized by the 
statute--of the principal recovered to date by the Department as a 
result of the final audit determinations and the settlement in this 

F. Terms and Conditions Under Which Payments Under a Grantback 
Arrangement Would Be Made

    Colorado Community College and Occupational Education System agrees 
to comply with the following terms and conditions under which payment 
under a grantback arrangement would be made:
    (1) The funds awarded under the grantback must be spent in 
accordance with--
    (a) All applicable statutory and regulatory requirements;
    (b) The plan that was submitted and any amendments in that 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, 1997, in accordance with section 459(c) of 
GEPA and Colorado's plan.
    (3) Colorado will, no later than December 30, 1997, submit a report 
to the Secretary which--
    (a) Indicates that the funds awarded under the grantback have been 
spent 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.

(Catalog of Federal Domestic Assistance Number 84.048, Basic State 
Grants for Vocational Education)

    Dated: July 23, 1996.
Patricia W. McNeil,
Assistant Secretary for Vocational and Adult Education.
[FR Doc. 96-19273 Filed 7-29-96; 8:45 am]