[Federal Register Volume 64, Number 179 (Thursday, September 16, 1999)]
[Rules and Regulations]
[Pages 50390-50392]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22350]
[[Page 50389]]
_______________________________________________________________________
Part III
Department of Education
_______________________________________________________________________
34 CFR Parts 74, 75, 76, 77, and 80
Administration of Grants and Agreements With Institutions of Higher
Education, Hospitals, and Other Non-Profit Organizations et al; Final
Rule
Federal Register / Vol. 64, No. 179 / Thursday, September 16, 1999 /
Rules and Regulations
[[Page 50390]]
DEPARTMENT OF EDUCATION
34 CFR Parts 74, 75, 76, 77, and 80
Administration of Grants and Agreements With Institutions of
Higher Education, Hospitals, and Other Non-Profit Organizations; Direct
Grant Programs; State-Administered Programs; Definitions That Apply to
Department Regulations; Uniform Administrative Requirements for Grants
and Cooperative Agreements to State and Local Governments
AGENCY: Office of the Chief Financial Officer, Department of Education.
ACTION: Final regulations.
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SUMMARY: The Secretary announces the applicability of revised Office of
Management and Budget (OMB) Circular A-21, ``Cost Principles for
Educational Institutions,'' and Circular A-122, ``Cost Principles for
Non-Profit Organizations.'' The Secretary also announces that the
interim final regulations the Department issued for 34 CFR 74.26 and
80.26 on August 29, 1997 (62 FR 45937) are adopted without changes.
Finally, the Secretary amends the definition of the Education
Department General Administrative Regulations (EDGAR) in 34 CFR 77.1 to
include the existing 34 CFR Parts 97, 98, and 99 within the scope of
EDGAR and make technical changes and update citations in EDGAR.
DATES: These regulations are effective September 16, 1999.
Applicability Date: The revised circulars and other changes made by
this document apply to new and continuation grants and subgrants
awarded on or after September 16, 1999.
FOR FURTHER INFORMATION CONTACT: Ronelle Holloman, U.S. Department of
Education, 400 Maryland Avenue, SW., Room 3652, ROB-3, Washington, D.C.
20202-4248. Telephone: (202) 205-3501. Fax: (202) 205-0667. E-mail
Address: [email protected]. If you use a telecommunications device
for the deaf (TDD) you may call the Federal Information Relay Service
(FIRS) at 1-800-877-8339.
Individuals with disabilities may obtain this document in an
alternate format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed in the preceding
paragraph.
SUPPLEMENTARY INFORMATION:
I. Introduction
In fiscal year 1998 OMB made final revisions to Circular A-21,
``Cost Principles for Educational Institutions,'' and Circular A-122,
``Cost Principles for Non-Profit Organizations.'' You may request a
recompilation of OMB Circulars A-21 and A-122 with all their amendments
by calling OMB Publication's Office at (202) 395-7332 or you can obtain
the circulars in electronic form on the OMB Home Page at http://
www.whitehouse.gov/WH/EOP/omb.
II. Revisions to 34 CFR Parts 74 and 80
A. Revision That Affects Educational Institutions
On June 1, 1998, (63 FR 29786) OMB published in the Federal
Register interim final revisions to OMB Circular A-21 to allow
trustees' travel expenses. On October 27, 1998, (63 FR 57332) OMB
adopted the interim final revisions without change. The Secretary
adopts the changes made by OMB on those dates in the Department's
regulations at 34 CFR Parts 74 and 80. The changes adopted in these
final regulations bind all recipients of Department grants and
cooperative agreements to the requirements of Circular A-21 as amended
through October 27, 1998. These cost principles apply to educational
institutions, except to the extent program regulations or the EDGAR
require a different outcome.
B. Revision That Affects Non-Profit Organizations
On June 1, 1998, (63 FR 29794) OMB published in the Federal
Register a full revision of OMB Circular A-122. OMB amended OMB
Circular A-122 by: revising the definition for equipment; requiring the
breakout of indirect costs into two categories (facilities and
administration) for certain non-profit organizations; modifying the
multiple allocation basis; and clarifying the treatment of certain cost
items. The Secretary adopts the changes made by OMB on June 1, 1998 in
the Department's regulations at 34 CFR Parts 74 and 80. The changes
adopted in these final regulations bind all recipients of Department
grants and cooperative agreements to the requirements of Circular A-122
as amended through June 1, 1998. These cost principles apply to non-
profit organizations, except to the extent program regulations or the
EDGAR require a different outcome.
C. Other Revisions to OMB Circulars and the Common Rule
On August 10, 1998, (63 FR 42645) OMB announced the final revision
of OMB Circular A-110, ``Uniform Administrative Requirements for Grants
and Agreements with Institutions of Higher Education, Hospitals, and
Other Non-Profit Organizations.'' The August 10, 1998, OMB notice
adopted for OMB Circular A-110 the final amendments that had been
published as interim final revisions on August 29, 1997 (62 FR 45934).
The August 29, 1997 interim final rulemaking document published by the
Secretary and other participants in the Common Rule (62 FR 45937,
45943) amended both 34 CFR 74.26 and 80.26 to give effect to OMB's
rescission of Circular A-128, ``Audits of State and Local
Governments,'' and OMB's consolidation into A-133 of the requirements
for State and local governments that had formerly been in Circular A-
128. The Secretary adopts these changes to 34 CFR parts 74 and 80 as
final regulations of the Department.
III. Other Technical Changes
The Secretary makes technical changes to various sections in 34 CFR
Parts 75, 76, 77 and 80 to remove obsolete references and make other,
nonsubstantive clarifying changes. Included in these changes is an
amendment to 34 CFR Part 77 amending the definition of EDGAR to include
34 CFR Part 97, Protection of Human Subjects; 34 CFR Part 98, Student
Rights in Research, Experimental Programs and Testing; and 34 CFR Part
99, Family Educational Rights and Privacy. The effect of this amendment
is to include these three parts in future publications of EDGAR.
The Department's discretionary and formula grant program
regulations currently refer to EDGAR under sections that carry headings
such as ``What regulations apply to this program?'' These program
regulations are not amended by this document to include references to
34 CFR parts 97-99 of EDGAR as amended by this final rulemaking
document. The Secretary will amend these program regulations in the
future to add the appropriate references. However, parts 97 through 99
apply to the grant programs of the Department as a matter of law as
specified in parts 97-99. Thus, the amendment in these final
regulations to the definition of ``EDGAR'' does not affect the
applicability of parts 97-99 to those programs.
Waiver of Proposed Rulemaking and Delayed Effective Date
It is the practice of the Secretary to offer interested parties the
opportunity to comment on proposed regulations in accordance with the
Administrative Procedure Act (5 U.S.C. 553) and to delay the effective
date of final regulations under that Act. However, since OMB has
previously provided the public an opportunity for comment on
[[Page 50391]]
the revision of Circulars A-21 and A-122, and the technical amendments
made in this document are not substantive, the Secretary finds that
soliciting further public comment with respect to adopting the
amendments made by this document is unnecessary and contrary to the
public interest under 5 U.S.C. 553(b)(B). Since changes to the relevant
circulars has already been made final by OMB and the other changes made
by this document are only technical in nature, the Secretary also
waives the delayed effective date for these amendments under 5 U.S.C.
553(d).
Regulatory Flexibility Act Certification
The Secretary certifies that these regulations would not have a
significant economic impact on a substantial number of small entities.
These regulations would not have a significant economical impact on any
entities affected because they do not make any substantive changes.
Paperwork Reduction Act of 1995
These regulations do not contain any information collection
requirements.
Assessment of Educational Impact
Based on our own review, we have determined that these final
regulations do not require transmission of information that any other
agency or authority of the United States gathers or makes available.
Electronic Access to This Document
You may view this document, as well as all other Department of
Education documents published in the Federal Register, in text or Adobe
Portable Document Format (PDF) on the Internet at either of the
following sites: http://ocfo.ed.gov/fedreg.htm.http://www.ed.gov/
news.html
To use the PDF, you must have the Adobe Acrobat Reader Program with
Search, which is available free at either of the previous sites. If you
have questions about using the PDF, call the U.S. Government Printing
Office (GPO), toll free, at 1-888-293-6498; or in the Washington, D.C.
area, at (202) 512-1530.
Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO Access at: http://
www.access.gpo.gov/nara/index.html
(Catalog of Federal Domestic Assistance Number does not apply)
List of Subjects
34 CFR Part 74
Accounting, Colleges and universities, Grant programs, Hospitals,
Non-profit organizations, Reporting and recordkeeping requirements.
34 CFR Part 75
Accounting, Administrative practice and procedure, Copyright,
Education, Grant programs-education, Inventions and patents, Private
schools, Reporting and recordkeeping requirements.
34 CFR Part 76
Accounting, Administrative practice and procedure, American Samoa,
Education, Grant programs-education, Guam, Northern Mariana Islands,
Pacific Islands Trust Territory, Private Schools, Reporting and
recordkeeping requirements, Virgin Islands.
34 CFR Part 77
Education, Grant programs-education.
34 CFR Part 80
Accounting, Grant programs, Indians, Intergovernmental relations,
Loan programs, Reporting and recordkeeping requirements.
Dated: August 18, 1999.
Richard W. Riley,
Secretary of Education.
For the reasons discussed in the preamble, the Secretary adopts as
final without change the interim rule amending 34 CFR 74.26 and 80.26
published on August 29, 1997, and amends parts 75, 76, 77, and 80 of
title 34 of the Code of Federal Regulations as follows:
PART 75--DIRECT GRANT PROGRAMS
1. The authority citation for part 75 continues to read as follows:
Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted.
Sec. 75.118 [Amended]
2. Section 75.118 paragraph (a) is amended by removing ``74.82''
and adding, in its place, ``74.51'' and amending the cross-reference
that follows the section by removing ``74.82 Performance Reports under
non-construction grants'' and adding in its place ``74.51 Monitoring
and reporting program performance''
Sec. 75.215 [Amended]
3. The cross-reference following Sec. 75.215 is amended by removing
``(e)'' and adding, in its place, ``(c)''.
4. Section 75.220 is amended by revising paragraph (b)(2) to read
as follows:
Sec. 75.220 Procedures the Department uses under Sec. 75.219(a).
* * * * *
(b) * * *
(2) An employee from the Office of the Chief Financial Officer
(OCFO) with responsibility for grant policy; and
* * * * *
5. Section 75.511 is amended by revising the cross-reference that
follows the section to read as follows:
Sec. 75.511 Waiver of requirement for a full-time project director.
* * * * *
CROSS REFERENCE: See 34 CFR 74.25, Revision of budget and
program plans; and 34 CFR 80.30, Changes.
Sec. 75.517 [Amended]
6. Section 75.517 is amended by removing ``34 CFR 74.103(c)(2)''
and adding, in its place, ``34 CFR 74.25(c)(2)''.
Sec. 75.524 [Amended]
7. Section 75.524(b) is amended by removing ``34 CFR 74.3'' and
adding, in its place, ``34 CFR 80.3'' and removing the note that
follows paragraph (b).
8. Section 75.530 is revised to read as follows:
Sec. 75.530 General cost principles.
The general principles to be used in determining costs applicable
to grants and cost-type contracts under grants are specified at 34 CFR
74.27 (for administration of grants to institutions of higher
education, and other non-profit organizations) and 34 CFR 80.22 (for
uniform administrative requirements for grants and cooperative
agreements to State and local governments).
(Authority: 20 U.S.C. 1221e-3 and 3474)
CROSS REFERENCE: See 34 CFR part 74, Subpart D--After-the-Award
Requirements and 34 CFR part 80, Subpart C--Post-Award Requirements.
(Authority: 20 U.S.C. 1221e-3 and 3474)
9. The cross-reference preceding Sec. 75.618 and following the
center heading ``EQUIPMENT AND SUPPLIES'' is revised to read as
follows:
CROSS REFERENCE: See 34 CFR 74.32 Real property; 34 CFR 74.35
Supplies and other expendable property; 34 CFR 74.36 Intangible
property; 34 CFR 74.2 Definitions; 34 CFR 80.31 Real property; 34
CFR 80.32 Equipment; 34 CFR 80.33 Supplies; and 34 CFR 80.34
Copyrights.
10. Section 75.621 is amended by revising the cross-reference
following the section to read as follows:
Sec. 75.621 Copyright policy for grantees.
* * * * *
CROSS REFERENCE: See 34 CFR 74.22 Payment; 34 CFR 74.24 Program
income; and
[[Page 50392]]
34 CFR 74.36 Intangible property; 34 CFR 80.25 Program income; and
34 CFR 80.34 Copyrights.
11. The cross-reference preceding Sec. 75.626 and following the
center heading ``INVENTIONS AND PATENTS'' is revised to read as
follows:
CROSS REFERENCE: See 34 CFR 74.25, Program income and 34 CFR
80.25, Program income.
12. The cross-reference preceding Sec. 75.650 and following the
center heading ``OTHER REQUIREMENTS FOR CERTAIN PROJECTS'' is revised
to read as follows:
CROSS REFERENCE: See 34 CFR 74.21, Standards for financial
management systems; 34 CFR 74.48, Contract provisions; 34 CFR 80.20,
Standards for financial management and 34 CFR 80.36, Procurement.
13. Section 75.702 is amended by revising the cross-reference
following the section to read as follows:
Sec. 75.702 Fiscal control and fund accounting procedures.
* * * * *
CROSS REFERENCE: See 34 CFR part 74, Subpart C--Post-Award
Requirements and Subpart D--After-the-Award Requirements and 34 CFR
part 80, Subpart C--Post-Award Requirements and Subpart D--After-
the-Grant Requirements.
14. Section 75.708 is amended by revising paragraph (b) to read as
follows:
Sec. 75.708 Prohibition of subgrants.
* * * * *
(b) A grantee may contract for supplies, equipment, construction,
and other services, in accordance with 34 CFR part 74, Subpart C--Post-
Award Requirements (Procurement Standards Secs. 74.40-74.48) and 34 CFR
part 80, Subpart C--Post-Award Requirements (Sec. 80.36 Procurement).
15. The cross-reference following the center heading ``REPORTS''
and preceding Sec. 75.720 is revised to read as follows:
CROSS REFERENCE: See 34 CFR 74.51, Monitoring and reporting
program performance; 34 CFR 74.52, Financial reporting; 34 CFR
80.40, Monitoring and reporting program performance; and 34 CFR
80.41 Financial reporting.
16. Section 75.720 is amended by revising paragraphs (a)(1) and (c)
to read as follows:
Sec. 75.720 Financial and performance reports.
(a) * * *
(1) 34 CFR 74.51 (Monitoring and reporting program performance) and
34 CFR 74.52 (Financial reporting); and
* * * * *
(c) The Secretary may require a grantee to report more frequently
than annually under 34 CFR 74.14 (Special award conditions), 34 CFR
74.21 (Standards for financial management systems), 34 CFR 80.12
(Special grant or subgrant conditions for ``high-risk'' grantees) or 34
CFR 80.20 (Standards for financial management systems).
17. The cross-reference preceding Sec. 75.730 and following the
center heading ``RECORDS'' is revised to read as follows:
CROSS REFERENCE: See 34 CFR 74.53, Retention and access
requirements for records and 34 CFR 80.42, Retention and access
requirements for records.
18. Section 75.732 is amended, by revising the cross-reference
following the section to read as follows:
Sec. 75.732 Records related to performance.
* * * * *
CROSS REFERENCE: See 34 CFR 74.25, Revision of budget and
program plans.
PART 76--STATE-ADMINISTERED PROGRAMS
19. The authority citation for part 76 continues to read as
follows:
Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a), unless
otherwise noted.
20. Section 76.132 is amended, by revising paragraph (a)(5) to read
as follows:
Sec. 76.132 What assurances must be in a consolidated grant
application?
(a) * * *
(5) Submit an annual report to the Secretary containing information
covering the program or programs for which the grant is used and
administered, including the financial and program performance
information required under 34 CFR 74.51-74.52 and 34 CFR 80.40-80.41.
* * * * *
21. Section 76.530 is revised to read as follows:
Sec. 76.530 General cost principles.
Both 34 CFR 74.27 and 34 CFR 80.22 reference the general cost
principles that apply to grants, subgrants and cost type contracts
under grants and subgrants.
(Authority: 20 U.S.C. 1221e-3, 3474 and 6511(a))
22. The cross-reference preceding Sec. 76.681 and following the
center heading ``OTHER REQUIREMENTS FOR CERTAIN PROGRAMS'' is removed.
PART 77--DEFINITIONS THAT APPLY TO DEPARTMENT REGULATIONS
23. The authority citation for part 77 continues to read as
follows:
Authority: 20 U.S.C. 1221e-3(a)(1), 2831(a), 2974(b), and 3474,
unless otherwise noted.
24. The definition of ``EDGAR'' in Sec. 77.1 is revised to read as
follows:
Sec. 77.1 Definitions that apply to all Department programs.
* * * * *
EDGAR means the Education Department General Administrative
Regulations (34 CFR parts 74, 75, 76, 77, 79, 80, 81, 82, 85, 86, 97,
98, and 99.)
* * * * *
PART 80--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND
COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS
25. The authority citation for part 80 continues to read as
follows:
Authority: 20 U.S.C. 1221e-3 and 3474; OMB Circular A-102,
unless otherwise noted.
Sec. 80.42 [Amended]
26. Section 80.42(b)(4) is amended, by removing ``five'' and
adding, in its place, ``three''.
[FR Doc. 99-22350 Filed 9-15-99; 8:45 am]
BILLING CODE 4000-01-U