Grants and Cooperative Agreements to State and Local Governments, Universities, Hospitals, and Other Non-Profit Organizations

DEPARTMENT OF AGRICULTURE

7 CFR Parts 3016 and 3019

DEPARTMENT OF ENERGY

10 CFR Part 600

SMALL BUSINESS ADMINISTRATION

13 CFR Part 143

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Parts 1260 and 1273

DEPARTMENT OF COMMERCE

15 CFR Part 24

OFFICE OF NATIONAL DRUG CONTROL POLICY

21 CFR Part 1403

DEPARTMENT OF STATE

22 CFR Parts 135 and 145

INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

Agency for International Development

22 CFR Part 226

UNITED STATES INFORMATION AGENCY

22 CFR Part 518

DEPARTMENT OF JUSTICE

28 CFR Parts 66 and 70

DEPARTMENT OF LABOR

29 CFR Parts 95 and 97

FEDERAL MEDIATION AND CONCILIATION SERVICE

29 CFR Part 1470

DEPARTMENT OF DEFENSE

32 CFR Part 33

DEPARTMENT OF EDUCATION

34 CFR Parts 74 and 80

NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

36 CFR Parts 1207 and 1210

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 43

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 30 and 31

GENERAL SERVICES ADMINISTRATION

41 CFR 105-71 and 105-72

DEPARTMENT OF THE INTERIOR

43 CFR Part 12

FEDERAL EMERGENCY MANAGEMENT AGENCY

44 CFR Part 13

DEPARTMENT OF HEALTH AND HUMAN SERVICES

45 CFR Parts 74 and 92

NATIONAL SCIENCE FOUNDATION

45 CFR Part 602

NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES

National Endowment for the Arts

45 CFR Part 1157

National Endowment for the Humanities

45 CFR Part 1174

Institute of Museum and Library Services

45 CFR Part 1183

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2541 and 2543

DEPARTMENT OF TRANSPORTATION

49 CFR Parts 18 and 19

Grants and Cooperative Agreements to State and Local Governments,

Universities, Hospitals, and Other Non-Profit Organizations

AGENCIES: Department of Agriculture, Department of Commerce, Department

of Defense, Department of Education, Department of Energy, Department

of Health and Human Services, Department of the Interior, Department of

Justice, Department of Labor, Department of State, Department of

Transportation, Department of Veterans Affairs, Agency for

International Development (IDCA), Corporation for National and

Community Service, Environmental Protection Agency, Federal Emergency

Management Agency, Federal Mediation and Conciliation Service, General

Services Administration, Institute of Museum and Library Services

(NFAH), National Aeronautics and Space Administration, National

Archives and Records Administration, National Endowment for the Arts

(NFAH), National Endowment for the Humanities (NFAH), National Science

Foundation, Office of National Drug Control Policy, Small Business

Administration, United States Information Agency.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final revision to the agencies' grants management

common rule, ``Uniform Administrative Requirements for Grants and

Cooperative Agreements to State and Local Governments,'' and the

agencies' codification of Office of Management and Budget (OMB)

Circular A-110, ``Uniform Administrative Requirements for Grants and

Agreements with Institutions of Higher Education, Hospitals, and Other

Non-Profit Organizations,'' is issued to implement the Single Audit Act

Amendments of 1996 and the June 24, 1997, revision of OMB Circular A-

133, ``Audits of States, Local Governments, and Non-Profit

Organizations.'' The agencies' rules provide uniform fiscal and

administrative requirements applicable to all types of grants and

cooperative agreements to State and local governments, institutions of

higher

[[Page 45938]]

education, hospitals, and other non-profit organizations.

DATES: This interim final rule is effective September 29, 1997.

Comments must be received on or before October 28, 1997 in order to be

assured of consideration.

ADDRESSES: Persons wishing to submit comments on this interim final

rule should send them to Charles Gale, Director, Office of Grants

Management, Department of Health and Human Services, A-102 Rulemaking

Docket, Room 517D, Hubert H. Humphrey Building, 200 Independence

Avenue, S.W., Washington, DC 20201. A copy of each communication

submitted will be available for public inspection and copying during

regular business hours (9:00 a.m.-5:30 p.m. eastern standard time) at

the above address.

FOR FURTHER INFORMATION CONTACT:

For general issues regarding this interim final rule, contact Charles

Gale, Director, Office of Grants Management, Department of Health and

Human Services (202) 690-6377. For agency-specific issues, see contact

persons for individual agencies in preambles of the individual agencies

below.

SUPPLEMENTARY INFORMATION:

Background

The Single Audit Act Amendments of 1996 (Public Law 104-156, 110

Stat. 1396) and the June 24, 1997, revision of Office of Management and

Budget (OMB) Circular A-133, ``Audits of States, Local Governments, and

Non-Profit Organizations,'' (62 FR 35278, June 30, 1997) require

agencies to adopt in codified regulations the standards in the revised

Circular A-133 by August 29, 1997, so that they will apply to audits of

fiscal years beginning after June 30, 1996. The revised Circular A-133

co-locates audit requirements for States, local governments, and non-

profit organizations. As a consequence, OMB rescinded OMB Circular A-

128, ``Audits of State and Local Governments.''

This interim final rule amends the agencies' grants management

common rule, ``Uniform Administrative Requirements for Grants and

Cooperative Agreements to State and Local Governments,'' and the

agencies' codification of OMB Circular A-110, ``Uniform Administrative

Requirements for Grants and Agreements with Institutions of Higher

Education, Hospitals, and Other Non-Profit Organizations,'' to

implement the Single Audit Act Amendments of 1996 and the revised OMB

Circular A-133. Some agencies codified only one of the two rules and

these agencies will only be amending their appropriate rules.

Under the provisions of section 7(o) of the Department of Housing

and Urban Development Act (42 U.S.C. 3535(o)), any Department of

Housing and Urban Development (HUD) proposed or interim final rule that

is issued for public comment is subject to prepublication Congressional

review for a period of 15 days. Therefore, HUD is not joining in

today's common rule but is adopting the common amendments in a separate

rulemaking.

The existing agency rules refer to the Single Audit Act of 1984

which was replaced by the Single Audit Act Amendments of 1996, the

rescinded OMB Circular A-128, the former title of OMB Circular A-133,

and the prior threshold that triggers an audit requirement. This

interim final rule corrects these references. Additional changes were

made to conform with the Act and revised Circular A-133, such as to

reflect that all non-profit hospitals are now subject to the Act, and

to reflect the General Accounting Office's revised terminology for

financial audits in accordance with generally accepted government

auditing standards.

Under the Administrative Procedure Act, to issue an interim final

rule without a prior notice of proposed rulemaking, it is necessary to

make a finding that issuing a proposed rule would be impractical,

unnecessary, and contrary to the public interest. Since the Single

Audit Act Amendments of 1996 and revised OMB Circular A-133, which

provide standards applicable to non-Federal entities, are effective for

audits of fiscal years beginning after June 30, 1996, a proposed rule

would be impractical, unnecessary, and contrary to the public interest.

Impact Analysis

Executive Order 12866

Executive Order 12866 requires that a regulatory impact analysis be

prepared for ``major'' rules, which are defined in the Order as any

rule that has an annual effect on the national economy of $100 million

or more, or certain other specified effects.

The participating agencies do not believe that this modification to

the agencies' grant rules will have an annual impact of $100 million or

more or the other effects listed in the Order. However, the interim

final rule would result in some savings to organizations administering

grants or subgrants, primarily due to the increase in the threshold

(from $25,000 to $300,000) that triggers an audit requirement. For this

reason, the participating agencies have determined that this interim

final rule would not create a major rule within the meaning of the

Order.

Regulatory Flexibility Act of 1980

The Regulatory Flexibility Act (5 U.S.C. 605(b)) requires that, for

each rule with a ``significant economic impact on a substantial number

of small entities,'' an analysis must be prepared describing the rule's

impact on small entities and identifying any significant alternatives

to the rule that would minimize the economic impact on small entities.

The participating agencies certify that this interim final rule

will not have a significant economic impact on a substantial number of

small entities. The interim final rule does not affect the amount of

funds provided in the covered programs, but rather increases the

threshold for non-Federal entities subject to audit, thereby reducing

burden on some small entities.

Unfunded Mandates Act of 1995

The Unfunded Mandates Act of 1995 (Pub. L. 104-4) requires agencies

to prepare several analytic statements before proposing any rule that

may result in annual expenditures of $100 million of State, local, and

Indian tribal governments or the private sector. Since this interim

final rule will not result in expenditures of this magnitude, the

agencies certify that such statements are not necessary.

Paperwork Reduction Act

The participating agencies certify that this interim final rule

will impose additional reporting or recordkeeping requirements under

the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) after OMB

finalizes the new SF-SAC, ``Data Collection Form for Reporting on

Audits of States, Local Governments, and Non-Profit Organizations.'' On

June 30, 1997, OMB requested public comments on the proposed SF-SAC (62

FR 35302).

Text of the Common Interim Final Rule

The text of the common interim final rule as amended in this

document appears below:

PART ____--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. Section ____.26 is amended by revising paragraphs (a), (b)

introductory text, and (b)(1) to read as follows:

[[Page 45939]]

____.26 Non-Federal audit.

(a) Basic Rule. Grantees and subgrantees are responsible for

obtaining audits in accordance with the Single Audit Act Amendments of

1996 (31 U.S.C. 7501-7507) and revised OMB Circular A-133, ``Audits of

States, Local Governments, and Non-Profit Organizations.'' The audits

shall be made by an independent auditor in accordance with generally

accepted government auditing standards covering financial audits.

(b) Subgrantees. State or local governments, as those terms are

defined for purposes of the Single Audit Act Amendments of 1996, that

provide Federal awards to a subgrantee, which expends $300,000 or more

(or other amount as specified by OMB) in Federal awards in a fiscal

year, shall:

(1) Determine whether State or local subgrantees have met the audit

requirements of the Act and whether subgrantees covered by OMB Circular

A-110, ``Uniform Administrative Requirements for Grants and Agreements

with Institutions of Higher Education, Hospitals, and Other Non-Profit

Organizations,'' have met the audit requirements of the Act. Commercial

contractors (private for-profit and private and governmental

organizations) providing goods and services to State and local

governments are not required to have a single audit performed. State

and local governments should use their own procedures to ensure that

the contractors has complied with laws and regulations affecting the

expenditure of Federal funds;

* * * * *

PART ____--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

2. Section ____.26 is amended by revising paragraphs (a), (b) and

(c) to read as follows:

____.26 Non-Federal audits.

(a) Recipients and subrecipients that are institutions of higher

education or other non-profit organizations (including hospitals) shall

be subject to the audit requirements contained in the Single Audit Act

Amendments of 1996 (31 U.S.C. 7501-7507) and revised OMB Circular A-

133, ``Audits of States, Local Governments, and Non-Profit

Organizations.''

(b) State and local governments shall be subject to the audit

requirements contained in the Single Audit Act Amendments of 1996 (31

U.S.C. 7501-7507) and revised OMB Circular A-133, ``Audits of States,

Local Governments, and Non-Profit Organizations.''

(c) For-profit hospitals not covered by the audit provisions of

revised OMB Circular A-133 shall be subject to the audit requirements

of the Federal awarding agencies.

* * * * *

Adoption of Common Interim Final Rule

The adoption of the common interim final rule by the agencies in

this document appears below.

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DEPARTMENT OF AGRICULTURE (USDA)

Office of the Secretary

7 CFR Parts 3016 and 3019

RIN 0505-AA10

FOR FURTHER INFORMATION CONTACT:

Patricia Wensel, Director, Office of the Chief Financial Officer,

Planning and Accountability Division, 202-720-1175.

ADDITIONAL SUPPLEMENTARY INFORMATION: USDA is joining other Federal

agencies in making the common rule amendments in 7 CFR Part 3016,

``Uniform Administrative Requirements for Grants and Agreements to

State and Local Governments,'' and 7 CFR Part 3019, ``Uniform

Administrative Requirements for Grants and Agreements with Institutions

of Higher Education, Hospitals, and Other Non-Profit Organizations.''

USDA is adding amendments in Parts 3016 and 3019 to cross reference

that the revised Circular A-133 is codified verbatim in a new Part 3052

of title 7, ``Audits of States, Local Governments, and Non-Profit

Organizations.'' The new Part 3052 and amendments to remove the

existing audit requirements from 7 CFR Part 3015, ``Uniform Federal

Assistance Regulations,'' and 7 CFR Part 3051, ``Audits of Institutions

of Higher Education and Other Nonprofit Institutions,'' are published

as an interim final rule elsewhere in this Federal Register.

Additionally, USDA has published a notice in this Federal Register to

withdraw a Notice of Proposed Rulemaking (NPRM) published in the

Federal Register on October 17, 1995, because the Single Audit Act

Amendments of 1996 and the revised Circular A-133 have replaced the

provisions in that NPRM.

List of Subjects

7 CFR Part 3016

Accounting, Audit requirements, Grant programs--Agriculture,

reporting and recordkeeping requirements.

7 CFR Part 3019

Accounting, Audit requirements, Grant programs--Agriculture,

reporting and recordkeeping requirements.

Issued at Washington, D.C., on August 21, 1997.

Approved:

Irvin T. David,

Acting Chief Financial Officer.

Dan Glickman,

Secretary of Agriculture.

Parts 3016 and 3019 of title 7 of the Code of Federal Regulations

are amended as follows:

PART 3016--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 3016 continues to read as follows:

Authority: 5 U.S.C. 301.

2. Section 3016.26 is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

3. Section 3016.26 is amended by adding paragraph (a)(1) and by

adding and reserving paragraph (a)(2) to read as follows:

Sec. 3016.26 Non-Federal audit.

(a) * * *

(1) In USDA, revised OMB Circular A-133 is implemented in 7 CFR

Part 3052, ``Audits of States, Local Governments, and Non-Profit

Organizations.''

(2) [Reserved]

* * * * *

PART 3019--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

4. The authority for part 3019 continues to read as follows:

Authority: 5 U.S.C. 301.

5. Section 3019.26 is amended as set forth in amendatory

instruction 2 at the end of the common preamble.

6. Section 3019.26 is further amended by adding paragraph (e) to

read as follows:

Sec. 3019.26 Non-Federal audits.

* * * * *

(e) In USDA, revised OMB Circular A-133 is implemented in 7 CFR

Part 3052, ``Audits of States, Local Governments, and Non-Profit

Organizations.''

[[Page 45940]]

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DEPARTMENT OF ENERGY

10 CFR Part 600

RIN 1991-AB38

FOR FURTHER INFORMATION CONTACT: Cherlyn Seckinger, Procurement

Analyst, Office of Procurement and Assistance Policy, U.S. Department

of Energy, Washington, DC 20585, (202) 586-8246.

List of Subjects

10 CFR Part 600

Accounting, Administrative practice and procedure. Audit

requirements, Government contracts, Grant programs, Intergovernmental

relations, Reporting and recordkeeping requirements.

Dated: July 8, 1997.

Richard H. Hopf,

Deputy Assistance Secretary for Procurement and Assistance Management.

Part 600 of title 10 of the Code of Federal Regulations is amended

as follows:

PART 600--FINANCIAL ASSISTANCE RULES

1. The authority citation for part 600 continues to read as

follows:

Authority: Sections 644 and 646, Pub. L. 95-91, 91 Stat. 599 (42

U.S.C. 7254 and 7256); Pub. L. 97-258, 96 Stat. 1003-1005 (31 U.S.C.

630-6308).

Subpart B--Uniform Administrative Requirements for Grants and

Cooperative Agreements With Institutions of Higher Education,

Hospitals, Other Non-Profit Organizations and Commercial

Organizations

Sec. 600.126 [____.26] [Amended]

2. Section 600.126 [____.26] is amended as set forth in amendatory

instruction 2 at the end of the common preamble.

Subpart C--Uniform Administrative Requirements for Grants and

Cooperative Agreements to State and Local Governments

Sec. 600.226 [____.26] [Amended]

3. Section 600.226 [____.26] is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

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SMALL BUSINESS ADMINISTRATION

13 CFR Part 143

FOR FURTHER INFORMATION CONTACT: David R. Kohler, Associate General

Counsel for General Law, Office of the General Counsel, U.S. Small

Business Administration, Washington, DC 20416, (202) 205-6642.

List of Subjects in 13 CFR Part 143

Accounting, Audit requirements, Grant programs--Small business,

Reporting and recordkeeping requirements.

Part 143 of title 13 of the Code of Federal Regulations is amended

as follows:

PART 143--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority citation for part 143 would continue to read as

follows:

Authority: 15 U.S.C. 634(b)(6)

Sec. 143.26 [Amended]

2. Section 143.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

Antonella Pianalto,

Acting Administrator.

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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Parts 1260 and 1273

RIN 2700-AA95

FOR FURTHER INFORMATION CONTACT: Richard Kall, Procurement Analyst,

Contract Management Division (Code HK), Office of Procurement, National

Aeronautics and Space Administration, Washington, DC 20546, (202) 358-

0459.

List of Subjects

14 CFR 1260

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

14 CFR 1273

Accounting, Audit requirements, Reporting and recordkeeping

requirements.

Laura Layton,

Director, Contract Management Division.

Parts 1273 and 1260 of title 14 of the Code of Federal Regulations

are amended as follows:

PART 1273--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 1273 continues to read as follows:

Authority: 42 U.S.C. 2473(c)(5)

Sec. 1273.26 [Amended]

2. Section 1273.26 is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

PART 1260--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

3. The authority for part 1260 continues to read as follows:

Authority: 42 U.S.C. 2473(c)(5)

Sec. 1260.126 [____.26] [Amended]

4. Section 1260.126 [____.26] is amended as set forth in amendatory

instruction 2 at the end of the common preamble.

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DEPARTMENT OF COMMERCE

15 CFR Part 24

[Docket No. 970820199-7199-01]

RIN 0605-AA11

FOR FURTHER INFORMATION CONTACT: John J. Phelan, III., Director, Office

of Executive Assistance Management, U.S. Department of Commerce, Office

of Executive Assistance Management, Room 6020, 14th Street and

Constitution Avenue N.W., Washington, D.C. 20230, Telephone Number 202-

482-4115.

List of Subjects in 15 CFR Part 24

Accounting, Audit requirements, Grant programs, Grant

administration, Insurance reporting, Reporting and recordkeeping

requirements.

Sonya G. Stewart,

Director for Executive Budgeting and Assistance Management.

Part 24 of title 15 of the Code of Federal Regulations is amended

as follows:

PART 24--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 24 continues to read as follows:

Authority: 5 U.S.C. 301.

Sec. 24.26 [Amended]

2. Section 24.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

[[Page 45941]]

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OFFICE OF NATIONAL DRUG CONTROL POLICY

21 CFR Part 1403

RIN 3201-ZA01

FOR FURTHER INFORMATION CONTACT: Richard Yamamoto, Program Director,

High Intensity Drug Trafficking Areas Program, Office of National Drug

Control Policy, Washington, DC. 20503, (202) 395-6755.

List of Subjects in 21 CFR Part 1403

Accounting, Audit requirements, Contract programs, Grant programs,

Reporting and recordkeeping requirements.

Barry McCaffrey,

Director.

Part 1403 of title 21 of the Code of Federal Regulations is amended

as follows:

PART 1403--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for Part 1403 continues to read as follows:

Authority: 5 U.S.C. 301.

Sec. 1403.26 [Amended]

2. Section 1403.26 is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

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DEPARTMENT OF STATE

22 CFR Parts 135 and 145

RIN 1400-AA87

FOR FURTHER INFORMATION CONTACT: Gladys Gines, Procurement Analyst,

Office of the Procurement Executive, Policy Division, U.S. Department

of State, Washington, D.C. 20520, (703) 516-1691.

List of Subjects

22 CFR Part 135

Accounting, Audit requirements, Grant programs, Contract programs,

Reporting and recordkeeping requirements.

22 CFR Part 145

Accounting, Audit requirements, Grant programs, Contract programs,

Reporting and recordkeeping requirements.

Robert E. Lloyd,

Procurement Executive, Acting.

Parts 135 and 145 of title 22 of the Code of Federal Regulations

are amended as follows:

PART 135--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 135 continues to read as follows:

Authority: 22 U.S.C. 2658.

Sec. 135.26 [Amended]

2. Section 135.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

PART 145--GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER

EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS

3. The authority for part 145 continues to read as follows:

Authority: 22 U.S.C. 2658.1.

Sec. 145.26 [Amended]

4. Section 145.26 is amended as set forth in amendatory instruction

2 at the end of the common preamble.

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INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

Agency for International Development

22 CFR Part 226

RIN 0412-AA36

FOR FURTHER INFORMATION CONTACT: M/OP/P, Diana Esposito (703) 875-1529.

List of Subjects

22 CFR Part 226

Accounting, Audit requirements, Grant Programs, Reporting and

recordkeeping requirements.

Marcus L. Stevenson,

Director, Office of Procurement.

Part 226 of Title 22 of the Code of Federal Regulations is amended

as follows:

PART 226--ADMINISTRATION OF ASSISTANCE AWARDS TO U.S. NON-GOVERNMENTAL

ORGANIZATIONS

1. The authority for part 226 continues to read as follows:

Authority: Sec. 621, Pub. L. 87-195, 75 Stat. 445, (22 U.S.C.

2381) as amended; E.O. 12163, Sept. 29, 1979, 44 FR 56673; 3 CFR

1979 Comp., p. 435.

Sec. 226.26 [Amended]

2. Section 226.26 is amended as set forth in amendatory instruction

2 at the end of the common preamble.

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UNITED STATES INFORMATION AGENCY

22 CFR Part 518

RIN 3116-AA13

FOR FURTHER INFORMATION CONTACT: Fannie L. Allen, Chief, Grants

Division, Office of Contracts, U.S. Information Agency, Washington, DC

20547, (202) 205-5477 or Connie L. Stinson, Senior Grants Officer,

Office of Contracts, Grants Division, Washington, DC 20547 on (202)

205-8383.

List of Subjects

22 CFR Part 518

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

Edward G. Muller,

Acting Agency Procurement Executive.

Part 518 of title 22 of the Code of Federal Regulations is amended

as follows:

PART 518--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

1. The authority for part 518 continues to read as follows:

Authority: 22 U.S.C. 2658; 31 U.S.C. 503 and 1111;

Reorganization Plan No. 2 of 1977, 42 FR 62461, 3 CFR, 1977 Comp. p.

200; E.O. 12048, 43 FR 13361, 3 CFR, 1978 Comp. p. 168.

Sec. 518.26 [Amended]

2. Section 518.26 is amended as set forth in amendatory instruction

2 at the end of the common preamble.

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DEPARTMENT OF JUSTICE

28 CFR Parts 66 and 70

[A.G. Order No. 2107-97]

RIN 1121-AA-45

FOR FURTHER INFORMATION CONTACT:

James McKay, Director, Financial Management Division, Office of Justice

Programs, U.S. Department of Justice, Washington, DC 20531, (202) 616-

2687.

ADDITIONAL SUPPLEMENTARY INFORMATION: DOJ's existing 28 CFR Part 70,

Sec. 70.26, includes provision for commercial organizations to follow

OMB Circular A-133. DOJ is including this requirement in the amended

rule.

[[Page 45942]]

List of Subjects

28 CFR Part 66

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

28 CFR Part 70

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping.

Janet Reno,

Attorney General.

Parts 66 and 70 of title 28 of the Code of Federal Regulations are

amended as follows:

PART 66--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 66 continues to read as follows:

Authority: The Omnibus Crime Control and Safe Streets Act of

1968, 42 U.S.C. 3711, et seq. (as amended); Juvenile Justice and

Delinquency Prevention Act of 1974, 42 U.S.C. 5601, et seq. (as

amended); Victims of Crime Act of 1984, 42 U.S.C. 10601, et seq. (as

amended); 18 U.S.C. 4042; and U.S.C. 4351-4353.

Sec. 66.26 [Amended]

2. Section 66.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

PART 70--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS AND

OTHER NON-PROFIT ORGANIZATIONS

3. The authority for part 70 continues to read as follows:

Authority: 5 U.S.C. 301; The Omnibus Crime Control and Safe

Streets Act of 1968, 42 U.S.C. 3711, et seq. (as amended); Juvenile

Justice and Delinquency Prevention Act of 1974, 42 U.S.C. 5601, et

seq. (as amended); Victims of Crime Act of 1984, 42 U.S.C. 10601, et

seq. (as amended); 18 U.S.C. 4042; and U.S.C. 4351-4353.

4. Section 70.26 is amended as set forth in amendatory instruction

2 at the end of the common preamble.

5. Section 70.26 is further amended by adding paragraph (d) to read

as follows:

Sec. 70.26 Non-Federal Audits.

* * * * *

(d) Commercial organizations must follow the audit threshold in

revised OMB Circular A-133 in determining whether to conduct an audit

in accordance with Government Auditing Standards.

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DEPARTMENT OF LABOR

29 CFR Parts 95 and 97

RIN 1291-AA25

FOR FURTHER INFORMATION CONTACT: Al Stewart, Director, Office of the

Acquisition Advocate, U.S. Department of Labor, Washington, DC 20210,

(202) 219-9174.

List of Subjects

29 CFR Part 95

Accounting, Audit requirements, Contract programs, Grant programs,

Reporting and recordkeeping.

29 CFR Part 97

Accounting, Audit requirements, Contract programs, Grant programs,

Reporting and recordkeeping requirements.

Patricia W. Lattimore,

Acting Assistant Secretary for Administration and Management.

Parts 95 and 97 of title 29 of the Code of Federal Regulations are

amended as follows:

PART 95--GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER

EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS, AND WITH

COMMERCIAL ORGANIZATIONS, FOREIGN GOVERNMENTS, ORGANIZATIONS UNDER

THE JURISDICTION OF FOREIGN GOVERNMENTS AND INTERNATIONAL

ORGANIZATIONS

1. The authority for part 95 continues to read as follows:

Authority: 5 U.S.C. 301; OMB Circular A-110; Secretary of

Labor's Order 4-76.

Sec. 95.26 [Amended]

2. Section 95.26 is amended as set forth in amendatory instruction

2 at the end of the common preamble.

PART 97--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 97 continues to read as follows:

Authority: 5 U.S.C. 301; OMB Circular A-102.

Sec. 97.26 [Amended]

2. Section 97.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

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FEDERAL MEDIATION AND CONCILIATION SERVICE

29 CFR Part 1470

RIN 3076-AA01

FOR FURTHER INFORMATION CONTACT:

Peter L. Regner, Director of Program Services, Federal Mediation and

Conciliation Service, Washington, DC 20427 (202) 606-8181.

List of Subjects

29 CFR Part 1470

Accounting Audit Requirements, Grant Programs, Reporting and

Recordkeeping requirements.

John Calhoun Wells,

Director of Federal Mediation and Conciliation Service.

PART 1470--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 1470 continues to read as follows:

Authority: 29 U.S.C. 175a.

Sec. 1470.26 [Amended]

2. Section 1470.26 is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 33

RIN 0790-AG49

FOR FURTHER INFORMATION CONTACT:

Mark Herbst; ODDR&E(R); 3080 Defense Pentagon; Washington, DC 20301-

3080, (703) 325-4132.

List of Subjects

32 CFR Part 33

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

Linda M. Bynum,

Alternate OSD Federal Register Liaison Officer, Department of Defense.

Part 33 of title 32 of the Code of Federal Regulations is amended

as follows:

PART 33--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 33 continues to read as follows:

Authority: 5 U.S.C. 301; 10 U.S.C. 113.

[[Page 45943]]

Sec. 33.26 [Amended]

2. Section 33.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

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DEPARTMENT OF EDUCATION

34 CFR Parts 74 and 80

RIN 1890-AA04

FOR FURTHER INFORMATION CONTACT:

Kathy Thomas, U.S. Department of Education, 600 Independence Avenue,

S.W., Room 3652, ROB-3, Washington, D.C. 20202-4258. Telephone: (202)

708-7227. Internet: [email protected]. 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.

List of Subjects

34 CFR Part 74

According, Audit requirements, Colleges and universities, Grant

programs, Hospitals, Nonprofit organizations, Reporting and

recordkeeping.

34 CFR Part 80

Accounting, Audit requirements, Grant programs, Indians,

Intergovernmental relations, Loan programs, Reporting and recordkeeping

requirements.

Richard W. Riley,

Secretary of Education.

Parts 74 and 80 of title 34 of the Code of Federal Regulations are

amended as follows:

PART 74--ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS

OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS

1. The authority for part 74 continues to read as follows:

Authority: 20 U.S.C. 1221e-3 and 3474; OMB Circular A-110,

unless otherwise noted.

Sec. 74.26 [Amended]

2. Section 74.26 is amended as set forth in amendatory instruction

2 at the end of the common preamble.

PART 80--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

3. The authority for part 80 continues to read as follows:

Authority: 20 U.S.C. 1221e-3(a)(1) and 3474, OMB Circular A-102,

unless otherwise noted.

Sec. 80.26 [Amended]

4. Section 80.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

Appendix to Part 80 [Removed]

5. The Appendix to part 80 is removed.

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NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

36 CFR Parts 1207 and 1210

RIN 3095-AA78

FOR FURTHER INFORMATION CONTACT: Nancy Allard, NARA Regulatory Contact,

at 301-713-7360, ext. 226.

List of Subjects

36 CFR Part 1207

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

36 CFR Part 1210

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

John W. Carlin,

Archivist of the United States.

Parts 1207 and 1210 of title 36 of the Code of Federal Regulations

are amended as follows:

PART 1207--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 1207 is revised to read:

Authority: 44 U.S.C. 2104(a); 44 U.S.C. 2501-2506.

Sec. 1207.26 [Amended]

2. Section 1207.26 is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

PART 1210--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION,

HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS

3. The authority for part 1210 continues to read:

Authority: 44 U.S.C. 2104(a); 44 U.S.C. 2501-2506.

Sec. 1210.26 [Amended]

4. Section 1210.26 is amended as set forth in amendatory

instruction 2 at the end of the common preamble.

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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 43

RIN 2900-AJ00

FOR FURTHER INFORMATION CONTACT: Nancy Tackett, Office of Assistant

Secretary for Policy and Planning (008), Department of Veterans

Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, (202) 273-5033.

List of Subjects

38 CFR Part 43

Accounting, Audit requirements, Grant programs, Indians,

Intergovernmental relations, Reporting and recordkeeping requirements.

Approved: August 20, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

Part 43 of title 38 of the Code of Federal Regulations is amended

as follows:

PART 43--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 43 continues to read as follows:

Authority: 38 U.S.C. 501, 1712.

Sec. 43.26 [Amended]

2. Section 43.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 30 and 31

[FRL-5881-5]

RIN 2030-AA54

FOR FURTHER INFORMATION CONTACT: Peggy Louise Anthony, Grant Policy

Specialist, Office of Grants and Debarment, U.S. Environmental

Protection Agency, Washington, D.C. 20460, (202) 564-5364.

List of Subjects

40 CFR Part 30

Accounting, Audit requirements, Grant programs--environment,

protection of public health, pollution control, Reporting and

recordkeeping requirements.

[[Page 45944]]

40 CFR Part 31

Accounting, Audit requirements, Grant programs--environment,

protection of public health, pollution control, Reporting and

recordkeeping requirements.

Dated: August 19, 1997.

Carol M. Browner,

Administrator, U.S. Environmental Protection Agency.

Parts 30 and 31 of title 40 of the Code of Federal Regulations are

amended as follows:

PART 31--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 31 continues to read as follows:

Authority: 33 U.S.C. 1251 et seq.; 42 U.S.C. 7401 et seq.; 42

U.S.C. 6901 et seq.; 42 U.S.C. 300f et seq.; 7 U.S.C. 136 et seq.;

15 U.S.C. 2601 et seq.; 42 U.S.C. 9601 et seq.; 20 U.S.C. 4011 et

seq.; 33 U.S.C. 1401 et seq.

Sec. 31.26 [Amended]

2. Section 31.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

PART 30--GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER

EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS

3. The authority for part 30 continues to read as follows:

Authority: 7 U.S.C. 135 et seq.; 15 U.S.C. 2601 et seq.; 33

U.S.C. 1251 et seq.; 42 U.S.C. 241, 242b, 243, 246, 300f, 300j-1,

300j-2, 300j-3; 42 U.S.C. 1857 et seq.; 42 U.S.C. 7401 et seq.; 42

U.S.C. 6901 et seq.; 42 U.S.C. 9601 et seq.

Sec. 30.26 [Amended]

4. Section 30.26 is amended as set forth in amendatory instruction

2 at the end of the common preamble.

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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 105-71 and 105-72

RIN 3090-AG59

FOR FURTHER INFORMATION CONTACT: Susan Dobrow, Public Buildings

Service, General Services Administration, Washington, DC 20405, (202)

501-1542.

List of Subjects

41 CFR 105-71

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

41 CFR 105-72

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

Paul Chistolini,

Deputy Commissioner, Public Buildings Service.

Parts 105-71 and 105-72 of title 41 of the Code of Federal

Regulations are amended as follows:

PART 105-71--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 105-71 continues to read as follows:

Authority: Sec. 205(c), 63 Stat. 390 (40 U.S.C. 486(c)).

Sec. 105-71.126 [____.26] [Amended]

2. Section 105-71.126 [____.26] is amended as set forth in

amendatory instruction 1 at the end of the common preamble.

PART 105-72--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

3. The authority for part 105-72 continues to read as follows:

Authority: Sec. 205(c), 63 Stat. 390 (40 U.S.C. 486(c)).

Sec. 105-72.306 [____.26] [Amended]

4. Section 105-72.306 [____.26] is amended as set forth in

amendatory instruction 2 at the end of the common preamble.

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DEPARTMENT OF THE INTERIOR

Office of the Secretary

43 CFR Part 12

RIN 1090-AA62

FOR FURTHER INFORMATION CONTACT: Debra E. Sonderman, (Director,

Procurement and Property Management Systems), (202) 208-3336.

ADDITIONAL SUPPLEMENTARY INFORMATION: Although the Department is

joining in the publication of this common rule, several other changes

in addition to those which will amend regulations implementing the

grants management common rule, ``Uniform Administrative Requirements

for Grants and Cooperative Agreements to State and Local Governments,''

and Office of Management and Budget (OMB) Circular A-110, ``Uniform

Administrative Requirements for Grants and Agreements with Institutions

of Higher Education, Hospitals, and Other Non-Profit Organizations,''

are required to be made to 43 CFR Part 12. Specifically, several

references to the previous version of OMB Circular A-133 have to be

revised to reflect the new title, the references to the previous OMB

Circular A-128 have to be deleted, and other changes have to be made to

reflect changes in Part 12 since the original publication of Subpart A.

In addition, the Department's implementation of OMB Circular A-128 at

Subpart B must be removed now that the Circular has been rescinded.

List of Subjects 43 CFR Part 12

Accounting, Administrative practice and procedure, Audit

requirements, Cooperative agreements, Grant programs, Grants

administration, Reporting and recordkeeping requirements.

Dated: August 18, 1997.

Robert T. Lamb,

Acting Assistant Secretary-Policy, Management and Budget.

Part 12 of title 43 of the Code of Federal Regulations is amended

as follows:

PART 12--ADMINISTRATIVE AND AUDIT REQUIREMENTS AND COST PRINCIPLES

FOR ASSISTANCE PROGRAMS

1. The authority for part 12 is revised to read as follows:

Authority: 5 U.S.C. 301; 31 U.S.C. 6101 note, 7501; 41 U.S.C.

252a, 701 et seq; sec. 501, Pub. L. 104-206, 110 Stat. 2984; sec.

307, Pub. L. 104-208, 110 Stat. 3009; E.O. 12549, 3 CFR, 1986 Comp.,

p. 189; E.O. 12674, 3 CFR, 1989 Comp., 215; E.O. 12689, 3 CFR, 1989

Comp., p. 235; E.O. 12731, 3 CFR, 1990 Comp., p. 306; OMB Circular

A-102; OMB Circular A-110; and OMB Circular A-133.

Subpart A--Administrative and Audit Requirements and Cost

Principles for Assistance Programs

2. Section 12.2 is amended by revising paragraphs (a) and (b) to

read as follows:

Sec. 12.2 Policy.

(a) All financial assistance awards and subawards, in the form of

grants and cooperative agreements, in accordance with paragraph (b) of

this section, are subject to subparts C, D, E, and F of this part, OMB

Circulars A-102, ``Grants and Cooperative Agreements with State and

Local Governments,'' A-110, ``Grants and Other Agreements with

Institutions of Higher Education, Hospitals, and Other Non-Profit

Organizations,'' A-87,

[[Page 45945]]

``Cost Principles for State and Local Governments,'' A-21, ``Cost

Principles for Educational Institutions,'' A-122, ``Cost Principles for

Non-Profit Organizations,'' and A-133, ``Audits of States, Local

Governments, and Non-Profit Organizations.''

(b)(1) Governmental recipients and subrecipients are subject to

subparts C, D, and E of this part, Circulars A-87 and A-133.

(2) Institutions of higher education which are recipients or

subrecipients are subject to subparts D, E, and F of this part,

Circulars A-110, A-21, and A-133.

(3) Non-profit organizations which are recipients or subrecipients

are subject to subparts D, E, and F of this part, Circulars A-110, A-

122, and A-133.

* * * * *

Subpart B--[Removed and reserved]

3. Subpart B (Secs. 12.11 through 12.31 and appendix to subpart) is

removed and reserved.

Subpart C--Uniform Administrative Requirements for Grants and

Cooperative Agreements to State and Local Governments

Sec. 12.66 [____.26] [Amended]

4. Section 12.66 [____.26] is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

Subpart F--Uniform Administrative Requirements for Grants and

Agreements With Institutions of Higher Education, Hospitals, and

Other Non-Profit Organizations

Sec. 12.926 [____.26] [Amended]

5. The text of Sec. 12.926 [____.26] is revised to read as set

forth following amendatory instruction 2 at the end of the common

preamble.

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FEDERAL EMERGENCY MANAGEMENT AGENCY

44 CFR Part 13

RIN 3067-AC70

FOR FURTHER INFORMATION CONTACT:

Charles F. McNulty, Federal Emergency Management Agency, 500 C Street

SW., Washington, DC 20472, 202-646-3422.

List of Subjects in 44 CFR Part 13

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

James L. Witt,

Director.

Part 13 of title 44 of the code of Federal Regulations is amended

as follows:

PART 13--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority citation for Part 13 is amended to read as

follows:

Authority: Reorganization Plan No. 3 of 1978; 43 FR 41943, 3

CFR, 1978 Comp., p. 329; E.O. 12148, 44 FR 43239, 3 CFR, 1979 Comp.,

p. 412.

Sec. 13.26 [Amended]

2. Section 13.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

45 CFR Parts 74 and 92

RIN 0991-AA92

FOR FURTHER INFORMATION CONTACT:

Charles Gale, Director, Office of Grants Management, 202-690-6377; for

the hearing impaired only: TDD 202-690-6415.

ADDITIONAL SUPPLEMENTARY INFORMATION: In order to maintain the

Department's rules for audits of commercial organizations which receive

HHS awards (currently at 45 CFR 74.26(a)(2) and (3)) we are adding that

text to the common rule amendment at 45 CFR 74.26(d). Commercial

organizations are not covered by OMB Circular A-133.

We are removing part 74's discussion of hospitals which are not

affiliated with an institution of higher education (currently at 45 CFR

74.26(b)(1) and (2)) because those hospitals are now covered by

Circular A-133. We are also removing the instructions for submission of

audit reports (currently at 45 CFR 74.26(d)) because that topic is

covered by the new Circular. Additionally, we have added a

parenthetical in 45 CFR 74.26(d)(1) that makes clear that for-profit

hospitals are included in the scope of that section.

List of Subjects

45 CFR Part 74

Accounting, Administrative practice and procedures, Audit

requirements, Grants administration, Grant programs, Reporting and

recordkeeping requirements.

45 CFR Part 92

Accounting, Administrative practice and procedures, Audit

requirements, Grants administration, Grant programs, Reporting and

recordkeeping requirements.

(Catalog of Federal Domestic Assistance does not apply.)

Dated: August 18, 1997.

Donna E. Shalala,

Secretary.

Parts 92 and 74 of title 45 of the Code of Federal Regulations are

amended as follows:

PART 92--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 92 continues to read as follows:

Authority: 5 U.S.C. 301.

Sec. 92.26 [Amended]

2. Section 92.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

PART 74--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR AWARDS AND

SUBAWARDS TO INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER

NONPROFIT ORGANIZATIONS, AND COMMERCIAL ORGANIZATIONS; AND CERTAIN

GRANTS AND AGREEMENTS WITH STATES, LOCAL GOVERNMENTS AND INDIAN

TRIBAL GOVERNMENTS

1. The authority for part 74 continues to read as follows:

Authority: 5 U.S.C. 301; OMB Circular A-110 (58 FR 62992,

November 29, 1993).

2. Section 74.26 is amended as set forth in amendatory instruction

2 at the end of the common preamble.

3. Section 74.26(d) is revised to read as follows:

Sec. 74.26 Non-Federal audits.

* * * * *

(d)(1) Recipients and subrecipients that are commercial

organizations (including for-profit hospitals) have two options

regarding audits:

(i) A financial related audit (as defined in the Government

Auditing Standards, GPO Stock #020-000-00-265-4) of a particular award

in accordance with Government Auditing Standards, in those cases where

the recipient receives awards under only one HHS program; or, if awards

are received under multiple HHS programs, a financial related audit of

all HHS awards in accordance with Government Auditing Standards; or

(ii) An audit that meets the requirements contained in OMB Circular

A-133.

(2) Commercial organizations that receive annual HHS awards

totaling less than OMB Circular A-133's audit requirement threshold are

exempt from requirements for a non-Federal audit for

[[Page 45946]]

that year, but records must be available for review by appropriate

officials of Federal agencies.

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NATIONAL SCIENCE FOUNDATION

45 CFR Part 602

RIN 3145-AA35

FOR FURTHER INFORMATION CONTACT: Jean Feldman, Head, Policy Office,

Division of Contracts, Policy & Oversight, 703-306-1243, e-mail

[email protected].

List of Subjects

45 CFR Part 602

Accounting, Audit requirements, Contract programs, Grant programs,

Reporting and recordkeeping requirements.

Joseph L. Kull,

Chief Financial Officer.

Part 602 of title 42 of the Code of Federal Regulations is amended

as follows:

PART 602--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 602 continues to read as follows:

Authority: 42 U.S.C. 1870(a).

Sec. 602.26 [Amended]

2. Section 602.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

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NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES

National Endowment for the Arts

45 CFR Part 1157

RIN 3135-AA14

FOR FURTHER INFORMATION CONTACT: Ms. Donna M. DiRicco, Grants and

Contracts Officer, National Endowment for the Arts, (202) 682-5403.

List of Subjects in 45 CFR Part 1157

Accounting, Audit requirements, Contract programs, Grant programs,

Reporting and recordkeeping requirements.

Laurence M. Baden,

Director of Administration.

Part 1157 of title 45 of the Code of Federal Regulations is amended

as follows:

PART 1157--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 1157 continues to read as follows:

Authority: 20 U.S.C. 959.

Sec. 1157.26 [Amended]

2. Section 1157.26 is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

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NATIONAL ENDOWMENT FOR THE HUMANITIES

45 CFR Part 1174

RIN 3136-AA23

FOR FURTHER INFORMATION CONTACT:

David J. Wallace, Director, Grants Office, National Endowment for the

Humanities, (202) 606-8494.

List of Subjects

45 CFR Part 1174

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

Sheldon Hackney,

Chairman.

Part 1174 of title 45 of the Code of Federal Regulations is amended

as follows:

PART 1174--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 1174 continues to read as follows:

Authority: 20 U.S.C. 959(a)(1).

Sec. 1174.26 [Amended]

2. Section 1174.26 is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

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INSTITUTE OF MUSEUM AND LIBRARY SERVICES

45 CFR Part 1183

RIN 3137-AA09

FOR FURTHER INFORMATION CONTACT: Mary Estelle Kennelly, Acting Program

Director, Office of Museum Services, Institute of Museum and Library

Services, Washington, DC 20560, 202/606-8547.

List of Subjects

45 CFR Part 1183

Accounting, Audit requirements, Grant programs, Reporting and

recordkeeping requirements.

Diane B. Frankel,

Director, IMLS.

Part 1183 of title 45 of the Code of Federal Regulations is amended

as follows:

PART 1183--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 1183 continues to read as follows:

Authority: 20 U.S.C. 961.

Sec. 1183.26 [Amended]

2. Section 1183.26 is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2541 and 2543

RIN 3045-AA14

FOR FURTHER INFORMATION CONTACT: Organizations receiving assistance

under the National and Community Service Act should contact Michael

Kenefick at (202) 606-5000, ext. 101. Organizations receiving

assistance under the Domestic Volunteer Service Act should contact

Larry Floyd at (214) 767-5461.

List of Subjects

45 CFR Part 2541

Accounting, Audit requirements, Grant programs, Indians,

Intergovernmental relations, Reporting and recordkeeping requirements.

45 CFR Part 2543

Accounting, Administrative practice and procedures, Audit

requirements, Grant programs--health, Grant programs--social, Grants

administration, Reporting and recordkeeping requirements.

John Gomperts,

Acting Chief Operating Officer.

Parts 2541 and 2543 of title 45 of the Code of Federal Regulations

are amended as follows:

[[Page 45947]]

PART 2541--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 2541 continues to read as follows:

Authority: 42 U.S.C. 4950 et seq. and 12501 et seq.

Sec. 2541.260 [____.26] [Amended]

2. Section 2541.260 [____.26] is amended as set forth in amendatory

instruction 1 at the end of the common preamble.

PART 2543--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND

OTHER NON-PROFIT ORGANIZATIONS

3. The authority for part 2543 continues to read as follows:

Authority: 42 U.S.C. 12501 et seq.

Sec. 2543.26 [Amended]

4. Section 2543.26 is amended as set forth in amendatory

instruction 2 at the end of the common preamble.

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

49 CFR Parts 18 and 19

RIN 2105-AC66

FOR FURTHER INFORMATION CONTACT: Robert G. Taylor, U.S. Department of

Transportation, Office of Acquisition and Grant Management, M-62, 400

Seventh Street, S.W., Room 9401, Washington, DC 20590, (202) 366-4289.

ADDITIONAL SUPPLEMENTAL INFORMATION: Additional Departmental clarifying

audit requirements contained in 49 CFR part 18.26 (d) and (e) are no

longer required, and are being deleted as part of this rulemaking.

These paragraphs make references to audit requirements that have been

superseded by OMB Circular A-133.

List of Subjects

49 CFR Part 18

Accounting, Audit requirements, Contract programs, Grant programs,

Intergovernmental relations, Reporting and recordkeeping requirements.

52 CFR Part 19

Accounting, Administrative practices and procedures, Audit

requirements, Grant programs, Reporting and recordkeeping requirements.

Rodney E. Slater,

Secretary of Transportation.

Parts 18 and 19 of title 49 of the Code of Federal Regulations are

amended as follows:

PART 18--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND

COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

1. The authority for part 18 continues to read as follows:

Authority: 49 U.S.C. 322(a).

Sec. 18.26 [Amended]

2. Section 18.26 is amended as set forth in amendatory instruction

1 at the end of the common preamble.

3. Section 18.26 is further amended by removing paragraphs (d) and

(e).

PART 19--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS

WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT

ORGANIZATIONS

4. The authority for part 19 continues to read as follows:

Authority: 49 U.S.C. 322(a).

Sec. 19.26 [Amended]

5. Section 19.26 is amended as set forth in amendatory instruction

2 at the end of the common preamble.

[FR Doc. 97-22829 Filed 8-28-97; 8:45 am]

BILLING CODES 3410-KS-M; 6450-01-M; 7510-01-M; 3180-02-M; 4710-05-M;

6116-01-M; 8230-01-M; 4410-18-M; 4510-23-M; 6372-01-M; 5000-04-M; 4000-

01-M; 7515-01-M; 8320-01-M; 6560-50-M; 6820-23-M; 4310-RF-M; 6718-01-M;

4150-04-M; 7555-01-M; 7537-01-M; 7536-01-M; 5900-04-M; 6050-28-M