Learn and Serve America and AmeriCorps grants programs; administrative costs,

[Federal Register: July 21, 1998 (Volume 63, Number 139)]

[Rules and Regulations]

[Page 39034]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr21jy98-10]

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2510, 2516, 2517, 2519, 2521, and 2540

Administrative Costs for Learn and Serve America and AmeriCorps Grants Programs

AGENCY: Corporation for National and Community Service.

ACTION: Interim final rule adopted as final rule.

SUMMARY: We are adopting as a final rule, without change, an interim final rule that amended the Corporation's regulations relating to administrative costs in 45 C.F.R. Parts 2510, 2516, 2517, 2519, 2521, and 2540 published at 63 FR 18135, April 14, 1998. The rule amends the Corporation's regulations implementing a statutory limit on the percentage of assistance to specified national service programs that may be used to pay for administrative costs. The rule clarifies the definition of administrative costs, adds an explicit definition of program costs that are not subject to the limitation on administrative costs, and provides additional guidelines for applying the limitation on administrative costs.

DATES: The interim final rule was effective April 14, 1998.

FOR FURTHER INFORMATION CONTACT: Michael Kenefick, Director of Grants Management, Corporation for National Service, (202) 606-5000, ext. 101.

SUPPLEMENTARY INFORMATION:

On April 14, 1998, the Corporation for National and Community Service (Corporation) published an interim final rule amending its regulations implementing provisions of the National and Community Service Act of 1990, as amended, under which not more than five percent of assistance for a fiscal year may be used to pay for administrative costs. This limitation applies to the following types of programs: (1) School-based service-learning programs; (2) community-based service- learning programs; (3) higher education innovative programs for community service; and (4) national service programs assisted under sections 121(a) and 121(b) of the Act through grants to State Commissions, Indian Tribes, U.S. Territories, and national nonprofit organizations.

The Act itself does not define ``administrative costs'' but directs the Corporation to prescribe by rule the manner and extent to which assistance provided may be used to pay for administrative costs and the distribution of such costs between grantees and sub-grantees. The final rule clarifies the types of costs that are considered subject to the five percent limitation on administrative costs. The final rule includes an itemization of costs that are directly related to programs and projects, and therefore excluded from the definition of administrative costs. The final rule also provides guidelines for the implementation of the statutory requirements, including the use of indirect cost rates and the use of fixed rates for administrative costs.

Comments on the interim final rule were due June 15, 1998. We did not receive any comments. The facts presented in the interim final rule still provide a basis for the rule.

This action also affirms the information contained in the interim rule concerning Executive Order 12866 and the Regulatory Flexibility Act, the Paperwork Reduction Act, the Unfunded Mandates Reform Act, and Executive Order 12875.

List of Subjects

45 CFR Part 2510

Grant programs--social programs, Volunteers.

45 CFR Part 2516

Elementary and secondary education, Grant programs--social programs, Indians, Nonprofit organizations, Reporting and recordkeeping requirements, Volunteers.

45 CFR Part 2517

Community development, Grant programs--social programs, Nonprofit organizations, Reporting and recordkeeping requirements, Volunteers.

45 CFR Part 2519

Colleges and universities, Grant programs--social programs, Nonprofit organizations, Reporting and recordkeeping requirements, Volunteers.

45 CFR Part 2521

AmeriCorps, Grant programs--social programs, Volunteers.

45 CFR Part 2540

Administrative practice and procedure, Grant programs--social programs, Reporting and recordkeeping requirements, Volunteers.

Interim Final Rule Adopted as Final Without Change

Accordingly, the interim final rule amending 45 CFR Parts 2510, 2516, 2517, 2519, 2521, and 2540, which was published at 63 FR 18135, April 14, 1998, is adopted as a final rule without change.

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

Dated: July 15, 1998. Kenneth L. Klothen, General Counsel.

[FR Doc. 98-19375Filed7-20-98; 8:45 am]

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