[Federal Register: June 6, 2003 (Volume 68, Number 109)]
[Proposed Rules]
[Page 33883-33885]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06jn03-21]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 33883]]
OFFICE OF MANAGEMENT AND BUDGET
2 CFR Subtitles A and B
Office of Federal Financial Management; Government-wide Guidance
for Grants and Agreements
AGENCY: Office of Federal Financial Management, Office of Management
and Budget (OMB), Executive Office of the President.
ACTION: Notice of proposed relocation of policy guidance for grants and
other agreements.
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SUMMARY: OMB proposes two changes to the framework of Federal
government policies for grants and other financial assistance and
nonprocurement agreements that will make it easier for applicants and
recipients to use the policies.
First, OMB proposes to publish in a single title in the Code of
Federal Regulations (CFR) its guidance to Federal agencies for grants
and agreements that is currently located in seven separate OMB
circulars and other policy documents.
Second, OMB proposes to create in the same new title of the CFR a
subtitle in which Federal agencies will co-locate their regulations for
the award and administration of grants and agreements.
DATES: All comments on this proposal should be in writing, and must be
received by July 7, 2003.
ADDRESSES: Due to potential delays in OMB's receipt and processing of
mail sent through the U.S. Postal Service, we encourage respondents to
submit comments electronically to ensure timely receipt. We cannot
guarantee that comments mailed will be received before the comment
closing date. Electronic mail comments may be submitted to:
ephillip@omb.eop.gov. Please include “Relocating Grant Policy” in the
subject line and the full body of your comments in the text of the
electronic message and as an attachment. Please include your name,
title, organization, postal address, telephone number, and E-mail
address in the text of the message. Comments may also be submitted via
facsimile to 202-395-3952. Comments may be mailed to Elizabeth
Phillips, Office of Federal Financial Management, Office of Management
and Budget, Room 6025, New Executive Office Building, 725 17th Street,
NW., Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Elizabeth Phillips, Office of Federal
Financial Management, Office of Management and Budget, telephone 202-
395-3053 (direct) or 202-395-3993 (main office) and e-mail:
ephillip@omb.eop.gov.
SUPPLEMENTARY INFORMATION: This Federal Register document seeks public
comment on two proposed changes to the Federal government's policy
framework for grants and agreements. As discussed in the following
sections, the proposed changes provide a good foundation for future
streamlining and simplification of the policy framework that may be
accomplished through the implementation of the Federal Financial
Assistance Management Improvement Act of 1999 (Pub. L. 106-107).
I. First Proposal: Publish OMB's Guidance in the Code of Federal
Regulations
OMB's government-wide guidance for grants and other financial
assistance and nonprocurement agreements currently resides in seven OMB
circulars that are accessible at OMB's Internet site and two separate
OMB guidance documents that are less easily found. To help make all of
the guidance easier to use and more accessible for both Federal
agencies and recipients of grants and agreements, OMB proposes to
publish the separate documents in a single location in the CFR.
Although located in the CFR, the nature and status of the OMB guidance
will remain the same. The OMB guidance is directed to Federal agencies,
which adopt and implement it through regulations or policy documents
and require recipients to comply with the agency implementation. The
OMB guidance documents are:
For administrative requirements:
• OMB Circular A-102, “Grants and Cooperative Agreements
with State and Local Governments,” and
• OMB Circular A-110, “Uniform Administrative Requirements
for Grants and Agreements with Institutions of Higher Education,
Hospitals and Other Non-Profit Organizations.”
These two circulars provide to Federal agencies OMB's guidance
related to administrative requirements for grants and agreements with
different types of recipients, including States, local governments,
Indian Tribal governments, institutions of higher education, hospitals,
and other non-profit organizations.
For guidance related to costs:
• OMB Circular A-21, “Principles for Determining Costs
Applicable to Grants, Contracts, and Other Agreements with Educational
Institutions;”
• OMB Circular A-87, “Cost Principles for State, Local, and
Indian Tribal Governments;” and
• OMB Circular A-122, “Cost Principles for Non-Profit
Organizations.”
These three circulars provide guidance related to the costs that
may be charged to Federal awards.
For audit guidance:
• OMB Circular A-133, “Audits of States, Local Governments,
and Non-Profit Organizations.”
A-133 provides guidance implementing the requirements of the Single
Audit Act of 1984, as amended (31 U.S.C., Chapter 75).
For other guidance:
• OMB Circular A-89, “Federal Domestic Assistance Program
Information,” which provides guidance to agencies for implementing the
Federal Program Information Act, as amended (31 U.S.C., Chapter 61);
• OMB guidance on nonprocurement suspension and debarment,
issued under Section 6 of Executive Order 12549, and last amended on
June 26, 1995, at 60 FR 33036, which includes OMB guidance on drug-free
workplace that is issued under the Drug-Free Work Place Act of 1988, as
amended (41 U.S.C. 701 et seq.); and
• OMB guidance on lobbying restrictions (last amended on
January 19, 1996, at 61 FR 1412), for Federal agencies' implementation
of the requirements of 31 U.S.C. 1352.
[[Page 33884]]
A. Relationship of First Proposal to Grants Streamlining Under Pub. L.
106-107
In parallel with this proposal to relocate in the CFR the OMB
circulars and guidance documents in their current form, which will make
those documents available to the public in a single location,
interagency work groups are developing proposals under Public Law 106-
107 to streamline the award and administration of Federal grants and
agreements. Public comments that OMB and Federal agencies received
under Public Law 106-107 noted that the public finds the current policy
framework for grants and agreements to be very confusing. The
commenters cited a need to better align the various OMB circulars and
guidance documents with each other to provide greater commonality in
cross-cutting areas like definitions. They also identified a need to
make Federal agency regulations that implement the OMB guidance more
consistent with that guidance, to make it easier for applicants and
recipients to understand their obligations and those of their
subrecipients. Therefore, some interagency work group proposals may
involve significant revision of current OMB circulars and guidance
documents; for example, one group's effort to develop standard award
terms and conditions may lead to future proposals to revise the OMB
circular guidance on post-award administrative requirements. The
proposal in this notice to provide a single CFR location for OMB
guidance is a good first step that provides a foundation for any future
streamlining of the policy framework. Any revision to an OMB circular
or guidance document would be proposed in a Federal Register notice
separate from this notice, with an opportunity for public comment.
B. Structure of 2 CFR To Implement the First Proposal
OMB proposes to establish a subtitle A for its guidance in Title 2
of the CFR, a title that currently is reserved and that would be
redesignated “Government-wide Grants and Agreements.” OMB proposes to
locate its current circulars and guidance documents within Chapter II
of subtitle A. Chapter I would be reserved at this time, as the future
location of the OMB guidance after any revisions due to the Public Law
106-107 streamlining efforts.
Subtitle A, Chapter II also will include a part with general
information about 2 CFR. That part will address the purpose and scope
of the title, the applicability of the various portions of the OMB
guidance to different types of agreements, and the responsibilities of
the OMB and Federal agencies with respect to the guidance.
II. Second Proposal: Co-Locate OMB Guidance and Related Agency
Regulations
Most Federal agencies issue regulations related to some or all of
OMB's government-wide guidance for grants and agreements. Because each
agency's regulations currently are in its own title in the CFR, an
entity that may receive awards from more than one Federal agency must
read regulations in multiple locations in the CFR. To reduce this
burden, an interagency working group under the Public Law 106-107
grants streamlining effort recommended that agencies co-locate their
implementing regulations with the OMB guidance in Title 2 of the CFR.
An applicant or recipient then could more easily find the agencies'
implementing regulations, as well as the OMB guidance, in one location.
Note that this proposal entails only Federal agency regulations for
nonprocurement instruments. Some portions of the OMB guidance
(specifically, the cost principles in OMB Circulars A-21, A-87, and A-
122, and the guidance on single audits in OMB Circular A-133) apply to
both procurement and nonprocurement instruments. The Federal
Acquisition Regulation (FAR) implements those portions for procurement
contracts. The current proposal is to co-locate the OMB guidance with
agency implementing regulations only for grants and agreements; the
proposal would not relocate the implementation of the OMB guidance for
procurement contracts, which will continue to be in the FAR.
To accomplish the co-location, OMB proposes to establish a second
subtitle in Title 2 of the CFR. Subtitle B would be “Federal Agency
Regulations for Grants and Agreements.” Ultimately, each Federal
agency that has regulations implementing OMB's guidance will establish
a chapter in Subtitle B where its regulations will appear. Each agency
will be responsible for organizing the subject matter in its chapter.
III. Relative Timing of Changes Resulting From First and Second
Proposals
As explained above, OMB is proposing to establish its guidance in 2
CFR in two phases. In the first phase, the circulars and guidance
documents would be moved into Chapter II of the new CFR title in their
current form (adapted to CFR codification). In the second phase, after
any revisions due to the Public Law 106-107 streamlining effort, they
would be moved into Chapter I of the new title.
The timeframe for agencies to complete their move of regulations
would correspond to the second of the two phases. Once OMB establishes
the guidance documents in Chapter I, with any revisions, the revised
guidance would require agencies to locate their implementing
regulations in 2 CFR. Agencies could elect to move existing regulations
during the first phase, in parallel with OMB's relocation of current
circulars and guidance, but they would not be required to do so.
IV. Summary of Proposals
In summary, OMB proposes to establish in the near term, after
considering public comments received in response to this notice:
• Title 2 of the CFR, which would be entitled “Government-
wide Grants and Agreements;”
• Subtitle A of Title 2, which would be “Government-wide
Guidance for Grants and Agreements;”
• Chapter I of Subtitle A, which would be reserved;
• Chapter II of Subtitle A, which would contain all existing
OMB Circulars and other guidance;
• Subchapter A of Chapter II, which would be “General
Matters” related to Chapter II.
• Subtitle B of Title 2, which would be “Federal Agency
Regulations for Grants and Agreements,” where Federal agencies may now
choose to locate, and eventually will be required to locate, agency
regulations implementing the OMB guidance on the award and
administration of grants and agreements.
OMB in the longer term plans to move its guidance, with any
revisions resulting from the streamlining under Pub. L. 106-107, to
Chapter I of Subtitle A. During that transition, Federal agencies will
establish their chapters in Subtitle B and add content to that
subtitle.
V. Invitation To Comment
OMB welcomes your input on any aspect of the two proposals
described in this notice. You may wish to comment on the merits of
either proposal individually or the two in combination.
Joseph L. Kull,
Deputy Controller.
[[Page 33885]]
Table 1.--Proposed Organization of Title 2
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Title 2, Government-wide Grants and Agreements
Subtitle A--Government-wide Guidance for Grants and Agreements
Chapter I--[Reserved.]
Chapter II--Office of Management and Budget Circulars and Guidance
Subchapter A--General matters
Part 1--General
Subchapter B--Circulars
Subchapter C--Other guidance documents
Subtitle B--Federal Agency Regulations for Grants and Agreements
Chapters III and following--Each Federal agency will establish a
chapter under Subtitle B for its regulations on grants and
agreements
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[FR Doc. 03-14335 Filed 6-5-03; 8:45 am]
BILLING CODE 3110-01-P