80 FR 79036 - Intent To Compromise Claim Against the State of Washington Department of Services for the Blind

DEPARTMENT OF EDUCATION

Federal Register Volume 80, Issue 243 (December 18, 2015)

The United States Department of Education (Department) intends to compromise a claim against the State of Washington Department of Services for the Blind (Washington) now pending before the Office of Administrative Law Judges (OALJ), Docket No. 15-30-R. Before compromising a claim, the Department must publish its intent to do so in the Federal Register and provide the public an opportunity to comment on this action.

[Federal Register Volume 80, Number 243 (Friday, December 18, 2015)]
[Notices]
[Pages 79036-79037]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31900]


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DEPARTMENT OF EDUCATION


Intent To Compromise Claim Against the State of Washington 
Department of Services for the Blind

AGENCY: Office of Special Education and Rehabilitative Services, 
Department of Education.

ACTION: Notice.

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SUMMARY: The United States Department of Education (Department) intends 
to compromise a claim against the State of Washington Department of 
Services for the Blind (Washington) now pending before the Office of 
Administrative Law Judges (OALJ), Docket No. 15-30-R. Before 
compromising a claim, the Department must publish its intent to do so 
in the Federal Register and provide the public an opportunity to 
comment on this action.

DATES: We must receive your comments on the proposed action on or 
before February 1, 2016.

ADDRESSES: Address all comments concerning the proposed action to 
Marcus Hedrick, Office of the General Counsel, U.S. Department of 
Education, 400 Maryland Avenue SW., Room 6E220, Washington, DC 20202-
2110.

FOR FURTHER INFORMATION CONTACT: Marcus Hedrick. Telephone: 202-401-
8316 or by email: [email protected].
    If you use a telecommunications device for the deaf or a text 
telephone, you may call the Federal Relay Service, toll free, at 1-800-
877-8339.

SUPPLEMENTARY INFORMATION:
    Invitation To Comment: We invite you to submit comments regarding 
this proposed action. During and after the comment period you may 
inspect all public comments in Room 6E312, FB-6, 400 Maryland Avenue 
SW., Washington, DC, between the hours of 8:30 a.m. and 4 p.m., 
Washington, DC time, Monday through Friday of each week except Federal 
holidays.
    Assistance to Individuals With Disabilities in Reviewing Comments: 
On request we will provide an appropriate accommodation or auxiliary 
aid to an individual with a disability who needs assistance to review 
the comments for this notice. If you want to schedule an appointment 
for this type of accommodation or auxiliary aid, please contact the 
person listed under FOR FURTHER INFORMATION CONTACT.

Background

    On March 10, 2015, the Acting Assistant Secretary for Special 
Education and Rehabilitative Services (Assistant Secretary) issued two 
program determination letters (PDLs) seeking to recover a total of 
$730,053 of Vocational Rehabilitation (VR) State grant funds from 
Washington. Based on findings in single audits of Washington (Audit 
Control Numbers 10-12-38440 and 10-13-48310), these funds were 
determined by the Assistant Secretary to have been expended, during the 
fiscal years 2012 and 2013, in violation of the indirect cost 
provisions under the Education Department General Administrative 
Regulations at 34 CFR 76.560. Specifically, the PDLs indicated that 
Washington had charged indirect costs to the VR grant program without 
an approved indirect cost agreement, and identified $621,871 for 
recovery in fiscal year 2012 and $108,182 for recovery in fiscal year 
2013.
    Washington filed Applications for Review of these PDLs with the 
OALJ on May 14, 2015. On June 9, 2015, the OALJ proposed processing the 
two appeals under one docket number, and with consent of the parties 
subsequently combined the appeals. On June 27, 2015, the OALJ granted 
the parties' Joint Motion to Request Mediation, Waive 81.39(a) and 
Suspend the Procedural Schedule (Joint Motion). Since the Joint Motion 
was granted, Washington and the Department have engaged in facilitated 
mediation to attempt to resolve the recovery action.
    The Department proposes to compromise the total claim to $530,053 
(the fiscal year 2012 recovery will be reduced to $451,605 and the 
fiscal year 2013 recovery will be reduced to $78,447). The Department 
has determined that it would not be practical or in the public interest 
to continue proceeding, based on litigation risks and the cost of 
proceeding through the administrative, and possible court, process for 
this appeal. Also, in light of corrective actions Washington has taken, 
the Department does not anticipate this violation of the indirect cost 
provisions will recur. As a result, under the authority in 20 U.S.C. 
1234a(j), the Department has determined that compromise of this claim 
to $530,053 is appropriate and in the public interest. The public is 
invited to comment on the Department's intent to compromise this claim. 
Additional information may be obtained by calling or writing the 
contact person listed under FOR FURTHER INFORMATION CONTACT.
    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, audio 
tape, or compact disc) on request to the contact person listed under 
FOR FURTHER INFORMATION CONTACT.
    Electronic Access to this Document: 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 via the Federal Digital System 
at: www.thefederalregister.org/fdsys. At this site you can view this document, as well 
as all other documents of this Department published in the Federal 
Register, in text or Portable Document Format (PDF). To use PDF you 
must have Adobe Acrobat Reader, which is available free at the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

    Program Authority: 20 U.S.C. 1234a(j).

    Delegation of Authority: The Secretary of Education has delegated 
authority to Thomas P. Skelly to perform the

[[Page 79037]]

functions and duties of the Chief Financial Officer of the Department 
of Education.

    Date: December 11, 2015.
Thomas P. Skelly,
Delegated to perform the functions and duties of the Chief Financial 
Officer.
[FR Doc. 2015-31900 Filed 12-17-15; 8:45 am]
BILLING CODE 4000-01-P