[Federal Register Volume 75, Number 135 (Thursday, July 15, 2010)]
[Rules and Regulations]
[Pages 41087-41091]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-17328]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 5, 84, and 85
[Docket No. FR-5350-I-01]
RIN 2501-AD50
Conforming Changes to Applicant Submission Requirements;
Implementing Federal Financial Report and Central Contractor
Registration Requirements
AGENCY: Office of the Secretary, HUD.
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: This interim rule revises HUD regulations to reference the new
governmentwide Federal Financial Report (FFR), approved by the Office
of Management and Budget (OMB). The purpose of the FFR is to
consolidate requirements from the OMB issued Standard Forms SF-269, SF-
269A SF-272, and the SF-272A, into a single governmentwide form. The
consolidation provides recipients of HUD grants and cooperative
agreements a standard format for reporting the financial status of
their grants and cooperative agreements and will assist in efforts to
move to electronic grants management by reducing the variation and
number of forms required for reporting. In including the new FFR in its
regulations, HUD revises its regulations to remove references to SF-270
and SF-271, since they are no longer in use.
This interim rule also codifies the requirement that applicants for
HUD assistance possess an active Central Contractor Registration (CCR).
Registration with CCR assists HUD in collecting, validating, and
storing information in support of its grant programs and assists in
ensuring the accuracy of data placed on the USASpending.gov website.
DATES: Effective Date: August 16, 2010. Comment Due Date: September 13,
2010.
ADDRESSES: Interested persons are invited to submit comments regarding
this rule to the Regulations Division, Office of General Counsel,
Department of Housing and Urban Development, 451 7th Street, SW., Room
10276, Washington, DC 20410-0500. Communications must refer to the
above docket number and title. There are two methods for submitting
public comments. All submissions must refer to the above docket number
and title.
1. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street, SW., Room 10276,
Washington, DC 20410-0500. HUD advises that comments submitted by mail
are subject to irradiation security procedures which may result in a
delay of up to 10 days before receipt by the HUD. As a result, HUD
recommends that comments be submitted electronically, if feasible.
2. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
http://www.regulations.gov. HUD strongly encourages commenters to
submit comments electronically. Electronic submission of comments
allows the commenter maximum time to prepare and submit a comment,
ensures timely receipt by HUD, and enables HUD to make them immediately
available to the public. Comments submitted electronically through the
http://www.regulations.gov website can be viewed by other commenters
and interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
Note: To receive consideration as public comments, comments
must be submitted through one of the two methods specified above.
Again, all submissions must refer to the docket number and title of
the rule.
No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
Public Inspection of Public Comments. All properly submitted
comments and communications submitted to HUD will be available for
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the
above address. Due to security measures at the HUD Headquarters
building, an advance appointment to review the public comments must be
scheduled by calling the Regulations Division at 202-402-3055 (this is
not a toll-free number). Individuals with speech or hearing impairments
may access this number via TTY by calling the Federal Information Relay
Service, toll-free, at 800-877-8339. Copies of all comments submitted
are available for inspection and downloading at http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Barbara Dorf, Director, Office of
Departmental Grants Management and Oversight, Office of Administration,
Department of Housing and Urban Development, 451 7th Street, SW., Room
3156, Washington, DC 20410-0500, telephone number 202-708-0667. Persons
with hearing or speech impairments may access this number through TTY
by calling the toll-free
[[Page 41088]]
Federal Information Relay Service at 800-877-8339.
SUPPLEMENTARY INFORMATION:
I. This Interim Rule
A. Federal Financial Report (FFR)
On April 8, 2003 (68 FR 17097), OMB announced its intent to
establish a new FFR. Consistent with the Federal Financial Assistance
Management Improvement Act of 1999 (Pub. L. 106-107) and the goal of
governmentwide grant streamlining efforts, the new FFR consolidates
into a single report the current SF-269, Financial Status Report (Long
Form); SF-269A, Financial Status Report (Short Form); SF-272, Federal
Cash Transactions Report; and the SF-272A, Federal Cash Transactions
Report. The use of the FFR provides a uniform, governmentwide format
and reduces burden on grantees that are reporting using electronic
systems by reducing the number of forms to report. The use of the FFR
also provides for standard reporting period end dates and due dates for
the submission of cash management and financial information. The FFR
will simplify reporting procedures for grantees and facilitate
uniformity in agencies' grantmaking processes.
On December 7, 2007 (72 FR 69248), OMB published a Federal Register
notice announcing the promulgation of the new FFR. This notice also
directed that Federal grant-making agencies begin using the FFR not
later than September 30, 2008. Subsequently, on August 13, 2008 (73 FR
47246), OMB published a notice that requires Federal agencies to
transition to the new form no later than October 1, 2009. In making
this transition, OMB requested that agencies incorporate the
requirement into agency grant agreements and program regulations as
necessary.
HUD regulations at 24 CFR parts 84 and 85 reference the SF-269, SF-
269A, SF-272, and the SF-272A. This rule removes these references and
substitutes the FFR. This rule also amends Sec. Sec. 84.52 and 85.41
to conform the reporting requirements to those provided for by the FFR.
B. Requirement for Central Contractor Registration
This interim rule also codifies the requirement that applicants for
HUD assistance have an active registration in the Central Contractor
Registration (CCR). CCR was established to facilitate the Federal
government's compliance with the Prompt Payment Act (Pub. L. 97-177)
(31 U.S.C. 3901 et seq.) as amended and is the primary registrant
database for the Federal government. CCR collects, validates, stores
and disseminates data in support of agency missions, including Federal
agency contract and assistance awards, and the electronic payment
process.
CCR registration is applicable to procurements awarded in
accordance with the Federal Acquisitions Regulations (FAR). The use of
CCR as a central grantee repository was instituted for competitive
grant programs with the launch in 2005 of the Grants.gov system.
Applicants for HUD competitive assistance should be familiar with the
CCR registration requirement, since this requirement has been included
in the notices of funding availability (NOFAs) published by HUD over
the last several years (see e.g., 73 FR 79548, published December 29,
2008; 72 FR 11434, published March 13, 2007).
This interim rule codifies the CCR registration requirement by
adding a new Sec. 5.1004. Accordingly, entities (private nonprofits,
educational organizations, state and regional agencies, etc,) subject
to Sec. 5.1001 that receive HUD assistance are required to register
with CCR and have an active CCR registration in order for HUD to
obligate funds and for an awardee to receive funds from HUD. HUD
believes that codifying the CCR registration requirement will
facilitate applicant and awardee use of a single public website which
consolidates data on awards made under various types of Federal
Financial Assistance, pursuant to the Federal Funding Accountability
and Transparency Act of 2006 (Transparency Act) (Pub. L. 109-282)
(Transparency Act) and help ensure data quality for grantee information
for the USASpending.gov website created in conformance with the
requirements of the Transparency Act.
C. Removal of References to SF-270 and SF-271
HUD is also using this interim rule to remove references to the SF-
270, Request for Advance or Reimbursement, and the SF-271, Outlay
Report and Request for Reimbursement for Construction Programs. The HUD
electronic financial system does away with the need for the SF-270 and
the SF-271. Both of these forms were initially referenced by OMB more
than 30 years ago, and technological innovations have made these forms
obsolete for HUD's purposes. To acknowledge this, this interim rule
removes references to SF-270 and SF-271.
II. Justification for Interim Rulemaking
HUD generally publishes regulatory changes for public comment
before issuing them for effect, in accordance with its own regulations
on rulemaking in 24 CFR part 10. HUD, however, does provide in Sec.
10.1 for exceptions from that general rule where the Department finds
good cause to omit advance notice and public participation. The good
cause requirement is satisfied when the prior public procedure is
``impracticable, unnecessary, or contrary to the public interest.'' The
Department finds that a delay in the effectiveness of this interim rule
in order to solicit prior public comment is unnecessary.
In accordance with the Paperwork Reduction Act of 1995, OMB
published the FFR for comment on April 8, 2003 (68 FR 17097). The April
8, 2003 publication generated nearly 200 comments from a wide range of
recipients of Federal financial assistance, including state and local
government, non-profit entities, institutions of higher education, and
associations. These comments were considered by OMB in developing the
FFR. The FFR has also been approved by OMB, OMB has directed Federal
agencies to commence using this form, and it is already being used by
recipients of Federal assistance.
In addition, this interim rule would require applicants and
awardees of HUD financial assistance to register with CCR and possess
an active CCR registration. This is not a new requirement for
applicants of HUD assistance. Rather, as noted the requirement has
existed for several years through HUD's NOFAs. Therefore, applicants
and awardees for the bulk of HUD's financial assistance are familiar
with the requirement and already possess an active Central Contractor
Registration.
Although HUD has determined that good cause exists to publish this
rule for effect without prior solicitation of public comment, the
Department recognizes the value and importance of public input in the
rulemaking process. Accordingly, HUD is issuing these regulatory
amendments on an interim basis and providing for a 60-day public
comment period. All comments will be considered in the development of
the final rule.
III. Findings and Certifications
Executive Order 12866, Regulatory Planning and Review
This rule is not a significant regulatory action under section 3(f)
of Executive Order 12866, Regulatory Planning and Review, and it was
not reviewed by the Office of Management and Budget. This rule is not
significant because it would conform HUD regulations to refer to the
FFR, remove
[[Page 41089]]
outdated references to forms that are obsolete, and codify a
requirement that HUD has included for several years in its notices of
funding availability.
Paperwork Reduction Act
The information collection requirements contained in this interim
rule have been submitted to the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). In
accordance with the Paperwork Reduction Act, an agency may not conduct
or sponsor, and a person is not required to respond to, a collection of
information unless the collection displays a currently valid OMB
control number. The OMB control number for the FFR is 0348-0061.
Environmental Impact
This interim rule does not direct, provide for assistance or loan
and mortgage insurance for, or otherwise govern or regulate real
property acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction; or establish, revise, or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this rule
is categorically excluded from environmental review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321).
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.),
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
As noted earlier in this preamble, this interim rule conforms HUD
regulations to requirements applicable to all grantees that are already
in place, as a result of action previously taken by OMB, and small
entities were provided the opportunity for comment in connection with
OMB's publications. With respect to financial reporting, the interim
rule streamlines the financial reporting requirement by replacing one
form for the several that have been used prior to fiscal year 2010. As
a result, the FFR will reduce the burden on all entities, including
small entities, by simplifying the task of filing required financial
reports. Similarly, CCR registration has been required of applicants
and grantees for HUD's competitive programs to ensure the proper
identity of applicants. This interim rule codifies the CCR registration
requirement that HUD grantees are already meeting. Therefore, the
undersigned certifies that this rule will not have a significant impact
on a substantial number of small entities within the meaning of the
RFA.
Notwithstanding HUD's view that this rule will not have a
significant effect on a substantial number of small entities, HUD
specifically invites comments to this rule that will meet HUD's
objectives as described in this preamble.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on state and local
governments and is not required by statute, or the rule preempts state
law, unless the agency meets the relevant requirements of section 6 of
the Executive Order. This interim rule does not have federalism
implications and does not impose substantial direct compliance costs on
state and local governments or preempt state law within the meaning of
the Executive Order.
Unfunded Mandates Reform Act.
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (12
U.S.C. 1531-1538) establishes requirements for Federal agencies to
assess the effects of their regulatory actions on state, local, and
tribal governments, and on the private sector. This interim rule would
not impose any Federal mandates on any state, local, or tribal
governments, or on the private sector, within the meaning of UMRA.
List of Subjects
24 CFR Part 5
Administrative practice and procedure, Aged, Claims, Crime,
Government contracts, Grants programs-housing and community
development, Individuals with disabilities, Intergovernmental
relations, Loans programs-housing and community development, Low and
moderate income housing, Mortgage insurance, Penalties, Pets, Public
housing, Rent subsidies, Reporting and recordkeeping requirements,
Social security, Unemployment compensation, Wages.
24 CFR Part 84
Accounting, colleges and universities, Grant programs, hospitals,
Non-profit organizations, Reporting and recordkeeping requirements.
24 CFR Part 85
Accounting, Grant programs, Indians, Intergovernmental relations,
Reporting and recordkeeping requirements.
0
Accordingly, for the reasons described in the preamble, HUD amends 24
CFR parts 5, 84, and 85 as follows:
PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS
0
1. The authority citation for 24 CFR part 5 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437f, 1437n,
3535(d); Sec. 327, Pub. L. 109-115, 119 Stat. 2936, and Sec. 607,
Pub. L. 109-162, 119 Stat. 3051.
Subpart K--Application, Registration, and Submission Requirements
0
2. Revise the heading of subpart K to read as set forth above.
0
3. Add Sec. 5.1004 to read as follows:
Sec. 5.1004 Central contractor registration.
Applicants for HUD financial assistance that are subject to this
subpart are required to register with the Central Contractor
Registration (CCR) and have an active registration in CCR in order for
HUD to obligate funds and for an awardee to receive an award of funds
from HUD.
PART 84--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND
AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND
OTHER NON-PROFIT ORGANIZATIONS
0
4. The authority citation for 24 CFR part 84 continues to read as
follows:
Authority: 42 U.S.C. 3535(d).
0
5. In Sec. 84.22, revise the first sentence of paragraph (d) and
remove paragraph (m) to read as follows:
Sec. 84.22 Payment.
* * * * *
(d) Requests for Treasury check advance payments shall be submitted
through electronic means determined by the authorizing HUD program, or
on forms as may be authorized by OMB. * * *
* * * * *
0
6. Revise Sec. 84.52 to read as follows:
Sec. 84.52 Financial reporting.
(a) The Federal financial report (FFR), or such other form as may
be approved by OMB, is authorized for obtaining financial information
from recipients. The applicability of the FFR form shall be determined
by the appropriate HUD program, and the grantee will be notified of any
program requirements in
[[Page 41090]]
reference to the FFR upon receipt of the award. A HUD program may,
where appropriate, waive the use of the FFR for its grantees and
require an alternative reporting system.
(b) HUD shall prescribe whether the FFR shall be on a cash or
accrual basis. If HUD requires accrual information and the recipient's
accounting records are not normally kept on the accrual basis, the
recipient shall not be required to convert its accounting system, but
shall develop such accrual information through best estimates based on
an analysis of the documentation on hand.
(c) HUD shall determine the frequency of the FFR for each project
or program, considering the size and complexity of the particular
project or program. However, the report shall not be required more
frequently than quarterly or less frequently than annually. The
reporting period end dates shall be March 31, June 30, September 30 or
December 31. A final FFR shall be required at the completion of the
award agreement and shall use the end date of the project or grant
period as the reporting end date.
(d) HUD requires recipients to submit the FFR no later than 30 days
after the end of each specified reporting period for quarterly and
semi-annual reports, and 90 calendar days for annual reports. Final
reports shall be submitted no later than 90 days after the project or
grant period end date. Extensions of reporting due dates may be
approved by HUD upon request of the recipient. HUD may require awardees
to submit the FFR electronically. Electronic submission may be waived
for cause in accordance with HUD's waiver policy in Sec. 5.110 of this
title.
(e) (1) When funds are advanced to recipients HUD shall use the FFR
to monitor cash advanced to recipients and to obtain disbursement
information for each agreement with the recipients. HUD may require
forecasts of Federal cash requirements in the ``Remarks'' section of
the FFR and may require recipients to report in the ``Remarks'' section
the amount of cash advances received and retained in excess of three
days and any interest earned on such cash advances. Recipients shall
provide short narrative explanations of actions taken to reduce early
drawdowns and excess balances.
(2) Recipients shall be required to submit not more than the
original and two copies of the FFR or submit the report electronically.
HUD may require a quarterly report from recipients receiving advances
totaling $1 million or more per year.
(f) When HUD needs additional information or more frequent reports,
the following shall be observed.
(1) When additional information is needed to comply with
legislative requirements or governmentwide requirements, HUD shall
issue instructions to require recipients to submit such information
under the ``Remarks'' section of the reports or other means.
(2) When HUD determines that a recipient's accounting system does
not meet the standards in Sec. 84.21, additional pertinent information
to further monitor awards may be obtained by written notice to the
recipient until such time as the system is brought up to standard. HUD,
in obtaining this information, shall comply with report clearance
requirements of 5 CFR part 1320.
(3) HUD may elect to accept the identical information from the
recipients through a system to system data interface as determined by
HUD.
Sec. 84.82 [Amended]
0
7. In Sec. 84.82, remove paragraph (c)(3).
PART 85--ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE
AGREEMENTS TO STATE, LOCAL AND FEDERALLY RECOGNIZED INDIAN TRIBAL
GOVERNMENTS
0
8. The authority citation for 24 CFR part 85 continues to read as
follows:
Authority: 42 U.S.C. 3535(d).
0
9. In Sec. 85.3, revise the definition of ``expenditure report'' to
read as follows:
Sec. 85.3 Definitions.
* * * * *
Expenditure report means the Federal financial report (FFR) or such
other financial reporting form as may be approved by the Office of
Management and Budget.
* * * * *
0
10. Revise Sec. 85.23(b) to read as follows:
Sec. 85.23 Period of availability of funds.
* * * * *
(b) Liquidation of obligations. A grantee must liquidate all
obligations incurred under the award not later than 90 days after the
end of the funding period (or as specified in a program regulation) to
coincide with the submission of the FFR. HUD may extend this deadline
at the request of the grantee.
0
11. In Sec. 85.41, revise the first sentence of paragraph (a)(3),
revise paragraphs (b) and (c), and remove paragraphs (d) and (e), to
read as follows:
Sec. 85.41 Financial reporting.
(a) * * *
(3) Grantees shall follow all applicable standard and supplemental
Federal agency instructions approved by OMB to the extent required
under the Paperwork Reduction Act of 1980 for use in connection with
forms specified in paragraphs (b) and (c) of this section. * * *
* * * * *
(b) Financial Status Report--(1) Form: Grantees will use the FFR to
report the status of funds for all non-construction grants, for
construction grants or grants which include both construction and non-
construction activities as determined by HUD.
(2) Accounting basis. HUD shall prescribe whether the FFR shall be
on a cash or accrual basis. If HUD requires accrual information and the
grantee's accounting records are not normally kept on the accrual
basis, the grantee shall not be required to convert its accounting
system but shall develop such accrual information through an analysis
of the documentation on hand.
(3) HUD shall determine the frequency of the FFR for each project
or program, considering the size and complexity of the particular
project or program. However, the report will not be required more
frequently than quarterly or less frequently than annually. The
reporting period end dates shall be March 31, June 30, September 30 or
December 31. A final FFR shall be required at the completion of the
award agreement and shall use the end date of the project or grant
period as the reporting end date.
(4) HUD requires recipients to submit the FFR (original and two
copies), not later than 30 days after the end of each specified
reporting period for quarterly and semiannual reports and 90 days for
annual reports. Final reports shall be submitted no later than 90 days
after the expiration or termination of grant support.
(c) (1) For grants paid by Treasury check advances or electronic
transfer of funds, the grantee will submit the FFR, unless the terms of
the award exempt the grantee from this requirement or proscribe an
alternate method of financial reporting. HUD will use these reports to
monitor cash advanced to grantees and to obtain disbursement or
financial status information for each grant from grantees. The format
of the FFR may be adapted as appropriate when reporting is to be
accomplished with the assistance of automatic data processing equipment
provided that the information to be submitted is not changed in
substance. HUD may require
[[Page 41091]]
forecasts of Federal cash requirements in the ``Remarks'' section of
the report.
(2) Cash in hands of subgrantees. When considered necessary and
feasible HUD may require grantees to report the amount of cash advances
in excess of three days' needs in the hands of their subgrantees or
contractors and to provide short narrative explanations of actions
taken by the grantee to reduce the excess balances.
0
12. In Sec. 85.50, revise paragraph (b)(2), remove paragraph (b)(3),
and redesignate paragraph (b)(4) as paragraph (b)(3) and paragraph
(b)(5) as paragraph (b)(4) to read as follows:
Sec. 85.50 Closeout.
* * * * *
(b) * * *
(2) The Federal financial report form, as well as other forms
prescribed by the program.
* * * * *
Dated: June 16, 2010.
Shaun Donovan,
Secretary.
[FR Doc. 2010-17328 Filed 7-14-10; 8:45 am]
BILLING CODE 4210-67-P