[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR222.18]



[Page 508]

 

                           TITLE 34--EDUCATION

 

                  CHAPTER II--OFFICE OF ELEMENTARY AND

              SECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

PART 222_IMPACT AID PROGRAMS--Table of Contents

 

                            Subpart A_General

 

Sec.  222.18  What amount does the Secretary forgive?



    For an LEA that meets the requirements of Sec.  222.14(a) (timely 

filed forgiveness request) and Sec.  222.14(b) (timely filed information 

and documentation), the Secretary forgives an eligible overpayment as 

follows:

    (a) Forgiveness in whole. The Secretary forgives the eligible 

overpayment in whole if the Secretary determines that the LEA meets--

    (1) The requirements of Sec.  222.17 (undue financial hardship), and 

the LEA's current expenditure closing balance for the LEA's fiscal year 

immediately preceding the date of its forgiveness request (``preceding 

fiscal year'') is ten percent or less of its total current expenditures 

(TCE) for that year; or

    (2) The manifestly unjust repayment exception in Sec.  222.14(c)(2).

    (b) Forgiveness in part. (1) The Secretary forgives the eligible 

overpayment in part if the Secretary determines that the LEA meets the 

requirements of Sec.  222.17 (undue financial hardship), and the LEA's 

preceding fiscal year's current expenditure closing balance is more than 

ten percent of its TCE for that year.

    (2) For an eligible overpayment that is forgiven in part, the 

Secretary--

    (i) Requires the LEA to repay the amount by which the LEA's 

preceding fiscal year's current expenditure closing balance exceeded ten 

percent of its preceding fiscal year's TCE (``calculated repayment 

amount''); and

    (ii) Forgives the difference between the calculated repayment amount 

and the LEA's total overpayments.

    (3) For the purposes of this section, ``current expenditure closing 

balance'' means an LEA's closing balance before any revocable transfers 

to non-current expenditure accounts, such as capital outlay or debt 

service accounts.



    Example: An LEA that timely requests forgiveness has two 

overpayments of which portions remain owing on the date of its request--

one of $200,000 and one of $300,000. Its preceding fiscal year's closing 

balance is $250,000 (before a revocable transfer to a capital outlay or 

debt service account); and 10 percent of its TCE for the preceding 

fiscal year is $150,000.

    The Secretary calculates the amount that the LEA must repay by 

determining the amount by which the preceding fiscal year's closing 

balance exceeds 10 percent of the preceding year's TCE. This calculation 

is made by subtracting 10 percent of the LEA's TCE ($150,000) from the 

closing balance ($250,000), resulting in a difference of $100,000 that 

the LEA must repay. The Secretary then totals the eligible overpayment 

amounts ($200,000 + $300,000), resulting in a total amount of $500,000. 

The Secretary subtracts the calculated repayment amount ($100,000) from 

the total of the two overpayment balances ($500,000), resulting in 

$400,000 that the Secretary forgives.



(Authority: 20 U.S.C. 7712)



[62 FR 35414, July 1, 1997]