Conforming Changes to Applicant Submission Requirements; Implementing Federal Financial Report and Central Contractor Registration Requirements, 41087-41091 [2010-17328]

Download as PDF Federal Register / Vol. 75, No. 135 / Thursday, July 15, 2010 / Rules and Regulations adjuster’s statement. If the claim of loss is due to criminal fraud or theft by a third party, we will also require proof of conviction for the fraud or theft, such as a court document. (f) If you or your spouse experiences a scheduled cessation, termination, or reorganization of an employer’s pension plan, we will require evidence documenting the change in or loss of the pension. An example of acceptable evidence includes, but is not limited to, a statement from your pension fund administrator explaining the reduction or termination of your benefits. (g) If you or your spouse receives a settlement from an employer or former employer because of the employer’s closure, bankruptcy, or reorganization, we will require evidence documenting the settlement and the reason(s) for the settlement. An example of acceptable evidence includes, but is not limited to, a letter from the former employer stating the settlement terms and how they affect you or your spouse. 6. Amend § 418.1265 to revise paragraphs (c)(2) and (c)(3) to read as follows: ■ § 418.1265 What kind of evidence of a significant modified adjusted gross income reduction will you need to support your request? * * * * * (c) * * * (2) If you experience one or more of the events described in § 418.1205(d), (e), (f), or (g), you must provide evidence of how the event(s) significantly reduced your modified adjusted gross income, such as a statement explaining any modified adjusted gross income changes for the tax year we used and a copy of your filed Federal income tax return (if you have filed one). (3) If your spouse experiences one or more of the events described in § 418.1205(d), (e), (f), or (g), you must provide evidence of the resulting significant reduction in your modified adjusted gross income. The evidence requirements are described in paragraph (c)(2) of this section. * * * * * erowe on DSK5CLS3C1PROD with RULES [FR Doc. 2010–17198 Filed 7–14–10; 8:45 am] BILLING CODE 4191–02–P VerDate Mar<15>2010 15:24 Jul 14, 2010 Jkt 220001 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 Office of the Secretary, HUD. Interim rule. AGENCY: ACTION: 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 PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 41087 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 E:\FR\FM\15JYR1.SGM 15JYR1 41088 Federal Register / Vol. 75, No. 135 / Thursday, July 15, 2010 / Rules and Regulations Federal Information Relay Service at 800–877–8339. SUPPLEMENTARY INFORMATION: I. This Interim Rule erowe on DSK5CLS3C1PROD with RULES 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 §§ 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. VerDate Mar<15>2010 15:24 Jul 14, 2010 Jkt 220001 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 § 5.1004. Accordingly, entities (private nonprofits, educational organizations, state and regional agencies, etc,) subject to § 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 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 issuing them for effect, in accordance with its own regulations on rulemaking in 24 CFR part 10. HUD, however, does provide in § 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 E:\FR\FM\15JYR1.SGM 15JYR1 Federal Register / Vol. 75, No. 135 / Thursday, July 15, 2010 / Rules and Regulations 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. erowe on DSK5CLS3C1PROD with RULES 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 VerDate Mar<15>2010 15:24 Jul 14, 2010 Jkt 220001 41089 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. 24 CFR Part 85 Accounting, Grant programs, Indians, Intergovernmental relations, Reporting and recordkeeping requirements. ■ Accordingly, for the reasons described in the preamble, HUD amends 24 CFR parts 5, 84, and 85 as follows: Executive Order 13132, Federalism 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. 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 programshousing 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. PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 PART 5—GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS 1. The authority citation for 24 CFR part 5 continues to read as follows: ■ Subpart K—Application, Registration, and Submission Requirements 2. Revise the heading of subpart K to read as set forth above. ■ 3. Add § 5.1004 to read as follows: ■ § 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 4. The authority citation for 24 CFR part 84 continues to read as follows: ■ Authority: 42 U.S.C. 3535(d). 5. In § 84.22, revise the first sentence of paragraph (d) and remove paragraph (m) to read as follows: ■ § 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. * * * * * * * * ■ 6. Revise § 84.52 to read as follows: § 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 E:\FR\FM\15JYR1.SGM 15JYR1 erowe on DSK5CLS3C1PROD with RULES 41090 Federal Register / Vol. 75, No. 135 / Thursday, July 15, 2010 / Rules and Regulations 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 § 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. VerDate Mar<15>2010 15:24 Jul 14, 2010 Jkt 220001 (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 § 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. § 84.82 ■ [Amended] 7. In § 84.82, remove paragraph (c)(3). PART 85—ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE, LOCAL AND FEDERALLY RECOGNIZED INDIAN TRIBAL GOVERNMENTS 8. The authority citation for 24 CFR part 85 continues to read as follows: ■ Authority: 42 U.S.C. 3535(d). 9. In § 85.3, revise the definition of ‘‘expenditure report’’ to read as follows: ■ § 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. * * * * * ■ 10. Revise § 85.23(b) to read as follows: § 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. ■ 11. In § 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: PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 § 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 E:\FR\FM\15JYR1.SGM 15JYR1 41091 Federal Register / Vol. 75, No. 135 / Thursday, July 15, 2010 / Rules and Regulations 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. ■ 12. In § 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: § 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 PENSION BENEFIT GUARANTY CORPORATION 29 CFR Part 4022 Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions for Valuing and Paying Benefits AGENCY: Pension Benefit Guaranty Corporation. ACTION: Final rule. Pension Benefit Guaranty Corporation’s regulation on Benefits Payable in Terminated Single-Employer Plans prescribes interest assumptions for valuing and paying certain benefits under terminating single-employer plans. This final rule amends the benefit payments regulation to adopt interest assumptions for plans with valuation dates in August 2010. Interest assumptions are also published on PBGC’s Web site (http://www.pbgc.gov). DATES: Effective August 1, 2010. FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Manager, Regulatory and Policy Division, Legislative and Regulatory Department, Pension Benefit erowe on DSK5CLS3C1PROD with RULES SUMMARY: For plans with a valuation date Rate set On or after VerDate Mar<15>2010 15:24 Jul 14, 2010 Jkt 220001 status. In comparison with the interest assumptions in effect for July 2010, these interest assumptions represent a decrease of 0.25 percent in the immediate annuity rate and are otherwise unchanged. For private-sector payments, the interest assumptions (set forth in Appendix C to part 4022) will be the same as those used by PBGC for determining and paying lump sums (set forth in Appendix B to part 4022). PBGC has determined that notice and public comment on this amendment are impracticable and contrary to the public interest. This finding is based on the need to determine and issue new interest assumptions promptly so that the assumptions can reflect current market conditions as accurately as possible. Because of the need to provide immediate guidance for the valuation and payment of benefits in plans with valuation dates during August 2010, PBGC finds that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication. PBGC has determined that this action is not a ‘‘significant regulatory action’’ under the criteria set forth in Executive Order 12866. Because no general notice of proposed rulemaking is required for this amendment, the Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2). Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005, 202–326– 4024. (TTY/TDD users may call the Federal relay service toll-free at 1–800– 877–8339 and ask to be connected to 202–326–4024.) SUPPLEMENTARY INFORMATION: PBGC’s regulations prescribe actuarial assumptions—including interest assumptions—for valuing and paying plan benefits of terminating singleemployer plans covered by title IV of the Employee Retirement Income Security Act of 1974. The interest assumptions are intended to reflect current conditions in the financial and annuity markets. These interest assumptions are found in two PBGC regulations: the regulation on Benefits Payable in Terminated Single-Employer Plans (29 CFR Part 4022) and the regulation on Allocation of Assets in Single-Employer Plans (29 CFR Part 4044). Assumptions under the asset allocation regulation are updated quarterly; assumptions under the benefit payments regulation are updated monthly. This final rule updates only the assumptions under the benefit payments regulation. Two sets of interest assumptions are prescribed under the benefit payments regulation: (1) A set for PBGC to use to determine whether a benefit is payable as a lump sum and to determine lumpsum amounts to be paid by PBGC (found in Appendix B to Part 4022), and (2) a set for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC’s historical methodology (found in Appendix C to Part 4022). This amendment (1) adds to Appendix B to Part 4022 the interest assumptions for PBGC to use for its own lump-sum payments in plans with valuation dates during August 2010, and (2) adds to Appendix C to Part 4022 the interest assumptions for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC’s historical methodology for valuation dates during August 2010. The interest assumptions that PBGC will use for its own lump-sum payments (set forth in Appendix B to part 4022) will be 2.25 percent for the period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit’s placement in pay Before PO 00000 Frm 00019 Immediate annuity rate (percent) Fmt 4700 Sfmt 4700 List of Subjects in 29 CFR Part 4022 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. In consideration of the foregoing, 29 CFR part 4022 is amended as follows: ■ PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE–EMPLOYER PLANS 1. The authority citation for part 4022 continues to read as follows: ■ Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344. 2. In appendix B to part 4022, Rate Set 202, as set forth below, is added to the table. ■ Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments * * * * * Deferred annuities (percent) i1 E:\FR\FM\15JYR1.SGM i2 15JYR1 i3 n1 n2

Agencies

[Federal Register Volume 75, Number 135 (Thursday, July 15, 2010)]
[Rules and Regulations]
[Pages 41087-41091]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17328]


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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.

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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