Student Assistance General Provisions, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program; Student Assistance General Provisions, The Secretary's Recognition of Accrediting Agencies, The Secretary's Recognition Procedures for State Agencies; Distance Education and Innovation; Corrections, 63689-63695 [2022-22822]
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Federal Register / Vol. 87, No. 202 / Thursday, October 20, 2022 / Rules and Regulations
E. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act
of 1995 (2 U.S.C. 1531–1538) requires
Federal agencies to assess the effects of
their discretionary regulatory actions. In
particular, the Act addresses actions
that may result in the expenditure by a
State, local, or tribal government, in the
aggregate, or by the private sector of
$100,000,000 (adjusted for inflation) or
more in any one year. Though this rule
will not result in such an expenditure,
we do discuss the effects of this rule
elsewhere in this preamble.
F. Environment
We have analyzed this rule under
Department of Homeland Security
Directive 023–01, and Environmental
Planning, COMDTINST 5090.1 (series),
which guide the Coast Guard in
complying with the National
Environmental Policy Act of 1969 (42
U.S.C. 4321–4370f), and have
determined that this action is one of a
category of actions that do not
individually or cumulatively have a
significant effect on the human
environment. This rule involves
establishment of a temporary safety
zone for navigable waters of the Corpus
Christi Shipping Channel in a zone
defined by the following coordinates;
27°50′31.28″ N, 97°04′17.23″ W;
27°50′31.73″ N, 97°04′15.44″ W;
27°50′29.06″ N, 97°04′16.61″ W;
27°50′29.32″ N, 97°04′14.82″ W. The
safety zone is needed to protect
personnel, vessels, and the marine
environment from potential hazards
created by pipeline that will be removed
from the floor of the Corpus Christi
Shipping Channel. It is categorically
excluded from further review under
paragraph L60(c) Appendix A, Table 1
of DHS Instruction Manual 023–01–
001–01, Rev. 1.
G. Protest Activities
The Coast Guard respects the First
Amendment rights of protesters.
Protesters are asked to contact the
person listed in the FOR FURTHER
INFORMATION CONTACT section to
coordinate protest activities so that your
message can be received without
jeopardizing the safety or security of
people, places, or vessels.
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List of Subjects in 33 CFR Part 165
Harbors, Marine safety, Navigation
(water), Reporting and recordkeeping
requirements, Security measures,
Waterways.
PART 165–REGULATED NAVIGATION
AREAS AND LIMITED ACCESS AREAS
DEPARTMENT OF EDUCATION
■
1. The authority citation for part 165
continues to read as follows:
[Docket ID ED–2018–OPE–0076, ED–2018–
OPE–0027]
Authority: 46 U.S.C. 70034, 70051; 33 CFR
1.05–1, 6.04–1, 6.04–6, and 160.5;
Department of Homeland Security Delegation
No. 00170.1, Revision No. 01.2.
RIN 1840–AD26, 1840–AD36, 1840–AD37,
1840–AD38
2. Add § 165.T08–0867 to read as
follows:
■
§ 165.T08–0867 Safety Zone; Corpus
Christi Shipping Channel, Corpus Christi,
TX.
(a) Location. The following area is a
safety zone: all navigable waters of the
Corpus Christi Shipping Channel in a
zone defined by the following
coordinates; 27°50′31.28″ N,
97°04′17.23″ W; 27°50′31.73″ N,
97°04′15.44″ W; 27°50′29.06″ N,
97°04′16.61″ W; 27°50′29.32″ N,
97°04′14.82″ W.
(b) Effective period. This section is
effective from 7 p.m. on October 19,
2022, through 5 a.m. on October 22,
2022. This section is subject to
enforcement from 7 p.m. to 5 a.m. of the
next day, each day.
(c) Regulations. (1) According to the
general regulations in § 165.23, entry
into this temporary safety zone is
prohibited unless authorized by the
Captain of the Port Sector Corpus
Christi (COTP) or a designated
representative. They may be contacted
on Channel 16 VHF–FM (156.8 MHz) or
by telephone at 361–939–0450.
(2) If permission is granted, all
persons and vessels shall comply with
the instructions of the COTP or
designated representative.
(d) Information broadcasts. The COTP
or a designated representative will
inform the public of the enforcement
times and date for this safety zone
through Broadcast Notices to Mariners,
Local Notices to Mariners, and/or Safety
Marine Information Broadcasts as
appropriate.
Dated: October 14, 2022.
M.A. Cintron,
Captain, U.S. Coast Guard, Acting Captain
of the Port Sector Corpus Christi.
[FR Doc. 2022–22872 Filed 10–18–22; 11:15 am]
BILLING CODE 9110–04–P
For the reasons discussed in the
preamble, the Coast Guard amends 33
CFR part 165 as follows:
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34 CFR Parts 668, 600, and 602
Student Assistance General
Provisions, Federal Family Education
Loan Program, and William D. Ford
Federal Direct Loan Program; Student
Assistance General Provisions, The
Secretary’s Recognition of Accrediting
Agencies, The Secretary’s Recognition
Procedures for State Agencies;
Distance Education and Innovation;
Corrections
Office of Postsecondary
Education, Department of Education.
ACTION: Final rule; technical corrections.
AGENCY:
The Department of Education
(Department or we) corrects the text in
regulations issued under the Higher
Education Act of 1965, as amended
(HEA) and published in the Federal
Register on: September 23, 2019, for
provisions relating to Borrower Defense
to Repayment and Financial
Responsibility; November 1, 2019, for
provisions relating to Accreditation,
State Authorization, and the Student
Assistance General Provisions; and
September 2, 2020, for provisions
relating to Distance Education and
Innovation, Institutional Eligibility, and
the Student Assistance General
Provisions.
SUMMARY:
These corrections are effective
October 20, 2022. The incorporation by
reference of certain publications listed
in this document is approved by the
Director of the Federal Register as of
October 20, 2022.
FOR FURTHER INFORMATION CONTACT:
Gregory Martin, 400 Maryland Avenue
SW, Room 2C–136, Washington DC
20202. Telephone: (202) 453–7535.
Email: Gregory.Martin@ed.gov.
If you use a telecommunications
device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay
Service (FRS), toll free, at 1–800–877–
8339.
DATES:
SUPPLEMENTARY INFORMATION:
Incorporation by Reference. In
§ 668.172(c)(1) of this correction, we
reference the following accounting
standard: Accounting Standards
Codification (ASC) 205. ASC 205
provides standards on the presentation
of financial statements. In
§ 668.23(d)(1), we reference the
following accounting standard:
Accounting Standards Codification
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(ASC) 850. ASC 850 provides for
accounting and reporting issues
concerning related party transactions
and relationships. These standards are
available at www.fasb.org, registration
required.
Summary of Corrections
The Department’s Borrower Defense
to Repayment Rule, published in the
Federal Register on September 23, 2019,
(84 FR 49788) contains the following
errors:
1. The regulations in 34 CFR
668.175(c) mistakenly suggest that an
institution that is not financially
responsible may participate as a
financially responsible institution by
providing any of the financial
protections included in 34 CFR
668.175(h). However, under Section
498(c) of the HEA, some options
included in 34 CFR 668.175(h) do not
make an institution financially
responsible. To conform the regulations
to the provisions of the HEA, the
reference in 34 CFR 668.175(c) is
corrected to refer only to the surety
provisions in 34 CFR 668.175(h)(2)(i).
2. The audit requirements in 34 CFR
668.23(d) do not specify that the
Supplemental Schedule is part of the
audited financial statements
submission, as required under 34 CFR
668.172(a) and Section 2 of Appendix A
and B to subpart L of the General
Provisions regulations, and do not cite
the current audit guidance and
accounting standards. This correction
updates 34 CFR 668.23(d).
3. The financial ratios in 34 CFR
668.172(b) do not conform to the related
revisions to the accounting terminology
and to the definition of terms as
specified in Appendices A and B to
subpart L of the General Provisions
regulations. This correction updates 34
CFR 668.172(b).
4. Two of the terms described in 34
CFR 668.172(c)(1), ‘‘extraordinary gains
and losses’’, and ‘‘income or losses from
discontinued operations’’ do not reflect
changes in accounting standards. The
accounting standards eliminated
‘‘extraordinary gains and losses’’ and
modified the requirements for ‘‘income
and losses from discontinued
operations.’’ This correction updates 34
CFR 668.172(c) to conform to
accounting standards.
The Department’s Accreditation and
State Authorization Rule, published in
the Federal Register on November 1,
2019, (84 FR 58834) contained the
following errors:
1. The regulations in 34 CFR
602.32(h)(4)(ii) relating, in part, to the
disposition of an accrediting agency’s
recognition conflict with related
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provisions in 34 CFR 602.34, Advisory
Committee meetings, and 34 CFR
602.36, Senior Department Official’s
decision. Under 34 CFR
602.23(h)(4)(iii), Department staff have
the option to recommend that the senior
Department official renew an agency
with compliance reporting, but that
option is not aligned with 34 CFR
602.34(g) and 34 CFR 602.36(e), which
require continuing recognition pending
submission of a compliance report. This
correction updates 34 CFR 602 (h)(4)(ii)
to conform with the provisions in
602.34(g) and 602.36(e). We note that
we acknowledged that 34 CFR
602.32(h)(4)(ii) did not align with
602.36(e) at page 27437 of the proposed
rule (84 FR 27404) and it was an
oversight that we did not correct this
inconsistency at that time. Additionally,
allowing renewal under 34 CFR
602.32(h)(4)(ii), when there are
noncompliant issues would violate
section 496b(d) of the HEA (20 U.S.C.
1099b), which provides that no
accrediting agency or association may
be determined by the Secretary to be a
reliable authority, unless the agency or
association meets criteria established by
the Secretary.
2. The eligible program regulations in
34 CFR 668.8(d)(4)(i) were not updated
to conform to a related revision to 34
CFR 602.11. The amendment to § 602.11
revised the requirements for
establishing the geographic area of an
accrediting agency’s activities that may
cause accrediting agencies previously
defined as ‘‘regional agencies’’ to be
defined instead as agencies whose
activities extend throughout the United
States. This correction updates 34 CFR
668.8(d)(4)(i) to conform with the
current provisions in 34 CFR 602.11 by
referring to accrediting agencies that
were defined as regional areas on
October 1, 2007 rather than referring to
agencies that were previously defined as
‘‘regional.’’
3. The provisional certification
provisions in 34 CFR 668.13(c)(2)(i)
erroneously reference paragraph (c)(1)(i)
instead of paragraph (c)(1)(i)(A). The
correction updates 34 CFR
668.13(c)(2)(i) with the correct crossreference applicable to institutions
seeking initial participation in the Title
IV, HEA programs.
4. The provisional certification
provisions in 34 CFR 668.13(c)(2)(ii)
erroneously reference ‘‘paragraphs
(c)(1)(ii), (iii), (iv) or (e)(2)’’ instead of
referencing ‘‘paragraphs (c)(1)(i)(B), (C),
(D) or (c)(1)(ii).’’ The correction updates
34 CFR 668.13(c)(2)(ii) with the correct
cross-references.
5. The provisional certification
provisions in 34 CFR 668.13(c)(2)(iii)
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erroneously reference paragraph
(c)(1)(v) instead of paragraph (c)(1)(i)(E).
The correction updates 34 CFR
668.13(c)(2)(iii) with the correct crossreference.
6. The provisional certification
provisions in 34 CFR 668.13(c)(1)(i)(E)
erroneously reference 34 CFR part 603
instead of 34 CFR part 602. The
correction updates 34 CFR
668.13(c)(1)(i)(E) with the correct crossreference.
The Department’s Distance Education
and Innovation Rule, published in the
Federal Register on September 2, 2020,
(85 FR 54742) contained the following
errors:
1. The amendatory instructions at the
end of the rule mistakenly instructed
the Office of the Federal Register to
revise § 600.10(c)(1)(iii) with language
that was supposed to amend paragraph
(c)(1)(ii). Consequently, § 600.10(c)(1)(ii)
was not amended and the substance of
§ 600.10(c)(iii) was instead removed
from the regulations. This correction
restores the text in paragraph (c)(1)(iii)
relating to the Secretary’s approval of
short-term programs and revises
paragraph (c)(1)(ii). These changes
ensure that the language in § 600.10(c)
reflects the language that the negotiated
committee reached consensus on. For
more information about the substance of
the amendment to § 600.10(c)(2)(ii),
please see discussion of this change in
the Department’s April 2, 2020, notice
of proposed rulemaking (85 FR 18650).
2. The accrediting agency regulations
under 34 CFR 602.22(a)(1)(ii)(J) were not
updated to conform to a related change
made to the written arrangement
provisions under 34 CFR
668.5(c)(3)(ii)(A). Current
§ 668.5(c)(3)(ii)(A) allows an ineligible
institution or organization to provide
more than 25 percent but less than 50
percent of an educational program in
accordance with 34 CFR
602.22(a)(1)(ii)(J). However, accrediting
agency approval of such an arrangement
is required under 34 CFR
602.22(a)(1)(ii)(J). Notably, the
negotiated rulemaking committee for the
Distance Education and Innovation Rule
reached consensus on the revisions to
current § 668.5(c)(3)(ii)(A). This
correction updates 34 CFR
602.22(a)(1)(ii)(J) to align with
§ 668.5(c)(3)(ii)(A), which is the
language that the negotiated rulemaking
committee agreed to.
Waiver of Proposed Rulemaking,
Negotiated Rulemaking and Delayed
Effective Date
In accordance with the
Administrative Procedure Act, 5 U.S.C.
553, the Department generally offers
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interested parties the opportunity to
comment on proposed regulations.
However, the APA provides that an
agency is not required to conduct
notice-and-comment rulemaking when
the agency, for good cause, finds that
notice and public comment thereon are
impracticable, unnecessary, or contrary
to the public interest (5 U.S.C.
553(b)(B)). There is good cause to waive
rulemaking here as unnecessary.
Rulemaking is ‘‘unnecessary’’ in those
situations in which ‘‘the administrative
rule is a routine determination,
insignificant in nature and impact, and
inconsequential to the industry and to
the public.’’ Utility Solid Waste
Activities Group v. EPA, 236 F.3d 749,
755 (D.C. Cir. 2001), quoting U.S.
Department of Justice, Attorney
General’s Manual on the Administrative
Procedure Act 31 (1947) and South
Carolina v. Block, 558 F. Supp. 1004,
1016 (D.S.C. 1983). However, the
regulatory changes in this document are
necessary to correct errors and to make
routine technical updates. Thus, the
Department has determined that
publication of a proposed rule is
unnecessary under 5 U.S.C. 553(b)(B).
In addition, under section 492 of the
HEA (20 U.S.C. 1098a), all regulations
proposed by the Department for
programs authorized under title IV of
the HEA are subject to negotiated
rulemaking requirements. Section
492(b)(2) of the HEA provides that
negotiated rulemaking may be waived
for good cause when doing so would be
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ There is likewise
good cause to waive the negotiated
rulemaking requirement in this case,
since, as explained above, notice and
comment rulemaking is unnecessary.
The APA generally requires that
regulations be published at least 30 days
before their effective date, unless the
agency has good cause to implement its
regulations sooner (5 U.S.C. 553(d)(3)).
As previously stated, because the final
regulations correct errors and make
routine technical updates, there is good
cause to waive the delayed effective
date in the APA and make the final
regulations effective upon publication.
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Regulatory Flexibility Act Certification
The Regulatory Flexibility Act does
not apply to this rulemaking because
there is good cause to waive notice and
comment under 5 U.S.C. 553.
Paperwork Reduction Act of 1995
The final regulations do not create
any new information collection
requirements.
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Intergovernmental Review
The Student Assistance General
Provisions, the Secretary’s Recognition
of Accrediting Agencies, and the
Secretary’s Recognition Procedures for
State Agencies are subject to Executive
Order 12372 and the regulations in 34
CFR part 79. One of the objectives of the
Executive order is to foster an
intergovernmental partnership and a
strengthened federalism. The Executive
order relies on processes developed by
State and local governments for
coordination and review of proposed
Federal financial assistance.
This document provides early
notification of our specific plans and
actions for these programs.
Assessment of Educational Impact
Based on our own review, we have
determined that the final regulations do
not require transmission of information
that any other agency or authority of the
United States gathers or makes
available.
Federalism
Federalism Executive Order 13132
requires us to ensure meaningful and
timely input by State and local elected
officials in the development of
regulatory policies that have federalism
implications. ‘‘Federalism implications’’
means substantial direct effects on the
States, on the relationship between the
National Government and the States, or
on the distribution of power and
responsibilities among the various
levels of government. This final rule
may have federalism implications.
Accessible Format: On request to the
program contact person listed under FOR
FURTHER INFORMATION CONTACT,
individuals with disabilities can obtain
this document in an accessible format.
The Department will provide the
requestor with an accessible format that
may include Rich Text Format (RTF) or
text format (txt), a thumb drive, an MP3
file, braille, large print, audiotape, or
compact disc, or other accessible format.
Electronic Access to This Document:
The official version of this document is
the document published in the Federal
Register. You may access the official
edition of the Federal Register and the
Code of Federal Regulations at
www.govinfo.gov. 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
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63691
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.
List of Subjects
34 CFR Part 600
Colleges and universities, Foreign
relations, Grant programs-education,
Loan programs-education, Reporting
and recordkeeping requirements,
Selective Service System, Student aid,
Vocational education.
34 CFR Part 602
Reporting and recordkeeping
requirements.
34 CFR Part 668
Administrative practice and
procedure, Aliens, Colleges and
universities, Consumer protection,
Grant programs-education,
Incorporation by reference, Loan
programs-education, Reporting and
recordkeeping requirements, Selective
Service System, Student aid, Vocational
education.
Nasser H. Paydar,
Assistant Secretary for Postsecondary
Education.
For the reasons discussed in the
preamble, the Secretary of Education
amends 34 CFR parts 600, 602, and 668
by making the following technical
corrections:
PART 600—INSTITUTIONAL
ELIGIBILITY UNDER THE HIGHER
EDUCATION ACT OF 1965, AS
AMENDED
1. The authority citation for part 600
continues to read as follows:
■
Authority: 20 U.S.C. 1001, 1002, 1003,
1088, 1091, 1094, 1099b, and 1099c, unless
otherwise noted.
2. Section 600.10 is amended by
revising paragraphs (c)(1)(ii) and (iii)
and the OMB control number at the end
of the section to read as follows:
■
§ 600.10 Date, extent, duration, and
consequence of eligibility.
*
*
*
*
*
(c) * * *
(1) * * *
(ii) For the first direct assessment
program under 34 CFR 668.10 offered at
each credential level, and for a
comprehensive transition and
postsecondary program under 34 CFR
668.232, obtain the Secretary’s approval.
(iii) For an undergraduate program
that is at least 300 clock hours but less
than 600 clock hours and does not
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admit as regular students only persons
who have completed the equivalent of
an associate degree under 34 CFR
668.8(d)(3), obtain the Secretary’s
approval.
*
*
*
*
*
Authority: 20 U.S.C. 1001–1003, 1070g,
1085, 1088, 1091, 1092, 1094, 1099c–1,
1221–3, and 1231a, unless otherwise noted.
The revisions and addition read as
follows:
7. Section 668.8 is amended by
revising paragraph (d)(4)(i) to read as
follows:
§ 668.23 Compliance audits and audited
financial statements.
(Approved by the Office of Management and
Budget under control number 1845–0012)
§ 668.8
PART 602—THE SECRETARY’S
RECOGNITION OF ACCREDITING
AGENCIES
3. The authority citation for part 602
continues to read as follows:
■
Authority: 20 U.S.C. 1099b, unless
otherwise noted.
4. Section 602.22 is amended by
revising paragraph (a)(1)(ii)(J) to read as
follows:
■
§ 602.22
Substantive change.
*
*
*
*
*
(a) * * *
(1) * * *
(ii) * * *
(J) Entering into a written arrangement
under 34 CFR 668.5 under which an
institution or organization not certified
to participate in the title IV, HEA
programs offers more than 25 percent
but less than 50 percent of one or more
of the accredited institution’s
educational programs.
*
*
*
*
*
■ 5. Section 602.32 is amended by
revising paragraph (h)(4)(ii) to read as
follows:
§ 602.32 Procedures for Department
review of application for recognition or for
change in scope, compliance reports, and
increases in enrollment.
*
*
*
*
(h) * * *
(4) * * *
(ii) Recommending that the senior
Department official approve, continue
recognition with a compliance report-to
be submitted to the Department within
12 months, continue recognition with a
compliance report to be submitted to the
Department with a deadline in excess of
12 months based on a finding of good
cause and extraordinary circumstances,
approve with monitoring or other
reporting requirements, or deny, limit,
suspend, or terminate recognition; and
*
*
*
*
*
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*
PART 668—STUDENT ASSISTANCE
GENERAL PROVISIONS UNDER THE
HIGHER EDUCATION ACT OF 1965, AS
AMENDED
6. The authority citation for part 668
continues to read as follows:
■
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■
Eligible program.
*
*
*
*
*
(d) * * *
(4) * * *
(i) Is provided by an institution that
is accredited by a recognized accrediting
agency or association that was defined
as a regional accrediting agency or
association on October 1, 2007, and has
held such accreditation since October 1,
2007, or earlier; and
*
*
*
*
*
■ 8. Section 668.13 is amended by
revising paragraphs (c)(1)(i)(E) and
(c)(2)(i) through (iii) and the OMB
control number at the end of the section
to read as follows:
§ 668.13
Certification procedures.
*
*
*
*
*
(c) * * *
(1) * * *
(i) * * *
(E) The institution is a participating
institution that was accredited or
preaccredited by a nationally recognized
accrediting agency on the day before the
Secretary withdrew the Secretary’s
recognition of that agency according to
the provisions contained in 34 CFR part
602; or
*
*
*
*
*
(2) * * *
(i) Not later than the end of the first
complete award year following the date
on which the Secretary provisionally
certified the institution under paragraph
(c)(1)(i)(A) of this section;
(ii) Not later than the end of the third
complete award year following the date
on which the Secretary provisionally
certified the institution under
paragraphs (c)(1)(i)(B), (C), and (D) or
paragraph (c)(1)(ii) of this section; and
(iii) If the Secretary provisionally
certified the institution under paragraph
(c)(1)(i)(E) of this section, not later than
18 months after the date that the
Secretary withdrew recognition from the
institution’s nationally recognized
accrediting agency.
*
*
*
*
*
(Approved by the Office of Management and
Budget under control number 1845–0022)
9. Section 668.23 is amended by:
a. Revising paragraph (d)(1);
b. Adding paragraph (i);
c. Revising the OMB control number
at the end of the section; and
■ d. Removing the authority citation at
the end of the section.
■
■
■
■
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*
*
*
*
*
(d) * * *
(1) General. To enable the Secretary to
make a determination of financial
responsibility, an institution must, to
the extent requested by the Secretary,
submit to the Secretary a set of financial
statements for its latest complete fiscal
year, as well as any other
documentation the Secretary deems
necessary to make that determination.
Financial statements submitted to the
Secretary must include the
Supplemental Schedule required under
§ 668.172(a) and Section 2 of Appendix
A and B to subpart L of this part, and
must be prepared on an accrual basis in
accordance with generally accepted
accounting principles, and audited by
an independent auditor in accordance
with generally accepted government
auditing standards, issued by the
Comptroller General of the United
States and other guidance contained in
2 CFR Part 200—Uniform
Administrative Requirements, Cost
Principles, And Audit Requirements For
Federal Awards; or in audit guides
developed by, and available from, the
Department of Education’s Office of
Inspector General, whichever is
applicable. As part of these financial
statements, the institution must include
a detailed description of related entities
based on the definition of a related
entity as set forth in Accounting
Standards Codification (ASC) 850. The
disclosure requirements under this
provision extend beyond those of ASC
850 to include all related parties and a
level of detail that would enable to
Secretary to readily identify the related
party. Such information may include,
but is not limited to, the name, location
and a description of the related entity
including the nature and amount of any
transactions between the related party
and the institution, financial or
otherwise, regardless of when they
occurred.
*
*
*
*
*
(i) Incorporation by reference. The
material listed in this paragraph (i) is
incorporated by reference into this
section with the approval of the Director
of the Federal Register under 5 U.S.C.
552(a) and 1 CFR part 51. This
incorporation by reference (IBR)
material is available for inspection at
U.S. Department of Education and at the
National Archives and Records
Administration (NARA). Contact U.S.
Department of Education at: Office of
the General Counsel, 400 Maryland
E:\FR\FM\20OCR1.SGM
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Federal Register / Vol. 87, No. 202 / Thursday, October 20, 2022 / Rules and Regulations
Avenue SW, room 2C–136, Washington
DC 20202; phone: (202) 401–6000;
lotter on DSK11XQN23PROD with RULES1
https://www2.ed.gov/about/offices/list/
ogc/?src=oc. For information
on the availability of this material at
NARA, contact the Office of the Federal
Register—email: fr.inspection@nara.gov;
website: www.archives.gov/federalregister/cfr/ibr-locations.html. The
material may be obtained from the
Financial Accounting Standards Board
VerDate Sep<11>2014
15:48 Oct 19, 2022
Jkt 259001
(FASB), 401 Merritt 7, P.O. Box 5116,
Norwalk, CT 06856–5116; (203) 847–
0700; www.fasb.org.
(1) Accounting Standards Codification
(ASC) 850, Related Party Disclosures,
Updated through September 10, 2018.
(2) [Reserved]
(Approved by the Office of Management and
Budget under control number 1845–0038 10.
10. Section 668.172 is amended by
revising paragraphs (b), (c)(1), and (e)
■
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and the OMB control number at the end
of the section to read as follows:
§ 668.172
Financial ratios.
*
*
*
*
*
(b) Ratios. The Primary Reserve,
Equity, and Net Income ratios are
defined under appendix A to this
subpart for proprietary institutions, and
under appendix B to this subpart for
private non-profit institutions.
BILLING CODE 4000–01–P
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Federal Register / Vol. 87, No. 202 / Thursday, October 20, 2022 / Rules and Regulations
(1) The ratios for proprietary institutions are:
(i)
Primary Reserve Ratio
Adjusted Equity
Total Expenses and Losses
(ii) Equity Ratio
Modified Equity
Modified Assets
(iii) Net Income Ratio
Income Before Taxes
Total Revenue and Gains
(2) The ratios for private non-profit institutions
are:
(i) Primary Reserve Ratio
Expendable Net Assets
Total Expenses without Donor Restrictions and Losses without
Donor Restrictions
(ii) Equity Ratio
Modified Net Assets
Modified Assets
(iii) Net Income Ratio
Change in Net Assets without Donor Restrictions
BILLING CODE 4000–01–C
(c) * * *
(1) Generally excludes income or
losses from discontinued operations
under Accounting Standards
Codification 205, prior period
VerDate Sep<11>2014
15:48 Oct 19, 2022
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adjustments, the cumulative effect of
changes in accounting principles, and
the effect of changes in accounting
estimates;
*
*
*
*
*
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(e) Incorporation by reference. The
material listed in this paragraph (e) is
incorporated by reference into this
section with the approval of the Director
of the Federal Register under 5 U.S.C.
E:\FR\FM\20OCR1.SGM
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ER20OC22.005
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Total Revenue without Donor Restrictions and Gains without Donor
Restrictions
Federal Register / Vol. 87, No. 202 / Thursday, October 20, 2022 / Rules and Regulations
552(a) and 1 CFR part 51. This
incorporation by reference (IBR)
material is available for inspection at
U.S. Department of Education and at the
National Archives and Records
Administration (NARA). Contact U.S.
Department of Education at: Office of
the General Counsel, 400 Maryland
Avenue SW, Room 2C–136, Washington
DC 20202; phone: (202) 401–6000;
https://www2.ed.gov/about/offices/list/
ogc/?src=oc. For information
on the availability of this material at
NARA, contact the Office of the Federal
Register—email: fr.inspection@nara.gov;
website: www.archives.gov/federalregister/cfr/ibr-locations.html. The
material may be obtained from the
Financial Accounting Standards Board
(FASB), 401 Merritt 7, P.O. Box 5116,
Norwalk, CT 06856–5116; (203) 847–
0700; www.fasb.org.
(1) Accounting Standards Update
(ASU) 2016–02, Leases (Topic 842),
(February 2016).
(2) Accounting Standards Codification
(ASC) 205, Presentation of Financial
Statements, Updated through August 9,
2021 (with taxonomy revisions as of
January 26, 2022).
(Approved by the Office of Management and
Budget under control number 1845–0022)
11. Section 668.175 is amended by
revising paragraph (c) to read as follows:
■
§ 668.175 Alternative standards and
requirements.
lotter on DSK11XQN23PROD with RULES1
*
*
*
*
*
(c) Financial protection alternative for
participating institutions. A
participating institution that is not
financially responsible either because it
does not satisfy one or more of the
standards of financial responsibility
under § 668.171(b), (c), or (d), or
because of an audit opinion or going
concern disclosure described under
§ 668.171(h), qualifies as a financially
responsible institution by submitting an
irrevocable letter of credit that is
acceptable and payable to the Secretary,
or providing other surety described
under paragraph (h)(2)(i) of this section,
for an amount determined by the
Secretary that is not less than one-half
of the title IV, HEA program funds
received by the institution during its
most recently completed fiscal year,
except that this requirement does not
apply to a public institution.
*
*
*
*
*
[FR Doc. 2022–22822 Filed 10–19–22; 8:45 am]
BILLING CODE 4000–01–P
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DEPARTMENT OF VETERANS
AFFAIRS
38 CFR Part 14
[2900–AR72]
Delegated Authority to Settle Federal
Tort Claims Act Administrative Tort
Claims
Department of Veterans Affairs.
Final rule.
AGENCY:
ACTION:
The Department of Veterans
Affairs (VA) is amending its regulation
governing delegated authority to settle
administrative tort claims pursuant to
the Federal Tort Claims Act (FTCA) to
$500,000. This regulation also amends
the delegated authority to the Veterans
Health Administration (VHA) to $5,000
to settle non-medical malpractice claims
pursuant to the FTCA.
DATES: Effective date: This rule is
effective October 20, 2022.
Applicability date: The provisions of
this final rule shall apply to all VA
FTCA settlements on or after the date of
publication of this final rule in the
Federal Register.
FOR FURTHER INFORMATION CONTACT:
Michael Newman, Chief Counsel, Office
of the General Counsel (021),
Department of Veterans Affairs, 810
Vermont Avenue NW, Washington, DC
20420, (202) 461–4900. (This is not a
toll-free telephone number.)
SUPPLEMENTARY INFORMATION: Title 28 of
the Code of Federal Regulations, chapter
1, governs the Department of Justice
(DOJ) and part 14 covers administration
of claims under the Federal Tort Claims
Act. The regulations in 28 CFR part 14,
appendix A, Delegations of Settlement
Authority, were amended by DOJ
effective March 23, 2020 (85 FR 10267).
The amendment increases the authority
delegated to the Secretary of Veterans
Affairs to settle administrative tort
claims where the amount of settlement
does not exceed $500,000. Previously
delegated authority was limited to
claims not exceeding $300,000.
Presently, 38 CFR 14.600 reflects the
delegated authority prior to March 23,
2020, which no longer applies to the
Secretary’s delegated authority. As a
result of the DOJ delegation increasing
the Secretary’s settlement authority
under the FTCA, 38 CFR 14.600 no
longer accurately reflects the settlement
authority of the General Counsel,
Deputy General Counsel, and Chief
Counsel, Torts Law Group or those
authorized to act for them. Therefore 38
CFR 14.600 is amended to reflect this
increase in delegated settlement
authority.
SUMMARY:
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63695
In addition, effective May 21, 2020,
VHA Directive 1093, Delegation of
Authority to Process Tort Claims, was
revised to increase delegated settlement
authority for VISN and VA medical
facility Directors. The Directive allows
resolution of non-medical malpractice
(personal injury or property damage)
claims (‘‘small claims’’) asserting
damages of $5,000 or less to be settled
within the Directors’ authority.
Presently, 38 CFR 14.600 reflects the
maximum delegated authority to the
Directors as $2,500. Therefore 38 CFR
14.600 is amended to reflect this
increase in VHA’s delegated settlement
authority.
Administrative Procedure Act
This final rule is a procedural rule
that does not impose new rights, duties,
or obligations on affected individuals
but, rather, eliminates duplicate filings
under the statutory requirement that
agents and attorneys file a copy of a fee
agreement ‘‘with the Secretary.’’ See 38
U.S.C. 5904(c)(2). Therefore, it is
exempt from the prior notice-andcomment and delayed-effective-date
requirements of 5 U.S.C. 553. See 5
U.S.C. 553(b)(A) and (d)(3). This rule
merely acknowledges settlement
authority increases of: (1) VA to settle
FTCA administrative claims without
DOJ approval; and (2) VHA to settle
small claims.
Paperwork Reduction Act
This final rule contains no provisions
constituting a collection of information
under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501–3521).
Regulatory Flexibility Act
The initial and final regulatory
flexibility analyses requirements of
sections 603 and 604 of the Regulatory
Flexibility Act, 5 U.S.C. 601–612, are
not applicable to this rule, because a
notice of proposed rulemaking is not
required for this rule. Even so, the
Secretary hereby certifies that this final
rule will not have a significant
economic impact on a substantial
number of small entities as they are
defined in the Regulatory Flexibility
Act. At a minimum, this rule will affect
only: (1) Office of General Counsel
(OGC) attorneys and paralegals settling
FTCA administrative claims; and (2)
VHA employees settling small claims.
However, it will not have a significant
economic impact on these individuals,
as it will result in decreased
involvement of DOJ and OGC.
Therefore, pursuant to 5 U.S.C. 605(b),
this rulemaking is exempt from the
initial and final regulatory flexibility
E:\FR\FM\20OCR1.SGM
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Agencies
[Federal Register Volume 87, Number 202 (Thursday, October 20, 2022)]
[Rules and Regulations]
[Pages 63689-63695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22822]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
34 CFR Parts 668, 600, and 602
[Docket ID ED-2018-OPE-0076, ED-2018-OPE-0027]
RIN 1840-AD26, 1840-AD36, 1840-AD37, 1840-AD38
Student Assistance General Provisions, Federal Family Education
Loan Program, and William D. Ford Federal Direct Loan Program; Student
Assistance General Provisions, The Secretary's Recognition of
Accrediting Agencies, The Secretary's Recognition Procedures for State
Agencies; Distance Education and Innovation; Corrections
AGENCY: Office of Postsecondary Education, Department of Education.
ACTION: Final rule; technical corrections.
-----------------------------------------------------------------------
SUMMARY: The Department of Education (Department or we) corrects the
text in regulations issued under the Higher Education Act of 1965, as
amended (HEA) and published in the Federal Register on: September 23,
2019, for provisions relating to Borrower Defense to Repayment and
Financial Responsibility; November 1, 2019, for provisions relating to
Accreditation, State Authorization, and the Student Assistance General
Provisions; and September 2, 2020, for provisions relating to Distance
Education and Innovation, Institutional Eligibility, and the Student
Assistance General Provisions.
DATES: These corrections are effective October 20, 2022. The
incorporation by reference of certain publications listed in this
document is approved by the Director of the Federal Register as of
October 20, 2022.
FOR FURTHER INFORMATION CONTACT: Gregory Martin, 400 Maryland Avenue
SW, Room 2C-136, Washington DC 20202. Telephone: (202) 453-7535. Email:
[email protected].
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.
SUPPLEMENTARY INFORMATION:
Incorporation by Reference. In Sec. 668.172(c)(1) of this
correction, we reference the following accounting standard: Accounting
Standards Codification (ASC) 205. ASC 205 provides standards on the
presentation of financial statements. In Sec. 668.23(d)(1), we
reference the following accounting standard: Accounting Standards
Codification
[[Page 63690]]
(ASC) 850. ASC 850 provides for accounting and reporting issues
concerning related party transactions and relationships. These
standards are available at www.fasb.org, registration required.
Summary of Corrections
The Department's Borrower Defense to Repayment Rule, published in
the Federal Register on September 23, 2019, (84 FR 49788) contains the
following errors:
1. The regulations in 34 CFR 668.175(c) mistakenly suggest that an
institution that is not financially responsible may participate as a
financially responsible institution by providing any of the financial
protections included in 34 CFR 668.175(h). However, under Section
498(c) of the HEA, some options included in 34 CFR 668.175(h) do not
make an institution financially responsible. To conform the regulations
to the provisions of the HEA, the reference in 34 CFR 668.175(c) is
corrected to refer only to the surety provisions in 34 CFR
668.175(h)(2)(i).
2. The audit requirements in 34 CFR 668.23(d) do not specify that
the Supplemental Schedule is part of the audited financial statements
submission, as required under 34 CFR 668.172(a) and Section 2 of
Appendix A and B to subpart L of the General Provisions regulations,
and do not cite the current audit guidance and accounting standards.
This correction updates 34 CFR 668.23(d).
3. The financial ratios in 34 CFR 668.172(b) do not conform to the
related revisions to the accounting terminology and to the definition
of terms as specified in Appendices A and B to subpart L of the General
Provisions regulations. This correction updates 34 CFR 668.172(b).
4. Two of the terms described in 34 CFR 668.172(c)(1),
``extraordinary gains and losses'', and ``income or losses from
discontinued operations'' do not reflect changes in accounting
standards. The accounting standards eliminated ``extraordinary gains
and losses'' and modified the requirements for ``income and losses from
discontinued operations.'' This correction updates 34 CFR 668.172(c) to
conform to accounting standards.
The Department's Accreditation and State Authorization Rule,
published in the Federal Register on November 1, 2019, (84 FR 58834)
contained the following errors:
1. The regulations in 34 CFR 602.32(h)(4)(ii) relating, in part, to
the disposition of an accrediting agency's recognition conflict with
related provisions in 34 CFR 602.34, Advisory Committee meetings, and
34 CFR 602.36, Senior Department Official's decision. Under 34 CFR
602.23(h)(4)(iii), Department staff have the option to recommend that
the senior Department official renew an agency with compliance
reporting, but that option is not aligned with 34 CFR 602.34(g) and 34
CFR 602.36(e), which require continuing recognition pending submission
of a compliance report. This correction updates 34 CFR 602 (h)(4)(ii)
to conform with the provisions in 602.34(g) and 602.36(e). We note that
we acknowledged that 34 CFR 602.32(h)(4)(ii) did not align with
602.36(e) at page 27437 of the proposed rule (84 FR 27404) and it was
an oversight that we did not correct this inconsistency at that time.
Additionally, allowing renewal under 34 CFR 602.32(h)(4)(ii), when
there are noncompliant issues would violate section 496b(d) of the HEA
(20 U.S.C. 1099b), which provides that no accrediting agency or
association may be determined by the Secretary to be a reliable
authority, unless the agency or association meets criteria established
by the Secretary.
2. The eligible program regulations in 34 CFR 668.8(d)(4)(i) were
not updated to conform to a related revision to 34 CFR 602.11. The
amendment to Sec. 602.11 revised the requirements for establishing the
geographic area of an accrediting agency's activities that may cause
accrediting agencies previously defined as ``regional agencies'' to be
defined instead as agencies whose activities extend throughout the
United States. This correction updates 34 CFR 668.8(d)(4)(i) to conform
with the current provisions in 34 CFR 602.11 by referring to
accrediting agencies that were defined as regional areas on October 1,
2007 rather than referring to agencies that were previously defined as
``regional.''
3. The provisional certification provisions in 34 CFR
668.13(c)(2)(i) erroneously reference paragraph (c)(1)(i) instead of
paragraph (c)(1)(i)(A). The correction updates 34 CFR 668.13(c)(2)(i)
with the correct cross-reference applicable to institutions seeking
initial participation in the Title IV, HEA programs.
4. The provisional certification provisions in 34 CFR
668.13(c)(2)(ii) erroneously reference ``paragraphs (c)(1)(ii), (iii),
(iv) or (e)(2)'' instead of referencing ``paragraphs (c)(1)(i)(B), (C),
(D) or (c)(1)(ii).'' The correction updates 34 CFR 668.13(c)(2)(ii)
with the correct cross-references.
5. The provisional certification provisions in 34 CFR
668.13(c)(2)(iii) erroneously reference paragraph (c)(1)(v) instead of
paragraph (c)(1)(i)(E). The correction updates 34 CFR 668.13(c)(2)(iii)
with the correct cross-reference.
6. The provisional certification provisions in 34 CFR
668.13(c)(1)(i)(E) erroneously reference 34 CFR part 603 instead of 34
CFR part 602. The correction updates 34 CFR 668.13(c)(1)(i)(E) with the
correct cross-reference.
The Department's Distance Education and Innovation Rule, published
in the Federal Register on September 2, 2020, (85 FR 54742) contained
the following errors:
1. The amendatory instructions at the end of the rule mistakenly
instructed the Office of the Federal Register to revise Sec.
600.10(c)(1)(iii) with language that was supposed to amend paragraph
(c)(1)(ii). Consequently, Sec. 600.10(c)(1)(ii) was not amended and
the substance of Sec. 600.10(c)(iii) was instead removed from the
regulations. This correction restores the text in paragraph (c)(1)(iii)
relating to the Secretary's approval of short-term programs and revises
paragraph (c)(1)(ii). These changes ensure that the language in Sec.
600.10(c) reflects the language that the negotiated committee reached
consensus on. For more information about the substance of the amendment
to Sec. 600.10(c)(2)(ii), please see discussion of this change in the
Department's April 2, 2020, notice of proposed rulemaking (85 FR
18650).
2. The accrediting agency regulations under 34 CFR
602.22(a)(1)(ii)(J) were not updated to conform to a related change
made to the written arrangement provisions under 34 CFR
668.5(c)(3)(ii)(A). Current Sec. 668.5(c)(3)(ii)(A) allows an
ineligible institution or organization to provide more than 25 percent
but less than 50 percent of an educational program in accordance with
34 CFR 602.22(a)(1)(ii)(J). However, accrediting agency approval of
such an arrangement is required under 34 CFR 602.22(a)(1)(ii)(J).
Notably, the negotiated rulemaking committee for the Distance Education
and Innovation Rule reached consensus on the revisions to current Sec.
668.5(c)(3)(ii)(A). This correction updates 34 CFR 602.22(a)(1)(ii)(J)
to align with Sec. 668.5(c)(3)(ii)(A), which is the language that the
negotiated rulemaking committee agreed to.
Waiver of Proposed Rulemaking, Negotiated Rulemaking and Delayed
Effective Date
In accordance with the Administrative Procedure Act, 5 U.S.C. 553,
the Department generally offers
[[Page 63691]]
interested parties the opportunity to comment on proposed regulations.
However, the APA provides that an agency is not required to conduct
notice-and-comment rulemaking when the agency, for good cause, finds
that notice and public comment thereon are impracticable, unnecessary,
or contrary to the public interest (5 U.S.C. 553(b)(B)). There is good
cause to waive rulemaking here as unnecessary.
Rulemaking is ``unnecessary'' in those situations in which ``the
administrative rule is a routine determination, insignificant in nature
and impact, and inconsequential to the industry and to the public.''
Utility Solid Waste Activities Group v. EPA, 236 F.3d 749, 755 (D.C.
Cir. 2001), quoting U.S. Department of Justice, Attorney General's
Manual on the Administrative Procedure Act 31 (1947) and South Carolina
v. Block, 558 F. Supp. 1004, 1016 (D.S.C. 1983). However, the
regulatory changes in this document are necessary to correct errors and
to make routine technical updates. Thus, the Department has determined
that publication of a proposed rule is unnecessary under 5 U.S.C.
553(b)(B).
In addition, under section 492 of the HEA (20 U.S.C. 1098a), all
regulations proposed by the Department for programs authorized under
title IV of the HEA are subject to negotiated rulemaking requirements.
Section 492(b)(2) of the HEA provides that negotiated rulemaking may be
waived for good cause when doing so would be ``impracticable,
unnecessary, or contrary to the public interest.'' There is likewise
good cause to waive the negotiated rulemaking requirement in this case,
since, as explained above, notice and comment rulemaking is
unnecessary.
The APA generally requires that regulations be published at least
30 days before their effective date, unless the agency has good cause
to implement its regulations sooner (5 U.S.C. 553(d)(3)). As previously
stated, because the final regulations correct errors and make routine
technical updates, there is good cause to waive the delayed effective
date in the APA and make the final regulations effective upon
publication.
Regulatory Flexibility Act Certification
The Regulatory Flexibility Act does not apply to this rulemaking
because there is good cause to waive notice and comment under 5 U.S.C.
553.
Paperwork Reduction Act of 1995
The final regulations do not create any new information collection
requirements.
Intergovernmental Review
The Student Assistance General Provisions, the Secretary's
Recognition of Accrediting Agencies, and the Secretary's Recognition
Procedures for State Agencies are subject to Executive Order 12372 and
the regulations in 34 CFR part 79. One of the objectives of the
Executive order is to foster an intergovernmental partnership and a
strengthened federalism. The Executive order relies on processes
developed by State and local governments for coordination and review of
proposed Federal financial assistance.
This document provides early notification of our specific plans and
actions for these programs.
Assessment of Educational Impact
Based on our own review, we have determined that the final
regulations do not require transmission of information that any other
agency or authority of the United States gathers or makes available.
Federalism
Federalism Executive Order 13132 requires us to ensure meaningful
and timely input by State and local elected officials in the
development of regulatory policies that have federalism implications.
``Federalism implications'' means substantial direct effects on the
States, on the relationship between the National Government and the
States, or on the distribution of power and responsibilities among the
various levels of government. This final rule may have federalism
implications.
Accessible Format: On request to the program contact person listed
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities
can obtain this document in an accessible format. The Department will
provide the requestor with an accessible format that may include Rich
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file,
braille, large print, audiotape, or compact disc, or other accessible
format.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at www.govinfo.gov. 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.
List of Subjects
34 CFR Part 600
Colleges and universities, Foreign relations, Grant programs-
education, Loan programs-education, Reporting and recordkeeping
requirements, Selective Service System, Student aid, Vocational
education.
34 CFR Part 602
Reporting and recordkeeping requirements.
34 CFR Part 668
Administrative practice and procedure, Aliens, Colleges and
universities, Consumer protection, Grant programs-education,
Incorporation by reference, Loan programs-education, Reporting and
recordkeeping requirements, Selective Service System, Student aid,
Vocational education.
Nasser H. Paydar,
Assistant Secretary for Postsecondary Education.
For the reasons discussed in the preamble, the Secretary of
Education amends 34 CFR parts 600, 602, and 668 by making the following
technical corrections:
PART 600--INSTITUTIONAL ELIGIBILITY UNDER THE HIGHER EDUCATION ACT
OF 1965, AS AMENDED
0
1. The authority citation for part 600 continues to read as follows:
Authority: 20 U.S.C. 1001, 1002, 1003, 1088, 1091, 1094, 1099b,
and 1099c, unless otherwise noted.
0
2. Section 600.10 is amended by revising paragraphs (c)(1)(ii) and
(iii) and the OMB control number at the end of the section to read as
follows:
Sec. 600.10 Date, extent, duration, and consequence of eligibility.
* * * * *
(c) * * *
(1) * * *
(ii) For the first direct assessment program under 34 CFR 668.10
offered at each credential level, and for a comprehensive transition
and postsecondary program under 34 CFR 668.232, obtain the Secretary's
approval.
(iii) For an undergraduate program that is at least 300 clock hours
but less than 600 clock hours and does not
[[Page 63692]]
admit as regular students only persons who have completed the
equivalent of an associate degree under 34 CFR 668.8(d)(3), obtain the
Secretary's approval.
* * * * *
(Approved by the Office of Management and Budget under control
number 1845-0012)
PART 602--THE SECRETARY'S RECOGNITION OF ACCREDITING AGENCIES
0
3. The authority citation for part 602 continues to read as follows:
Authority: 20 U.S.C. 1099b, unless otherwise noted.
0
4. Section 602.22 is amended by revising paragraph (a)(1)(ii)(J) to
read as follows:
Sec. 602.22 Substantive change.
* * * * *
(a) * * *
(1) * * *
(ii) * * *
(J) Entering into a written arrangement under 34 CFR 668.5 under
which an institution or organization not certified to participate in
the title IV, HEA programs offers more than 25 percent but less than 50
percent of one or more of the accredited institution's educational
programs.
* * * * *
0
5. Section 602.32 is amended by revising paragraph (h)(4)(ii) to read
as follows:
Sec. 602.32 Procedures for Department review of application for
recognition or for change in scope, compliance reports, and increases
in enrollment.
* * * * *
(h) * * *
(4) * * *
(ii) Recommending that the senior Department official approve,
continue recognition with a compliance report-to be submitted to the
Department within 12 months, continue recognition with a compliance
report to be submitted to the Department with a deadline in excess of
12 months based on a finding of good cause and extraordinary
circumstances, approve with monitoring or other reporting requirements,
or deny, limit, suspend, or terminate recognition; and
* * * * *
PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS UNDER THE HIGHER
EDUCATION ACT OF 1965, AS AMENDED
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6. The authority citation for part 668 continues to read as follows:
Authority: 20 U.S.C. 1001-1003, 1070g, 1085, 1088, 1091, 1092,
1094, 1099c-1, 1221-3, and 1231a, unless otherwise noted.
0
7. Section 668.8 is amended by revising paragraph (d)(4)(i) to read as
follows:
Sec. 668.8 Eligible program.
* * * * *
(d) * * *
(4) * * *
(i) Is provided by an institution that is accredited by a
recognized accrediting agency or association that was defined as a
regional accrediting agency or association on October 1, 2007, and has
held such accreditation since October 1, 2007, or earlier; and
* * * * *
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8. Section 668.13 is amended by revising paragraphs (c)(1)(i)(E) and
(c)(2)(i) through (iii) and the OMB control number at the end of the
section to read as follows:
Sec. 668.13 Certification procedures.
* * * * *
(c) * * *
(1) * * *
(i) * * *
(E) The institution is a participating institution that was
accredited or preaccredited by a nationally recognized accrediting
agency on the day before the Secretary withdrew the Secretary's
recognition of that agency according to the provisions contained in 34
CFR part 602; or
* * * * *
(2) * * *
(i) Not later than the end of the first complete award year
following the date on which the Secretary provisionally certified the
institution under paragraph (c)(1)(i)(A) of this section;
(ii) Not later than the end of the third complete award year
following the date on which the Secretary provisionally certified the
institution under paragraphs (c)(1)(i)(B), (C), and (D) or paragraph
(c)(1)(ii) of this section; and
(iii) If the Secretary provisionally certified the institution
under paragraph (c)(1)(i)(E) of this section, not later than 18 months
after the date that the Secretary withdrew recognition from the
institution's nationally recognized accrediting agency.
* * * * *
(Approved by the Office of Management and Budget under control
number 1845-0022)
0
9. Section 668.23 is amended by:
0
a. Revising paragraph (d)(1);
0
b. Adding paragraph (i);
0
c. Revising the OMB control number at the end of the section; and
0
d. Removing the authority citation at the end of the section.
The revisions and addition read as follows:
Sec. 668.23 Compliance audits and audited financial statements.
* * * * *
(d) * * *
(1) General. To enable the Secretary to make a determination of
financial responsibility, an institution must, to the extent requested
by the Secretary, submit to the Secretary a set of financial statements
for its latest complete fiscal year, as well as any other documentation
the Secretary deems necessary to make that determination. Financial
statements submitted to the Secretary must include the Supplemental
Schedule required under Sec. 668.172(a) and Section 2 of Appendix A
and B to subpart L of this part, and must be prepared on an accrual
basis in accordance with generally accepted accounting principles, and
audited by an independent auditor in accordance with generally accepted
government auditing standards, issued by the Comptroller General of the
United States and other guidance contained in 2 CFR Part 200--Uniform
Administrative Requirements, Cost Principles, And Audit Requirements
For Federal Awards; or in audit guides developed by, and available
from, the Department of Education's Office of Inspector General,
whichever is applicable. As part of these financial statements, the
institution must include a detailed description of related entities
based on the definition of a related entity as set forth in Accounting
Standards Codification (ASC) 850. The disclosure requirements under
this provision extend beyond those of ASC 850 to include all related
parties and a level of detail that would enable to Secretary to readily
identify the related party. Such information may include, but is not
limited to, the name, location and a description of the related entity
including the nature and amount of any transactions between the related
party and the institution, financial or otherwise, regardless of when
they occurred.
* * * * *
(i) Incorporation by reference. The material listed in this
paragraph (i) is incorporated by reference into this section with the
approval of the Director of the Federal Register under 5 U.S.C. 552(a)
and 1 CFR part 51. This incorporation by reference (IBR) material is
available for inspection at U.S. Department of Education and at the
National Archives and Records Administration (NARA). Contact U.S.
Department of Education at: Office of the General Counsel, 400 Maryland
[[Page 63693]]
Avenue SW, room 2C-136, Washington DC 20202; phone: (202) 401-6000;
https://www2.ed.gov/about/offices/list/ogc/?src=oc. For
information on the availability of this material at NARA, contact the
Office of the Federal Register--email: [email protected]; website:
www.archives.gov/federal-register/cfr/ibr-locations.html. The material
may be obtained from the Financial Accounting Standards Board (FASB),
401 Merritt 7, P.O. Box 5116, Norwalk, CT 06856-5116; (203) 847-0700;
www.fasb.org.
(1) Accounting Standards Codification (ASC) 850, Related Party
Disclosures, Updated through September 10, 2018.
(2) [Reserved]
(Approved by the Office of Management and Budget under control
number 1845-0038 10.
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10. Section 668.172 is amended by revising paragraphs (b), (c)(1), and
(e) and the OMB control number at the end of the section to read as
follows:
Sec. 668.172 Financial ratios.
* * * * *
(b) Ratios. The Primary Reserve, Equity, and Net Income ratios are
defined under appendix A to this subpart for proprietary institutions,
and under appendix B to this subpart for private non-profit
institutions.
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(c) * * *
(1) Generally excludes income or losses from discontinued
operations under Accounting Standards Codification 205, prior period
adjustments, the cumulative effect of changes in accounting principles,
and the effect of changes in accounting estimates;
* * * * *
(e) Incorporation by reference. The material listed in this
paragraph (e) is incorporated by reference into this section with the
approval of the Director of the Federal Register under 5 U.S.C.
[[Page 63695]]
552(a) and 1 CFR part 51. This incorporation by reference (IBR)
material is available for inspection at U.S. Department of Education
and at the National Archives and Records Administration (NARA). Contact
U.S. Department of Education at: Office of the General Counsel, 400
Maryland Avenue SW, Room 2C-136, Washington DC 20202; phone: (202) 401-
6000; https://www2.ed.gov/about/offices/list/ogc/?src=oc. For
information on the availability of this material at NARA, contact the
Office of the Federal Register--email: [email protected]; website:
www.archives.gov/federal-register/cfr/ibr-locations.html. The material
may be obtained from the Financial Accounting Standards Board (FASB),
401 Merritt 7, P.O. Box 5116, Norwalk, CT 06856-5116; (203) 847-0700;
www.fasb.org.
(1) Accounting Standards Update (ASU) 2016-02, Leases (Topic 842),
(February 2016).
(2) Accounting Standards Codification (ASC) 205, Presentation of
Financial Statements, Updated through August 9, 2021 (with taxonomy
revisions as of January 26, 2022).
(Approved by the Office of Management and Budget under control
number 1845-0022)
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11. Section 668.175 is amended by revising paragraph (c) to read as
follows:
Sec. 668.175 Alternative standards and requirements.
* * * * *
(c) Financial protection alternative for participating
institutions. A participating institution that is not financially
responsible either because it does not satisfy one or more of the
standards of financial responsibility under Sec. 668.171(b), (c), or
(d), or because of an audit opinion or going concern disclosure
described under Sec. 668.171(h), qualifies as a financially
responsible institution by submitting an irrevocable letter of credit
that is acceptable and payable to the Secretary, or providing other
surety described under paragraph (h)(2)(i) of this section, for an
amount determined by the Secretary that is not less than one-half of
the title IV, HEA program funds received by the institution during its
most recently completed fiscal year, except that this requirement does
not apply to a public institution.
* * * * *
[FR Doc. 2022-22822 Filed 10-19-22; 8:45 am]
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