Agenda - Council Work Session - 03/08/2022

Home

4438 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations Requirements for Federal Awards (2 L Remediation and Recoupment authority and created ambiguity. Other CFR part 200) (the Uniform Guidance), Sections 602(e)and 603(e) of the commenters urged Treasury to establish including the cost principles and Social Security Act provide the a robust enforcement and compliance restrictions on general provisions for Secretary with the power to recoup program and process and advocated for selected items of cost. Treasury received "funds used in violation" of the Social the creation of a whistleblower many comments requesting clarification Security Act. The interim final rule mechanism or public complaint process about or modifications to the implemented these provisions by to allow public and private entities to applicability of the Uniform Guidance establishing a process for recoupment. report suspected misuses of funds. on various issues. Treasury may identify funds used in Finally, some commenters requested For example, one commenter violation of the Social Security Act clarification regarding the process after requested that Treasury remove based on information submitted by a violation is identified and becomes requirements that expenditures of funds recipients,including as part of reporting final. One commenter also asked to be made in conformance with the requirements, as well as information allow recipients to amend reports Uniform Guidance,particularly in case from other sources.385 If a potential deemed to contain ineligible expenses of expenditures made during period violation is identified,Treasury will and inform recipients how the agency from March 3, 2021 to the release of the provide the recipient an initial written intends to resolve instances where a use interim final rule,while other notice of the amount subject to was later deemed unacceptable. Another comments requested that Treasury raise recoupment along with an explanation commenter asked if recouped funds the single-audit threshold from of such amounts. A recipient then has could be released back to the recipient. $750,000 to$5 million. Commenters 60 calendar days following receipt of a Commenters also expressed concern sought clarification on items such as: recoupment notice to submit a request about Treasurys authority to recoup The applicability of the Uniform for reconsideration containing any funds used in violation of the tax offset Guidance for funds that are used for the information it believes supports its use provision. Some commenters requested provision of government services,the of funds.Within 60 calendar days of additional clarity around when tax cuts applicability of particular sections of the receipt of the request for would trigger Treasury's recoupment cost principles provided in subpart E of reconsideration,the interim final rule authority and the duration of Treasury's the Uniform Guidance,the applicability provided that a recipient will receive a authority to seek recoupment of such of the procurement provisions of the final notice of the Secretary's decision funds. Uniform Guidance,and requirements to affirm,withdraw,or modifythe for subrecipient reporting. Treasury Response recoupment notice. If the recipient did Treasury Response:Recipients of The final rule largely preserves the SLFRF funds are subject to the not submit a request for reconsideration, process established in the interim final provisions of the Uniform Guidance (2 the initial notice of recoupment would rule but includes several adjustments to CFR part 200) from the date of award to be deemed a final notice.A recipient clarify certain elements. the end of the period of performance on would then be required to repay any Like the interim final rule,the final December 31, 2026 unless otherwise amounts subject to recoupment within rule provides that,after an initial specified in this rule or program- 120 calendar days of either the initial determination is made that a recipient specific guidance. Costs must follow the recoupment notice,if the recipient does has used SLFRF funds in violation of requirements in 2 CFR 200 Subpart E, not request reconsideration, or the final the law,a recipient may submit a Cost Principles,including procurement recoupment notice,if the recipient does request reconsideration request for reconsideration concerning standards. Recipients that receive an . any amounts identified in a notice aggregate amount of federal financial Public Comments provided by Treasury. If a recipient assistance in a given fiscal year that Treasury received several comments chooses to seek reconsideration of the exceeds the Single Audit threshold are on the process for recoupment. For initial notice,the recipient must submit subject to the requirements in 2 CFR 200 instance, some commenters,including a request for reconsideration as Subpart F,Audit Requirements,unless many Tribal governments,requested provided under the final rule.If a otherwise specified in program-specific additional time to file a request for recipient does not request guidance. reconsideration and submit repayment reconsideration,the initial notice that SLFRF funds transferred to to ensure that small entities have the the recipient received will be deemed subrecipients are also subject to time necessary to carry out any the final notice.386 Treasury has reporting and Uniform Guidance logistical steps and consult with clarified that a recipient must invoke requirements.Additional information counsel.Treasury was also asked to and exhaust the procedures available about the definition of subrecipients is align its recoupment process with that under section 35.10 of the final rule available in the section Distinguishing of the Office of the Inspector General prior to seeking judicial review of a Subrecipients versus Beneficiaries. and other departmental administrative recoupment decision. Consistent with Recipients should refer to the processes to resolve findings, agency Section 602(b)(6)(A)(ii)(III) of the Social Assistance Listing for details on the decisions,and related timelines. One Security Act,if a state or territory is specific provisions of the Uniform commenter asked if the 120-calendar- required to repay funds pursuant to the Guidance that do not apply to this day time limit for repayment was based Secretary's recoupment authority,the program. The Assistance Listing is on the initial notice,rather than a final Secretary may reduce the amount available on SAM.gov.Additional decision issued by the Secretary. payable to the state or territory in a changes to compliance and reporting Several commenters expressed concern second tranche payment by the amount guidelines,including any clarifications regarding the recoupment process, that the state or territory would be on Uniform Guidance requirements, arguing that consideration of"all required to repay as recoupment. will be addressed in Compliance and relevant facts and circumstances" In the final rule,Treasury has Reporting Guidance and the User provided Treasury with too much clarified that,if it identifies a potential Guide.384 385 Treasury will also consider the tax offset 386 Funds subject to recoupment cannot later be 384Id. provision on an annual basis. returned.