Rule2022-22822
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
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 20, 2022
Effective
October 20, 2022
Issuing agencies
Education Department
Abstract
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.
Full Text
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<title>Federal Register, Volume 87 Issue 202 (Thursday, October 20, 2022)</title>
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[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 [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-22822]
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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.
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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:
<a href="/cdn-cgi/l/email-protection#f2b58097959d808bdcbf9380869b9cb29796dc959d84"><span class="__cf_email__" data-cfemail="41063324262e33386f0c203335282f0124256f262e37">[email protected]</span></a>.
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 <a href="http://www.fasb.org">www.fasb.org</a>, 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 <a href="http://www.govinfo.gov">www.govinfo.gov</a>. 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
<a href="http://www.federalregister.gov">www.federalregister.gov</a>. 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
0
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
* * * * *
0
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;
<a href="https://www2.ed.gov/about/offices/list/ogc/index.html?src=oc">https://www2.ed.gov/about/offices/list/ogc/index.html?src=oc</a>. For
information on the availability of this material at NARA, contact the
Office of the Federal Register--email: <a href="/cdn-cgi/l/email-protection#caacb8e4a3a4b9baafa9bea3a5a48aa4abb8abe4ada5bc"><span class="__cf_email__" data-cfemail="6a0c18440304191a0f091e0305042a040b180b440d051c">[email protected]</span></a>; website:
<a href="http://www.archives.gov/federal-register/cfr/ibr-locations.html">www.archives.gov/federal-register/cfr/ibr-locations.html</a>. 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;
<a href="http://www.fasb.org">www.fasb.org</a>.
(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.
0
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.
BILLING CODE 4000-01-P
[[Page 63694]]
[GRAPHIC] [TIFF OMITTED] TR20OC22.005
BILLING CODE 4000-01-C
(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; <a href="https://www2.ed.gov/about/offices/list/ogc/index.html?src=oc">https://www2.ed.gov/about/offices/list/ogc/index.html?src=oc</a>. For
information on the availability of this material at NARA, contact the
Office of the Federal Register--email: <a href="/cdn-cgi/l/email-protection#bbddc995d2d5c8cbded8cfd2d4d5fbd5dac9da95dcd4cd"><span class="__cf_email__" data-cfemail="3553471b5c5b46455056415c5a5b755b5447541b525a43">[email protected]</span></a>; website:
<a href="http://www.archives.gov/federal-register/cfr/ibr-locations.html">www.archives.gov/federal-register/cfr/ibr-locations.html</a>. 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;
<a href="http://www.fasb.org">www.fasb.org</a>.
(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)
0
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]
BILLING CODE 4000-01-P
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