or surface water resources may have occurred or are likely to occur. These methods may be used in the absence of more complete information on the ground water or surface water resources.

Ground Water

The longitudinal path length (LPL) factors in table 1 are to be applied in estimating the area potentially exposed downgradient of the known limit of exposure or of the boundary of the site. Estimates of later

al path width (LPW) are to be used when the LPW exceeds the width of the plume as determined from available data, or when the width of the plume at the boundary of the site is estimated as less than the LPW. In the absence of data to the contrary, the largest values of LPL and LPW consistent with the geohydrologic data available shall be used to make the estimates required in the preassessment screen. An example computation using the LPL and LPW factors follows table 1.

EXAMPLE OF COMPUTATION FOR ESTIMATING THE AREA POTENTIALLY EXPOSED VIA GROUND WATER PATHWAY

A release of hazardous substances occurs from a facility located in a glacial valley. Available data indicate the release may have occurred intermittently over a period of almost 1 year, although only one well about 300 feet downgradient of the facility boundary had detectable quantities of contaminants. The contaminated well is screened in the water table aquifer composed of gravelly sands. The facility boundary nearest the contaminated well is almost 3,000 feet in length, but a review of available data determined the release is probably localized along a 500-foot section of the boundary where a stream leaves the facility. Available water table data indicate hydraulic gradients in the valley range from 0.005 feet/mile up to 0.25 feet/mile near pumping wells. No pumping wells are known to be located near the release, and a mean hydraulic gradient of 0.1 feet/mile is estimated in the vicinity of the release site. Using the gravel factor from table 1, the LPL and LPW are estimated:

6000×0.1x1=600 feet (LPL)

and

600×0.2=120 feet (LPW).

Since the estimated LPW (120 feet) is less than the plume width (500 feet) determined

W is the total reported (or estimated) weight of the undiluted substance released, in pounds,

Q is the discharge of the creek, stream, or river, in cubic feet/second, and

T is the time, in hours, when the peak concentration is estimated to reach a downstream location L, in miles from the entry point.

The time T may be estimated from: T=1.5(L)/V,

where T and L are defined as above and

V, is the mean stream velocity, in feet per second.

The mean stream velocity may be estimated from available discharge measurements or from estimates of slope of the water surface S (foot drop per foot distance downstream) and estimates of discharge Q (defined above) using the following equations: for pool and riffle reaches V,-0.38(Q040) (Sa 20), or

As the peak concentrations become attenuated by downstream transport, the plume containing the released substance becomes elongated. The time the plume might take to pass a particular point downstream may be estimated using the following equation:

T, 9.25×10 W1/(QC) where

T, is the time estimate, in hours, and Wi, Cp, and Q are defined above.

Example 2-A release occurs and most of the oil or hazardous substance enters a creek, stream, or river very slowly or over a long time period (sustained input assumed). The maximum concentration at any downstream location, past the initial mixing distance, is estimated by: C=C(q)/(Q+q)

where C, and Q are defined above,

C is the average concentration of the released substance during the period of release, in mg/L, and

q is the discharge rate of the release into the streamflow, in cubic feet/second. For the above computations, the initial mixing distance may be estimated by: Lim (1.7x10-5)V,B2/(D1.5 0.5)

where

Lm is the initial mixing distance, in miles,
V, is defined above,

B is the average stream surface width, in ft, D is the mean depth of the stream, in ft, and

S is the estimated water-surface slope, in ft/

ft.

Auditor selection.

12.29 Small and minority audit firms.

12.30 Reporting.

12.31 Supplemental program guidance.

APPENDIX-DEFINITION OF MAJOR PROGRAM

AS PROVIDED IN PUB. L. 98-502.

AUTHORITY: 5 U.S.C. 301; Pub. L. 98-502; OMB Circular A-128.

Subpart A-Administrative
Requirements and Cost Principles

SOURCE: 50 FR 6176, Feb. 14, 1985, unless otherwise noted.

§ 12.1 Scope of part.

This part prescribes administrative requirements and cost principles for grants and cooperative agreements entered into by the Department.

§ 12.2 Policy.

(a) All financial assistance awards and subawards, in the form of grants and cooperative agreements, in accordance with paragraph (b) below, are subject to OMB Circulars A-102, "Uniform Administrative Requirements for Grants-in-Aid to State and Local Government," A-110, "Grants and Other Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations," A-87, "Cost Principles for State and Local Governments," A-21, "Cost Principles for Educational Institutions," and A122, "Cost Principles for Nonprofit Organizations," as revised. The Bureau of Indian Affairs (BIA) is exempt from the requirements of paragraph B 21 on lobbying in OMB Circular A-122, until May 1, 1985. The Office of Territorial and International Affairs (TIA) is exempt from the requirements of this regulation until June 1, 1985.

(b)(1) Governmental recipients and subrecipients are subject to Circulars A-102 and A-87.

(2) Institutions of higher education which are recipients or subrecipients are subject to Circulars A-110 and A21.

(3) Nonprofit organizations which are recipients or subrecipients are subject to Circulars A-110 and A-122.

(c) The Circulars prescribed by this part published in the FEDERAL REGISTER are made a part of this regulation and include changes published in the FEDERAL REGISTER by OMB.

§ 12.3 Effect on prior issuances.

(a) All provisions of Department of the Interior nonregulatory program manuals, handbooks and other materials which are inconsistent with the above OMB Circulars are superseded, except to the extent that they are (1)

required by statute, or (2) authorized in accordance with the exceptions provisions of each Circular.

(b) All existing Department of the Interior regulations in 25 CFR Parts 23, 27, 39, 40, 41, 256, 272, 278, and 276; 30 CFR Parts 725, 735, 884, 886, and 890; 36 CFR Parts 60, 61, 63, 65, 67, 72, and 800; 43 CFR Parts 26 and 32; and 50 CFR Parts 80, 81, 82, 83, and 401 are not superseded by these regulations nor are any paperwork approvals under the Paperwork Reduction Act. § 12.4 Information

ments.

collection

require

Information collections in addition to those required by applicable OMB Circulars will be cleared by responsible bureaus and offices on an individual basis.

§ 12.5 Waiver.

Only OMB can grant exceptions from the requirements of these Circulars when exceptions are not prohibited under existing laws.

Subpart B-Audit Requirements for State and Local Governments

SOURCE: 50 FR 25224, June 18, 1985, unless otherwise noted.

§ 12.11 Purpose.

This Circular is issued pursuant to section 7505 of the Single Audit Act of 1984, (Pub. L. 98-502), and OMB Circular A-128. It establishes audit requirements for State and local governments that receive Federal aid, through the U.S. Department of the Interior and defines the Department's responsibilities for implementing and monitoring those requirements.

§ 12.12 Supersession.

The rule supersedes the requirements of Attachment P, "Audit Requirements," dated October 22, 1979, to OMB Circular A-102, "Uniform requirements for grants to State and local governments," among recipients of assistance for which the Department of the Interior is the cognizant audit agency.

§ 12.13 Background.

The Single Audit Act builds upon earlier efforts to improve audits of Federal aid programs. The Act requires State or local governments that receive $100,000 or more a year in Federal funds to have an audit made for that year. section 7505 of the Act requires the Director of the Office of Management and Budget to prescribe policies, procedures and guidelines to implement the Act. It specifies that the Director shall designate "cognizant" Federal agencies, determine criteria for making appropriate charges to Federal programs for the cost of audits, and provide procedures to assure that small firms or firms owned and controlled by disadvantaged individuals have the opportunity to participate in contracts for single audits.

§ 12.14 Policy.

The Single Audit Act requires the following:

(a) State or local governments that receive $100,000 or more a year in Federal financial assistance shall have an audit made in accordance with this Circular.

(b) State or local governments that receive between $25,000 and $100,000 a year have an audit made in accordance with this Circular, or in accordance with Federal laws and regulations governing the programs they participate in.

(c) State or local governments that receive less than $25,000 a year shall be exempt from compliance with the Act and other Federal audit requirements. These State and local governments shall be governed by audit requirements prescribed by State or local law or regulation.

(d) Nothing in this paragraph exempts State or local governments from maintaining records of Federal financial assistance or from providing access to such records to Federal agencies, as provided for in Federal law or in Circular A-102, "Uniform requirements for grants to State or local governments."

(a) “Cognizant agency" means the Federal agency assigned by the Office of Management and Budget to carry out the responsibilities described in § 12.21 of this rule.

(b) "Federal financial assistance" means assistance provided by a Federal agency in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations, but does not include direct Federal cash assistance to individuals. It includes awards received directly from Federal agencies, or indirectly through other units of State or local governments.

(c) "Federal agency" has the same meaning as the term 'agency' in section 551 (1) of Title 5, United State Code.

(d) "Generally accepted accounting principles" has the meaning specified in the generally accepted government auditing standards.

(e) "Generally accepted government auditing standards" means the Standards for Audit of Government Organizations, Programs, Activities, and Functions, developed by the Comptroller General, dated February 27, 1981.

(f) "Independent auditor" means:

(1) A State or local government auditor who meets the independence standards specified in generally accepted government auditing standards;

or

(2) A public accountant who meets such independence standards.

(g) "Internal controls" means the plan of organization and methods and procedures adopted by management to ensure that:

(1) Resource use is consistent with laws, regulations, and policies;

(2) Resources are safeguarded against waste, loss, and misuse; and

(3) Reliable data are obtained, maintained, and fairly disclosed in reports.

(h) "Indian tribe" means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporations (as defined in, or established under, the Alaskan Native Claims Act) that is recognized by the United States as eligible for the special programs and services provided by

the United States to Indians because of their status as Indians.

(i) "Local government" means any unit of local government within a State, including a county, a borough, municipality, a city, town, township, parish, local public authority, special district, school district, intrastate district, council of governments, and any other instrumentality of local government.

(j) “Major Federal Assistance program," as defined by Pub. L. 98-502, is described in the appendix to this rule.

(k) "Public accountants" means those individuals who meet the qualification standards included in generally accepted government auditing standards for personnel performing government audits.

(1) "State" means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the trust Territory of the Pacific Islands, any instrumentality thereof, and any multi-State regional, or interstate entity that has governmental functions and any Indian tribe.

(m) "Subrecipient" means any person or government department, agency, or establishment that receives Federal financial assistance to carry out a program through a State or local government, but does not include an individual that is a beneficiary of such a program. A subrecipient may also be a direct recipient of Federal financial assistance.

§ 12.16 Scope of audit.

The Single Audit Act provides that: (a) The audit shall be made by an independent auditor in accordance with generally accepted government auditing standards covering financial and compliance audits.

(b) The audit shall cover the entire operations of a State or local government or, at the option of that government, it may cover departments, agencies or establishment that received, expended, or otherwise administered Federal financial assistance during the year. However, if a State or local government receives $25,000 or more in General Revenue Sharing Funds in a

fiscal year, it shall have an audit of its entire operations. A series of audits of individual departments, agencies, and establishments for the same fiscal year may be considered a single audit.

(c) Public hospitals and public colleges and universities may be excluded from State and local audits and the requirements of this rule. However, if such entities are excluded, audits of these entities shall be made in accordance with statutory requirements for grants to universities, hospitals, and other nonprofit organizations.

(d) The auditor shall determine whether:

(1) The financial statements of the government, department, agency or establishment present fairly its financial position and the results of its financial operations in accordance with generally accepted accounting principles;

(2) The organization has internal accounting and other control systems to provide reasonable assurance that it is managing Federal financial assistance programs in compliance with applicable laws and regulations; and

(3) The organization has complied with laws and regulations that may have a material effect on its financial statements and on each major Federal assistance program.

§ 12.17 Frequency of audit.

Audits shall be made annually unless the State or local government has, by January 1, 1987, a constitutional or statutory requirement for less frequent audits. For those governments, the cognizant agency shall permit biennial audits, covering both years, if the government so requests. It shall honor requests for biennial audits by governments that have administrative policy calling for audits less frequent than annual, but only for fiscal years beginning before January 1, 1987.

§ 12.18 Internal control and compliance reviews.

The Single Audit Act requires that the independent auditor determine and report on whether the organization has internal control systems to provide reasonable assurance that it is managing Federal assistance programs