For Profit Entity Information Instrument 2021 60D

For-Profit Institutions Affected Party Information 1845-0096

The regulations in 34 CFR 668.28 provide that a proprietary institution must derive at least 10% of its annual revenue from sources other than Title IV, HEA funds, identifies sanctions for failing to meet this requirement, and otherwise implement the statute. An institution discloses in a footnote to its audited financial statements the amounts of Federal and non-Federal revenues, by category, that it used in calculating its 90/10 ratio (see section 487(d) of the HEA).

The publication of final regulations on September 2, 2020, removed section 668.285(b) regarding Net Present Value in the calculation of the 90/10 ratio and reserved this subparagraph as of the effective date of the regulation, July 1, 2021. With the cancellation of the requirement to calculate the Net Present Value, we are revising the current information collection to estimate the burden for the reporting of the sanction to the Department only.

This request is to revise the currently approved a information collection package, OMB Control Number 1845-0096, to include burden hours based on section 668.28(c) Sanctions. The information collection requirements in the regulations are necessary to determine eligibility to receive program benefits and to prevent fraud and abuse of program funds.

Section 668.28(c) – Sanctions

The regulation provides that the institution must notify the Secretary no later than 45 days after the end of the fiscal year if it fails to meet the 90/10 requirement.

We estimate that an average of 10 institutions will be required to report to the Department that they have not met the non-Title IV revenue (90/10) requirement. The estimated burden hours are now estimated at 5 hours, a decrease of 2,803, based on the estimated number of institutions required to report information of 10, a decrease of 1,682 institutions.

Respondents 10

Responses 10

Hours 5