(a) Federal audit resolution. When the OIG issues an audit report to
the Employment and Training Administration
for resolution, the ETA Grant Officer shall provide a copy of the report
to the recipient (if it does not already have the report), along with a
request that the recipient submit its audit resolution report as
specified in Sec. 627.480(e)(2) of this part, unless the Grant Officer
chooses to proceed directly against the recipient pursuant to
Sec. 627.601 of this part.
(1) For audits of recipient-level entities and other organizations
which receive JTPA funds directly from DOL, the Grant Officer shall
request that the audit resolution report be submitted within 60 days
from the date that the audit report is issued by the OIG.
(2) For audits of subrecipient organizations, the Grant Officer
shall provide the recipient with a 180-day period within which to
resolve the audit with its subrecipient(s), and shall request that the
audit resolution report be submitted at the end of that 180-day period.
(b) After receiving the audit resolution report, the ETA Grant
Officer shall review the report, the recipient's disposition, any
liability waiver request, and any proposed ``stand-in'' costs. If the
Grant Officer agrees with all aspects of the recipient's disposition of
the audit, the Grant Officer shall so notify the recipient, constituting
final agency action on the audit. If the Grant Officer disagrees with
the recipient's conclusion on specific points in the audit, or if the
recipient fails to submit its audit resolution report, the Grant Officer
shall resolve the audit through the initial and final determination
process described in Sec. 627.606 of this part. Normally, the Grant
Officer's notification of agreement (a concurrence letter) or
disagreement (an initial determination) with the recipient's audit
resolution report will be provided within 180 days of the Grant
Officer's receipt of the report.
(c) Non-Federal audit resolution. (1) To ensure timely and
appropriate resolution for audits of all subrecipients, including SDA
grant recipients and title III SSG's, and to ensure recipient-wide
consistency, the Governor shall prescribe standards for audit resolution
and debt collection policies and procedures that shall be included in
each job training plan in accordance with section 104(b)(12) of the Act.
(2) The Governor shall prescribe an appeals procedure for audit
resolution disputes which, at a minimum, provides for:
(i) The period of time, not less than 15 days nor more than 30 days,
after the issuance of the final determination in which an appeal may be
filed;
(ii) The rules of procedure;
(iii) Timely submission of evidence;
(iv) The timing of decisions; and
(v) Further appeal rights, if any.
