(a) When designations are required and the potential grantee is not
under a Master Plan agreement, an applicant for designation as a Native
American grantee shall submit a notice of intent to apply for funds.
Such notices of intent shall be postmarked by January 1 and be submitted
to the Division of Indian and Native American Programs (DINAP),
Employment and Training Administration, U.S. Department of Labor, 601 D
Street NW., Washington, DC. 20213. Notices of intent may also be
delivered to that office in person not later than the close of business
on January 2 or the first business day of the designation year. Such
notices of intent to apply shall be submitted on Standard Form 424 as a
preapplication for Federal assistance. For applicants not under an
active Master Plan agreement or the Master Plan agreement is due to
expire during the year of designation, the following information shall
be included in the notice of intent:
(1) Evidence that the applicant meets the requirements for a Native
American grantee contained in Sec. 632.10.
(2) A description of the geographic area or areas which the
applicant proposes to serve, together with the Indian and Native
American population in such areas, to the extent known. The description
must include a list of States (if more than one), in alphabetical order,
and under each State, a list of counties in alphabetical order, followed
by a list of tribes, bands or
groups (if any) in alphabetical order. If the applicant was a Native
American grantee for the period prior to the one which is being applied
for, the applicant must also list any counties and tribes, bands or
groups which are being added to, or deleted from, the previous fiscal
year's service area;
(3) A description of the applicant's organization, including the
legal status of the applicant, the process of selection of the governing
body, the duties and responsibilities of the governing body, and in the
case of private nonprofit organizations, a copy of the articles of
incorporation;
(4) Evidence of the applicant's capability to operate an Indian or
Native American employment and training program, including a statement
of the applicant's past successes in operating programs for Indians or
other Native Americans and a statement of the applicant's experience in
managing the types of programs and activities allowable under the Act;
(5) A description of the planning process including employer
involvement which the applicant proposes to undertake in developing a
plan for the use of funds;
(6) Information related to a grantee's administrative
responsibility. The DOL will conduct an independent review to determine
whether each applicant is currently delinquent in repaying any DOL
claims or has any outstanding administrative problems. Applicants are,
therefore, encouraged to submit any documents related to these factors
including documents and correspondence previously submitted to DOL.
Submittal of such materials will enable DOL to move rapidly to complete
the Notice of Intent and grantee designation review process.
(7) If the applicant is applying as a consortium, evidence that the
consortium meets the requirements for a consortium in this part and a
consortium agreement as specified in Sec. 632.10(d)(5)(iii).
(b) If more than one organization submits a Notice of Intent for a
geographic area, the Department will notify the organizations involved
and conduct a special review for the area in question. The notice to the
organizations will indicate any additional information needed and the
review process to be followed.
(c) If the applicant for designation is a current grantee, under a
master plan agreement, and there is no change in the service area
requested, only the Standard Form 424 and a statement(s) indicating that
to the best of the applicant's knowledge, it meets the requirements of
Sec. 632.10(c)(4) will be necessary and shall be submitted within the
timeframe established in Sec. 632.11(a).
(d) Responsibility Review. Prior to finally designating,
conditionally designating or nondesignating the Department will conduct
a review of the available records to determine whether or not the
organization has failed any responsibility test. This review is intended
to establish overall responsibility to administer Federal funds. With
the exception of Sec. 632.11 (c)(1) and (c)(3), the failure to meet any
one of the following responsibility test factors would not establish
that the organization is irresponsible unless the failure is substantial
or persistent. The responsibility tests are as follows:
(1) The agency's efforts to recover debts (for which three demand
letters have been sent) established by final agency action have been
unsuccessful, or failure to comply with an approved repayment plan.
(2) Serious administrative deficiencies have been identified in
final findings and determination--such as failure to maintain a
financial management system as required by Federal regulations.
(3) Established fraud or criminal activity exists within the
organization.
(4) Wilfull obstruction of the audit process.
(5) Substantial failure to provide services to applicants as agreed
to in a current or recent grant or to meet performance standards
requirements as provided for and developed pursuant to Sec. 632.89.
(6) Failure to correct deficiencies brought to the grantee's
attention in writing as a result of monitoring activities, reviews,
assessments, etc.
(7) Failure to return a grant closeout package on outstanding
advances within 90 days of expiration date or receipt of closeout
package, whichever is later, unless an extension has been requested
and granted; final billings reflecting serious cost category or total
budget cost overrun.
(8) Failure to submit required reports.
(9) Failure to properly report and dispose of government property as
instructed by DOL.
(10) Failure to have maintained cost controls resulting in excess
cash on hand.
(11) Failure to procure or arrange for audit coverage for any two
year period when required by DOL.
(12) Failure to audit subrecipient within the required period when
applicable.
(13) Final disallowed costs in excess of five percent of the grant
or contract award.
(14) Failure to establish a mechanism to resolve subrecipient's
audit within established time frames.
(e) On March 1 of each designation year, the Department shall
designate or conditionally designate Native American grantees for the
coming two program years. Each applicant shall be notified in writing of
the determination. Those applicants that are not designated in whole or
in part as Native American grantees may appeal under the complaint
procedures available for this part. Conditional designations will
include the nature of the conditions and the actions required to be
finally designated.
(Approved by the Office of Management and Budget and assigned OMB
control number 1205-0213)
