(a) Grantee responsibility. (1) The grantee is responsible for
development, approval and operation of all contracts and subgrants and
shall require that its contractors and subgrantees adhere to the
requirements of the Act, regulations promulgated under the Act, and
other applicable laws as required by DOL.
(2) The grantee shall require contractors and subgrantees to
maintain effective control and accountability over all funds, property
and other assets covered by the contract or subgrant.
(3) Each grantee, subgrantee and contractor shall establish and use
internal program management procedures sufficient to prevent fraud and
abuse.
(4) The grantee shall ensure that contractors and subgrantees
maintain and make available for review by the grantee and the Department
of Labor all records pertaining to the operations of programs under such
contracts and subgrants, consistent with the maintenance and retention
of record requirements.
(5) Subgrantees are entitled to funding for administrative costs.
The amount of such funding will be determined during the development of
subgrants.
(b) In the event an agreement or subgrant is cancelled, in whole or
in part, the grantee may be required to develop procedures for ensuring
continuity of service to participants.
(c) Grantees are authorized to enter into classroom training or on-
the-job training contracts or subgrants which extend past the expiration
date of the grant, but such extension shall not exceed six months. In
such cases, the grantee shall continue to be responsible for the
administration of such contracts and subgrants, unless, should the grant
be terminated, such contract or subgrant is transferred to a successor
grantee.
