(a) General. When the Grant Officer is dissatisfied with the
State's disposition of an audit or other resolution of violations
(including those arising out of incident reports or compliance
reviews), or with the recipient's response to findings resulting from
investigations or monitoring report, the initial and final
determination process, set forth in this section, is used to resolve
the matter.
(b) Initial determination. The Grant Officer makes an initial
determination on the findings for both those matters where there is
agreement and those where there is disagreement with the recipient's
resolution, including the allowability of questioned costs or
activities. This initial determination is based upon the requirements
of the Act and regulations, and the terms and conditions of the grants,
contracts, or other agreements under the Act.
(c) Informal resolution. Except in an emergency situation, when the
Secretary invokes the authority described in WIA section 184(e), the
Grant Officer may not revoke a recipient's grant in whole or in part,
nor institute corrective actions or sanctions, without first providing
the recipient with an opportunity to present documentation or arguments
to resolve informally those matters in controversy contained in the
initial determination. The initial determination must provide for an
informal resolution period of at least 60 days from issuance of the
initial determination. If the matters are resolved informally, the
Grant Officer must issue a final determination under paragraph (d) of
this section which notifies the parties in writing of the nature of the
resolution and may close the file.
(d) Grant Officer's final determination. (1) If the matter is not
fully resolved informally, the Grant Officer provides each party with a
written final determination by certified mail, return receipt
requested. For audits of recipient-level entities and other recipients
which receive WIA funds directly from DOL, ordinarily, the final
determination is issued not later than 180 days from the date that the
Office of Inspector General (OIG) issues the final approved audit
report to the Employment and Training Administration. For audits of
subrecipients conducted by the OIG, ordinarily the final determination
is issued not later than 360 days from the date the OIG issues the
final approved audit report to ETA.
(2) A final determination under this paragraph (d) must:
(i) Indicate that efforts to informally resolve matters contained
in the initial determination have been unsuccessful;
(ii) List those matters upon which the parties continue to
disagree;
(iii) List any modifications to the factual findings and
conclusions set forth in the initial determination and the rationale
for such modifications;
(iv) Establish a debt, if appropriate;
(v) Require corrective action, when needed;
(vi) Determine liability, method of restitution of funds and
sanctions; and
(vii) Offer an opportunity for a hearing in accordance with
Sec. 667.800 of this part.
(3) Unless a hearing is requested, a final determination under this
paragraph (d) is final agency action and is not subject to further
review.
(e) Nothing in this subpart precludes the Grant Officer from
issuing an initial determination and/or final determination directly to
a subrecipient, in accordance with section 184(d)(3) of the Act. In
such a case, the Grant Officer will inform the recipient of this
action.
