(a) A recipient may request a waiver of liability, as described in
WIA section 184(d)(2), and a Grant Officer may approve such a waiver
under WIA section 184(d)(3).
(b)(1) When the debt for which a waiver of liability is desired was
established in a non-Federal resolution proceeding, the resolution
report must accompany the waiver request.
(2) When the waiver request is made during the ETA Grant Officer
resolution process, the request must be made during the informal
resolution period described in Sec. 667.510(c) of this part.
(c) A waiver of the recipient's liability shall be considered by
the Grant Officer only when:
(1) The misexpenditure of WIA funds occurred at a subrecipient's
level;
(2) The misexpenditure was not due to willful disregard of the
requirements of title I of the Act, gross negligence, failure to
observe accepted standards of administration, or did not constitute
fraud;
(3) If fraud did exist, it was perpetrated against the recipient/
subrecipients; and
(i) The recipient/subrecipients discovered, investigated, reported,
and cooperated in any prosecution of the perpetrator of the fraud; and
(ii) After aggressive debt collection action, it has been
documented that further attempts at debt collection from the
perpetrator of the fraud would be inappropriate or futile;
(4) The recipient has issued a final determination which disallows
the misexpenditure, the recipient's appeal process has been exhausted,
and a debt has been established; and
(5) The recipient requests such a waiver and provides documentation
to demonstrate that it has substantially complied with the requirements
of section 184(d)(2) of the Act, and this section.
(d) The recipient will not be released from liability for misspent
funds under the determination required by section 184(d) of the Act
unless the Grant Officer determines that further collection action,
either by the recipient or subrecipients, would be inappropriate or
would prove futile.
