Content Last Revised: 4/15/99 ---DISCLAIMER---

CFR	Code of Federal Regulations Pertaining to ETA

Title 20

Employees' Benefits

Chapter V

Employment and Training Administration, Department of Labor

Part 667

Administrative Provisions Under Title I of the Workforce Investment Act

Subpart G

Sanctions, Corrective Actions, and Waiver of Liability

• Section Number: 667.730
• Section Name: What is the procedure to handle a recipient's request for advance approval of contemplated corrective actions?

    (a) The recipient may request advance approval from the Grant 

Officer for contemplated corrective actions, including debt collection 

actions, which the recipient plans to initiate or to forego. The 

recipient's request must include a description and an assessment of all 

actions taken by the subrecipients to collect the misspent funds.

    (b) Based on the recipient's request, the Grant Officer may 

determine that the recipient may forego certain collection actions 

against a subrecipient when:

    (1) The subrecipient meets the criteria set forth in section 

184(d)(2) of the Act;

    (2) The misexpenditure of funds:

    (i) Was not made by that subrecipient but by an entity that 

received WIA funds from that subrecipient;

    (ii) Was not a violation of section 184(d)(1) of the Act, and did 

not constitute fraud; or

    (iii) If fraud did exist,

    (A) It was perpetrated against the subrecipient; and:

    (B) The subrecipient discovered, investigated, reported, and 

cooperated in any prosecution of the perpetrator of the fraud; and

    (C) 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;

    (3) A final determination which disallows the misexpenditure and 

establishes a debt has been issued at the appropriate level;

    (4) Final action within the recipient's appeal system has been 

completed; and

    (5) Further debt collection action by that subrecipient or the 

recipient would be either inappropriate or futile.