[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR1303.15]

[Page 167-168]
 
                        TITLE 45--PUBLIC WELFARE
 
CHAPTER XIII--OFFICE OF HUMAN DEVELOPMENT SERVICES, DEPARTMENT OF HEALTH 
                           AND HUMAN SERVICES
 
PART 1303--APPEAL PROCEDURES FOR HEAD START GRANTEES AND CURRENT OR PROSPECTIVE DELEGATE AGENCIES--Table of Contents
 
                     Subpart B--Appeals by Grantees
 
Sec. 1303.15  Appeal by a grantee from a denial of refunding.

    (a) After receiving concurrence from the Commissioner, ACYF, a 
grantee's application for refunding may be denied by the responsible HHS 
official for circumstances described in paragraph (c) of this section.
    (b) When an intention to deny a grantee's application for refunding 
is arrived at on a basis to which this subpart applies, the responsible 
HHS official will provide the grantee as much advance notice thereof as 
is reasonably possible, in no event later than 30 days after the receipt 
by ACYF of the application. The notice will inform the grantee that it 
has the opportunity for a full and fair hearing on whether refunding 
should be denied.
    (1) Such appeals shall be governed by 45 CFR part 16, except as 
otherwise provided in the Head Start appeals regulations. Any grantee 
which requests a hearing shall be afforded one, as mandated by 42 U.S.C. 
9841.
    (2) Any such appeals must be filed within 30 days after the grantee 
receives notice of the decision to deny refunding.
    (c) Refunding of a grant may be denied for any or all of the reasons 
for which a grant may be terminated, as set forth in Sec. 1303.14(b) of 
this part.

[[Page 168]]

    (d) Decisions to deny refunding shall be in writing, signed by the 
responsible HHS official, dated, and sent in compliance with Sec. 1303.5 
of this part or by telegram, or by any other mode establishing the date 
sent and received by the addressee, or the date it was determined 
delivery could not be made, or the date delivery was refused. A Notice 
of Decision shall contain:
    (1) The legal basis for the denial of refunding under paragraph (c) 
of this section, the factual findings on which the denial of refunding 
is based or references to specific findings in another document that 
form the basis for the denial of refunding (such as reference to item 
numbers in an on-site review report or instrument), and citation to any 
statutory provisions, regulations or policy issuances on which ACF is 
relying for its determination.
    (2) The identity of the delegate agency, if the activities of that 
delegate agency are the basis, in whole or in part, for the proposed 
denial of refunding; and
    (3) If the responsible HHS official has initiated denial of 
refunding proceedings because of the activities of a delegate agency, 
the delegate agency may participate in the hearing as a matter of right. 
Any other delegate agency, person, agency or organization that wishes to 
participate in the hearing may request permission to do so from the 
Departmental Appeals Board. Any request for participation, including a 
request by a delegate agency, must be filed within 30 days of the 
grantee's appeal.
    (4) A statement that failure of the notice of denial of refunding to 
meet the requirements of this paragraph may result in the dismissal of 
the denial of refunding action without prejudice, or the remand of that 
action for the purpose of reissuing it with the necessary corrections.
    (e) The appeal may be made only by the Board of Directors of the 
grantee or by an official acting on behalf of such Board.
    (f) If the responsible HHS official has initiated denial of 
refunding proceedings because of the activities of a delegate agency, 
that delegate agency may participate in the hearing as a matter of 
right. Any other delegate agency, person, agency or organization that 
wishes to participate in the hearing may request permission to do so 
from the Departmental Appeals Board. Any request for participation, 
including a request by a delegate agency, must be filed within 30 days 
of the grantee's appeal.
    (g) Paragraphs (i), (j), and (k) of 45 CFR 1303.14 shall apply to 
appeals of denials of refunding.
    (h) The Departmental Appeals Board sanctions with respect to a 
grantee's appeal of denial of refunding are as follows:
    (1) If in the judgment of the Departmental Appeals Board a grantee 
has failed to substantially comply with the provisions of the preceding 
paragraphs of this section, its appeal must be dismissed with prejudice.
    (2) If the Departmental Appeals Board concludes that the grantee's 
failure to comply is not substantial, but is confined to one or a few 
specific instances, it shall bar the submittal of an omitted document, 
or preclude the raising of an argument or objection not timely raised in 
the appeal, or deny a request for a document or other ``discovery'' 
request not timely made.
    (3) The sanctions set forth in paragraphs (h)(1) and (2) of this 
section shall not apply if the Departmental Appeals Board determines 
that a grantee has shown good cause for its failure to comply with the 
relevant requirements. Delays in obtaining representation shall not 
constitute good cause. Matters within the control of its agents and 
attorneys shall be deemed to be within the control of the grantee.

[57 FR 59264, Dec. 14, 1992, as amended at 65 FR 4769, Feb. 1, 2000]