[Code of Federal Regulations]
[Title 20, Volume 3]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR632.11]

[Page 282-283]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
 CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 632--INDIAN AND NATIVE AMERICAN EMPLOYMENT AND TRAINING PROGRAMS--Table of Contents
 
     Subpart B--Designation Procedures for Native American Grantees
 
Sec. 632.11  Designation of Native American grantees.

    (a) When designations are required and the potential grantee is not 
under a Master Plan agreement, an applicant for designation as a Native 
American grantee shall submit a notice of intent to apply for funds. 
Such notices of intent shall be postmarked by January 1 and be submitted 
to the Division of Indian and Native American Programs (DINAP), 
Employment and Training Administration, U.S. Department of Labor, 601 D 
Street NW., Washington, DC. 20213. Notices of intent may also be 
delivered to that office in person not later than the close of business 
on January 2 or the first business day of the designation year. Such 
notices of intent to apply shall be submitted on Standard Form 424 as a 
preapplication for Federal assistance. For applicants not under an 
active Master Plan agreement or the Master Plan agreement is due to 
expire during the year of designation, the following information shall 
be included in the notice of intent:
    (1) Evidence that the applicant meets the requirements for a Native 
American grantee contained in Sec. 632.10.
    (2) A description of the geographic area or areas which the 
applicant proposes to serve, together with the Indian and Native 
American population in such areas, to the extent known. The description 
must include a list of States (if more than one), in alphabetical order, 
and under each State, a list of counties in alphabetical order, followed 
by a list of tribes, bands or groups (if any) in alphabetical order. If 
the applicant was a Native American grantee for the period prior to the 
one which is being applied for, the applicant must also list any 
counties and tribes, bands or groups which are being added to, or 
deleted from, the previous fiscal year's service area;
    (3) A description of the applicant's organization, including the 
legal status of the applicant, the process of selection of the governing 
body, the duties and responsibilities of the governing body, and in the 
case of private nonprofit organizations, a copy of the articles of 
incorporation;
    (4) Evidence of the applicant's capability to operate an Indian or 
Native American employment and training program, including a statement 
of the applicant's past successes in operating programs for Indians or 
other Native Americans and a statement of the applicant's experience in 
managing the types of programs and activities allowable under the Act;
    (5) A description of the planning process including employer 
involvement which the applicant proposes to undertake in developing a 
plan for the use of funds;
    (6) Information related to a grantee's administrative 
responsibility. The DOL will conduct an independent review to determine 
whether each applicant is currently delinquent in repaying any DOL 
claims or has any outstanding administrative problems. Applicants are, 
therefore, encouraged to submit any documents related to these factors 
including documents and correspondence previously submitted to DOL. 
Submittal of such materials will enable

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DOL to move rapidly to complete the Notice of Intent and grantee 
designation review process.
    (7) If the applicant is applying as a consortium, evidence that the 
consortium meets the requirements for a consortium in this part and a 
consortium agreement as specified in Sec. 632.10(d)(5)(iii).
    (b) If more than one organization submits a Notice of Intent for a 
geographic area, the Department will notify the organizations involved 
and conduct a special review for the area in question. The notice to the 
organizations will indicate any additional information needed and the 
review process to be followed.
    (c) If the applicant for designation is a current grantee, under a 
master plan agreement, and there is no change in the service area 
requested, only the Standard Form 424 and a statement(s) indicating that 
to the best of the applicant's knowledge, it meets the requirements of 
Sec. 632.10(c)(4) will be necessary and shall be submitted within the 
timeframe established in Sec. 632.11(a).
    (d) Responsibility Review. Prior to finally designating, 
conditionally designating or nondesignating the Department will conduct 
a review of the available records to determine whether or not the 
organization has failed any responsibility test. This review is intended 
to establish overall responsibility to administer Federal funds. With 
the exception of Sec. 632.11 (c)(1) and (c)(3), the failure to meet any 
one of the following responsibility test factors would not establish 
that the organization is irresponsible unless the failure is substantial 
or persistent. The responsibility tests are as follows:
    (1) The agency's efforts to recover debts (for which three demand 
letters have been sent) established by final agency action have been 
unsuccessful, or failure to comply with an approved repayment plan.
    (2) Serious administrative deficiencies have been identified in 
final findings and determination--such as failure to maintain a 
financial management system as required by Federal regulations.
    (3) Established fraud or criminal activity exists within the 
organization.
    (4) Wilfull obstruction of the audit process.
    (5) Substantial failure to provide services to applicants as agreed 
to in a current or recent grant or to meet performance standards 
requirements as provided for and developed pursuant to Sec. 632.89.
    (6) Failure to correct deficiencies brought to the grantee's 
attention in writing as a result of monitoring activities, reviews, 
assessments, etc.
    (7) Failure to return a grant closeout package on outstanding 
advances within 90 days of expiration date or receipt of closeout 
package, whichever is later, unless an extension has been requested and 
granted; final billings reflecting serious cost category or total budget 
cost overrun.
    (8) Failure to submit required reports.
    (9) Failure to properly report and dispose of government property as 
instructed by DOL.
    (10) Failure to have maintained cost controls resulting in excess 
cash on hand.
    (11) Failure to procure or arrange for audit coverage for any two 
year period when required by DOL.
    (12) Failure to audit subrecipient within the required period when 
applicable.
    (13) Final disallowed costs in excess of five percent of the grant 
or contract award.
    (14) Failure to establish a mechanism to resolve subrecipient's 
audit within established time frames.
    (e) On March 1 of each designation year, the Department shall 
designate or conditionally designate Native American grantees for the 
coming two program years. Each applicant shall be notified in writing of 
the determination. Those applicants that are not designated in whole or 
in part as Native American grantees may appeal under the complaint 
procedures available for this part. Conditional designations will 
include the nature of the conditions and the actions required to be 
finally designated.

(Approved by the Office of Management and Budget and assigned OMB 
control number 1205-0213)

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