[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: 20CFR632.23]

[Page 286-287]
 
                      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 C--Program Planning, Application and Modification Procedures
 
Sec. 632.23  Termination and corrective action of a CAP and/or Master Plan.

    (a) Emergency Termination. The Department may terminate or suspend a 
CAP designation or Master Plan under emergency termination procedures in 
accordance with section 164(f) of the Act. The provisions in part 636 
shall not apply in instances of emergency termination.
    (1) Instances under which emergency termination can occur include 
but are not limited to: Audit reports identifying numerous adverse 
findings in the area of financial control and management; information 
gathered through onsite monitoring which substantiates serious 
management, fiscal and/or performance problems, information from the 
Inspector General or gained through incident reports of poor 
performance, serious administrative problems and/or inability to protect 
and account for Federal funds.
    (2) Within 30 days of written termination notification to a grantee, 
the Department will secure applicable documents onsite, seize bank 
accounts relating to the program, arrange for the payment of legitimate 
bills and debts and arrange, to the degree feasible, for the continued 
provision of services to program enrollees.

[[Page 287]]

    (b) Termination for Cause. Termination for cause can occur whenever 
there is a substantial or persistent violation of the governing rules 
and regulations or failure to comply with the grant terms and 
conditions. The following factors will be considered for termination:
    (1) Poor performance and inability to meet Federal standards related 
to such debt collection requirements as:
    (i) Failure to respond to demand letters from DOL for repayment of 
debts within the stated timeframe;
    (ii) Failure to comply with an approved repayment agreement revealed 
through monitoring or subsequent audit;
    (iii) Failure to take necessary corrective action to improve 
underperformance and to plan for more effective subsequent operations.
    (2) Nonperformance related to such requirements as:
    (i) Failure to submit required quarterly financial reports for two 
successive periods within 45 days after they are due;
    (ii) Failure to submit required quarterly performance reports for 
two successive periods within 45 days after they are due;
    (iii) Failure to develop a plan of action to correct deficiencies 
identified in an audit report or by an onsite monitoring review.
    (3) Nonperformance related to such requirements as:
    (i) Failure to comply with formal corrective action after due 
notice;
    (ii) Failure to comply with the requirements of the Act related to a 
grievance procedure and other requirements;
    (iii) Failure to submit a required modification within 10 days to 
adjust the grant award due to reduction in available funds, reductions 
due to debt collection action, etc.
    (c) In addition, the Department, by written notice, may terminate a 
grant in whole or in part in the event of a reduction in the funds 
available or a change in provisions for JTPA title IV, section 401 
programs by reason of congressional action.