[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: 20CFR633.204]

[Page 310-311]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
 CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 633--MIGRANT AND SEASONAL FARMWORKER PROGRAMS--Table of Contents
 
          Subpart B--Grant Planning and Application Procedures
 
Sec. 633.204  Responsibility review.

    (a) Prior to final selection as a potential grantee 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 exceptions of paragraphs (a)(1) and (a)(3) of this 
section, the failure to meet any one of the tests 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.

[[Page 311]]

    (2) Serious administrative deficiencies identified in final findings 
and determinations--such as failure to maintain a financial management 
system as required by Federal regulations.
    (3) Established fraud or criminal activity 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 standard 
requirements as provided at Sec. 633.321 of this subpart.
    (6) Failure to correct deficiencies brought to the grantees' 
attention in writing as a result of monitoring activities, reviews, 
assessments, etc.
    (7) Failure to return a grant closeout package or 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 a 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.
    (b) This responsibility review is independent of the competitive 
process. Applicants failing to meet the requirements of this section 
will not be selected as potential grantees irrespective of their 
standing in the competition.