[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: 20CFR636.8]

[Page 326-327]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
 CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 636--COMPLAINTS, INVESTIGATIONS AND HEARINGS--Table of Contents
 
Sec. 636.8  Initial and final determination; request for hearing at the Federal level.

    (a) Initial determination. Upon the conclusion of a review of the 
entire administrative record of an investigation conducted pursuant to 
Sec. 636.6 or after the conclusion of the comment period for audits, the 
Grant Officer shall make an initial determination of the matter in 
controversy including the allowability of questioned costs or 
activities. Such determination shall be based upon the requirements of 
the Act, regulations, grants or other agreements, under the Act. The 
determination may conclude either:
    (1) That based upon the entire record there is no violation of the 
Act, regulations, grants or other agreements under the Act; or
    (2) That there is evidence to support the allegation, or finding of 
questioned costs or activities.
    (b) Contents of initial determination. (1) In the event that the 
Grant Officer makes a finding that there is evidence to support the 
allegation of a violation the initial determination shall:
    (i) Be in writing;
    (ii) State the basis of the determination, including factual 
findings and conclusions;
    (iii) Specify the costs or activities disallowed;
    (iv) Specify the corrective actions required and/or that sanctions 
may be imposed; and
    (v) Give notice of an opportunity for informal resolution of the 
matters as necessary to the appropriate parties, which should include 
all interested parties specified by the Grant Officer.

[[Page 327]]

    (2) In the event that the Grant Officer makes a finding of no 
violation the initial determination shall:
    (i) Be in writing;
    (ii) State the bases of the determination (factual findings and 
conclusions); and
    (iii) Give notice of the opportunity to present additional 
information within 30 days of receipt of the initial determination.
    (3) The initial determination shall be mailed by certified mail 
return receipt requested to the parties and interested parties.
    (c) Allowability of certain questioned costs. In any case in which 
the Grant Officer determines that the recipient meets the requirements 
of section 164(e)(2)(A)-(D) of the Act, the Grant Officer may waive the 
imposition of sanctions (sec. 164(e)(3)). It is the responsibility of 
the grantee to request such waiver by the Grant Officer and to submit 
the evidence to be used to make the finding.
    (d) Informal resolution. Except as provided by section 164(f) of the 
Act, the Grant Officer shall not revoke a grant, in whole or in part, 
nor institute corrective action or sanctions against a grantee without 
first providing the grantee with an opportunity to informally resolve 
those matters contained in the Grant Officer's initial determination. If 
all matters are informally resolved, the Grant Officer shall notify the 
parties in writing of the nature of the resolution, which shall 
constitute final agency action, not subject to appeal, and shall close 
the file.
    (e) Final determination. (1) If all the parties and the Grant 
Officer cannot informally resolve any matter pursuant to paragraph (d) 
of this section, the Grant Officer shall provide each party with a final 
written determination by certified mail, return receipt requested. In 
the case of audits, the final determination shall be issued not later 
than 180 days after the receipt by the Grant Officer of the final 
approved audit report.
    (2) The final determination shall:
    (i) Indicate that efforts to informally resolve matters contained in 
the initial determination pursuant to paragraph (a) of this section have 
been unsuccessful;
    (ii) List those matters upon which the parties continue to disagree;
    (iii) List any modifications to the factual findings and conclusions 
set in the initial determination;
    (iv) List any sanctions, and required corrective actions, including 
any other alteration or modification of the plan, grant, agreement or 
program ordered by the Grant Officer; and
    (v) Inform the parties of their opportunity to request a hearing 
pursuant to these regulations.
    (3) If it is determined in the final notice that the complaint does 
not allege and/or the evidence does not indicate that there is reason to 
believe there may have been a violation of the Act, regulations, grants 
or other agreements under the Act, the Grant Officer shall dismiss the 
complaint without an offer of a hearing. Such dismissal shall constitute 
final agency action.