[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: 20CFR641.205]

[Page 369-370]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
 CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 641--SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM--Table of Contents
 
          Subpart B--Grant Planning and Application Procedures
 
Sec. 641.205  Responsibility review.

    (a) In order to enter into and continue a grant relationship with 
DOL, an organization (applicant) shall be responsible. To determine 
responsibility, DOL conducts a preaward review of all grant applicants. 
As part of this review, DOL applies 13 basic responsibility tests to 
each applicant, included in paragraphs (b) and (c) of this section.
    (b) If a grant applicant fails either of the following two 
responsibility tests, it shall not be designated as a grantee:
    (1) The Department's efforts to recover debts from the applicant 
(for which three demand letters have been sent) established by final 
Department action have been unsuccessful, or the applicant has failed to 
comply with an approved repayment plan.
    (2) Fraud or criminal activity has been determined to exist within 
the organization.
    (c) Eleven additional basic responsibility tests are applied to each 
grant applicant. Failure to meet any one of these tests does not 
establish that the applicant is not responsible, unless the failure is 
substantial or persistent. These tests are as follows:
    (1) Serious administrative deficiencies have been identified, such 
as failure to maintain a financial management system as required by 
Federal regulations.
    (2) Willful obstruction of the monitoring process.
    (3) Failure to meet performance requirements.
    (4) Failure to correct deficiencies brought to the grantee's 
attention in writing as a result of monitoring activities, reviews, 
assessments, etc.
    (5) Failure to submit correct grant closeout documents within 90 
days after expiration of the grant, unless an extension has been 
requested and granted.
    (6) Failure to return outstanding cash advances within 90 days of 
the expiration date of the grant, unless an extension has been requested 
and granted, or the funds have been authorized to be retained for use on 
other grants.

[[Page 370]]

    (7) Failure to submit correct required reports by established due 
dates.
    (8) Failure to properly report and dispose of government property as 
instructed by DOL.
    (9) Failure to maintain cost controls resulting in excess cash on 
hand.
    (10) Failure to timely comply with the audit requirements of 29 CFR 
part 96.
    (11) Final disallowed costs in excess of five percent of the grant 
award.