[Code of Federal Regulations]

[Title 45, Volume 4]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR1206.2-4]



[Page 29-30]

 

                        TITLE 45--PUBLIC WELFARE

 

       CHAPTER XII--CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

 

PART 1206_GRANTS AND CONTRACTS_SUSPENSION AND TERMINATION AND DENIAL 

OF APPLICATION FOR REFUNDING--Table of Contents

 

              Subpart B_Denial of Application for Refunding

 

Sec. 1206.2-4  Procedures.



    (a) The procedures set forth in paragraphs (b) through (g) of this 

section applies only where an application for refunding submitted by a 

current recipient is rejected or is reduced to 80 percent or less of the 

applied-for level of funding or the recipient's current level of 

operations, whichever is less. It is further a condition for application 

of these procedures that the rejection or reduction be based on 

circumstances related to the particular grant or contract. These 

procedures do not apply to reductions based on legislative requirements, 

or on general policy or in instances where, regardless of a recipient's 

current level of operations, its application for refunding is not 

reduced by 20 percent or more. The fact that the basis for rejecting an 

application may also be a basis for termination under subpart A of this 

part shall not prevent the use of this subpart to the exclusion of the 

procedures in subpart A.

    (b) Before rejecting an application of a recipient for refunding the 

Corporation shall notify the recipient of its intention, in writing, at 

least 75 days before the end of the recipient's current program year or 

grant budget period. The notice shall inform the recipient that a 

tentative decision has been made to reject or reduce an application for 

refunding. The notice shall state the reasons for the tentative decision 

to which the recipient shall address itself if it wishes to make a 

presentation as described in paragraphs (c) and (d) of this section.

    (c) If the notice of tentative decision is based on any reasons, 

other than those described in paragraph (d) of this



[[Page 30]]



section, including, but not limited to, situations in which the 

recipient has ineffectively managed Corporation resources or 

substantially failed to comply with Corporation policy and overall 

objectives under a contract or grant agreement with the Corporation, the 

recipient shall be informed in the notice, of the opportunity to submit 

written material and to meet informally with a Corporation official to 

show cause why its application for refunding should not be rejected or 

reduced. If the recipient requests an informal meeting, such meeting 

shall be held on a date specified by the Corporation. However, the 

meeting may not, without the consent of the recipient, be scheduled 

sooner than 14 days, nor more than 30 days, after the Corporation has 

mailed the notice to the recipient. If the recipient requests an 

informal meeting, the meeting shall be scheduled by the Corporation as 

soon as possible after receipt of the request. The official who shall 

conduct this meeting shall be a Corporation official who is authorized 

to finally approve the refunding in question, or his designee.

    (d) If the notice of tentative decision is based upon a specific 

charge of failure to comply with the terms and conditions of the grant 

or contract, alleging wrongdoing on the part of the recipient, the 

notice shall offer the recipient an opportunity for an informal hearing 

before a mutually agreed-upon impartial hearing officer. The authority 

of such hearing officer shall be limited to conducting the hearing and 

offering recommendations. The Corporation will retain all authority to 

make the final determination as to whether the application should be 

finally rejected or reduced. If the recipient requests an informal 

hearing, such hearing shall be held at a date specified by the 

Corporation. However, such hearing may not, without the consent of the 

recipient, be scheduled sooner than 14 days nor more than 30 days after 

the Corporation mails the notice to the recipient.

    (e) In the selection of a hearing official and the location of 

either an informal meeting or hearing, the Corporation, while mindful of 

considerations of the recipient, will take care to insure that costs are 

kept to a minimum. The informal meeting or hearing shall be held in the 

city or county in which the recipient is located, in the appropriate 

Service Center or Corporation State Office, or another appropriate 

location. Within the limits stated in the preceding sentence, the 

decision as to where the meeting shall be held will be made by the 

Corporation, after weighing the convenience factors of the recipient. 

For the convenience of the recipient, the Corporation will pay the 

reasonable travel expenses for up to two representatives of the 

recipient, if requested.

    (f) The recipient shall be informed of the final Corporation 

decision on refunding and the basis for the decision by the deciding 

official.

    (g) If the recipient's budget period expires prior to the final 

decision by the deciding official, the recipient's authority to continue 

program operations shall be extended until such decision is made and 

communicated to the recipient. If a National Senior Service Corps 

volunteer's or AmeriCorps*VISTA member's term of service expires after 

receipt by a sponsor of a tentative decision not to refund a project, 

the period of service of the volunteer or member may be similarly 

extended. No volunteers or members may be reenrolled for a full 12-month 

term, or new volunteers or members enrolled for a period of service 

while a tentative decision not to refund is pending. If program 

operations are so extended, the Corporation and the recipient shall 

provide, subject to the availability of funds, operating funds at the 

same levels as in the previous budget period to continue program 

operations.