[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2007]
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 
 
              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.