[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR1356.86]

[Page 335]
 
                        TITLE 45--PUBLIC WELFARE
 
CHAPTER XIII--OFFICE OF HUMAN DEVELOPMENT SERVICES, DEPARTMENT OF HEALTH 
                           AND HUMAN SERVICES
 
PART 1356_REQUIREMENTS APPLICABLE TO TITLE IV-E
 
Sec. 1356.86  Penalties for noncompliance.

    (a) Definition of Federal funds subject to a penalty. The funds that 
are subject to a penalty are the CFCIP funds allocated or reallocated to 
the State agency under section 477(c)(1) of the Act for the Federal 
fiscal year that corresponds with the reporting period for which the 
State agency was required originally to submit data according to section 
1356.83(a) of this part.
    (b) Assessed penalty amounts. ACF will assess penalties in the 
following amounts, depending on the area of noncompliance:
    (1) Penalty for not meeting file submission standards. ACF will 
assess a penalty in an amount equivalent to two and one half percent 
(2.5%) of the funds subject to a penalty for each reporting period in 
which ACF makes a final determination that the State agency's data file 
does not comply with the file submission standards defined in section 
1356.85(a) of this part.
    (2) Penalty for not meeting certain data standards. ACF will assess 
a penalty in an amount equivalent to:
    (i) One and one quarter percent (1.25%) of the funds subject to a 
penalty for each reporting period in which ACF makes a final 
determination that the State agency's data file does not comply with the 
data standard for error-free data as defined in section 1356.85(b)(1) of 
this part.
    (ii) One and one quarter percent (1.25%) of the funds subject to a 
penalty for each reporting period in which ACF makes a final 
determination that the State agency's data file does not comply with the 
outcome universe standard defined in section 1356.85(b)(2) of this part.
    (iii) One half of one percent (0.5%) of the funds subject to a 
penalty for each reporting period in which ACF makes a final 
determination that the State agency's data file does not comply with the 
participation rate for youth in foster care standard defined in section 
1356.85(b)(3)(i) of this part.
    (iv) One half of one percent (0.5%) of the funds subject to a 
penalty for each reporting period in which ACF makes a final 
determination that the State agency's data file does not comply with the 
participation rate for discharged youth standard defined in section 
1356.85(b)(3)(ii) of this part.
    (c) Calculation of the penalty amount. ACF will add together any 
assessed penalty amounts described in paragraphs (b)(1) or (b)(2) of 
this section to determine the total calculated penalty result. If the 
total calculated penalty result is less than one percent of the funds 
subject to a penalty, the State agency will be penalized in the amount 
of one percent.
    (d) Notification of penalty amount. ACF will advise the State agency 
in writing of a final determination of noncompliance and the amount of 
the total calculated penalty as determined in paragraph (c) of this 
section.
    (e) Interest. The State agency will be liable for interest on the 
amount of funds penalized by the Department, in accordance with the 
provisions of 45 CFR 30.13.
    (f) Appeals. The State agency may appeal, pursuant to 45 CFR part 
16, ACF's final determination to the HHS Departmental Appeals Board.

[73 FR 10365, Feb. 26, 2008]