For the purpose of this Part, Section 676 (Assurance 13) and
678C of the Act (
42 USC
9908(13) and
9915
), administrative requirements of 47 Ill. Adm. Code
1.110,
and the provisions of this Section are applicable.
a) Any Community Action Agency (CAA) shall
not have its funding reduced or terminated and shall be awarded continuing CSBG
program administering responsibilities in its established jurisdiction unless
one or more of the following shall occur:
1)
written communication to the Department stating its desire to discontinue
operation of the program;
2)
material failure by the CAA to comply with Sections 673, 675, 676 and 678 of
the Act (
42
USC
9902,
9904,
9908 and
9912
) and 45 CFR
96; and
3) Failure to
comply with provisions of the grant agreement and the provisions of this Part.
Examples of material failure and failure to comply include, but
are not limited to, fraud, disallowance of costs that could render the CAA
insolvent, denial of access to records of grant-related transactions, false
reporting, serving ineligible clients, not meeting State-mandated service
priorities and disregard for timeliness and accuracy in the submittal of grant
required documents.
b) Upon discovery of one of the conditions
noted in subsection (a), the Department will take the following action:
1) For reduction in funding, other than due
to allocation changes, the Department will notify the CAA in writing of its
initiation of the reduction, stating the reason, the amount and the process,
including corrective action provisions when applicable, and appeal
provisions.
2) For termination of
funding, the Department will provide notice to the CAA of the deficiency
causing the initiation of termination proceedings, require the agency to
correct the deficiency, and offer training and technical assistance to the
agency to assist in correcting the deficiency. The notice will also advise the
CAA of its right to a hearing on the matter in accordance with Section 678C of
the Act (
42 USC
9915 ) and this Part. If the Department is
concerned with potential audit disallowances, it will advise the CAA that in
order to receive continued CSBG funding throughout the termination process, it
must agree to submit to a Department appointed official as a reviewer of all
CSBG-related expenditures. The only CSBG costs that will be approved by the
reviewer are those that are allowable under this Part. In the event that the
CAA does not agree to the Department's review of expenditures, notice of
funding suspension pending termination will be provided to the CAA and
simultaneously to the Secretary of the U.S. Department of Health and Human
Services. The Department will also advise the CAA of its right to seek direct
funding from the U.S. Department of Health and Human Services.
c) The hearing shall be conducted
in accordance with the Department's administrative hearing rules found at 56
Ill. Adm. Code
2605.
d) The
Director of the Department will review the hearing officer's recommendation and
will base his/her decision on findings of fact and conclusions of laws that
substantiate grant termination pursuant to Section
120.55(a).
The Department will notify the CAA of the Department's final
determination.
e) Secretary's
Review
If the Department's decision is to terminate funding to the
CAA, the Department shall also, with its notice to the CAA, advise the CAA of
the provisions for review of the termination proceedings by the Secretary of
the Federal Department of Health and Human Services pursuant to Section 678C of
the Act (
42 USC
9915 ).