04 N.C. Admin. Code 20C .0106 - SANCTIONS
(a) The Division,
through the Director, and the Department, through the Secretary, shall be
authorized to impose any sanction permitted by the JTPA, applicable federal
regulations, the subgrant agreement or the contract document or state law. The
Director and the Secretary are the delegates of the Governor and may exercise
the sanction authority reserved for the Governor in the JTPA.
(b) Upon a determination that a subrecipient
has violated a specific term of the JTPA, the applicable federal regulations,
or state law, or that a violation has occurred in a subrecipient's programs or
projects or other funded activity, the Director or the Secretary may condition
funding to the extent necessary to assure the violations will not continue. If
conditional funding does not effect compliance, the Governor may issue a notice
of intent to revoke all or part of a subrecipient's funding from the Division.
The revocation shall be effective when the time for appeal has expired or the
Secretary of Labor has issued a decision on an appeal. The appeal procedure
shall correspond to the procedure set forth in Rule .0201 of Chapter
20B.
(c) In the event funds are
misspent and identified as misspent during the same grant year, the
subrecipient may be permitted to conduct (without federal funds) additional
eligible employment and training activities during that same grant year to
offset the disallowed costs. The Division shall not be required to provide this
opportunity, and it may only be available after the grant year with permission
of USDOL. This alternative of in-kind services recoupment of disallowed costs
is made available for the purpose of maximizing the activities available to
eligible participants in the service delivery areas and to encourage in-house
monitoring during a grant year.
(d)
In the event that USDOL will revoke funds to the state under the emergency
provisions of Section 164(f) of the JTPA and in the event that the activities
of one or more subrecipients has caused the funding to be jeopardized, the
Governor may immediately suspend or terminate funding to those subrecipients in
order to preserve funding to the remaining subrecipients; provided that in such
an event an opportunity for a hearing must be provided within 30
days.
(e) All subrecipients shall
be responsible for funds received through the Division. The subgrantees and the
Division's contractors shall be liable for the disallowed expenditure of any
funds received from the Division or for liabilities arising in connection with
the operation of the funded activities. The Division may recoup the amount of
disallowed expenditures and, if interest is charged by USDOL against the state
or if the unauthorized expenditure was willful, may recover appropriate
interest from the subgrantee or division contractor. The Division may also go
directly against any subrecipient receiving funds, whether or not that
subrecipient had received funds directly from the Division, but the Division
shall not be required to proceed against those subrecipients.
(f) Any person or entity, including
participants or supplier, who makes or causes to be made a willful
misrepresentation shall be liable for the costs incurred on account of or
received by such person or entity as a result of having made the
misrepresentation. This sanction shall be available to any subrecipient who is
injured by the misrepresentation, but this sanction shall not require a
subrecipient or the Division to endeavor to enforce this liability. This
sanction may be enforced through the administrative process as to all parties
who receive JTPA funds, who thereby consent to resolution of disputes through
this administrative process.
(g)
The remedies under this Chapter 20 shall not be construed to be exclusive
remedies. The Division shall have all common law remedies available to it with
regard to its subrecipients and shall have all remedies provided in executed
agreements with subrecipients.
Notes
Eff. October 1, 1984;
Amended Eff. August 1, 1988;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 27, 2019.
Eff. October 1, 1984;
Amended Eff. August 1, 1988.
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