(A) Definitions
(1) "Grant closeout" means the process by
which the commission determines that all applicable administrative actions and
all required work of the grant have been completed by the grantee and the
commission.
(2) "Suspension" of a
grant means temporary withdrawal of the grantee's authority to obligate grant
funds pending corrective action by the grantee or a decision to terminate the
grant.
(3) "Termination" of a grant
means permanent withdrawal of the grantee's authority to obligate previously
awarded grant funds before authority would otherwise expire. It also means the
voluntary relinquishment of the authority by the grantee.
"Termination" does not include:
(a) Withdrawal of funds awarded on the basis
of grantees underestimate of the unobligated balance in a prior
period;
(b) Refusal by the
commission to extend a grant or award additional funds;
(c) Withdrawal of the unobligated balance of
the expiration of the grant; or
(d)
Annulment, i.e. voiding of a grant upon determination that the award was
obtained fraudulently, or was otherwise illegal or invalid from
inception.
(B) Violation of terms
(1) When a grantee has materially failed to
comply with the terms of a grant, the granting agency may suspend
or terminate the grant, in accordance with
section 74.114 of the federal grants management
handbook,
the U.S. department of health and
human services, Federal Code of Regulations, Title 45, Sections 74.60 -
74.62
terminate the grant for cause, as
provided in section 74.115 of the federal grants management handbook,
or take such other remedies as may be legally available and appropriate to the
circumstances.
(2) If a project or
program is supported over more than one funding period, a grant may be
suspended or terminated in the current period for failure to submit a report
still due from a prior period.
(C) Suspensions
(1) When a grantee has materially failed to
comply with the terms of a grant, the granting agency may, upon reasonable
notice to the grantee, suspend the grant in whole or in part. The notice of
suspension will state the reasons for the suspension, any corrective action
required of the grantee and the effective date. The suspension may be made
effective at once if a delayed effective date would be unreasonable considering
the granting agency's responsibility to protect the state's interest.
Suspensions shall remain in effect until the grantee has taken corrective
action satisfactory to the granting agency, or given evidence satisfactory to
the granting agency that such corrective action will be taken, or until the
granting agency terminates the grant.
(2) New obligations incurred by the grantee
during the suspension period will not be allowed unless the granting agency
expressly authorizes them in the notice of suspension or an amendment to it.
Necessary and otherwise allowable costs which the grantee could not reasonably
avoid during the suspension period will be allowed if they result from
obligations properly incurred by the grantee before the effective date of the
suspension and not in anticipation of suspension or termination.
(3) Appropriate adjustments to payments under
the suspended grant will be made either by withholding subsequent payments or
by not allowing the grantee credit for disbursements made in payment of
unauthorized obligations incurred during the suspension period.
(D) Termination
(1) Termination for cause.
The commission may terminate any grant in whole, or in part, at
any time before the date of expiration, whenever it determines that the grantee
has materially failed to comply with the terms of the grant. The commission
shall promptly notify the grantee in writing of the determination and the
reasons for termination, together with the effective date.
(2) Termination on other grounds.
Except as provided in paragraph (D)(1) of this rule, grants may
be terminated in whole or in part as follows:
(a) By the commission with the consent of the
grantee, in which case the two parties shall agree upon the termination
conditions, including the effective date in the case of partial terminations,
the portions to be terminated, or
(b) By the grantee, upon written notification
to the commission, setting forth the reasons for such termination, the
effective date, and in the case of partial terminations, the portion to be
terminated. However, if, in the case of a partial termination, the commission
determines that the remaining portion of the grant will not accomplish the
purposes for which the grant was made, the commission may terminate the grant
in its entirety under either paragraph (A) or (B)(1) of this rule.
(3) Termination of settlements.
When a grant is terminated, the grantee shall not incur new
obligations for the terminated portion after the effective date, and shall
cancel as many outstanding obligations as possible. The commission shall allow
full credit to the grantee for the state share of non-cancelable obligations
incurred by the grantee prior to termination.
Notes
Ohio Admin. Code 3704-4-11
Five Year Review (FYR) Dates:
2/1/2024 and
02/01/2029
Promulgated
Under: 119.03
Statutory Authority: 3701.78
Rule
Amplifies: 121.22
Prior Effective Dates: 07/01/2000,
10/17/2013
Five Year Review (FYR) Dates:
11/28/2017 and
11/28/2022
Promulgated
Under: 119.03
Statutory
Authority: 3701.78
Rule
Amplifies: 121.22
Prior
Effective Dates: 07/01/2000,
10/17/2013
