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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 20 - Employees' Benefits |
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Chapter V - Employment and Training Administration, Department of Labor |
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Part 627 - GENERAL PROVISIONS GOVERNING PROGRAMS UNDER TITLES I, II, AND III OF THE ACT |
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Subpart D - Administrative Standards |
§ 627.423 - Funding restrictions for “high-risk” recipients and subrecipients.
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(a) A recipient or subrecipient may be considered “high-risk” if an awarding agency determines that the recipient or subrecipient is otherwise responsible, but:
(1) Has a history of unsatisfactory performance;
(2) Is not financially stable;
(3) Has a management system which does not meet the management standards set forth in this part; or
(4) Has not conformed to terms and conditions of a previously awarded grant or subgrant.
(b) If the awarding agency determines that an award will be made to a “high-risk” recipient or subrecipient, then special funding restrictions that address the “high-risk” status may be included in the award. Funding restrictions may include, but are not limited to:
(1) Payment on a reimbursement basis;
(2) Requiring additional and/or more detailed financial or performance reports;
(3) Additional monitoring;
(4) Requiring the recipient or subrecipient to obtain specific technical or management assistance; and/or
(5) Establishing additional prior approvals.
(c) If an awarding agency decides to impose such funding restrictions, the awarding official will notify the recipient or subrecipient as early as possible, in writing, of:
(1) The nature of the funding restrictions;
(2) The reason(s) for imposing them;
(3) The corrective actions which must be taken before they will be removed and the time allowed for completing the corrective actions; and
(4) The method of requesting reconsideration of the restrictions imposed.