[Federal Register Volume 59, Number 80 (Tuesday, April 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9923]
[[Page Unknown]]
[Federal Register: April 26, 1994]
_______________________________________________________________________
Part X
Department of Labor
_______________________________________________________________________
Employment and Training Administration
20 CFR Part 641
_______________________________________________________________________
Office of the Secretary
29 CFR Part 89
_______________________________________________________________________
Senior Community Service Employment Program; Proposed Rule
DEPARTMENT OF LABOR
Employment and Training Administration
20 CFR Part 641
Office of the Secretary
29 CFR Part 89
[RIN 1205-AA29]
Senior Community Service Employment Program
AGENCY: Employment and Training Administration, and Office of the
Secretary, Labor.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Employment and Training Administration is proposing to
revise the regulations for the Senior Community Service Employment
Program (SCSEP) to implement the Older Americans Act Amendments of
1984, 1987, and 1992 and to make clarifying changes. This regulation
provides administrative and programmatic guidance and requirements for
the implementation of the SCSEP.
DATES: Written comments on the proposed rule are invited from
interested parties. To be assured of consideration, comments must be
received on or before May 26, 1994.
ADDRESSES: Written comments should be addressed to the Assistant
Secretary of Labor for Employment and Training, Department of Labor,
200 Constitution Avenue, NW., room N4641, Washington, DC 20210.
Attention: Paul A. Mayrand, Director, Office of Special Targeted
Programs.
Commenters wishing acknowledgement of receipt of their comments
shall submit them by certified mail, return receipt requested. Comments
received will be available for public inspection during normal business
hours at the Division of Older Worker Programs, Office of Special
Targeted Programs. Telephone: (202) 219-4778.
Persons who need assistance to review the proposed regulation will
be provided with appropriate aids. To schedule an appointment, call
(202) 219-4778 (VOICE) or (TDD). Copies of the notice of proposed
rulemaking are available in the following formats: electronic file on
computer disk, audiotape, and large-type print. They may be obtained at
the above address.
FOR FURTHER INFORMATION CONTACT: Charles L. Atkinson, Chief, Division
of Older Worker Programs, Office of Special Targeted Programs
Telephone: (202) 219-4778 (this is not a toll-free number).
SUPPLEMENTARY INFORMATION:
I. Introduction
As authorized by title V of the Older Americans Act (OAA or Act),
as amended (42 U.S.C. 3056, et seq.), the Senior Community Service
Employment Program (SCSEP) fosters and promotes useful part-time
opportunities in community service activities for persons with low
incomes who are fifty-five years old or older. The Employment and
Training Administration (ETA) of the Department of Labor (DOL or
Department) administers the program by means of grant agreements with
eligible organizations such as governmental entities and certain public
and private non-profit agencies and organizations. Pursuant to the Act,
the Department in 1973 established SCSEP.
The SCSEP regulations were last revised in 1976: 29 CFR part 89, 41
FR 9006 (March 2, 1976). The SCSEP legislation has been amended by the
following laws since the last revision of the regulation: Public Law
95-478, section 105 (October 18, 1978); Public Law 97-115, section 12
(December 29, 1981); Pub. L. 98-459, sections 501-05 (October 9, 1984);
Public Law 100-175, sections 161-66 (December 7, 1987); and Public Law
102-375, sections 502-11 (September 30, 1992) and Public Law 103-171
(December 2, 1993). On July 19, 1985, the Department published a notice
of proposed rulemaking governing the SCSEP in the Federal Register (50
FR 29606) for the purpose of soliciting public comment. The proposed
rule would have implemented only the amendments established by Pub. L.
98-459 (October 9, 1984). The comments made in response to the July 19,
1985, Federal Register proposed rule have been considered in drafting
this proposed rule. Also implemented are the 1987 and 1992 amendments
contained in Public Law 100-175 (December 7, 1987), and Pub. L. 102-375
(September 30, 1992). The Department has made other minor changes to
accommodate revisions in other federal regulations which impact upon
the operations of SCSEP. For that reason, the Department is providing
an opportunity for public comment on the entire regulation. Since 1985,
pursuant to grant agreements, recipients and subrecipients have used
the July 19, 1985, proposed rule to administer and operate their
projects. During that period, no substantive problems with the July 19,
1985, proposed rule have been identified. Therefore, major changes have
not been made.
This document proposes to revise the proposed SCSEP regulation to
conform to the OAA and to make technical changes based on the
Department's experience in administering the SCSEP.
II. The Older Americans Act Amendments of 1992, Pub. L. 102-375
(September 30, 1992). Summary of Proposed Changes
There are provisions contained in Pub. L. 102-375 (1992 Act) which
impact on SCSEP. The category and provisions are as follows:
Financial
Equitable Distribution of Resources. Section 504(b)(2) of the 1992
Act added section 506(c)(3) to the OAA to expand the criteria for
equitable apportionment of OAA project monies to include the ``relative
distribution'' within each State of those eligible individuals with the
greatest economic need, the greatest social need, and those who are
minorities. Currently, each State considers the proportion of eligible
individuals residing within each county.
Eligibility/Assessment
Poor Employment Prospects. Section 502(a) of the OAA, as amended by
section 501(1) of the 1992 Act, reaffirms statutorily that the SCSEP
program is to serve unemployed low-income eligible individuals, 55 or
older, who have ``poor employment prospects''.
Greatest Economic Need. Section 502(b)(1)(M) of the OAA, as amended
by section 501(2)(A) of the 1992 Act, requires that SCSEP recipients
and subrecipients serve individuals with low income at or below the
poverty line.
Dual Eligibility. Section 510 of the OAA, as added by section 506
of the 1992 Act, makes SCSEP enrollees eligible for programs under
section 203 of the Job Training Partnership Act (JTPA) where projects
are jointly carried out under the two programs.
Assessment. Section 502(b)(1)(N) of the OAA, as added by section
501(2) (B) and (C) of the 1992 Act, requires an analysis of an
enrollee's skills, talents, need for supportive service(s) and physical
capabilities. It also provides for employment counseling based on
strategies that identify appropriate employment objectives and progress
in meeting such objectives or an equivalent assessment under another
employment or training program.
Consultation/Coordination
Consultation with Area Agencies on Aging. Section 502(d)(1) of the
OAA, as amended by section 501(4) of the 1992 Act, requires SCSEP
recipients and subrecipients to consult with the local area agency on
aging in the planning and service areas in localities where a SCSEP
project is to be located. This is in addition to the existing
requirement that SCSEP recipients and subrecipients submit a
description of the project to the State agency 30 days prior to
undertaking the project.
Coordination with Administration on Aging. Section 503(a)(2) and
(b)(1) of the OAA, as amended by section 502(a)(3) and (b) of the 1992
Act, requires the Department of Labor to coordinate the administration
of the SCSEP program with the other titles of the Older Americans Act
in the areas of support and nutrition service, training, research and
demonstrations, and grants to Native Americans. Such coordination is
required in order to increase the likelihood that SCSEP enrollees
receive services authorized by the Older Americans Act and to increase
job opportunities for them.
Coordination with Job Training Programs. Sections 502(e)(2)(C) and
505(d) (1) and (2) of the OAA, as added by sections 501(5)(D) and
503(2) of the 1992 Act, require the Department of Labor to promote and
coordinate SCSEP projects with other programs, projects, or activities
under other Acts that provide training and employment opportunities to
eligible individuals.
III. Proposed Regulatory Changes by Section
The regulations for the SCSEP are currently at 29 CFR part 89. As
part of the process of consolidating all of the ETA program regulations
into 20 CFR chapter V, the Department is redesignating the regulations
at 29 CFR part 89 as 20 CFR part 641 and revising the regulations as
discussed below. See the redesignation table at the end of this
summary. The section number references are to the redesignated
sections.
A. Recent Statutory Amendments
The following is a discussion of changes made in response to the
amendments contained in Pub. L. 102-375.
Part 641
1. Section 641.102 includes new definitions for area agency on
aging, disability (consistent with section 504 of the Rehabilitation
Act of 1973 and 29 CFR parts 32 and 34), dual eligibility, greatest
economic need, greatest social need, individual development plan, JTPA,
poor employment prospects, reallotment, and subrecipient. These new
definitions are intended to provide clarifications consistent with the
1992 Act's amendments to the Older Americans Act and administrative
requirements.
2. Section 641.201 is amended to add hearings to assist in
understanding the allotment process; it also adds provisions for
within-State apportionment factors, including greatest economic need
and greatest social need.
3. Section 641.205 is amended to reformat and streamline the
regulation.
4. Section 641.302 is amended by: adding ``greatest economic need''
as a factor to be considered by the recipient and subrecipient under
their grants for serving specific needs; adding language to acknowledge
the need for the recipient and subrecipient to monitor the projects and
subprojects; adding language to acknowledge the need for documentation
to support enrollment and continuing eligibility determinations based
on concerns raised by the Department of Labor's Office of the Inspector
General; and reinforcing the need to provide equitable services.
5. Section 641.303 is amended by: substituting ``recipient or
subrecipient'' for ``project sponsor''; revising paragraph (b)(2) to
incorporate the need for establishing cooperative relationships to
obtain supportive services under other titles of the Older Americans
Act as the first approach used; adding paragraph (b)(3) to address the
need to develop cooperative relationships with other employment and
training organizations, including JTPA and Carl D. Perkins Act
programs; adding paragraph (b)(4) to emphasize the need for cooperative
relations with the employment security agency; and adding paragraph
(b)(5) to ensure consultations and sharing of project descriptions
among the recipients, subrecipients and the affected area agency on
aging.
6. Section 641.305, at paragraphs (a) and (b), is amended to
clearly state the three regulatory issues when eligibility criteria
must be employed; a new paragraph (d) is added, consistent with 20 CFR
628.605(e)(3) of the JTPA Interim Final Regulations issued December 29,
1992, 57 FR 62004, to incorporate the dual eligibility provisions of
section 510 of the OAA, as added by section 506 of the 1992 Act; and
paragraph (e) is added to clearly address varying situations dealing
with termination of enrollees.
7. Section 641.306 is amended by adding ``eligible individuals with
the greatest economic need'' as the first enrollment priority;
Sec. 641.306(b) establishes a preference for persons with poor
employment prospects within the priorities; and Sec. 641.306(c) is
added to clarify that priorities only apply to vacant positions.
Provisions regarding additional priorities have been dropped and
provisions regarding conversions to permanent enrollment status are
found in Sec. 641.318 Over-enrollment.
8. Section 641.308 is amended to include a discussion of safe
working conditions and is restructured to provide for host agency
orientation.
9. Section 641.309 is restructured and provisions for assessment
and reassessment of enrollees are added consistent with section
502(b)(1)(N) of the OAA, as added by section 501(2)(C) of the 1992 Act.
10. Section 641.310 is amended to incorporate the information on
community assignments under a single heading and transfers former (e)
which is now addressed under Sec. 641.308(c).
11. Section 641.311(b)(3) is added to establish a limitation on the
use of an enrollee's physical examination by recipients and
subrecipients and to establish that physical examinations are to be an
enrollee's fringe benefit and their use will be limited to the
assessment process.
12. Section 641.312(a) is amended to require, to the extent
feasible, use of supportive services from other Titles of the 1992 Act;
paragraph (b)(4) is added to address the need for periodic meetings;
and paragraph (b)(5) is revised to clarify when SCSEP funds can be used
for enrollee transportation.
13. Section 641.313 is revised to create a single section of the
regulation for training activities. Specifically: Sec. 641.313(b)
increases the number of allowable hours for training from 260 to 480
while ensuring that SCSEP is used solely for job search and job
referral services; Sec. 641.313(d) is added to clarify that recipients
and subrecipients are encouraged to arrange for or directly provide
skill training opportunities; Sec. 641.313(e) is added to require that
the continuing focus on community service be a basis for training;
Sec. 641.313(f) is added to acknowledge that an enrollee can be
reimbursed for related costs; Sec. 641.313(g) is added to require that
a recipient or a subrecipient must seek to obtain skill training at no
cost before paying for the training from SCSEP funds; and
Sec. 641.313(h) is added to clarify that self-development training
should not be prevented or limited as a result of this section.
14. Section 641.314 is revised for clarity; in addition,
Sec. 641.314(b) is amended to require an action plan when the goal for
unsubsidized placement has not been achieved.
15. Section 641.315 is revised to permit restricted limits on the
duration of enrollment.
16. Section 641.316 is added to permit recipients and subrecipients
to terminate enrollees who refuse to accept reasonable referrals or job
offers, e.g., three or more, which are consistent with their individual
development plan and there are no extenuating circumstances, e.g.,
unavailability of transportation. This provision does not institute an
untried procedure. Instead, it sanctions a practice which individual
sponsors had previously implemented unilaterally to encourage enrollees
to accept unsubsidized employment so other eligible applicants would
have an opportunity to participate in the program.
17. Section 641.318 is amended to clarify the concept of ``over-
enrollment'' of individuals in SCSEP which replaces the phrase
``temporary positions''.
18. Section 641.323 is amended to recognize the unique status of
Indian reservation work sites by permitting a waiver of nepotism
restrictions.
19. Section 641.324 is revised to cite the procedures to be
followed for recipients of JTPA funds.
20. Section 641.326 is amended to consolidate rules regarding
projects established pursuant to section 502(e) of the OAA.
21. Subpart D, sections 641.401-.406, is revised to include all of
the Administrative Standards and Procedures for Recipients and
Limitations on Federal Funds covering both governmental agencies and
non-profit organizations.
22. Section 641.402 is amended to cite the Departmental regulations
and administrative requirements that must be followed and excludes
subpart E, interstate Agreements, from coverage.
23. Section 641.403(b) is added to cite the Office of Management
and Budget circulars that must be followed; Sec. 641.403(c) relocates
the section on lobbying which was formerly covered by Sec. 674.321(c);
Sec. 641.403(d) relocates the former Sec. 674.402(e) which deals with
building repairs and acquisition costs; and Sec. 641.403(e) establishes
certain allowable fringe benefits costs.
24. Section 641.404 relocates the classification of cost material
previously covered by Sec. 674.402(c)(1-2); and Sec. 641.404(c)
clarifies the list of other enrollee costs; and Sec. 641.404(d) is
added to cover cost reductions.
25. Section 641.405 is renumbered from former Sec. 674.402 and
eliminates dates that are no longer applicable to limitations on
federal funds.
26. Section 641.406 replaces former Sec. 674.406 which dealt with
administrative cost waivers and clearly lists the criteria to be used.
27. Section 641.407(e) is added to address the Indian reservation
matching requirement situation.
28. Section 641.408 is added to list budget changes which will not
be permitted without prior approval.
29. Section 641.409 is restructured to clearly identify the
requirements for submittal of the program quarterly progress report,
the financial status report, and adds the requirement for a cash
management report and an equitable distribution report.
30. Section 641.410 establishes that subgrant agreements are to
clearly identify all matters dealing with such agreements, including
the recipient's responsibility for performance and are not to provide
for expenditures beyond the end date of the grant, and these agreements
are exempted from procurement requirements.
31. Section 641.411 is added to cite the accounting methods to be
used for program income.
32. Section 641.412 is added to identify the proper requirement is
to follow for equipment purchased prior to July 1, 1989.
33. Section 641.413 is added to emphasize the need for using the
appropriate OMB circular for audits.
34. Section 641.414 relocates the former Sec. 674.409 and provides
the correct citations for grant closeout procedures.
35. Section 641.415 is amended to correct and update the former
Sec. 674.408 by providing the proper citations to be used in appeals to
the Department of Labor.
36. Section 641.601 is amended to outline the responsibilities of
the Department to assess, evaluate and monitor the program and
recipients.
B. Prior Amendments and Proposed Changes
The following is a discussion of proposed changes made as a result
of public comments on the July 19, 1985, proposed regulation, which was
never finalized; changes made to the OAA by the 1987 amendments (Pub.
L. 199-175); and other editorial, clarification and technical purposes.
1. Section 641.101 is revised to read: ``Part 641 contains the
regulations of the Department of Labor for the Senior Community Service
Employment Program (SCSEP) under title V of the Older Americans Act of
1965, which maintains a dual objective of providing community service
assignments while promoting transition to unsubsidized employment. This
part, and other pertinent regulations expressly incorporated by
reference, set forth all regulations applicable to the SCSEP.''
2. Section 641.102 removes or amends a number of definitions of
terms to reflect DOL's uniform administrative requirements for grants
in 29 CFR part 97, which apply to activities under this part. Among the
terms omitted are ``local government'', ``State'', and ``grant
agreement.''
3. Section 641.102 is amended to expand its coverage consistent
with the 1987 amendments (Pub. L. 100-175), to include ``literacy
tutoring'' among the examples of community services.
4. Section 641.302(a) conforms to the revision of OAA section
502(b)(1)(M), made by section 162(a) of Pub. L. 100-175. The program
assurance in that section now must take into account the rates of
poverty and unemployment of the eligible individual groups.
5. Section 641.303 is amended by removing the words ``Objective
of'' from the beginning of paragraph (b) and adding in lieu thereof the
word ``The''.
6. Section 641.305(b)(3) is amended by removing ``place of'' from
the phrase ``place of residence'' in the heading and substituting the
word ``reside'' for the phrase ``have a place of residence''.
7. Section 641.309 is amended to add the word ``interest'' after
the word ``skills'' in paragraph (b).
8. Section 641.312 is amended to add a new paragraph (b)(4). The
former paragraph (b)(4) is redesignated as paragraph (b)(5) and a new
sentence is added to newly designated paragraph (b)(5), immediately
preceding the final sentence, to read: ``When authorized in the grant
agreement, transportation may be provided for enrollees from home to
work, to training or to supportive services.''
9. Section 641.315 is revised to read: ``A maximum duration of
enrollment may be established by the recipient in the grant agreement
when authorized by the Department.''
10. Section 641.324 is amended by revising the heading of the
section to read: ``Enrollee and applicant complaint resolution.'' In
paragraph (b), the word ``federal'' is added before the word ``law'' in
the first sentence. Paragraph (c) is revised to read: ``Recipients that
do not receive any funds under the JTPA shall process complaints of
discrimination in accordance with Title 29 CFR parts 31 and 32.
Recipients that receive any funds under JTPA shall process complaints
of discrimination in accordance with Title 29 CFR part 34.''
11. Section 641.402(b)(2) is redesignated as Sec. 641.405(b)(2) and
is revised to read: ``The amount of Federal funds budgeted for enrollee
wages and fringe benefits shall be no less than 75 percent of the
grant.'' The remainder of that sentence is removed.
12. Section 641.405(b)(1) is revised to conform to the revisions of
section 502(c)(3) of the OAA, made by section 161 of Pub. L. 100-175.
The maximum percentage of federal funds which may be used for
administrative costs is now limited to 13.5 percent, unless the
Department increases the amount available to not more than 15 percent
of the grant's federal cost. The Department shall administer such
required increases in accordance with section 502(c)(3) of the OAA.
13. Section 641.406 is expanded to include administrative cost
waiver criteria.
14. Section 641.415 is amended to revise the rules for
administrative hearings and for appeals from final disallowances.
Redesignation Table
------------------------------------------------------------------------
New section of
Old section of 29 CFR 20 CFR
------------------------------------------------------------------------
89.1.................................................... 641.101
89.2.................................................... 641.201
89.3.................................................... 641.102
89.6.................................................... 641.203
89.7.................................................... 641.204
and 641.205
89.8.................................................... 641.204
89.9.................................................... 641.206
89.10................................................... 641.208
89.11................................................... 641.207
89.12................................................... 641.209
89.15................................................... 641.301
89.16................................................... 641.302
89.17................................................... 641.303
89.18................................................... 641.304
89.19................................................... 641.305
89.20................................................... 641.306
89.21................................................... 641.311
89.22................................................... 641.308
89.23................................................... 641.309
89.24................................................... 641.313
89.25................................................... 641.310
89.26................................................... 641.313
89.27................................................... 641.312
89.28................................................... 641.312
89.29................................................... 641.314
89.30................................................... 641.315
89.31................................................... 641.316
and 324
89.32................................................... 641.311
89.33................................................... 641.311
89.34................................................... 641.318
89.35................................................... 641.310
89.36................................................... 641.317
89.37................................................... 641.324
89.38................................................... 641.320
and 321
89.39................................................... 641.323
89.40................................................... 641.325
89.41................................................... 641.407
89.42................................................... 641.405
and 406
89.43................................................... 641.410
89.51................................................... 641.402
89.52................................................... 641.402
89.53................................................... 641.402
89.54................................................... 641.402
89.55................................................... 641.402
89.56................................................... 641.411
89.57................................................... 641.407
89.58................................................... 641.402
89.59................................................... 641.409
89.60................................................... 641.302
and 409
89.61................................................... 641.402
89.62................................................... 641.408
89.63................................................... 641.419
89.64................................................... 641.412
89.65................................................... 641.402
89.71................................................... 641.402
89.72................................................... 641.402
89.73................................................... 641.402
89.74................................................... 641.402
89.75................................................... 641.411
89.76................................................... 641.407
89.77................................................... 641.402
89.78................................................... 641.409
89.79................................................... 641.302
and 409
89.80................................................... 641.402
89.81................................................... 641.408
89.82................................................... 641.414
89.83................................................... 641.402
89.84................................................... 641.412
89.85................................................... 641.402
89.91................................................... 641.501
89.96................................................... 641.601
89.97................................................... 641.601
89.98................................................... 641.602
89.99................................................... 641.303
------------------------------------------------------------------------
Regulatory Impact
This proposed rule is not classified as a ``major rule'' under
Executive Order 12866 concerning Federal regulations because it is not
likely to result in (1) an annual effect on the economy of $100 million
or more; (2) a major increase in cost or prices for consumers,
individual industries, Federal, State, or local government agencies, or
geographic regions; or (3) significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
United States-based enterprises to compete in domestic or export
markets. Accordingly, no regulatory impact analysis is required.
The Department of Labor has certified to the Chief Counsel for
Advocacy, Small Business Administration, that pursuant to the
Regulatory Flexibility Act at 5 U.S.C. 605(b), the proposed rule would
not have a significant economic impact on a substantial number of small
entities.
Paperwork Reduction Act
Pursuant to the Paperwork Reduction Act, information collection
requirements which must be imposed as a result of this regulation have
been approved by the Office of Management and Budget as a proposed
rule.
Public reporting burden for the collection of information is
estimated to average 55 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information. The required reports described at
Sec. 641.409 are as follows: the Quarterly Progress Report, the
Quarterly Financial Status Report, the Quarterly Report of Federal Cash
Transaction, and the Annual Equitable Distribution report.
Send comments regarding this burden estimate or any other aspect of
this collection of information, including suggestions for reducing this
burden, to the Office of Management and Budget, Paperwork Reduction
Project (1205-0040), Washington, DC 20503: Attention: Desk Officer for
Employment and Training Administration.
Catalogue of Federal Domestic Assistance Number
This program is listed in the Catalogue of Federal Domestic
Assistance at No. 17.235 ``Senior Community Service Employment
Program.''
List of Subjects
20 CFR Part 641
Administrative requirements, Aged, Employment, Government
contracts, Grant programs--labor, Reporting and recordkeeping
requirements.
29 CFR Part 89
Aged, Employment, Government contracts, Grant programs--labor,
Reporting and recordkeeping requirements.
Proposed Rule
Accordingly, 29 CFR part 89 is proposed to be redesignated as 20
CFR part 641 and the redesignated 20 CFR part 641 is proposed to be
revised to read as follows:
PART 641--SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM
Subpart A--Introductory Provisions
Sec.
641.101 Scope and purpose.
641.102 Definitions.
Subpart B--Grant Planning and Application Procedures
641.201 Allocation and allotment of title V funds.
641.202 Eligibility for title V funds.
641.203 Soliciting applications for title V funds.
641.204 Grant application requirements.
641.205 Responsibility review.
641.206 Grant application review.
641.207 Negotiation.
641.208 Rejection of grant application or project components.
641.209 Award of funds.
Subpart C--Grant Operations
641.301 General.
641.302 Recipient responsibilities.
641.303 Cooperative relationships.
641.304 Recruitment and selection of enrollees.
641.305 Enrollment eligibility.
641.306 Enrollment priorities.
641.307 [Reserved].
641.308 Orientation.
641.309 Assessment and reassessment of enrollees.
641.310 Community service employment assignments.
641.311 Enrollee wages and fringe benefits.
641.312 Enrollee supportive services.
641.313 Training.
641.314 Placement into unsubsidized employment.
641.315 Maximum duration of enrollment.
641.316 Individual development plan-related terminations.
641.317 Status of enrollees.
641.318 Over-enrollment.
641.319 [Reserved].
641.320 Political patronage.
641.321 Political activities.
641.322 Unionization.
641.323 Nepotism.
641.324 Enrollee and applicant complaint resolution.
641.325 Maintenance of effort.
641.326 Experimental private sector training projects.
Subpart D--Administrative Standards and Procedures for Recipients and
Limitations on Federal Funds
641.401 General.
641.402 Administrative requirements.
641.403 Allowable costs.
641.404 Classification of costs.
641.405 Limitation on federal funds.
641.406 Administrative cost waiver.
641.407 Non-federal share of project costs.
641.408 Budget changes.
641.409 Recipient fiscal and performance reporting requirements.
641.410 Subgrant agreements.
641.411 Program income accountability.
641.412 Equipment.
641.413 Audits.
641.414 Grant closeout procedures.
641.415 Department of Labor appeals procedures for recipients.
Subpart E--Interagency Agreements
641.501 Administration.
Subpart F--Assessment and Evaluation
641.601 General.
641.602 Limitation.
Authority: 42 U.S.C. 3056 (b) (2).
Subpart A--Introductory Provisions
Sec. 641.101 Scope and purpose.
Part 641 contains the regulations of the Department of Labor for
the Senior Community Service Employment Program (SCSEP) under title V
of the Older Americans Act of 1965, which maintains a dual objective of
providing community service assignments while promoting transition to
unsubsidized employment. This part, and other pertinent regulations
expressly incorporated by reference, set forth all regulations
applicable to the SCSEP.
Sec. 641.102 Definitions.
The following definitions apply to this part:
Act and OAA mean the Older Americans Act of 1965, as amended (42
U.S.C. 3001, et seq.).
Area agency on aging means an area agency on aging designated under
section 305(a)(2)(A) of the Act or a State agency performing the
functions of an area agency on aging under section 305(b)(5) of the
Act.
Authorized position means an enrollment opportunity during a
program year. The number of authorized positions is derived by dividing
the total amount of funds appropriated during a program year by the
national average unit cost per enrollee for that program year as
determined by the Department. The national average unit cost includes
all administration costs, other enrollee costs, and enrollee wage and
fringe benefit costs. An allotment of the total dollars for the
recipient is divided by the national unit cost to determine the total
number of authorized positions for each grant agreement.
Community service means social, health, welfare, and educational
services (particularly literacy tutoring); legal assistance, and other
counseling services, including tax counseling and assistance and
financial counseling; library, recreational, day care and other similar
services; conservation, maintenance, or restoration of natural
resources; community betterment or beautification; pollution control
and environmental quality efforts; weatherization activities; and
includes inter-generational projects; but is not limited to the above.
It excludes building and highway construction (except that which
normally is performed by the project sponsor) and work which primarily
benefits private, profit-making organizations. [Section 507(2).]
Department and DOL mean the United States Department of Labor,
including its agencies and organizational units.
Disability means a physical or mental impairment of an individual
that substantially limits one or more major life activities; a record
of such impairment; or being regarded as having such an impairment. [29
CFR parts 32 and 34.]
Dual eligibility means the status of those eligible individuals who
satisfy the eligibility requirements of section 203 of the JTPA and/or
title V of the OAA. In programs carried out jointly with JTPA, Title V
eligible individuals shall be deemed to satisfy the requirements of
section 203 of the JTPA. To be recognized as a program for which dual
eligibility may be established, the JTPA service delivery area and the
title V recipient or subrecipient must establish a written financial or
non-financial agreement to carry out joint programs.
Eligible individual means a person who is 55 years of age, or
older, and who has a low income as defined in this section. [Section
507(1).]
Eligible organization means an organization which is legally
capable of receiving and using Federal funds under the Act and entering
into a grant or other agreement with the Department to carry out
provisions of title V. [Section 502(b)(1).]
Employment and training program(s) means publicly funded efforts
designed to offer employment, training and/or placement services which
enhance an individual's employability. The term is used in this part to
include, but not be limited to, the JTPA or similar legislation and
State or local programs of a similar nature.
Enrollee means an individual who is eligible, receives services,
and is paid wages for engaging in community service employment
assignments under a project.
Greatest economic need means the need resulting from an income
level at or below the poverty line based on guidelines provided by the
Department.
Greatest social need, as defined at section 102(a)(30) of the Act,
means the need caused by noneconomic factors which include:
(1) Physical and mental disabilities;
(2) Language barriers; and
(3) Cultural, social, or geographical isolation, including
isolation caused by racial or ethnic status.
Host agency means a public agency or a private non-profit
organization, other than a political party or any facility used or to
be used as a place for sectarian religious instruction or worship,
exempt from taxation under the provisions of section 501(c)(3) of the
Internal Revenue Code of 1986, which provides a work site and
supervision for an enrollee.
Individual development plan means a plan for an enrollee which
shall include an employment goal, achievement objectives, and
appropriate sequence of services for the enrollee based on an
assessment conducted by the recipient or subrecipient and jointly
agreed upon by the enrollee.
JTPA means the Job Training Partnership Act (29 U.S.C. 1501, et
seq.).
Low income means an income which, during the preceding 6 months on
an annualized basis or the actual income during the preceding 12
months, whichever is more beneficial to the applicant, is not more than
125 percent of the poverty levels established and periodically updated
by the U.S. Department of Health and Human Services. In addition, an
individual who receives, or is a member of a family which receives,
regular cash welfare payments shall be deemed to have a low income for
purposes of this part.
Poor employment prospects means the unlikelihood of an otherwise
eligible individual obtaining employment without the assistance of this
or other employment and training programs. Persons with poor employment
prospects include, but are not limited to, those without a substantial
employment history, basic skills, English-language proficiency, or are
displaced homemakers, school dropouts, disabled veterans, or homeless.
Program year means the one-year period covered by a grant agreement
beginning July 1 and ending on June 30.
Project means an undertaking by a recipient or subrecipient,
pursuant to a grant agreement between the Department and a recipient,
which provides for community service employment opportunities for
eligible individuals and the delivery of associated services.
Reallocation means a redistribution of funds by a recipient.
Reallotment means the redistribution of allotted title V funds by
the Department from one State to another State(s) or from one recipient
to another recipient.
Recipient means an eligible organization which has entered into a
grant agreement with the Department under this part.
Residence means an individual's declared permanent dwelling place.
No requirement pertaining to length of residency prior to enrollment
shall be imposed.
SCSEP means the Senior Community Service Employment Program as
authorized under title V of the Act.
State agency on aging means that sole State agency designated by
the State, in accordance with regulations of the Assistant Secretary on
Aging, pursuant to section 305(a)(1) of the Act.
Subrecipient means the legal entity to which a subgrant is awarded
by a recipient and which is accountable to the recipient (or higher
tier subrecipient) for the use of the funds provided.
Title V means title V of the Act, 42 U.S.C. 3056 et seq.
Subpart B--Grant Planning and Application Procedures
Sec. 641.201 Allotment and allocation of title V funds.
(a) Allotment. The Secretary shall allot funds for projects in each
State in accordance with the distribution requirements contained in
section 506(a) of the Act.
(b) Within-State apportionment. The amount allotted for projects
within a State shall be apportioned among areas within the State in an
equitable manner, taking into consideration:
(1) The proportion which eligible individuals in each such area
bears to the total number of such persons, respectively, in that State;
(2) The relative distribution of such individuals residing in rural
and urban areas within the State; and
(3) The relative distribution of such individuals who are
individuals with the greatest economic need, such individuals who are
minority individuals, and such individuals with greatest social need.
(c) Annual report of funds allocated by state. The State agency for
each State receiving funds under title V shall report at the beginning
of each fiscal year on such State's status relative to section 506(c)
of the Act. Each State's report shall include names and geographic
locations of all projects receiving title V funds for projects in the
State and the amount allotted to each project. All recipients and
subrecipients operating in a State shall provide information necessary
to compile the report. [Section 506(d).]
Sec. 641.202 Eligibility for title V funds.
Agencies and organizations eligible to receive title V funds shall
be those specified in sections 502(b) and 506(a) of the Act.
Sec. 641.203 Soliciting applications for title V funds.
The Department may solicit or request organizations to submit
applications for funds.
Sec. 641.204 Grant application requirements.
(a) Schedules. The Department shall establish, by administrative
directive, schedules for submittal of grant preapplications and
applications; the contents of grant applications, including goals and
objectives; amounts of grants; and grant budget and narrative formats.
(b) Intergovernmental reviews. Grant applicants shall comply with
the requirements of the Department's regulation at 29 CFR part 17 which
implements the intergovernmental review of Department programs and
activities. A Preapplication for Federal Assistance form (SF-424) filed
as a result of the review system shall contain an attachment which, at
a minimum, lists the proposed number of authorized community service
employment positions in each county, or other appropriate jurisdiction
within the affected State. Whenever a national organization or other
program recipient or subrecipient proposes to conduct projects within a
planning and service area in a State, such organization or program
recipient is responsible for sharing their applications with area
agencies on aging and other SCSEP sponsors in the area prior to the
award of the funds in accord with guidelines issued by the Department.
(c) Subgrants. A grant applicant planning to award funds by
subgrant shall:
(1) Outline the nature and extent of the planned use of such funds;
and
(2) Assure that in the event that a subgrant agreement is canceled
in whole or in part, the recipient will provide continuity of services
to enrollees.
Sec. 641.205 Responsibility review.
(a) In order to enter into and continue a grant relationship with
DOL, an organization (applicant) shall be responsible. To determine
responsibility, DOL conducts a preaward review of all grant applicants.
As part of this review, DOL applies 13 basic responsibility tests to
each applicant.
(b) If a grant applicant fails either of the following two
responsibility tests, it shall not be designated as a recipient:
(1) The Department's efforts to recover debts from the applicant
(for which three demand letters have been sent) established by final
Department action have been unsuccessful, or the applicant has failed
to comply with an approved repayment plan.
(2) Fraud or criminal activity has been determined to exist within
the organization.
(c) Eleven additional basic responsibility tests are applied to
each grant applicant. Failure to meet any one of these tests does not
establish that the applicant is not responsible, unless the failure is
substantial or persistent. These tests are as follows:
(1) Serious administrative deficiencies have been identified, such
as failure to maintain a financial management system as required by
Federal regulations.
(2) Willful obstruction of the monitoring process.
(3) Failure to meet performance requirements.
(4) Failure to correct deficiencies brought to the recipient's
attention in writing as a result of monitoring activities, reviews,
assessments, etc.
(5) Failure to submit correct grant closeout documents within 90
days after expiration of the grant, unless an extension has been
requested and granted.
(6) Failure to return outstanding cash advances within 90 days of
the expiration date of the grant, unless an extension has been
requested and granted, or the funds have been authorized to be retained
for use on other grants.
(7) Failure to submit correct required reports by established due
dates.
(8) Failure to properly report and dispose of government property
as instructed by DOL.
(9) Failure to have maintained cost controls resulting in excess
cash on hand.
(10) Failure to timely comply with the audit requirements of 29 CFR
part 96.
(11) Final disallowed costs in excess of five percent of the grant
award.
Sec. 641.206 Grant application review.
(a) The Department shall review each grant application submitted
timely by an eligible organization.
(b) In reviewing and considering an application, the Department
shall determine the following:
(1) The availability of funds for the proposed grant;
(2) The preparation of the application in accordance with the
Department's instructions;
(3) The compliance of the application with the requirements of the
Act and this part;
(4) The evaluation of the application as to whether it offers the
best prospect of serving appropriate geographic areas; and
(c) Whether the application demonstrates the effective use of
funds.
Sec. 641.207 Negotiation.
(a) The Department may negotiate with an eligible organization to
arrive at a grant agreement if the application generally meets
requirements set forth in this part.
(b) The subjects of negotiation may include, but are not limited to
the following:
(1) Project components, including planned occupational categories
of SCSEP employment assignments and geographic locations of authorized
positions;
(2) Subproject(s), if any;
(3) Funding level, including all budget line items; and
(4) Performance goals.
Sec. 641.208 Rejection of grant application or project components.
(a) The Department may reject any proposed project component if it
is determined that the component will not serve the purposes of the
Act; or the Department may, if negotiation does not produce a mutually
acceptable conclusion, reject a grant application.
(b) If the Department rejects an application, as set forth in
paragraph (a) of this section, the Department may solicit applications
from other eligible organizations in order to arrive at a grant
agreement.
(c) When an application is not approved, the Department shall
notify the applicant within a reasonable time in writing and state the
reason(s) for rejection.
(d) Rejection of a proposal or application is a final Departmental
action which is not subject to further administrative review. Rejection
will not affect future consideration of the applicant for other
projects as long as the organization meets the eligibility criteria.
Sec. 641.209 Award of funds.
When the applicant is a unit of State government or a public or
private non-profit organization, the award of funds to a recipient
shall be accomplished through the execution of a grant agreement
prepared by the Department. When the applicant is a unit of the Federal
Government, other than the Department, the award of funds shall be
accomplished through an interagency agreement.
Subpart C--Grant Operations
Sec. 641.301 General.
(a) This subpart establishes basic grant operation standards and
procedures to be followed by all organizations receiving title V funds
for the purpose of operating SCSEP grant agreements and projects.
(b) The primary purposes of an SCSEP project are to provide useful
part-time community service employment assignments for persons with low
incomes who are 55 years old or older and to provide useful community
services while promoting transition to unsubsidized employment.
Recipients and subrecipients shall develop work assignments for
eligible individuals which will result in the provision of community
services as defined in sections 502(b) and 507(2) of the Act.
Sec. 641.302 Recipient responsibilities.
The recipient shall provide to eligible individuals: wages, skill
acquisition or skill enhancement opportunities, periodic physical
examinations, personal and employment-related counseling, assistance in
transition to unsubsidized employment where feasible, and other
benefits as approved by the Department.
(a) Recipients are responsible for:
(1) Following and enforcing the requirements set forth in the Act
and this part;
(2) Implementing and carrying out projects in accordance with the
provisions of the grant agreement; and
(3) Assuring, to the extent feasible, that such projects will serve
the needs of minority, eligible individuals who have the greatest
economic need, at least in proportion to their numbers in the State,
and take into consideration their rates of poverty and unemployment
based on best available information, limited English-speaking, and
Indian eligible individuals. [Section 502(b)(1)(M).]
(b) The recipient periodically shall monitor the performance of
grant-supported activities to assure that project goals are being
achieved and that the requirements of the Act and this part are being
met.
(c) The recipient or subrecipient shall obtain and record the
personal information necessary for a proper determination of
eligibility for each individual and maintain documentation supporting
the enrollment of eligible persons.
(d) Each recipient or subrecipient shall make efforts to provide
equitable services among substantial segments of the population
eligible for participation in SCSEP. Such efforts shall include, but
not be limited to: outreach efforts to broaden the composition of the
pool of those considered for participation, to include members of both
sexes, various race/ethnic groups and individuals with disabilities.
Sec. 641.303 Cooperative relationships.
(a) Each recipient or subrecipient shall, to the maximum extent
feasible, cooperate with other agencies, including activities conducted
under the JTPA to provide services to elderly persons and to persons
with low incomes, and with agencies providing employment and training
services.
(b) The cooperation described in paragraph (a) of this section
shall include, but not be limited to:
(1) Selection of community service employment occupational
categories, work assignments, and host agencies to provide a variety of
community service opportunities for enrollees and to produce a variety
of federally funded services which respond to the community's total
needs and initiatives.
(2) Establishment of cooperative relations with the State agency on
aging designated under section 305(a)(1) of the Act and with area
agencies on aging designated under section 305(a)(2) of the Act for the
purpose of obtaining services as authorized under titles III, IV, and
VI of the Act to increase the likelihood of receipt of employment
opportunities and supportive services that are available. Existing
services provided under the authority of section 321(a) of the Act
shall be used first by recipients or subrecipients.
(3) Cooperative relations shall be established with other
employment and training organizations including the State and local
JTPA and the Carl D. Perkins Act programs to insure that project
enrollees can benefit from such cooperative activities as dual
eligibility, shared assessments, training and referral.
(4) Establishment of cooperative relations with State employment
security agencies to insure that enrollees are made aware of services
available from these agencies.
(5) In order to insure efficient and effective coordination of
programs under this part, recipients or subrecipients shall consult and
submit project descriptions among themselves as well as with affected
area agencies on aging. [Section 502(d)(1).]
Sec. 641.304 Recruitment and selection of enrollees.
Recipients and subrecipients shall use methods of recruitment and
selection (including listing of vacancies with the State employment
security agency) which will assure that the maximum number of eligible
individuals will have an opportunity to participate in the program.
Recruitment efforts shall be designed, to the extent feasible, to
assure equitable distribution of services to groups described in
Sec. 641.302(e). [Section 402(b)(1)(H).]
Sec. 641.305 Enrollment eligibility.
(a) General. Eligibility criteria set forth in this section apply
to all SCSEP applicants and enrollees, including the following
individuals:
(1) Each individual seeking initial enrollment;
(2) Each individual seeking reenrollment after termination from the
SCSEP; and
(3) Each enrollee seeking recertification for continued enrollment.
(b) Eligibility criteria. To be eligible for initial enrollment,
each individual shall meet the following criteria for age, income, and
place of residence:
(1) Age. Each individual shall be no less than 55 years of age. No
person whose age is 55 years or more shall be determined ineligible
because of age, and no upper age limit shall be imposed for initial or
continued enrollment. [Section 502.]
(2) Income. The income of an individual, or of the family of which
the individual is a member, shall not exceed the low-income standards
defined in Sec. 641.103 and issued by the Department.
(3) Residence. Each individual, upon initial enrollment, shall
reside in the State in which the project is authorized.
(c) No additional eligibility requirement. Recipients and
subrecipients shall not impose any additional condition or requirement
for enrollment eligibility.
(d) Dual eligibility. Individuals eligible under title V shall be
deemed to satisfy the requirements of title II-A of the JTPA, when a
written financial or non-financial agreement to jointly operate
programs for older workers is established with a JTPA service delivery
area.
(e) Special responsibilities of the recipients and subrecipient(s)
relating to eligiblity. (1) Each recipient or subrecipient shall
recertify the income of each enrollee under its grant or subgrant,
respectively, once each project year, according to the schedule set
forth in the grant agreement and shall maintain documentation to
support the recertification. Enrollees found to be ineligible for
continued enrollment because of income shall be given, by the recipient
or subrecipient, a written notice of termination and shall be
terminated 30 days after the notice. No enrollee shall participate in a
community service position for more than 12 months without having his
or her income recertified.
(2) If, at any time, the recipient or a subrecipient determines
that an enrollee was incorrectly declared eligible as a direct result
of false information given by the individual, the individual shall be
given a written notice explaining the reason or reasons for the
determination and shall be terminated immediately.
(3) If, at any time, the recipient or subrecipient determines that
an enrollee was incorrectly declared eligible through no fault of the
enrollee, the recipient or subrecipient shall give the enrollee
immediate written notice explaining the reason or reasons for
termination, and the enrollee shall be terminated 30 days after the
notice.
(4) When a recipient or subrecipient makes an unfavorable
determination on continued eligibility, it shall explain in writing to
the enrollee the reason(s) for the determination and shall provide
notice of the right of appeal in accordance with the required
procedures set forth in Sec. 641.324.
(5) When a recipient or subrecipient terminates an enrollee for
cause, it shall inform the enrollee in writing, of the reason(s) for
termination and of the right of appeal in accordance with the required
procedures set forth in Sec. 641.324.
(6) When a recipient or subrecipient makes an unfavorable
determination of enrollment eligibility pursuant to paragraph (e)(1) or
(3) of this section, it should assure that the individual is given a
reason for non-enrollment and referred to other potential sources of
assistance.
Sec. 641.306 Enrollment priorities.
(a) As set forth in sections 502(b)(1)(M) and 507(1) of the Act,
enrollment priorities for filling vacant authorized positions shall be
as follows:
(1) Eligible individuals with the greatest economic need;
(2) Eligible individuals who are 60 years old and older; and
(3) Eligible individuals who seeks re-enrollment following
termination of a job because of illness or engaging in unsubsidized
employment, provided that re-enrollment is sought within one year of
termination.
(b) Within all enrollment priorities, those persons with poor
employment prospects shall be given preference.
(c) Enrollment priorities established in this section shall apply
to vacant positions and shall not be interpreted to require the
termination of any eligible enrollee.
Sec. 641.307 [Reserved]
Sec. 641.308 Orientation.
(a) Enrollee. After an individual enrolls in a community service
employment assignment, the recipient or subrecipient shall, as soon as
practicable, provide orientation to the enrollee. The orientation shall
provide, as appropriate, information related to: project objectives;
community service employment assignments; training; supportive
services; responsibilities, rights, and duties of the enrollee;
permitted and prohibited political activities; plans to transition to
unsubsidized employment and a discussion of safe working conditions at
the host agencies.
(b) Host agency. The recipient or a subrecipient shall provide to
those individuals who will supervise enrollees at the host agencies,
the orientation described in paragraph (a) of this section. This is to
assure that enrollees will receive adequate supervision and
opportunities for transitioning to the host agency staff or other
unsubsidized employment.
(c) Supevision. The recipient or subrecipient shall ensure that
host agencies provide adequate orientation, instruction, and
supervision for enrollees job responsibilities regarding
responsibilities and safety.
Sec. 641.309 Assessment and reassessment of enrollees.
(a) General. The recipient or subrecipient shall assess each
enrollee under the grant or subgrant, respectively, to determine the
most suitable SCSEP assignment for the individual and to identify
appropriate employment and training objectives. The assessment shall be
made in consultation with the new enrollee and should consider the
individual's preference of occupational category, work history, skills,
interests, talents, physical capabilities, need for supportive
services, aptitudes, potential for performing proposed community
service employment duties, and potential for transition to unsubsidized
employment.
(b) Assignment. The recipient or subrecipient shall seek a
community service employment assignment which will permit the most
effective use of each enrollee's skills, interests, and aptitudes.
(c) Individual development plans. The recipient and subrecipient
shall use the assessment or reassessment as a basis for developing or
amending an individual development plan (IDP). The IDP shall be
developed in partnership with the enrollee to reflect the needs of the
enrollee as indicated by the assessment, as well as the expressed
interests and desires of the enrollee.
(d) Review of IDP plan. The recipient and subrecipient shall review
the IDP at least once a program year for the following purposes: to
evaluate the progress of each enrollee in meeting the objectives of the
service strategy; to determine each enrollee's potential for transition
to unsubsidized employment; to determine the appropriateness of each
enrollee's current community service employment assignment; and to
review progress made toward meeting their training and employment
objectives.
(e) Alternative assignment. Upon completion of the review, the
sponsor may develop an alternative assignment, when feasible, should
there be one of the following determinations:
(1) That a different community service employment assignment will
provide greater opportunity for the use of an enrollee's skills and
aptitudes;
(2) That an alternative assignment will provide work experience
which will enhance the potential for unsubsidized employment; or
(3) That an alternative community assignment will otherwise serve
the best interests of the enrollee.
(f) Minimum requirements. The assessments and reassessments
required by this section shall meet minimum requirements issued by the
Department on assessment, and subsequent determinations are to be
recorded in the enrollee's IDP, to become a part of each enrollee's
permanent record.
(g) Recent assessments. Assessments of an enrollee, prepared by
another employment or training program (such as a program under the
JTPA or the Carl D. Perkins Vocational and Applied Technology Act) may
be substituted for one prepared by the recipient or subrecipient.
Sec. 641.310 Community service employment assignments.
(a) Assignment to community service employment. After the
completion of an enrollee's orientation and initial training, if any,
the recipient or subrecipient shall refer the enrollee, as soon as
possible, to a useful part-time community service employment
assignment.
(1) Each enrollee shall be employed in an assignment which
contributes to the general welfare of the community and which provides
services related to publicly owned and operated facilities and projects
or projects sponsored by organizations, other than political parties,
exempt from taxation under the provisions of section 501(c)(3) of the
Internal Revenue Code of 1986. The enrollee shall be employed to
provide ``community services''. To the fullest extent feasible, the
enrollee shall be given first consideration for assignments involved in
the operation of projects.
(2) The enrollee shall not be assigned to work involving the
construction, operation, or maintenance of any facility used or to be
used as a place for sectarian religious instruction or worship, or to
work which primarily benefits private, profit-making organizations.
[Sections 502(b)(1) (A), (C), and (D) and 507(2).]
(b) Hours of community service employment assignments. (1) Each
enrollee's community service employment assignment shall not exceed
1,300 hours during the 12-month period specified in the recipient's
agreement. The 1,300 hours includes paid hours of orientation,
training, sick leave, and vacation and hours of enrollment provided by
all recipients and subrecipients. No enrollee shall be reimbursed for
more than 1,300 hours in any 12-month period. [Section 508(a)(2).]
(2) The recipient or subrecipient shall not require an enrollee to
participate more than 20 hours during one week; however, hours may be
extended with the consent of the enrollee. Shorter periods may be
authorized by the grant agreement, in writing by the Department, or by
written agreement between an enrollee and a recipient or subrecipient.
(3) The recipient or subrecipient shall not offer an enrollee an
average of fewer than 20 hours of paid participation per week. [Section
508(a)(2).]
(4) The recipient or subrecipient shall, to the extent possible,
ensure that the enrollee works during normal business hours, if the
enrollee so desires.
(c) Location. The enrollee shall be employed at work sites in or
near the community where the enrollee resides. [Section 502(b)(1)(B).]
(d) Working conditions for enrollees. Enrollees shall not be
permitted to work in a building or surroundings or under conditions
which are unsanitary, hazardous, or dangerous to the enrollees' health
or safety. The recipient or a subrecipient shall make periodic visits
to the enrollees' work site(s) to assure that the working conditions
and treatment of the enrollee are consistent with the Act and this
part. [Section 502(b)(1)(J).]
Sec. 641.311 Enrollee wages and fringe benefits.
(a) Wages. Upon engaging in part-time community service employment
assignments, including orientation and training in preparation for
community service employment assignments, each enrollee shall receive
wages at a rate no less than the highest applicable rate:
(1) The minimum wage which would be applicable to the enrollee
under the Fair Labor Standards Act of 1938;
(2) The State or local minimum wage for the most nearly comparable
covered employment; or
(3) The prevailing rates of pay for persons employed in similar
public occupations by the same employer.
(b) Fringe benefits. (1) The recipient or subrecipient shall ensure
that enrollees receive all fringe benefits required by law.
(2) Within a project or subproject, fringe benefits shall be
provided uniformly to all enrollees, unless the Department agrees to
waiver this provision due to a determination that such a waive is in
the best interests of applicants, enrollees, and the project
administration.
(3) Physical assessment. A physical examination shall be regarded
as a fringe benefit and its use will be limited to determining the need
for supportive services. A copy of the physical examination shall be
provided to the enrollee. A physical examination is a program benefit
and shall not be interpreted as an eligibility criterion.
(i) Each individual selected for enrollment shall have a physical
assessment within the 2-month period immediately before the first day
of compensated participation which shall be used as part of the
assessment process following eligibility determination. [Section
502(b)(1)(N).] Exceptions are provided in paragraph (b)(3)(iv) of this
section.
(ii) Enrollees should be provided a physical examination every
twelve months, but no enrollee may participate in community service
employment for more than 15 months without a physical examination or a
waiver, as provided by paragraph (b)(3)(iv) of this section.
(iii) An enrollee who is terminated may be reenrolled without an
additional physical assessment, provided that the time elapsed since
the last physical assessment does not exceed 15 months, and provided
that a schedule of one examination within each 15-month period shall be
resumed, based on the date of the last examination.
(iv) Notwithstanding paragraphs (b)(3) (i), (ii), and (iii) of this
section, when an individual objects to a physical examination, the
recipient or subrecipient shall obtain a signed waiver prior to the
first day of compensated participation. Thereafter, an additional
signed waiver shall be obtained from each enrollee before providing any
compensated participation more than 15 months after the date of the
enrollee's latest waiver. Failure to receive such waiver within the 15-
month timeframe will result in the enrollee's preclusion from further
participation in an assignment.
(c) Retirement. Expenditures of grant funds for contributions into
a retirement system or plan are prohibited, unless the recipient has
documentation on hand showing that:
(1) The costs are allowable under the appropriate cost principles
indicated at Sec. 641.403(b); and
(2) Such contributions bear a reasonable relationship to the cost
of providing such benefits to enrollees because:
(i) the benefits vest at the time contributions are made on behalf
of the enrollees; or
(ii) the charges to SCSEP funds are for contributions on behalf of
enrollees to a ``defined benefit'' type of plan which do not exceed the
amounts reasonably necessary to provide the specified benefit to
enrollees, as determined under a separate actuarial determination.
(d) Workers' compensation. Where an enrollee is not covered by the
State workers' compensation law, the recipient or subrecipient shall
provide the enrollee with workers' compensation benefits equal to that
provided by law for covered employment. [Section 504(b).]
(e) Unemployment compensation. The recipient is authorized to pay
the cost of unemployment insurance for covered enrollees, where
required by law. [Section 502(b)(1)(O).]
Sec. 641.312 Enrollee supportive services.
(a) The recipient or subrecipient shall provide supportive services
designed to assist the enrollee in participating successfully in
community service employment assignments and, where appropriate, to
prepare and assist the enrollee in obtaining unsubsidized employment.
To the extent feasible, the recipient or subrecipient shall utilize
supportive services available from other titles of the OAA,
particularly those administered by area agencies on aging and other
funding sources.
(b) Supportive services may include, but need not be limited to,
all or some of the following:
(1) Counseling or instruction designed to assist the enrollee to
participate successfully in community service employment assignments or
to obtain unsubsidized employment.
(2) Counseling designed to assist the enrollee personally in areas
such as health, nutrition, social security benefits, medicare benefits,
and retirement laws.
(3) Incidentals, including, but not limited to: work shoes, badges,
uniforms, safety glasses, eyeglasses, and hand tools, may be provided
if necessary for successful participation in community service
employment assignments and if not available from other sources.
(4) Periodic meetings on topics of general interest, including
matters related to health, job seeking skills, safety, and consumer
affairs.
(5) Enrollee transportation. (i) Enrollee transportation may be
payable if transportation from other sources at no cost to the project
is unavailable and such unavailability is documented. When authorized
in the grant agreement, transportation may be provided for enrollees
from home to work, to training or to supportive services. [Section
502(b)(1)(L).]
(ii) Grant funds may not be used for enrollee transportation in
connection with performing work of the recipient, subrecipient or host
agency, including activities under other titles of the OAA.
Sec. 641.313 Training.
(a) The recipient or subrecipient shall provide a new enrollee with
training related to community service employment assignments prior to,
and as preparation for, actual community service employment. Training
may be provided through lectures, seminars, classroom instruction,
individual instruction or other arrangements, including but not limited
to arrangements with employment and training programs. The recipient or
the subrecipient is encouraged to obtain such services through locally
available resources, including employment and training programs, as
defined in Sec. 641.103, and through host agencies, at no cost or
reduced cost to the project. [Section 502(b)(1)(I).]
(b) Training shall consist of up to 480 hours and shall be
consistent with the enrollee's IDP. Such training shall cover all
aspects of training, e.g., orientation, skill, job search, etc.
Enrollees shall not be enrolled solely for the purpose of receiving job
search and job referral services. Waivers for additional hours of
training will be considered on an exception basis.
(c) The recipient or subrecipient shall enroll each individual in
the project prior to training in preparation for community service
employment assignments and shall pay each enrollee as provided in
Sec. 641.310(b).
(d) In addition to training in preparation for community service
employment assignments, as described in this section, a recipient or
subrecipient is encouraged to arrange for, or directly provide, skills-
training opportunities beyond the SCSEP community service training
activities which will permit the enrollee to acquire or improve skills,
including literacy training, applicable in community service employment
or for unsubsidized employment.
(e) A recipient or subrecipient, to the extent feasible, shall
arrange skill-training for the enrollee which is realistic and
consistent with his or her IDP. A recipient or subrecipient shall place
major emphasis on the training available through on-the-job experience
at SCSEP work sites, thereby retaining the community service focus of
the SCSEP.
(f) An enrollee engaging in skills-related training as described in
paragraphs (d) and (e) of this section, may be reimbursed for the
documented travel cost and room and board necessary to engage in such
training. [Section 502(b)(1)(I).]
(g) A recipient or subrecipient shall seek to obtain all training
for enrollees from such sources as the JTPA and the Carl D. Perkins
Vocational and Applied Technology Education Act at no cost to the
project. Where training is not available from other sources, title V
funds may be used for training.
(h) Nothing in this section shall be interpreted to prevent or
limit an enrollee from engaging in self-developmental training
available from sources other than title V during hours other than hours
of community service employment.
(i) Nothing in this section shall preclude joint programs between
title V programs and programs authorized by the Job Training
Partnership Act, the Community Services Block Grant Act or the Carl D.
Perkins Act.
Sec. 641.314 Placement into unsubsidized employment.
(a) In order to ensure that the maximum number of eligible
individuals have an opportunity to participate in community service
employment, the recipient or subrecipient shall employ reasonable means
to place each enrollee into unsubsidized employment.
(b) To encourage the placement of the enrollee into an unsubsidized
job, the Department has established a goal of placing into unsubsidized
employment the number of enrollees which equals at least 20 percent of
the annual authorized positions within the project year. Whenever this
goal is not achieved, the recipient shall develop and submit a plan of
action for addressing this shortfall.
(c) The recipient or subrecipient may contact private and public
employers directly or through the State employment security agencies to
develop or identify suitable unsubsidized employment opportunities; and
should encourage host agencies to employ enrollees in their regular
work forces.
(d) The recipient or subrecipient shall follow-up on each enrollee
who is placed into unsubsidized employment and shall document such
follow-up at least once within 3 months of unsubsidized placement.
Sec. 641.315 Maximum duration of enrollment.
A maximum duration of enrollment may be established by the
recipient in the grant agreement, when authorized by the Department.
Sec. 641.316 Individual development plan-related terminations.
When an enrollee refuses to accept a reasonable number of referrals
or job offers to unsubsidized employment consistent with his or her IDP
and there are no extenuating circumstances, the enrollee may be
terminated from the SCSEP. Such a termination shall be consistent with
administrative guidelines issued by the Department and the termination
shall be subject to the applicable appeal rights and procedures
described in the grant.
Sec. 641.317 Status of enrollees.
Enrollees who are employed in any project funded under the Act are
not deemed to be Federal employees as a result of such employment.
[Section 504(a).]
Sec. 641.318 Over-enrollment.
Should attrition or funding adjustments prevent a portion of
project funds from being fully utilized, the recipient may use those
funds during the period of the agreement to over-enroll additional
eligible individuals. The number over-enrolled may not exceed 20
percent of the total number of authorized positions established under
the grant agreement without the written approval of the Department.
Payments to or on behalf of enrollees in such positions shall not
exceed the amount of the unused funds available. Each individual
enrolled in such a position shall be informed in writing that the
assignment is of a short-term nature and may be terminated. The
recipient shall first seek to maintain full enrollment in authorized
positions and shall seek to schedule all enrollments and terminations
to avoid excessive terminations at the end of the grant period.
Sec. 641.319 [Reserved]
Sec. 641.320 Political patronage.
(a) No recipient may select, reject, promote, or terminate an
individual based on that individual's political affiliations or
beliefs. The selection or advancement of enrollees as a reward for
political services, or as a form of political patronage, is prohibited.
(b) There shall be no selection of subrecipients or host agencies
based on political affiliation.
Sec. 641.321 Political activities.
(a) General. No project under title V or this part may involve
political activities.
(1) No enrollee or staff person may be permitted to engage in
partisan or nonpartisan political activities during hours for which the
enrollee is paid with SCSEP funds.
(2) No enrollee or staff person, at any time, may be permitted to
engage in partisan political activities in which such enrollee or staff
person represents himself or herself as a spokesperson of the SCSEP
program.
(3) No enrollee may be employed or out-stationed in the office of a
Member of Congress, a State or local legislator, or on any staff of a
legislative committee.
(4) No enrollee may be employed or out-stationed in the immediate
office of any elected chief executive officer(s) of a State or unit of
general government, except that:
(i) Units of local government may serve as host-agencies for
enrollees in such positions, provided that such assignments are
nonpolitical; and
(ii) Where assignments are technically in such offices, such
assignments actually are program activities not in any way involved in
political functions.
(5) No enrollee may be assigned to perform political activities in
the offices of other elected officials. However, placement of enrollees
in such nonpolitical assignments within the offices of such elected
officials is permissible, provided that recipients develop safeguards
to ensure that enrollees placed in these assignments are not involved
in political activities. These safeguards shall be described in the
grant agreement and shall be subject to review and monitoring by the
recipient and the Department.
(b) Hatch Act. (1) State and local employees governed by 5 U.S.C.
chapter 15 shall comply with the Hatch Act provisions as interpreted
and applied by the United States Office of Personnel Management (OPM).
(2) Each project subject to 5 U.S.C. chapter 15 shall display a
notice and shall make available to each person associated with such
project a written explanation, clarifying the law with respect to
allowable and unallowable political activities under 5 U.S.C. chapter
15 which are applicable to the project and each category of individuals
associated with such project. This notice, which shall be submitted for
approval to the Department, shall contain the telephone number and
address of the DOL Inspector General. [Section 502(b)(1)(O).]
Enforcement of the Hatch Act shall be as provided at 5 U.S.C. chapter
15.
Sec. 641.322 Unionization.
No funds provided under title V or this part may be used in any way
to assist, promote, or deter union organizing.
Sec. 641.323 Nepotism.
(a) No recipient or subrecipient may hire, and no host agency may
be a work site for a person, in an administrative capacity, staff
position, or community service employment position funded under title V
or this part if a member of that person's immediate family is engaged
in a decision-making capacity (whether compensated or not) for that
project, subproject, recipient, subrecipient or host agency. This
provision may be waived by the Department at work sites on Native
American reservations provided that adequate justification can be
documented, such as that no other persons are eligible for
participation, the total service population is 2,000 or less and is
isolated, or where there is a history of dependence on public
assistance.
(b) To the extent that an applicable State or local legal
requirement regarding nepotism is more restrictive than this provision,
that requirement shall be followed.
(c) For purposes of this section:
(1) Immediate family means wife, husband, son, daughter, mother,
father, brother, sister, son-in-law, daughter-in-law, mother-in-law,
father-in-law, brother-in-law, sister-in-law, aunt, uncle, niece,
nephew, stepparent, stepchild, grandparent, and grandchild.
(2) Engaged in an administrative capacity includes those persons
who, in the administration of projects, or host agencies, have
responsibility for, or authority over, those with responsibility for
the selection of enrollees from among eligible applicants.
Sec. 641.324 Enrollee and applicant complaint resolution.
(a) Each recipient shall establish and describe in the grant
agreement procedures for resolving complaints, other than those
described in paragraph (c) of this section, arising between the
recipient and an enrollee.
(b) Allegations of violations of federal law, other than those
described in paragraph (c) of this section, which cannot be resolved
within 60 days as a result of the recipient's procedures, may be filed
with the Chief, Division of Older Worker Programs, Employment and
Training Administration, U.S. Department of Labor, Washington, DC
20210.
(c) Recipients that do not receive any funds under the JTPA shall
process complaints of discrimination in accordance with title 29 CFR
parts 31 and 32. Recipients that receive any funds under JTPA shall
process complaints of discrimination in accordance with Title 29 CFR
part 34.
(d) Except for complaints described in paragraphs (b) and (c) of
this section, the Department shall limit its review to determining
whether the recipient's appeal procedures were followed.
Sec. 641.325 Maintenance of effort.
(a) Employment of an enrollee funded under title V or this part
shall be only in addition to budgeted employment which would otherwise
be funded by the recipient, subrecipient and the host agency(ies)
without assistance under the Act. [Section 502(b)(1)(F).]
(b) Each project funded under title V or this part:
(1) Should result in an increase in employment opportunities in
addition to those which would otherwise be available;
(2) Shall not result in the displacement of currently employed
workers, including partial displacement such as a reduction in hours of
non-overtime work, wages, or employment benefits;
(3) Shall not impair existing contracts for service or result in
the substitution of Federal funds for other funds in connection with
work that would otherwise be performed;
(4) Shall not substitute project jobs for existing Federally-
assisted jobs; and
(5) Shall not employ or continue to employ any enrollee to perform
work which is the same or substantially the same as that performed by
any other person who is on layoff. [Section 502(b)(1)(G).]
Sec. 641.326 Experimental private sector training projects.
(a) The Department may authorize a recipient to develop an
experimental job training project(s) designed to provide second career
training and the placement of eligible individuals in employment
opportunities with private business concerns. [Section 502(e).]
(b) Experimental project agreements for training may be with
States, public agencies, non-profit private organizations, and private
business concerns.
(c) The geographic location of these projects shall be determined
by the Department to insure an equitable distribution of such projects.
(d) To the extent feasible, experimental projects shall emphasize
second-career training, innovative work modes, including those with
reduced physical exertion, and placement into growth industries and
jobs reflecting new technologies.
(e) The Department shall establish by administrative guidelines,
the application schedule, content, format, allocation levels and
reporting requirements for experimental projects.
(f) Current title V eligibility standards shall be used for
experimental projects, unless the Department permits, in writing, the
use of another approved income index.
(g) Projects funded under section 502(e) of the Act shall seek to
be coordinated with projects carried out under section 204(d) of the
JTPA to the extent feasible.
(h) Recipients shall distribute funds for experimental projects in
accordance with the State allocation formulas in their title V grant.
Subpart D--Administrative Standards and Procedures for Recipient
and Limitations on Federal Funds
Sec. 641.401 General.
This subpart establishes limitations on title V funds to be used
for community service activities and describes, or incorporates by
reference, requirements for the administration of grants by recipient
of SCSEP.
Sec. 641.402 Administrative requirements.
(a) Except as otherwise provided in this part, title V funds shall
be administered in accordance with, and subject to, the Department's
regulations at 29 CFR parts 31, 32, 34, 93, 96, and 98. In addition,
projects and activities administered by State, local or Indian tribal
governments are also subject to the Department's administrative
requirements regulations at 29 CFR part 97; projects and activities
administered by institutions of higher education, hospitals, or other
non-profit organizations are subject to the Department's administrative
requirements regulations at 41 CFR part 29-70 (1984). Recipients of
title V funds shall be subject to any revisions of any implementing
regulations cited in this paragraph (a) on the effective date of such
revisions.
(b) The administration of interagency agreements set forth in
subpart E of this part is not subject to paragraph (a) of this section.
Sec. 641.403 Allowable costs.
(a) General. Costs shall be determined in accordance with the cost
principles indicated in paragraph (b) of this section, except as
otherwise provided in this part.
(b) Applicable Cost Principles. The cost principles set forth in
paragraphs (b) (1) through (4) of this section apply to the
organization incurring the costs:
(1) OMB Circular A-87--State, local or Indian tribal government;
(2) OMB Circular A-122--Private, non-profit organization other
than:
(i) Institution of higher education;
(ii) Hospital; or
(iii) Other organization named in OMB Circular A-122 as not subject
to OMB Circular A-122;
(3) OMB Circular A-21--Educational institution; or
(4) 48 CFR Part 31.2--Commercial organization (for-profit
organization, other than a hospital or other organization name in OMB
Circular A-122 as not subject to OMB Circular A-122).
(c) Lobbying costs. In addition to the prohibition contained in 29
CFR part 93 and in accordance with limitations on the use of
appropriated funds in Department of Labor Appropriation Acts, title V
funds shall not be used to pay any salaries or expenses related to any
activity designed to influence legislation or appropriations pending
before the Congress of the United States.
(d) Building repairs and acquisition costs. No Federal grant funds
provided to a recipient or subrecipient under title V or this part may
be expended directly or indirectly for the purchase, erection, or
repair of any building except for the labor involved in:
(1) Minor remodeling of a public building necessary to make it
suitable for use by project administrators;
(2) Minor repair and rehabilitation of publicly used facilities for
the general benefit of the community; and
(3) Minor repair and rehabilitation by enrollees of housing
occupied by persons with low incomes who are declared eligible for such
services by authorized local agencies.
(3) Allowable fringe benefit costs. The cost of the following
fringe benefits are allowable: initial and annual physical assessments,
annual leave, sick leave, holidays, health insurance, social security,
workman's compensation and any other fringe benefits approved in the
grant agreement and permitted by the appropriate Federal cost
principles found in OMB Circular A-87 and A-122, except as limited by
Sec. 641.311(c).
Sec. 641.404 Classification of costs.
All costs must be charged to one of the following three cost
categories:
(a) Administration. The cost category of Administration shall
include, but need not be limited to, the direct and indirect costs of
providing:
(1) Administration, management, and direction of a program or
project;
(2) Reports on evaluation, management, community benefits, and
other aspects of project activity;
(3) Assistance of an advisory council, if any;
(4) Accounting and management information systems;
(5) Training and technical assistance for recipient or subrecipient
staff;
(6) Bonding; and
(7) Audits.
(b) Enrollee wages and fringe benefits. The cost category of
Enrollee Wages and Fringe Benefits shall include wages paid to
enrollees for hours of community service assignments as described in
Sec. 641.311 or training as described in Sec. 641.313, and the costs of
fringe benefits provided in accordance with Sec. 641.311.
(c) Other enrollee costs. The cost category of Other Enrollee Costs
shall include all costs of functions, services, and benefits not
categorized as administration or enrollee wages and fringe benefits.
Other enrollee costs shall include, but shall not be limited to, the
direct and indirect costs of providing:
(1) Recruitment and selection of eligible enrollees as provided in
Sec. 641.304;
(2) Orientation of enrollees and host agencies as provided in
Sec. 641.307;
(3) Assessment of enrollees for participation in community service
assignments and evaluation of enrollees for continued participation or
transition to unsubsidized employment as provided in Sec. 641.309;
(4) Development of appropriate community service assignments as
provided in Sec. 641.310;
(5) Supportive services for enrollees, including transportation, as
provided in Sec. 641.312;
(6) Training for enrollees as provided in Sec. 641.313; and
(7) Development of unsubsidized employment opportunities for
enrollees as provided in Sec. 641.315.
(d) Cost reductions. Recipients may lower administration costs or
other enrollee costs by assigning enrollees to activities which
normally would be charged to either of these cost categories. In such
instances, the costs of enrollees' wages and fringe benefits shall be
charged to the cost category of enrollee wages and fringe benefits.
[Section 502(b)(1)(A).]
Sec. 641.405 Limitations on federal funds.
(a) Limitations on federal funds set forth in this section shall
apply to SCSEP funds allotted to recipients for community service
activities. Cost categories, limitations, and periods during which
different limitations shall apply are set forth in paragraph (6) of
this section.
(b) Cost categories, limitations, and periods during which
limitations apply shall be:
(1) Administration. The amount of federal funds expended for the
cost of administration during the program year shall be no more than
13.5 percent of the grant. The Department may increase the amount
available for the cost of administration to no more than 15 percent of
the grant in accordance with section 502(c)(3) of the Act.
(2) Enrollee wages and fringe benefits. The amount of federal funds
budgeted for enrollee wages and fringe benefits shall be no less than
75 percent of the grant.
Sec. 641.406 Administrative cost waiver.
Based upon information submitted by a public or private nonprofit
agency or organization with which the Department has or proposes to
have an agreement as set forth under section 502(b) of the Act, the
Department may waive Sec. 641.405(b)(1) and increase the amount
available for paying the costs of administration to an amount not to
exceed 15 percent of the proposed federal costs of the grant. Each
waiver shall be in writing. The Department shall administer this
section in accordance with section 502(c)(3) (A) and (B) of the Act.
The waiver may be provided to recipients that demonstrate the document
reasonable and necessary:
(a) Major administrative cost increases;
(b) Operational requirements imposed by the Department;
(c) Increased costs associated with unsubsidized placement;
(d) Increased costs of providing specialized services to minority
groups; and
(e) The minimum amount necessary to administer the grant relative
to the available funds.
Sec. 641.407 Non-federal share of project costs.
(a) The Department shall pay not more than 90 percent of the cost
of any project which is the subject of an agreement entered into under
the Act, except that the Department is authorized to pay all of the
costs of any such project which is:
(1) An emergency or disaster project;
(2) A project located in an economically depressed area as
determined by the Secretary of Labor in consultation with the Secretary
of Commerce and the Director of the Office of Community Services of the
Department of Health and Human Services;
(3) A project permitted under section 502(e) of the Act;
(4) A project which is exempted by law; or
(5) A project serving an Indian reservation that can demonstrate it
cannot provide adequate non-federal resources.
(b) The non-federal share of costs may be in cash or in-kind, or a
combination of the two, and shall be calculated in accordance with 29
CFR 97.24 or 41 CFR 29-70.206 (1984), as appropriate. [Sections 502(c)
and 502(e).]
Sec. 641.408 Budget changes.
As an exception to 29 CFR 97.30(c)(1), Budget Changes, or 41 CFR
29-70.211 (1984), Modifications and Budget Revision Procedure, the
movement of Enrollee Wages and Fringe Benefits to any other budget
category shall not be permitted without prior written approval of the
awarding agency. The Department shall not approve any budget change
which would result in non-compliance with Sec. 641.405(b)(2).
Sec. 641.409 Recipient fiscal and performance reporting requirements.
(a) In accordance with 29 CFR 97.40 or 41 CFR 29-70.209-3 (1984),
as appropriate, as approved under OMB Control No. 1205-0040, each
recipient shall submit a Senior Community Employment Program Quarterly
Progress Report (QPR). This report shall be prepared to coincide with
the ending dates for Federal fiscal year quarters and shall be
submitted to the Department no later than 30 days after the end of the
quarterly reporting period. If the grant period ends on a date other
than the last day of a Federal fiscal year quarter, the last quarterly
report covering the entire grant period shall be submitted no later
than 30 days after the ending date. The Department shall provide
instructions for the preparation of this report.
(b) In accordance with 29 CFR 97.41 or 41 CFR 29-70.207-2(a) (1984)
and 41 CFR 29-70.208 (1984), as appropriate, the following financial
reporting requirements apply to title V grants:
(1) An SF-269, Financial Status Report (FSR), shall be submitted to
the Department within 30 days after the ending of each quarter of the
program year. A final FSR shall be submitted within 90 days after the
end of the grant.
(2) All FSR's shall be prepared on an accrual basis.
(3) Each recipient shall submit an SF-272, Report of Federal Cash
Transactions, within 30 days after the ending dates of each of the
quarters of the program year.
(c) In accordance with Departmental instructions, an equitable
distribution report of SCSEP positions by all recipients in each State
shall be submitted annually by the State agency receiving title V
funds.
Sec. 641.410 Subgrant agreements.
(a) The recipient is responsible for the performance of all
activities implemented under subgrant agreements and for compliance by
the subrecipient with the Act and this part.
(b) No subgrant or other subagreement may provide for any
expenditure of funds beyond the ending date of the grant agreement.
(c) For purposes of this part, procurement, as described in 29 CFR
part 97 and 41 CFR 29-70.216 (1984), does not include the award or
administration of subgrant agreements.
Sec. 641.411 Program income accountability.
Any of the methods described at 29 CFR 97.25 or 41 CFR 29-70.205
(1984), as appropriate, may be used to account for program income.
Sec. 641.412 Equipment.
Equipment purchased by a State recipient with title V funds prior
to July 1, 1989, shall be subject to 29 CFR 97.32.
Sec. 641.413 Audits.
Each recipient is responsible for complying with the Single Audit
Act of 1984 (31 U.S.C. 7501, et seq.) and 29 CFR part 96, the
Department of Labor regulation which implements Office of Management
and Budget Circular A-128, ``Audits of State and Local Governments'';
or OMB Circular 133, ``Audits of Institutions of Higher Education and
Other Nonprofit Institutions'', as appropriate.
Sec. 641.414 Grant closeout procedures.
Grant closeout procedures for title V grants to State, local, or
Indian tribal governments shall conform to the requirements at 29 CFR
97.50. As necessary, the Department shall issue supplementary closeout
instructions for all title V recipients, including recipients not
subject to 29 CFR part 97.
Sec. 641.415 Department of Labor appeals procedures for recipients.
(a) This section sets forth the procedures by which recipient may
appeal a SCSEP final determination by the Department relating to costs,
payments, notices of suspension, and notices of termination other than
those resulting from an audit. Appeals of suspensions and terminations
for discrimination shall be processed under 29 CFR part 31, 32, or 34,
as appropriate.
(b) Appeals from a final disallowance of cost as a result of an
audit shall be made pursuant to 29 CFR subpart 96.6.
(c) Upon a recipient's receipt of the Department's final
determination relating to costs (except final disallowance of cost as a
result of an audit), payments, suspension or termination, the recipient
may appeal the final determination to the Department's Office of
Administrative Law Judges, as follows:
(1) Within 21 days of receipt of the Department's final
determination, the recipient may transmit by certified mail, return
receipt requested, a request for a hearing to the Chief Administrative
Law Judge, United States Department of Labor, 800 K Street, N.W., room
400N, Washington, D.C. 20001 with a copy to Department official who
signed the final determination. The Chief Administrative Law Judge
shall designate an administrative law judge to hear the appeal.
(2) The request for hearing shall be accompanied by a copy of the
final determination, if issued, and shall state specifically those
issues of the determination upon which review is requested. Those
provisions of the determination not specified for review, or the entire
determination when no hearing has been requested, shall be considered
resolved and not subject to further review.
(3) The Rules of Practice and Procedures for Administrative
Hearings Before the Office of Administrative Law Judges, set forth at
29 CFR part 18, shall govern the conduct of hearings under this
section, except that:
(i) The appeal shall not be considered a complaint; and
(ii) Technical rules of evidence, such as the Federal Rules of
Evidence and subpart B of 29 CFR part 18, shall not apply to any
hearing conducted pursuant to this section. However, rules designed to
assure production of the most credible evidence available and to
subject testimony to test by cross-examination shall be applied where
reasonably necessary by the administrative law judge conducting the
hearing. The certified copy of the administrative file transmitted to
the administrative law judge by the official issuing the final
determination shall be part of the evidentiary record of the case and
need not be moved into evidence.
(4) The administrative law judge should render a written decision
no later than 90 days after the closing of the record.
(5) The decision of the administrative law judge shall constitute
final action by the Secretary of Labor unless, within 21 days after
receipt of the decision of the administrative law judge, a party
dissatisfied with the decision, or any part thereof, has filed
exceptions with the Secretary of Labor specifically identifying the
procedures, fact, law, or policy to which exception is taken. Any
exception not specifically urged shall be deemed to have been waived.
Thereafter, the decision of the administrative law judge shall become
the decision of the Secretary unless the Secretary of Labor, within 30
days of such filing, has notified the parties that the case has been
accepted for review.
(6) Any case accepted for review by the Secretary of Labor shall be
decided within 180 days of such acceptance. If not so decided, the
decision of the administrative law judge shall become the final
decision of the Secretary of Labor.
Subpart E--Interagency Agreements
Sec. 641.501 Administration.
(a) Federal establishments other than the Department of Labor which
receive and use funds under title V or this part shall submit to DOL
project fiscal and progress reports as described in Sec. 641.406.
(b) Non-DOL federal establishments which receive and use funds
under title V shall maintain the standard records on individual
enrollees and enrollee activities, in accordance with this part.
(c) The Department may provide title V funds to another federal
agency by a non-expenditure transfer authorization or by payments on an
advance or reimbursement basis.
(d) In aspects of project administration other than those described
in paragraphs (a) and (b) of this section, federal establishments which
receive and use funds under title V may use their normal administrative
procedures.
Subpart F--Assessment and Evaluation
Sec. 641.601 General.
The Department shall assess each recipient and subrecipient to
determine whether it is carrying out the purposes and provisions of
title V and this part in accordance with the Act, this part and the
grant or other agreements. The Department also shall evaluate the
overall program conducted under title V or this part to aid in the
administration of the SCSEP. The Department and individuals designated
by the Department may make site visits and conduct such other
monitoring activities as determined by SCSEP needs.
Sec. 641.602 Limitation.
In arranging for the assessment of a recipient, or the evaluation
of a subrecipient, or the evaluation of the overall program under title
V or this part, the Department shall not use any individual,
institution, or organization associated with any project under title V.
Signed at Washington, DC, this 19th day of April, 1994.
Robert B. Reich,
Secretary of Labor.
[FR Doc. 94-9923 Filed 4-25-94; 8:45 am]
BILLING CODE 4510-30-M
