View all text of Part E [§ 3241 - § 3255]
§ 3244. Fiscal controls; sanctions
(a) Establishment of fiscal controls by States
(1) In general
(2) Cost principles
(A) In general
(B) ExceptionThe funds made available to a State for administration of statewide workforce investment activities in accordance with section 3174(a)(3)(B) of this title shall be allocable to the overall administration of workforce investment activities, but need not be specifically allocable to—
(i) the administration of adult employment and training activities;
(ii) the administration of dislocated worker employment and training activities; or
(iii) the administration of youth workforce investment activities.
(3) Uniform administrative requirements
(A) In general
(B) Additional requirement
(4) Monitoring
(5) Action by GovernorIf the Governor determines that a local area is not in compliance with the uniform administrative requirements referred to in paragraph (3), the Governor shall—
(A) require corrective action to secure prompt compliance with the requirements; and
(B) impose the sanctions provided under subsection (b) in the event of failure to take the required corrective action.
(6) CertificationThe Governor shall, every 2 years, certify to the Secretary that—
(A) the State has implemented the uniform administrative requirements referred to in paragraph (3);
(B) the State has monitored local areas to ensure compliance with the uniform administrative requirements as required under paragraph (4); and
(C) the State has taken appropriate action to secure compliance with the requirements pursuant to paragraph (5).
(7) Action by the SecretaryIf the Secretary determines that the Governor has not fulfilled the requirements of this subsection, the Secretary shall—
(A) require corrective action to secure prompt compliance with the requirements of this subsection; and
(B) impose the sanctions provided under subsection (e) in the event of failure of the Governor to take the required appropriate action to secure compliance with the requirements.
(b) Substantial violation
(1) Action by GovernorIf, as a result of financial and compliance audits or otherwise, the Governor determines that there is a substantial violation of a specific provision of this subchapter, and corrective action has not been taken, the Governor shall—
(A) issue a notice of intent to revoke approval of all or part of the local plan affected; or
(B) impose a reorganization plan, which may include—
(i) decertifying the local board involved;
(ii) prohibiting the use of eligible providers;
(iii) selecting an alternative entity to administer the program for the local area involved;
(iv) merging the local area into one or more other local areas; or
(v) making such other changes as the Secretary or Governor determines to be necessary to secure compliance with the provision.
(2) Appeal
(A) In generalThe actions taken by the Governor pursuant to subparagraphs (A) and (B) of paragraph (1) may be appealed to the Secretary and shall not become effective until—
(i) the time for appeal has expired; or
(ii) the Secretary has issued a decision.
(B) Additional requirement
(3) Action by the Secretary
(c) Repayment of certain amounts to the United States
(1) In general
(2) Offset of repayment amount
(3) Repayment from deduction by State
(4) Deduction by State
(5) Limitations
(d) Repayment of amounts
(1) In general
(2) Factors in imposing sanctionsIn determining whether to impose any sanction authorized by this section against a recipient of funds under this subchapter for violations of this subchapter (including applicable regulations) by a subgrantee or contractor of such recipient, the Secretary shall first determine whether such recipient has adequately demonstrated that the recipient has—
(A) established and adhered to an appropriate system, for entering into and monitoring subgrant agreements and contracts with subgrantees and contractors, that contains acceptable standards for ensuring accountability;
(B) entered into a written subgrant agreement or contract with such a subgrantee or contractor that established clear goals and obligations in unambiguous terms;
(C) acted with due diligence to monitor the implementation of the subgrant agreement or contract, including carrying out the appropriate monitoring activities (including audits) at reasonable intervals; and
(D) taken prompt and appropriate corrective action upon becoming aware of any evidence of a violation of this subchapter, including regulations issued under this subchapter, by such subgrantee or contractor.
(3) Waiver
(e) Immediate termination or suspension of assistance in emergency situations
(f) Discrimination against participants
(g) Remedies
(Pub. L. 113–128, title I, § 184, July 22, 2014, 128 Stat. 1590.)