(A) Withholding and suspension in general. The deputy chief of the community services division through its office of community assistance("OCA/CSD") may withhold or suspend community services block grant ("CSBG") funds to an eligible entity if field monitoring and/or evaluation, desk monitoring and/or evaluation, or fiscal audits reveal noncompliance with established state or federal policies, grant requirements, office of community services directives, fiscal procedures, program performance targets or other willful or negligent failure on the part of the eligible entity to perform its responsibilities.
(B) Action to suspend CSBG funds will be taken only after less severe corrective actions have been tried; unless the chief of the office of community services determines that immediate action is necessary due to the seriousness of the violation or is necessary to protect CSBG funds or property. Serious violations would include, but are not necessarily limited to, evidence of fraud, embezzlement or gross mismanagement.
(C) Written notification of intent to withhold or suspend CSBG funds. The deputy chief of the community services division shall provide a written "Notification of Intent to Withhold or Suspend CSBG Funds" by certified mail, return receipt requested, to the chairperson of the governing board of the eligible entity to effectuate the process of withholding or suspension of CSBG funds.
(D) The "Notification of Intent to Withhold or Suspend CSBG Funds" shall specify:
(1) The reasons for such proposed actions; sections of the statutes, rules, regulations or contractual obligations with which the eligible entity is not in compliance;
(2) The corrective actions and the date (not less than thirty days after the date of the notice) by which they must be taken;
(3) A statement informing the eligible entity which action OCA/CSD may take if the grantee does not achieve compliance within the time specified in the notice, or does not provide satisfactory assurances that actions have been initiated which will achieve compliance in a timely manner.
(E) In all but extreme cases, eligible entities will be given a reasonable period of time, but in no case more than ninety days, to make necessary improvements, whereupon CSBG funding may resume.
(F) In extreme cases, when the deputy chief of the office of community assistance has determined termination of CSBG funding is appropriate in accordance with rule 122-2-03 of the Administrative Code, the "Notification of Intent to Withhold or Suspend CSBG Funds" shall be accompanied by a "Notification of Intent to Terminate" as described in rule 122-2-03 of the Administrative Code.
Five Year Review (FYR) Dates: 06/16/2016 and 09/02/2021
Promulgated Under: 119.03
Statutory Authority: 122.68(E)
Rule Amplifies: 122.68 , 122.69
Prior Effective Dates: 2/17/87, 12/18/87, 2/3/04