18 Miss. Code. R. 8-1.1-10

Current through December 10, 2024

Section 18-8-1.1-10 - Noncompliance

Overview

If a Subgrantee fails to comply with Federal statutes, regulations or terms and conditions of the Federal award, the Federal awarding agency or Mississippi Department of Human Services (MDHS) policy, additional conditions may be imposed.

Specific Conditions

MDHS may impose additional specific award conditions and/or withhold payment to a Subgrantee as needed, under the following circumstances:

1. Based on the criteria set forth in 2 C.F.R. § 200.206 Federal awarding agency review of risk posed by applicants;

2. When an applicant or recipient has a history of failure to comply with the general or specific terms and conditions of a Federal award;

3. When an applicant or recipient fails to meet expected performance goals as described in 2 C.F.R. § 200.301 and/or requirements contained in a Federal award; or

4. When an applicant or recipient is not otherwise responsible.

These additional Federal award conditions may include items such as the following:

1. Requiring payments as reimbursements rather than advance payments;

2. Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given period of performance;

3. Requiring additional, more detailed financial reports;

4. Requiring additional project monitoring;

5. Requiring the non-Federal entity to obtain technical or management assistance; and/or

6. Establishing additional prior approvals.

Reference 2 C.F.R. §§ 200.339 through 200.343 MDHS must notify the Subgrantee as to:

1. The nature of the additional requirements;

2. The reason why the additional requirements are being imposed;

3. The nature of the action needed to remove the additional requirement, if applicable;

4. The time allowed for completing the actions if applicable, and

5. The method for requesting reconsideration of the additional requirements imposed.

If noncompliance fails to be remedied by implementing additional specific conditions listed above, then the Federal awarding agency or MDHS may take one (1) or more of the following actions:

1. Temporarily withhold cash payments pending correction of the deficiency by the subgrant or more severe enforcement action by the Federal awarding agency or MDHS.

2. Disallow (that is deny both the use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance.

3. Wholly or partly suspend or terminate the Federal award.

4. Initiate suspension or debarment proceedings as authorized under 2 C.F.R. §180 and Federal awarding agency regulations.

5. Withhold further Federal awards for the project or Program.

6. Take other actions that may be legally available.

Termination

A subgrant may be terminated in whole or in part as follows:

1. By the Federal awarding agency or by MDHS if the subgrant entity fails to comply with the terms and conditions of the Federal award;

2. By the Federal awarding agency or by MDHS for good cause;

3. By the Federal awarding agency or MDHS with the consent of the subgrant, in which case the two (2) parties must agree upon the termination conditions including the effective date and in the case of partial termination the portion to be terminated; or

4. By the Subgrantee upon sending to the Federal awarding agency or MDHS written notification setting forth the reasons for such termination. Note that the Federal awarding agency or MDHS determines in the case of partial termination that the reduced or modified portion of the award will not accomplish the purposes for which the original award was made, the Federal awarding agency or MDHS may terminate the award in its' entirety.

When an award is terminated or partially terminated the Subgrantee will remain responsible for compliance with the requirements for closeout and post-closeout adjustments and continuing responsibilities. Refer to the Closeout Procedures chapter of this manual. The federal awarding agency or MDHS must provide written notification to the Subgrantee of termination.

The following instances constitute good cause for terminating a subgrant. Good Cause may be imposed for the following situations but not limited to:

1. Conviction, plea agreement of guilt and/or civil judgement for:

a. Commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction;

b. Violation of Federal and/or State antitrust statutes, including those proscribing price fixing between competitors, allocation of customers between competitors, and bid rigging;

c. Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, or obstruction of justice; or

d. Commission of any other offense indicating a lack of business integrity or business Honesty that seriously and directly affects the present responsibility of a person/Subgrantee.

2. Violation of the terms of a public agreement or transaction so serious as to affect the integrity of a MDHS program, such as:

a. A willful failure to perform in accordance with the terms of one or more public agreements or transactions.

b. A history of failure to perform or of unsatisfactory performance of one or more public agreements or transactions.

3. A non-procurement debarment by any Federal agency taken before October 1, 1988, the effective date of these regulations, or a procurement debarment by any Federal agency taken pursuant to 45 C.F.R. 75.213; or

4. Knowingly doing business with a debarred, suspended, ineligible, or voluntarily excluded person, in connection with a covered transaction, except as permitted by the agency. Note this is not an exhaustive list.

Reference 2 C.F.R. § 200.343

Costs during Termination or Suspension

Costs to the Subgrantee resulting from obligations incurred by the Subgrantee during a suspension or after a termination of the award are not allowable unless the Federal awarding agency or MDHS expressly authorizes them in the notice of suspension or termination or subsequently in writing. The costs made during suspension or after termination are allowable if it meets the requirements below:

1. The costs result from obligations that were properly incurred by the Subgrantee before the effective date of suspension or termination and Subgrantee is not in anticipation of it; and

2. The costs would be allowable of the Federal award was not suspended or expired normally at the end of the period of performance in which the termination takes effect.

Reference 2 C.F.R. § 200.472

Appeals

MDHS provides a Subgrantee an opportunity to appeal adverse administrative decisions and provide supporting documentation challenging the adverse or noncompliant action. Please refer to Title 18 of the Administrative Code, Part 23, Chapter 7, Subgrant Administrative Agency Appeals.

18 Miss. Code. R. 8-1.1-10

Adopted 10/10/2024