Current through Register Vol. XLI, No. 50, December 13, 2024
Section 155-9-9 - Stop Payment Procedures9.1. Grantor agencies or the State Auditor shall issue stop payment orders if a grantee or subgrantee fails to file required reports, fails to comply with one or more terms of the grant or subgrant, or commits violations of law. Grantor agencies or the State Auditor may also issue stop payment orders as the result of an audit or investigation or if applicable reporting or record keeping provisions for state grants are delinquent or not in compliance with West Virginia code.9.2. If a grantor identifies a payment to be stopped, the grantor shall prepare a stop payment order and forward a copy to the grantee and/or subgrantee and the State Auditor.9.3. If the State Auditor identifies a payment to be stopped, the State Auditor shall prepare a stop payment order and forward a copy to the grantee and/or subgrantee and the grantor agency.9.4. The stop payment order shall be in writing, sent by certified mail, return receipt requested, to the grantee or subgrantee's address on record in the statewide accounting system and shall contain the following information: 9.4.1. The name of the grantor agency;9.4.2. The name and address of the grantee and/or subgrantee;9.4.3. The reason or reasons for the stop payment order, including identifying the specific grant award or awards for which required reports were not filed;9.4.4. If applicable, the specific remedies for the grantee and/or subgrantee to cure noncompliance so that the stop payment order may be lifted.9.5. The State Auditor shall send the completed stop payment order documentation to noncompliant grantees and/or subgrantees no later than 10 calendar days after identification of a payment to be stopped. A grantor agency or the State Auditor may cease funding or stop the disbursement of grant funds to a grantee and/or subgrantee before receipt of stop payment order documentation by the grantee and/or subgrantee.9.6. With the approval of a grantor agency, the State Auditor may temporarily or permanently lift a stop payment order or permit a grantee and/or subgrantee to receive limited funding if in the best interests of the state. The State Auditor may prescribe additional oversight or monitoring procedures for a grantee and/or subgrantee at his or her discretion if a stop payment order is temporarily or permanently lifted. Situations where a stop payment order may be temporarily or permanently lifted may include, but are not limited to: 9.6.1. Cessation of funding would present imminent threats to life and safety of state residents, visitors, or the general public;9.6.2. States of emergencies;9.6.3. Cessation of funding would present threats to West Virginia environment or wildlife;9.6.3. The safety, education, and well-being of minor children; or9.6.4. Maintenance and repairs of state preservation or historical sites where the cessation of funding would affect the safety or historic preservation of the structure or site.9.7. If the grantee or subgrantee disputes the stop payment order, it must submit its argument to the State Auditor in writing within 30 calendar days after receipt of the notice.9.8. If a grantee or subgrantee contests the stop payment order decision, the State Auditor shall decide the matter in accordance with the provisions of W. Va. Code § 29A-5-1 et seq.9.9. If a stop payment order permits a grantee or subgrantee to cure deficiencies identified in a stop payment order, the grantee or subgrantee shall send all required documentation, reports, or information to the State Auditor in writing. 9.10. The State Auditor shall lift a stop payment order in writing after considering whether lifting the stop payment order is in the best interests of the state. Considerations may include, but are not limited to:9.10.1. Whether the grantee and/or the subgrantee have complied with applicable reporting requirements as prescribed in West Virginia Code;9.10.2. Whether the grantee and/or the subgrantee's record keeping procedures and internal control policies are sufficient; and9.10.3. The results of any pending audit or investigation.