922 KAR 6:040.

Termination of funding and hearing procedures.

 

      RELATES TO: KRS

273.451

      STATUTORY AUTHORITY:

KRS 194A.050, 273.448, 42 U.S.C. 9901-9912, Title 45 C.F.R. 96.1

      NECESSITY, FUNCTION,

AND CONFORMITY: This administrative regulation establishes the conditions by

which the cabinet may terminate Community Services Block Grant (CSBG) funding

to a grantee. This administrative regulation also addresses the grantee's right

to request and receive a hearing before a qualified hearing officer.

 

      Section 1. Grantee

Termination. For the purpose of this part, administrative requirements

specified in 42 U.S.C. 9901-9912 and KRS 273.451 are applicable.

      (1) A community

action agency (CAA), either established with local designation or state

recognition under the Community Services Block Grant Act (the Act) or under the

Kentucky CSBG program in accordance with the Act and the Community Action Law

in KRS Chapter 273 shall be awarded continuing CSBG program administering

responsibilities in its established jurisdiction unless the following shall

occur:

      (a) The CAA submits

written communication to the Department for Community-Based Services stating

its desire to discontinue operation of the program;

      (b) Material failure

by the CAA to comply with 42 U.S.C. 9901-9912, or 45 C.F.R. 96.30, 96.51,

96.90, or 96.91; the provisions of the state CSBG plan or provisions of KRS

273.405-273.453; or 922 KAR 6:010. Material failure includes:

      1. Fraud;

      2. Disallowance of

costs which could render a CAA insolvent; or

      3. Denial of access

to records of grant-related transactions.

      (c) The CAA lacks

the authority or capability to receive, administer, and account for funds in a

manner that conforms with applicable federal or state requirements or with

generally accepted accounting principles;

      (d) The CAA is not

capable of effectively planning, conducting, administering, or evaluating CSBG

funded programs or projects;

      (e) The CAA fails to

conform in one (1) or more ways to the assurances relating to the structure and

operation of CSBG program contractors that the Commonwealth of Kentucky has

provided the United Stated Department of Health and Human Services, including

prohibitions regarding partisan political activities, voter registration, and

transportation of voters to the polls; or

      (f) The CAA is

structured and functions in a manner inconsistent with state or federal laws or

administrative regulations.

      (2) Upon discovery

of one (1) or more of the conditions noted in paragraphs (b) through (f) of

this subsection, the cabinet shall notify the CAA in writing of its initiation

of the termination process and the reasons for termination. The notice shall

advise the CAA that, in accordance with this section and 42 U.S.C. 9901-9912,

it is entitled to an informal hearing.

 

      Section 2. Hearing

Procedures. The CAA shall be given fifteen (15) days from receipt of

notification to inform the cabinet in writing that it wishes to exercise its

right to a hearing. The hearing shall be conducted within thirty (30) days of

the original notification of initiation of the termination process. The

notification shall also include:

      (1) A requirement

that the CAA, to receive continued CSBG funding, shall agree to cooperate with

the cabinet appointed hearing officer throughout the termination process.

      (2) If the CAA does

not agree to submit to the cabinet review specified in Section 1 of this

administrative regulation, the cabinet shall send to the CAA a notice of

funding suspension, pending termination, pursuant to this administrative

regulation and as governed by KRS 273.451. Simultaneous with suspension notice

to the CAA's, the cabinet shall notify the U.S. Department of Health and Human

Services and the department shall advise the suspended CAA of its right to seek

direct funding from the U.S. Department of Health and Human Services.

      (3) The services of

an impartial hearing officer shall be obtained by the cabinet. Notice of the

hearing time and date shall be provided, with proof of receipt of notice, to

both the CAA or appropriate public officials at least ten (10) days prior to

the hearing. The cost for the hearing officer and the services of the certified

reporter and the original transcript of the proceedings shall be borne by the

Cabinet for Health and Family Services. The CAA shall bear the cost of its copy

of the transcript of proceedings.

      (4) The hearing

shall be conducted in accordance with due process before a qualified hearing

officer. The report of the hearing officer shall be sent by registered mail to

both parties within thirty (30) days of the completion of the hearing.

      (5) The cabinet

shall review the hearing officer's recommendation and shall base its decision

on findings of fact and conclusions of law that substantiate grant termination

pursuant to this administrative regulation. The cabinet shall notify the CAA of

the cabinet's final determination within thirty (30) days.

      (6) If the cabinet's

decision is to suspend or terminate funding to the CAA, the cabinet shall also,

with its notice to the CAA, advise the CAA of the provisions for review of the

termination proceedings to the Secretary of the U.S. Department of Health and

Human Services pursuant to Section 676(a) of the Act. (16 Ky.R. 306; Am. 551;

eff. 9-20-89; 20 Ky.R. 2452; 2863; eff. 3-23-94; Recodified from 905 KAR 6:040,

10-30-98.)