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maintain a financial management system as re-
quired by Federal rules or regulations. 
‘‘(D) Willful obstruction of the audit proc-
ess. 
‘‘(E) Failure to provide services to appli-
cants as agreed to in a current or recent grant 
or to meet applicable performance measures. 
‘‘(F) 
Failure 
to 
correct 
deficiencies 
brought to the grantee’s attention in writing as 
a result of monitoring activities, reviews, assess-
ments, or other activities. 
‘‘(G) Failure to return a grant closeout 
package or outstanding advances within 90 
days of the grant expiration date or receipt of 
closeout package, whichever is later, unless an 
extension has been requested and granted. 
‘‘(H) Failure to submit required reports. 
‘‘(I) Failure to properly report and dispose 
of Government property as instructed by the 
Secretary. 
‘‘(J) Failure to have maintained effective 
cash management or cost controls resulting in 
excess cash on hand. 
‘‘(K) Failure to ensure that a subrecipient 
complies with its Office of Management and
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Budget Circular A-133 audit requirements 
specified at section 667.200(b) of title 20, Code 
of Federal Regulations. 
‘‘(L) Failure to audit a subrecipient within 
the required period. 
‘‘(M) Final disallowed costs in excess of 5 
percent of the grant or contract award if, in the 
judgment of the grant officer, the disallowances 
are egregious findings. 
‘‘(N) Failure to establish a mechanism to 
resolve a subrecipient’s audit in a timely fash-
ion. 
‘‘(5) DETERMINATION.—Applicants that are de-
termined to be not responsible shall not be selected 
as grantees. 
‘‘(6) DISALLOWED
COSTS.—Interest on dis-
allowed costs shall accrue in accordance with the 
Debt Collection Improvement Act of 1996. 
‘‘SEC. 515. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) There is authorized to be appropriated to carry 
out this title such sums as may be necessary for fiscal 
years 2007, 2008, 2009, 2010, and 2011. 
‘‘(b) Amounts appropriated under this section for any 
fiscal year shall be available for obligation during the an-
nual period that begins on July 1 of the calendar year
115
immediately following the beginning of such fiscal year 
and that ends on June 30 of the following calendar year. 
The Secretary may extend the period during which such 
amounts may be obligated or expended in the case of a 
particular organization or agency that receives funds 
under this title if the Secretary determines that such ex-
tension is necessary to ensure the effective use of such 
funds by such organization or agency. 
‘‘(c) At the end of the program year, the Secretary 
may recapture any unexpended funds for the program 
year, and reobligate such funds within the 2 succeeding 
program years for— 
‘‘(1) technical assistance; or 
‘‘(2) grants or contracts for any other program 
under this title. 
‘‘SEC. 516. DEFINITIONS. 
‘‘For purposes of this title: 
‘‘(1) COMMUNITY SERVICE EMPLOYMENT-BASED 
TRAINING.—The term ‘community service employ-
ment-based training’ means work experience that is 
related to providing social, health, welfare, and edu-
cational services (including literacy tutoring), legal 
and other counseling services and assistance, includ-
ing tax counseling and assistance and financial 
counseling, and library, recreational, and other simi-
116
lar services; conservation, maintenance, or restora-
tion of natural resources; community betterment or 
beautification; antipollution and environmental qual-
ity efforts; weatherization activities; economic devel-
opment; and such other services essential and nec-
essary to the community as the Secretary determines 
by rule. 
‘‘(2) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ means an individual who is 55 years of 
age or older and who has a low income (including 
any such individual whose income is not more that 
125 percent of the poverty line), excluding any in-
come that is unemployment compensation, benefits 
received under title XVI of the Social Security Act, 
veterans payments, or 25 percent of the benefits re-
ceived under title II of the Social Security Act, 
but— 
‘‘(A) pursuant to regulations prescribed by 
the Secretary, any such individual who meets 
one or more of the following criteria shall have 
priority for the work opportunities provided 
under this title— 
‘‘(i) is 65 years of age or older; or 
‘‘(ii) has one or more of the following 
barriers to employment: