Mississippi Administrative Code › Title 18 - HUMAN SERVICES › Part 8 - MDHS Subgrant Manual › Chapter 1 - Introduction › Rule 18-8-1.1 - Repeal Prior Rules/Manuals › Section 18-8-1.1-9 - Noncompliance

Current through June 25, 2024
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.