CFR > Title 20 - Employees' Benefits > CHAPTER V—EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR > PART 627—GENERAL PROVISIONS GOVERNING PROGRAMS UNDER TITLES I, II, AND III OF THE ACT > SUBPART G—Sanctions for Violations of the Act (§627.700 to §627.708) > 627.706—Process for advance approval of a recipient's contemplated corrective actions.

627.706—Process for advance approval of a recipient's contemplated corrective actions.

(a) The recipient may request advance approval from the Grant Officer for contemplated corrective actions, including debt collection actions, which the recipient plans to initiate or to forego. The recipient's request shall include a description and an assessment of all actions taken by the subrecipient to collect the misspent funds.
(b) Based on the recipient's request, the Grant Officer may determine that the recipient may forego certain collection actions against a subrecipient where:
(1) The subrecipient was not at fault with respect to the liability criteria set forth in section 164(e)(2)(A), (B), (C), and (D) of the Act;
(2) The misexpenditure of funds:
(i) Was not made by that subrecipient but by an entity that received JTPA funds from that subrecipient;
(ii) Was not a violation of section 164(e)(1) of the Act, or did not constitute fraud; or
(iii) If fraud did exist, it was perpetrated against the subrecipient, and:
(A) The subrecipient discovered, investigated, reported, and prosecuted the perpetrator of said fraud; and
(B) After aggressive debt collection action, it can be documented that there is no likelihood of collection from the perpetrator of the fraud.
(3) A final determination which disallows the misexpenditure and establishes a debt has been issued at the appropriate level;
(4) Final action within the recipient's appeal system has been completed; and
(5) Further debt collection action by that subrecipient or the recipient would be either inappropriate or futile.