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3.4 Grant Termination

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Chapter 3.4.1 Resources

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3.4.1 Grant Termination

Effective date: June 19, 2020

Background

Termination means the ending of a federal award, in whole or in part, at any time prior to the planned end of period of performance.1

Reasons for Termination

The federal award may be terminated, in whole or in part, as follows:

  1. By DOL or DWD-DET, if a local WDB fails to comply with the terms and conditions of a federal award;
  2. By DOL or DWD-DET for cause, which may include, but is not limited to:
    • Local WDB has inadequate administrative, program or financial systems.
    • Local WDB violates the Local Plan or regulations and correction action is not taken.
    • Local WDB is not in compliance with plan objectives, modifications, additional conditions or budget requirements.
  3. By DOL or DWD-DET with the consent of the local WDB in which case the two 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 local WDB upon sending a written notice to DWD-DET at least 30 calendar days in advance of the intended date of termination.

Notice of Termination

If the grant is terminated due to reasons outlined in section A and B under Reasons for Termination in this policy, then DWD-DET will provide a written notice to the local WDB stating that a grant termination will occur if the local WDB is not able to cure the breach of the grant within 30 calendar days of receiving this notice.

If the grant is terminated due to reasons outlined in section C and D under Reasons for Termination in this policy, then DWD-DET will provide a written notice to the local WDB stating that a grant termination will occur.

If the grant is terminated due to the local WDB's material failure to comply with federal statutes or regulations; or the terms and conditions of the Federal award, the notification of termination will state the following:2

  • The termination decision will be reported to DOL's performance and integrity system, known as SAM. The local WDB may comment on any information the SAM system contains about the local WDB for future consideration by federal awarding agencies. Federal awarding agencies will consider local WDB comments when determining whether the local WDB is qualified for a future federal award;
  • Information reported in the SAM system will be retained for a period of five years from the date of the termination, then archived;
  • Federal awarding agencies that consider making a federal award to the local WDB during that five-year period must consider this information when judging whether the local WDB is qualified to receive the federal award, when the federal share of the federal award is expected to exceed the simplified acquisition threshold over the period of performance;3

When a federal award is terminated or partially terminated, both DWD-DET and the local WDB remain responsible for compliance with the requirements in policy section 3.5 Grant Closeout.

Appeal Procedures

The grantee will be provided an opportunity to appeal any termination action. The appeal process is outlined in the Wisconsin State Plan.


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