| (a) Subject to prior Board approval, the Department
and a Subrecipient shall enter into and execute a Contract for the
disbursement of program funds. The Department, acting by and through
its Executive Director or his/her designee, may authorize, execute,
and deliver authorized modifications and/or amendments to the Contract,
as allowed by state and federal laws and rules.
(b) Subrecipients of state funds may Subcontract for
the delivery of Program Participant assistance without obtaining Department's
prior approval, but must obtain the Department's written permission
before entering into a Subgrant. Department ESG funds and ESG Match
may not be Subgranted.
(c) The Subrecipient is responsible for ensuring that
the performance rendered under all Subcontracts, Subgrants, and other
agreements are rendered so as to comply with Homeless Program requirements,
as if such performance rendered were rendered by the Subrecipient.
Department maintains the right to monitor and require the Subrecipient's
full compliance with the terms of the Subrecipient Contract.
(d) A performance statement and budget are attachments
to the Contract between the Subrecipient and the Department. Execution
of the Contract enables the Subrecipient to access funds through the
Department's Contract System.
(e) Amendments and Extensions to Contracts.
(1) Except for amendments that only move funds within
budget categories, program staff will recommend denial of amendment
requests if any of the following conditions exist:
(A) if the award for the Contract was competitively
awarded and the amendment would materially change the scope of the
Contract performance or affected the score;
(B) if the Subrecipient is delinquent in the submission
of their Single Audit or their Single Audit Certification form required
by §1.403 of this title (relating to Single Audit Requirements);
(C) for an amendment adding funds to the Contract,
if the Subrecipient owes the Department disallowed amounts in excess
of $1,000 and a Department-approved repayment plan is not in place
or has been violated;
(D) for an amendment adding funds (not applicable to
amendments for extending time), if the Department has cited the Subrecipient
for violations within §7.11 of this subchapter (related to Compliance
Monitoring) and the corrective action period has expired without correction
of the issue or a satisfactory plan for correction of the issue;
(E) the Contract has expired; or
(F) a member of the Subrecipient's board has been debarred
and has not been removed.
(2) Except for amendments that only move funds within
budget categories, program staff may recommend denial of amendment
requests if any of the following conditions exist:
(A) the request for an amendment was received in writing
less than 30 calendar days from the end of the Contract Term; or
(B) if the funds associated with the Contract will
reach their federal or state expiration date within 45 calendar days
of the request.
(3) Denial of an amendment may be subject to §1.7
of this title (relating to Appeals Process).
(4) The Executive Director may on appeal approve an
amendment where the Single Audit Certification Form has not been submitted
as reflected in paragraph (1)(B) of this subsection. In addition,
the Executive Director may on appeal approve an amendment where the
conditions in paragraph (2)(A) and paragraph (2)(B) of this subsection
exist. The Subrecipient must demonstrate good cause for the amendment,
and such an amendment must not cause the Department to miss a federal
obligation or expenditure deadline, or a state expenditure deadline.
(5) Additional program specific requirements for amendments
and extensions to Contracts are found in the program rules of this
chapter, relating to Homelessness Programs.
(f) The Department reserves the right to request supporting
Expenditure documentation at any time in reviewing an Expenditure
report for approval. The Department will use full Cost Reimbursement
method of payment whenever any of the following conditions exists:
(1) The Department determines that the Subrecipient
has maintained cash balances in excess of need;
(2) The Department identifies significant deficiency
in the cash controls or financial management system used by the Subrecipient;
or
(3) The Subrecipient fails to comply with the reporting
requirements in §7.5 (relating to Subrecipient Reporting) and §7.6
(relating to Subrecipient Data Collection) of this subchapter.
(g) Voluntary deobligation. The Subrecipient may fully
relinquish funds in the form of a written request signed by the signatory,
or successor thereto, of the Contract. The Subrecipient may partially
relinquish funds under a Contract in the form of a written request
from the signatory if the partial relinquishment in performance measures
and budget would not have impacted the award of the Contract. Voluntary
relinquishment of a Contract does not limit a Subrecipient's ability
to participate in future funding.
(h) Funds provided under a Contract may not be used
for sectarian or explicitly religious activities such as worship,
religious instruction, or proselytization and must be for the benefit
of persons regardless of religious affiliation.
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