| (a) The Contract Term for ESG funds may not exceed
12 months. All funds awarded under the Contract must be expended by
the Subrecipient on or before the expiration of the Contract, unless
an extension has been granted in accordance with this section. A request
to extend the Contract Term must show evidence that the extension
is necessary to provide services required under the Contract, and
provide good cause for failure to timely expend the funds. Extensions
of Contract Terms are considered on a case-by-case basis, but are
subject to §7.4(e) of this title (relating to Amendments and
Extensions of Contracts).
(1) The Executive Director or his or her designee may
approve an extension to the ESG Contract Term of up to six months
from the original Contract Term; and may approve an extension to the
Expenditure deadline for ESG CARES.
(2) Board approval is required if the Subrecipient
requests to extend an ESG Contract Term for more than six months from
the original Contract Term.
(3) Amendments of Expenditure requirements will not
be granted by the Executive Director or the Board when such action
would cause the Department to miss a federal Expenditure deadline.
(b) Subrecipient is required to have reported Expenditures
in its Monthly Expenditure Reports reflecting at least 50% of the
Contracted funds by month nine of the original Contract Term. A Subrecipient
that has not met this Expenditure benchmark must submit a plan to
the Department evidencing the ability of the Subrecipient to expend
the remaining funds by month 12 of the original Contract Term. This
Expenditure benchmark may not be extended though amendment.
(c) Not later than 60 days prior to the end of the
Contract Term, a Subrecipient may submit a written request to voluntarily
return some or all of its funds to the Department. Voluntary return
of funds prior to the Expenditure benchmark constitutes a reduction
in the awarded amount, and returned funds at or prior to the Expenditure
benchmark will not be considered deobligated funds for the purpose
of future funding recommendations. Subrecipient must return any funds
that would result in a violation of the administrative and HMIS expenditure
limits of the Contract, as outlined in §7.33(f) of this subchapter
prior to approval of a request to voluntarily deobligate funds for
any Program Participant services.
(d) Funds remaining at the end of Contract which are
not reflected in the last Monthly Expenditure Report will be automatically
deobligated. Deobligation of funds may affect future funding recommendations.
(e) The Department may request information regarding
the performance or status of a Contract prior to the Expenditure benchmark,
at various times during the Contract, or during the record retention
period. Subrecipient must respond within the time limit stated in
the request. Prolonged or repeated failure to respond may result in
suspension of funds, termination of the Contract by the Department,
and could impact future funding recommendations.
(f) If additional funds become available through returned
or deobligated amounts from an award made under the allocation formula
or program income generated from an award made under the allocation
formula, the funds may be offered to ESG Subrecipients with active
Contracts that have not been amended to extend the Contract Term.
Returned or deobligated funds will be offered with priority given
to ESG Subrecipients with the highest Expenditure rate as of the most
recent Monthly Expenditure Report. However, funds may not be offered
to any Subrecipient that returned funds, or from whom funds were deobligated.
The Executive Director or designee may increase the Contract of an
ESG Subrecipient or authorize a new Contract with a Subrecipient by
up to 25% of the original Contract amount. The increase of reallocated
funds may not exceed 25% of the initial Contract award, unless approved
by the Board.
(g) Funds that have been returned more than once or
returned less than three months before the federal Expenditure deadline
may be retained by the Department.
(h) The Contract will reflect the Performance Targets
that were utilized as selection criteria for the award of funds. Requests
to amend Performance Targets may not be submitted less than 60 days
prior to the end of the Contract Term. Requests to amend Performance
Targets will not be granted if such an amendment would have precluded
the award to the Subrecipient.
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