Page:United States Statutes at Large Volume 120.djvu/2617

 120 STAT. 2586

PUBLIC LAW 109–365—OCT. 17, 2006

‘‘(B) Established fraud or criminal activity of a significant nature within the organization or agency involved. ‘‘(C) Serious administrative deficiencies identified by the Secretary, such as failure to maintain a financial management system as required by Federal rules or regulations. ‘‘(D) Willful obstruction of the audit process. ‘‘(E) Failure to provide services to participants for a current or recent grant or to meet applicable core measures of performance or address applicable indicators of performance. ‘‘(F) Failure to correct deficiencies brought to the grantee’s attention in writing as a result of monitoring activities, reviews, assessments, or other activities. ‘‘(G) Failure to return a grant closeout package or outstanding advances within 90 days of the grant expiration date or receipt of the closeout package, whichever is later, unless an extension has been requested and granted. ‘‘(H) Failure to submit required reports. ‘‘(I) Failure to properly report and dispose of Government property as instructed by the Secretary. ‘‘(J) Failure to have maintained effective cash management or cost controls resulting in excess cash on hand. ‘‘(K) Failure to ensure that a subrecipient complies with its Office of Management and Budget Circular A– 133 audit requirements specified at section 667.200(b) of title 20, Code of Federal Regulations. ‘‘(L) Failure to audit a subrecipient within the required period. ‘‘(M) Final disallowed costs in excess of 5 percent of the grant or contract award if, in the judgment of the grant officer, the disallowances are egregious. ‘‘(N) Failure to establish a mechanism to resolve a subrecipient’s audit in a timely fashion. ‘‘(5) DETERMINATION.—Applicants that are determined to be not responsible shall not be selected as grantees. ‘‘(6) DISALLOWED COSTS.—Interest on disallowed costs shall accrue in accordance with the Debt Collection Improvement Act of 1996, including the amendments made by that Act. ‘‘(e) GRANTEES SERVING INDIVIDUALS WITH BARRIERS TO EMPLOYMENT.— ‘‘(1) DEFINITION.—In this subsection, the term ‘individuals with barriers to employment’ means minority individuals, Indian individuals, individuals with greatest economic need, and individuals described in subsection (a)(3)(B)(ii) or (b)(2) of section 518. ‘‘(2) SPECIAL CONSIDERATION.—In areas where a substantial population of individuals with barriers to employment exists, a grantee that receives a national grant in accordance with this section shall, in selecting subgrantees, give special consideration to organizations (including former recipients of such national grants) with demonstrated expertise in serving individuals with barriers to employment. ‘‘(f) MINORITY-SERVING GRANTEES.—The Secretary may not promulgate rules or regulations affecting grantees in areas where a substantial population of minority individuals exists, that would

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