Suspension Of Area Plan Funding

(1) The suspension of funding to an Area Agency by the State Agency temporarily suspends State or Federal assistance under the area plan pending corrective action by the Area Agency or pending a decision by the State Agency to terminate the contract. (2) When conditions warrant, the State Agency may suspend area plan operations in whole or in part. Such conditions would result from the Area Agency’s failure to comply with contract award stipulations, standards, or conditions. (3) To suspend area plan operations, the State Agency shall notify the Area Agency in writing of the action being taken, the reason for such action, and the conditions of the suspension. This notice shall be given at least thirty (30) days prior to the effective date of suspension and shall note the right of the Area Agency to appeal such decision and the procedures to be followed for such an appeal. (4) The State Agency shall grant to any Area Agency whose area plan has been suspended in whole or in part an opportunity for a hearing in accordance with the provisions set forth in Section 0030-1-8-.02 of these rules. (5) The State Agency may, at its discretion, allow federal financial participation in necessary and proper costs which the Area Agency could not reasonably avoid during the period of suspension. (6) In suspending area plan operations, the State Agency shall determine the amount of unearned Title III funds the Area Agency has on hand. The anticipated length of suspension, the extent of area plan operations suspended, and the amount of fund balance on hand will determine whether the State Agency will require the balance to be returned. (7) The State Agency may, at its discretion, reinstate the suspended area plan operations if it determines that conditions warrant such action. (8) Federal participation in reinstated area plan operations may resume immediately upon reinstatement, but not for any costs accrued for those area plan operations while they are suspended. The obligational Authority unearned at the time of suspension again becomes available for earning by the project at the previously established matching ratio. (9) If the suspension of area plan operations continues for three (3) consecutive months in any budget year, federal funding of area plan operations is automatically terminated.