Current through Register Vol. 35, No. 18, September 24, 2024
A.
General. Failure to ensure compliance with one or more contracted
performance measures, grant agreement provisions, federal or state law, federal
regulations, or federal or state technical assistance guidance, is considered a
sanctionable act or acts. DWS may assess corrective action or penalties based
on the totality of the circumstances surrounding the occurrence of a
sanctionable act or acts, including the severity, nature, duration, and extent,
including previous occurrences of sanctionable acts. In determining corrective
action or penalties, DWS may consider efforts by the local board or
sub-recipient to prevent the occurrence of the sanctionable act, such as
efforts to obtain technical assistance or training, as well as resolved
monitoring findings.
B.
Types
of corrective action and penalties. To assist the local board or
sub-recipient in correcting any deficiencies, DWS may assess, for each
occurrence of a sanctionable act, one or more of the following corrective
action activities or penalties:
(1)
participation in technical and quality assurance activities, including
mandatory participation in training;
(2) on-site visits by DWS, or its designee,
to monitor and assist with daily operations of a local board, local board's
contractor, or sub-recipient;
(3)
corrective action plan developed by DWS and implemented by the local board to
address the identified weaknesses, including strict timelines for
completion;
(4) submission of
additional or more detailed financial or performance documentation or
reports;
(5) designation as a
high-risk local board or sub-recipient requiring additional monitoring
visits;
(6) requirement for the
local administrative entity, or the sub-recipient to report on activities and
progress at state board meetings until performance is satisfactory;
(7) DWS meetings with the local area's chief
elected official(s), local board chair, local board members, local board's
executive director, or the sub-recipient to check in on progress on corrective
action;
(8) DWS oversight or
management of local board operations, such as the appointment of a
steward.
(9) DWS approval of
specified actions (i.e. prohibition against entering into specific contracts or
engaging in certain activities without explicit prior approval from
DWS);
(10) prohibiting the use of
designated service providers or one-stop operators;
(11) payment restrictions, such as payment by
reimbursement only with required supporting documentation;
(12) delay, suspension, or denial of contract
payments;
(13) requirement of a
local board or its sub-recipient(s) to reimburse DWS any costs it deems
disallowed in accordance with federal or state law, or regulations;
(14) issuance of a notice of intent to cease
immediately reimbursement of local program costs;
(15) designation of local board as ineligible
for additional discretionary funding, incentives, or other funds;
(16) contract cancellation or
termination;
(17) issuance of
notice to revoke approval of all or part of the local plan affected;
(18) imposition of a local area
reorganization plan;
(19) other
actions deemed appropriate by DWS to secure compliance.
C.
Penalties for nonattainment of
performance goals:
(1)
First-year nonperformance. If a local board fails to meet one or
more local negotiated performance levels in a single program year based on
annual performance outcomes, the local board shall develop a performance
improvement plan within 45 days of the final performance outcome reported in
the New Mexico WIOA annual report. DWS may also require the local board to
modify its local plan or take other action designed to improve the local
board's performance.
(2)
Second-year nonperformance. If a local board failed to meet one or
more local negotiated performance levels for the same performance measure(s)
for a second consecutive program year, DWS will review the performance
deficiencies and may make a recommendation to the governor to impose a
reorganization plan for the local area. DWS's recommendation to the governor
for reorganization of a local area may include the imposition of one or more of
the following penalties:
(a) requiring
modification of the local board's local plan;
(b) issuing a notice of intent to revoke all
or part of the affected local plan;
(c) restructuring the local board, including
decertification of the current local board and a plan for appointment and
certification of a new local board;
(d) selection of an alternate entity to
administer the WIOA for the local area; or
(e) merging of the local area into one or
more other local areas.
D.
Corrective action plans. If a
corrective action plan is required, the local board must submit the plan in
writing to DWS within 45 days of receipt of the final monitoring report. The
corrective action plan must identify actions the board will take to correct the
finding and a timeline for completion of the corrective action. The local board
may be required to provide a monthly progress report each month that a
corrective action plan is pending. In the event a finding is repeated in
subsequent monitoring reviews, monitors will inform DWS who will make the
determination of appropriate sanctions.
E.
Performance Improvement Plans.
If a performance improvement plan is required, the local board must
submit the plan in writing to DWS within 45 days of the final performance
outcome reported in the New Mexico WIOA annual report, and the plan shall be
fully implemented by the end of the current program year (June 30). The
performance improvement plan for addressing the failure to meet performance
shall include, at a minimum, the following:
(1) list of the performance measures for
which the local board failed to achieve at least 80 percent of the negotiated
performance level;
(2) detailed
analysis and explanation of why the local board failed to achieve at least 80
percent of the negotiated performance level;
(3) description of the corrective action to
be taken, and the timeline for such actions, to address performance
deficiencies in subsequent program years;
(4) identification of the technical
assistance needed to support successful performance, including the source and
type of assistance; and
(5) local
board monitoring plan of its sub-recipients with timelines for evaluating
effectiveness of the corrective action plan.
F.
Intent to sanction. DWS may,
but is not required to, issue a notice of intent to sanction to the local board
prior to DWS placing a local board in sanction status. This formal notification
is intended to communicate expectations, such as corrective action or
performance improvement plans, for resolution of local board findings, to
prevent escalation into sanction status.
