Current through Register Vol. 35, No. 18, September 24, 2024
A.
Sanction
Status. The purpose of imposing sanctions is to ensure accountability of
local boards and other sub-recipients in meeting the needs of employers and job
seekers, ensure performance in reaching outcome measures, ensure adequate
return on New Mexico investments, and support New Mexico in achieving its
goals. There are three levels of sanction status that may be assigned by DWS to
a local board, or other sub-recipient, for failure to ensure compliance with
one or more contracted performance measures, grant agreement provisions,
federal or state laws, and related regulations.
(1)
Level one sanction status: A
level one sanction status is assigned for significant inability or failure to
perform as determined by DWS. A level one sanction status may be associated
with the assessment of one or more corrective actions or penalties as
referenced in the corrective actions and penalties section of this rule.
Sanctionable acts that occur during or after the program, grant, fiscal,
contract, or calendar year, include but are not limited to the following:
(a) failure to submit timely and accurate
required financial or performance reports;
(b) failure to take corrective action to
resolve findings identified during monitoring, investigative or program
reviews, including failing to comply with a performance improvement
plan;
(c) failure to resolve all
independent audit findings or questioned costs within required time
frames;
(d) failure to submit the
annual audit required by WIOA federal regulations;
(e) breach of administrative and service
contract requirements;
(f) failure
to retain required service delivery and financial records; and
(g) failure to meet one or more local
negotiated performance levels in a single program year based on annual
performance outcomes.
(2)
Level two sanction status: A
level two sanction status is a higher sanction status than level one and is
assigned for severe inability or failure to perform as determined by DWS. A
level two sanction may be associated with the assessment of more severe
penalties than those assessed to a local board or sub-recipient in level one
sanction status. Sanctionable acts that occur during or after the program,
grant, fiscal, contract, or calendar year include, but are not limited to the
following:
(a) failure to resolve or implement
corrective action on a level one sanction within 180 days of notice.
(b) committing the same violation a second
time within an 18 month period.
(c)
failure to meet negotiated performance levels for the same performance
measure(s) for two consecutive program years.
(3)
Level three sanction status:
This is the highest sanction status assigned for extreme inability or failure
to perform as determined by DWS. A level three sanction may be associated with
the assessment of the most severe penalties being assessed against the local
board or sub-recipient. Sanctionable acts that occur during the program, grant,
fiscal, contract, or calendar year include, but are not limited to the
following:
(a) failure to resolve or implement
corrective action on a level one sanction within 360 days of notice.
(b) failure to resolve or implement
corrective action on a level two sanction within 180 days of notice.
(c) committing the same violation three or
more times within a 36 month period.
B.
Sanction Determination. If
the local board remains in noncompliance after the prescribed timeline for
completion of the corrective action, or performance improvement plan has
passed, DWS on behalf of the governor, must determine whether it is appropriate
to place a local board or sub-recipient in sanction status. DWS must officially
notify the non-compliant local board or sub-recipient by sending the
appropriate local administrative entity a sanction determination letter A via
certified mail and return receipt requested at least 10 working ways in advance
of the effective date of the sanction. The sanction determination letter must
include the following:
(1) the sanctionable
act upon which the sanction was based;
(2) the sanction status level in which the
local board of sub-recipient is placed and the conditions upon which the local
board or sub-recipient may be removed from sanction status;
(3) the penalty and the effective date of the
penalty;
(4) the corrective action
required, including the timeline for completing the corrective action;
and
(5) the technical assistance
requested from DWS or other entity to assist in completing the corrective
action.
