1. (a) According to the Education Department General Administrative Regulations (EDGAR), 2 C.F.R. § 200.340: “(a) The Federal award may be terminated in whole or in part as follows: (1) By the Federal awarding agency or pass-through entity, if a non-Federal entity fails to comply with the terms and conditions of a Federal award; (2) By the Federal awarding agency or pass-through entity for cause; (3) By the Federal awarding agency or pass-through entity with the consent of the non-Federal entity, in which case the two parties must agree upon the termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated; or (4) By the non-Federal entity upon sending to the Federal awarding agency or pass-through entity written notification setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated.”

2. (b)

   1. (1) A grantee that chooses to relinquish responsibility as the local education agency (LEA) for an adult education or literacy council program must provide written notification to the Adult Education Section of the Division of Workforce Services at least ninety (90) days prior to termination.
   2. (2) The Adult Education Section, with notice to the Career Education and Workforce Development Board, will be responsible for selecting a new provider for the local adult education program.
   3. (3) A statewide competition may be used to bid out the new eligible area or areas.
3. (c) Upon termination, inventory purchased with adult education funds must be returned to the Adult Education Section, which reserves the right to transfer equipment to the new local education agency or other current providers.

4. (d)

   1. (1) Employees are not included in an administrative transfer of grant funds.
   2. (2) The hiring of staff, from a previous LEA, will be at the discretion of the new grantee, but must follow the Salaries for Adult Education Personnel policy, 6 CAR § 462-115.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "INFORMATION/RATIONALE: Provide guidance on the termination of local grants and to ensure state and federal guidelines for grants are followed." "EFFECTIVE DATE: DECEMBER 31, 2017"