1. (a)

   1. (1) Monitoring is action taken by the Adult Education Section of the Division of Workforce Services to ensure that the grantees or subgrantees are using federal and state awards for authorized purposes in compliance with the laws, regulations, and provision of contracts or grant agreements and that performance goals are achieved.
   2. (2) Subgrantees are subject to all applicable federal laws and regulations that the grantee must follow.

2. (b) According to the Education Department General Administrative Regulations, 2 C.F.R. § 200.339, if a grantee fails to comply with any term of an award, whether stated in a federal statute, regulation, assurance, state plan or application, notice of award, or elsewhere, the state or awarding agency may impose additional conditions, as described below:

   1. (1) Temporarily withhold cash payments pending correction of the deficiency by the non-federal entity or more severe enforcement action by the federal awarding agency or pass-through entity;
   2. (2) Disallow, that is, deny both use of funds and any applicable matching credit for, all or part of the cost of the activity or action not in compliance;
   3. (3) Wholly or partially suspend or terminate the federal award;
   4. (4) Initiate suspension or debarment proceedings as authorized under 2 C.F.R. pt. 180 and federal awarding agency regulations, or, in the case of a pass-through entity, recommend such a proceeding be initiated by a federal awarding agency;
   5. (5) Withhold further federal awards for the project or program; and
   6. (6) Take other remedies that may be legally available.
3. (c) State requirements will follow federal guidelines.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "INFORMATION/RATIONALE: In order to maintain effective adult education and literacy council programs, the Department of Career Education, Adult Education Division is responsible for program monitoring and corrective action for noncompliance with identified program requirements, program accountability standards, and financial propriety." "EFFECTIVE DATE: DECEMBER 31, 2017"