(a) In accordance with section 164(d) of the Act, the primary
sanction for misexpenditure of JTPA funds is repayment.
(b) A recipient may request that a debt, or a portion thereof, be
offset against amounts allotted to the recipient, and retained at the
recipient level for administrative costs, under the current or a future
JTPA entitlement.
(1) For title II grants, any offset shall be applied against the
recipient level 5 percent administrative cost set-aside only and may not
be distributed by the recipient among its subrecipients.
(2) For title III grants, any such offset must be applied against
that portion of funds reserved by the recipient for recipient level
administration only and may not be distributed by the recipient among
its subrecipients.
(c) The Grant Officer may approve an offset request, under section
164(d) of the Act, if the misexpenditures were not in violation of
section 164(e)(1) of the Act.
(d) If offset is granted, the debt shall not be fully satisfied
until the Grant Officer reduces amounts allotted to the State by the
amount of the misexpenditure.
(e) The recipient shall not have the authority to reduce allocations
to an
SDA or SSG for misexpenditure of JTPA funds under section 164(d) of the
Act.
