(a) As appropriate and necessary to ensure compliance with the
nondiscrimination and equal opportunity provisions of WIA or this part,
the Director may review any application, or class of applications, for
Federal financial assistance under Title I of WIA, before and as a
condition of their approval. The basis for such review may be the
assurance specified in Sec. 37.20, information and reports submitted by
the grant applicant under this part or guidance published by the
Director, and any relevant records on file with the Department.
(b) Where the Director determines that the grant applicant for
Federal financial assistance under WIA Title I, if financially
assisted, might not comply with the nondiscrimination and equal
opportunity requirements of WIA or this part, the Director must:
(1) Notify, in a timely manner, the Departmental grantmaking agency
and the Assistant Attorney General of the findings of the pre-approval
compliance review; and
(2) Issue a Letter of Findings. The Letter of Findings must advise
the grant applicant, in writing, of:
(i) The preliminary findings of the review;
(ii) The proposed remedial or corrective action under Section 37.94
and the time within which the remedial or corrective action should be
completed;
(iii) Whether it will be necessary for the grant applicant to enter
into a written Conciliation Agreement as described in Secs. 37.95 and
37.97; and
(iv) The opportunity to engage in voluntary compliance
negotiations.
(c) If a grant applicant has agreed to certain remedial or
corrective actions in order to receive WIA Title I-funded Federal
financial assistance, the Department must ensure that the remedial or
corrective actions have been taken, or that a Conciliation Agreement
has been entered into, before approving the award of further assistance
under WIA Title I. If a grant applicant refuses or fails to take
remedial or corrective actions or to enter into a Conciliation
Agreement, as applicable, the Director must follow the procedures
outlined in Secs. 37.98 through 37.100.
