South Dakota

SDDLR did not require restricted indirect cost rate agreements from its subrecipients of AEFLA funds.

Relevant sections of law and regulation: Section 241 of WIOA; Uniform Guidance at 2 CFR ? 200.414 (c)(1-4); Education Department General Administrative Guidelines (EDGAR) 34 CFR § 76.563

SDDLR did not issue grant award notifications (GANs) to subrecipients in accordance with the requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Relevant section of law and regulation: Uniform Guidance 2 CFR § 200.33l(a)

SDDLR did not include all required elements from 34 CFR § 463.22 to be addressed by all applicants in its application materials.

Relevant section of law and regulation: 34 CFR § 463.22

SDDLR limited the percentage of AEFLA administrative costs that local providers could negotiate with the State.

Relevant section of law and regulation: Section 233(b) of WIOA

SDDLR did not establish the same application process for all applicants.

Relevant sections of law and regulation: Section 231(c)(2) of WIOA; 34 CFR § 463.20(c)(2)

SDDLR did not properly identify State-imposed requirements in its grant application.

Relevant section of law and regulation: Section 223(c) of WIOA

SDDLR did not define local administrative costs consistent with the statute and regulations.

Relevant sections of law and regulation: Section 233 of WIOA; 34 CFR § 463.26

SDDLR failed to provide direct and equitable access to eligible providers by providing itself with the discretion to extend their subrecipients’ award period after the two-year grant period.

Relevant section of law and regulation: Section 231(a) and (c)(1) of WIOA; 34 CFR §§ 463.20(a) and 463.20(c)(1)

SDDLR did not apply demonstrated effectiveness to determine an applicant’s eligibility to apply for funding.

Finding 5: DLR charged unallowable activities to State Leadership.