Recovery of Grant Funds under the Emergency Employment Act of 1971

A request was received from the Assistant Secretary of Labor for Administration and Management to review and determine any liability and to take appropriate action to recover funds expended by the State of Rhode Island in violation of program requirement of a Department of Labor (DOL) grant. DOL has no authority to allow payments in violation of regulations establishing a 7-day unemployment rule and a 30-day related employment rule. The claim was returned to DOL for recalculation of the amount due to the Government. Although a portion of disallowed grant costs was withheld from subsequent grant funds, the claim was returned to DOL for completion of claims collection efforts, including possible setoff from other Government sources