Section R. 400.19607 - Rescission of community action agency designationRule 607.
(1) The executive director, pursuant to section 8(2) of the act, may rescind the designation of a CAA for cause if the agency fails to operate bureau-administered programs in compliance with these rules or applicable state and federal laws and regulations. Cause for rescission of a CAA designation may include a combination of any of the following factors: (a) The agency's governing/advisory board does not exercise sufficient authority or leadership to ensure that bureau- administered funds are expended in accordance with applicable regulations, laws, or contractual obligations.(b) The agency's administrative leadership does not demonstrate the administrative knowledge and skills required to ensure that the agency's fiscal, personnel, programs, or property management systems are adequate to support bureau-funded projects.(c) The agency has not properly accounted for bureau-administered funds and property.(d) The agency's general management systems are not adequate to support bureau-funded programs.(e) The agency has not demonstrated the capacity for effective service delivery of bureau-funded programs.(f) The agency has not sufficiently fulfilled its contractual obligations.(g) The agency's liabilities significantly exceed its assets.(h) The agency has filed for bankruptcy.(i) The agency lacks community support and credibility with regard to its ability to competently administer bureau-funded programs.(j) The agency is unable to make substantive improvement in problem areas following a bureau monitoring visit.(2) An agency whose designation has been rescinded by the executive director shall lose its eligibility for formula funding and shall not use the term "community action agency" or "CAA" to refer to itself.Mich. Admin. Code R. 400.19607