Chapter NR 153

NR 153.29 NR 153.29 Records.

NR 153.29(1) (1) Required records. Each governmental unit serving as a runoff management grant grantee or as a cost-share agreement provider shall maintain a financial management system which adequately provides for all of the following:

NR 153.29(1)(a) (a) Accurate, current and complete disclosure of payments to landowners, land operators, contractors or municipalities including receipts, canceled checks, invoices and bills to support payments made in the program in accordance with department reporting requirements in this chapter and in the grant conditions. All records shall be in accordance with generally accepted accounting principles and practices, consistently applied, regardless of the source of funds.

NR 153.29(1)(b) (b) Effective control over and accountability for all project funds and other assets.

NR 153.29(1)(c) (c) Comparison of actual costs with the grant amount on each grant.

NR 153.29(1)(d) (d) Procedures for determining the eligibility and allocability of installation expenses in accordance with the cost containment requirements of s. NR 153.23 for all practices installed by the landowner or land operator.

NR 153.29(1)(e) (e) Accounting records supported by source documentation including all of the following:

NR 153.29(1)(e)1. 1. One separate project account for the total grant identified in the grant agreement reflecting all receipts and expenditures of that grant.

NR 153.29(1)(e)2. 2. Accounting records showing all receipts, encumbrances, expenditures and fund balances.

NR 153.29(1)(e)3. 3. A complete file for each cost-share agreement including the following documentation:

NR 153.29(1)(e)3.a. a. Approval of best management practices and cost-share amounts by the governmental unit.

NR 153.29(1)(e)3.b. b. Cost-share agreement and cost-share agreement amendment forms.

NR 153.29(1)(e)3.c. c. Verification by the governmental unit official of proper installation.

NR 153.29(1)(e)3.d. d. Request for reimbursement by a landowner or land operator documenting costs incurred directly or for in-kind contributions by the landowner or land operator. For management practices funded jointly under this chapter and other sources, the request shall verify that funding under this chapter is in accordance with s. NR 153.28 (1) (b) 5.

NR 153.29(1)(e)3.e. e. Evidence of payment for best management practice by a landowner or land operator including copies of checks or receipts.

NR 153.29(1)(e)3.f. f. Verification of practice completion in accordance with the cost-share agreement including amendments and approval of cost-share amounts by the governmental unit.

NR 153.29(1)(e)3.g. g. Change in compliance status, by parcel, with agricultural performance standards and prohibitions of cropland practices and livestock facilities owned or operated by the cost-share recipient.

NR 153.29(1)(e)4. 4. A duplicate copy of each reimbursement request submitted to the department.

NR 153.29(1)(f) (f) A systematic method to assure timely and appropriate resolution of audit findings and recommendations by the department.

NR 153.29(1)(g) (g) A final accounting of project expenditures submitted to the department within 120 days of the completion of all project work.

NR 153.29(1)(h) (h) Records which relate to appeals, disputes or litigation on the settlement of claims arising out of the performance of the project for which funds were awarded.

NR 153.29(1)(i) (i) Records which relate to costs or expenses of the project to which the department or any of its duly authorized representatives has taken exception.

NR 153.29(2) (2) Record retention.

NR 153.29(2)(a) (a) The governmental unit or its agent’s records and the records of contractors, including professional services contracts, shall be subject at all reasonable times to inspection, copying and audit by the department or its agent.

NR 153.29(2)(b) (b) The governmental unit or its agent or contractors shall preserve and make all records available to the department or its agent for whichever of the following is appropriate for their grant situation:

NR 153.29(2)(b)1. 1. For 3 years after the date of final settlement.

NR 153.29(2)(b)2. 2. For a longer period if required by statute or contract.

NR 153.29(2)(b)3. 3. For 3 years after the date of termination of a grant agreement. If a grant is partially terminated, records shall be retained for a period of 3 years after the date of final settlement.

NR 153.29(2)(b)4. 4. For 3 years after the date of settlement of any dispute.

NR 153.29(2)(b)5. 5. Cost-share agreement records shall be kept for the duration of the operation and maintenance period of the cost-share agreement with the longest operation and maintenance period to enable the governmental unit to fulfill its responsibility under this chapter.

NR 153.29(3) (3) Auditing.

NR 153.29(3)(a) (a) The department may perform, or cause to be performed, interim audits on all grants.

NR 153.29(3)(b) (b) The department may conduct a final audit after the submission of the final payment request. The department shall determine the time of the final audit. Any payments made prior to the final audit are subject to adjustment based on the audit.

NR 153.29(3)(c) (c) All audits shall include review of fiscal accountability and consistency with grants or grant amendments.

NR 153.29(4) (4) Open records requirements.

NR 153.29(4)(a) (a) All project-related records are subject to the state’s open records law.

NR 153.29(4)(b) (b) The grantee will keep any confidential information that is not subject to the open records law, such as social security numbers that is required for income tax purposes for the cost-share funding, safe from unauthorized access.

NR 153.29 History History: CR 00-025: cr. Register September 2002 No. 561, eff. 10-1-02; CR 09-112: cr. (1) (e) 3. g. Register December 2010 No. 660, eff. 1-1-11.

NR 153.30 NR 153.30 Project evaluation and reporting.

NR 153.30(1) (1) Grantees shall report to the department an annual accounting for accomplishments regarding its activities funded under the grant.

NR 153.30(2) (2) The department may require more frequent reports than those required under sub. (1) from a grantee which document accomplishments regarding activities funded under the grant.

NR 153.30(3) (3) The grantee shall submit a final report after project completion. At a minimum, the report shall include project evaluation and monitoring information consistent with the commitments made in the project application submitted under s. NR 153.17. The department may require the grantee to submit other information in the final report.

NR 153.30 History History: CR 00-025: cr. Register September 2002 No. 561, eff. 10-1-02.

NR 153.31 NR 153.31 Variances. The department may approve in writing a variance from a requirement of this chapter upon written request from the grantee if the department determines that a variance is essential to effect necessary grant actions or water quality objectives and where special circumstances make a variance in the best interest of the program. A grantee’s written variance request shall clearly explain the circumstances justifying the variance. Before approving a variance, the department shall take into account factors such as good cause, circumstances beyond the control of the grantee and financial hardship. The department may not grant variances from statutory requirements.

NR 153.31 History History: CR 00-025: cr. Register September 2002 No. 561, eff. 10-1-02.

NR 153.32 NR 153.32 Grant evaluation and enforcement.

NR 153.32(1) (1) On an annual basis, the department shall evaluate the progress of projects. During the evaluation, the department shall examine the progress of the project toward project goals and water quality objectives specified in the grant application, grant or grant amendment. Upon consulting with the project sponsor, the department may take appropriate action to improve the progress of the project. Department action may include, but is not limited to, more frequent project evaluation, the use of interim project goals, changes to project funding, and the adoption of sanctions in sub. (2).

NR 153.32(2) (2) The following sanctions may be imposed by the department for noncompliance with the provisions of s. 281.65, Stats., this chapter or any grant agreement entered into or amended in accordance with this chapter:

NR 153.32(2)(a) (a) The grant may be terminated or annulled under sub. (4).

NR 153.32(2)(b) (b) Project costs directly related to noncompliance may be declared ineligible.

NR 153.32(2)(c) (c) Up to 10% of the payment otherwise due the grantee may be withheld if the conditions of par. (f) are met.

NR 153.32(2)(d) (d) Project work may be suspended under sub. (3).

NR 153.32(2)(e) (e) Other administrative or judicial remedies may be instituted as legally available and appropriate.

NR 153.32(2)(f) (f) The department may authorize the withholding or recovery of a grant payment if the department determines, in writing, that a grantee has failed to comply with project objectives, grant award conditions or reporting requirements or has not expended all funds it has received under this chapter on eligible activities. The department may recover payments made to grantees when it determines that the governmental unit will not complete the eligible activities on its grant within the current grant project budgeting period. Withholding and recovery shall be limited to only that amount necessary to assure compliance.

NR 153.32(3) (3) Suspension of grants.

NR 153.32(3)(a) (a) Liability. The department may suspend state liability for work done under a grant after notification is given to the grantee in accordance with this subsection. Suspension of state liability under a grant shall be accomplished by the issuance of a “stop-work order.”

NR 153.32(3)(b) (b) Stop-work order issuance.

NR 153.32(3)(b)1. 1. The department may issue a stop-work order if there is a breach of the grant or grant amendment.

NR 153.32(3)(b)2. 2. Prior to the issuance of a stop-work order, the department shall meet with the grantee to present the facts supporting a decision to issue a stop-work order.

NR 153.32(3)(b)3. 3. After discussion of the department’s proposed action with the grantee, the department may issue a written order to the grantee, sent by certified mail, return receipt requested, requiring the grantee to stop all, or any part of the project work for a period of not more than 45 days after the order is delivered to the grantee, and for any extended period to which the parties may agree.

NR 153.32(3)(c) (c) Stop-work order components. A stop-work order shall contain all of the following:

NR 153.32(3)(c)1. 1. A description of the work to be suspended.

NR 153.32(3)(c)2. 2. Instructions for how the grantee may acquire materials or services.

NR 153.32(3)(c)3. 3. Guidance for action to be taken on contracts.

NR 153.32(3)(c)4. 4. Other suggestions to the grantee for minimizing costs.

NR 153.32(3)(d) (d) Suspension period.

NR 153.32(3)(d)1. 1. Upon receipt of a stop-work order, the grantee shall comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to work covered by the stop-work order during the period of work stoppage.

NR 153.32(3)(d)2. 2. Within the suspension period the department shall do one of the following:

NR 153.32(3)(d)2.a. a. Cancel the stop-work order, in full or in part.

NR 153.32(3)(d)2.b. b. Terminate grant assistance for the work covered by the stop-work order under par. (b).

NR 153.32(3)(d)2.c. c. Authorize resumption of work.

NR 153.32(3)(e) (e) Stop-work order cancellation or expiration. If a stop-work order is canceled or expires, the grantee shall promptly resume the previously suspended work. An equitable adjustment may be made to the grant period.

NR 153.32(3)(f) (f) Ineligible costs during suspension period. Costs incurred by the grantee or its contractors, subcontractors or representatives, after a stop-work order is issued by the department, which relate to the project work suspended by the order and which are not authorized by this section or specifically authorized in writing by the department, are not eligible for reimbursement.

NR 153.32(4) (4) Termination of grants.

NR 153.32(4)(a) (a) A grant may be terminated or annulled in whole or in part by the department in accordance with this subsection.

NR 153.32(4)(b) (b) The parties to a grant agreement may enter into an agreement to terminate the grant at any time. The agreement shall establish the effective date of termination of the grant, the basis for settlement of grant termination costs and the amount and date of payment of any money due to either party.

NR 153.32(4)(c) (c) A grantee may not unilaterally terminate project work for which a grant has been awarded except for good cause. The grantee shall notify the department in writing within 30 days of any complete or partial termination of the project work. If the department determines that there is good cause for the termination of all or any portion of a project for which a grant has been awarded, the department may enter into a termination agreement or unilaterally terminate the grant pursuant to par. (d). The grant termination becomes effective on the date the grantee ceases project work. If the department determines that a grantee has ceased work on the project without good cause, the department may unilaterally terminate the grant pursuant to par. (d) or annul the grant pursuant to par. (e).

NR 153.32(4)(d) (d) The department in accordance with the following procedure may terminate grants:

NR 153.32(4)(d)1. 1. The department shall give 10 days written notice to the grantee of its intent to terminate a grant in whole or in part. Notice of intent to terminate the grant shall be served on the grantee personally or by certified mail, return receipt requested.

NR 153.32(4)(d)2. 2. The department shall consult with the grantee prior to termination. Any notice of termination shall be in writing and state the reasons for terminating the grant. Notices of termination shall be served on the grantee personally or by certified mail, return receipt requested.

NR 153.32(4)(e) (e) The department may annul a grant if any of the following occur:

NR 153.32(4)(e)1. 1. There has been substantial nonperformance of the project work by the grantee without good cause.

NR 153.32(4)(e)2. 2. There is substantial evidence the grant was obtained by fraud.

NR 153.32(4)(e)3. 3. There is substantial evidence of gross abuse or corrupt practices in the administration of the grant or project.

NR 153.32(4)(e)4. 4. The grantee has not met the conditions in the grant or grant amendment.

NR 153.32(4)(f) (f) Upon termination, the grantee shall refund or credit to the department that portion of the grant funds paid or owed to the grantee and allocable to the terminated project work, except an amount as may be required to meet commitments which became enforceable prior to the termination. The grantee may not make any new commitments without department approval. The grantee shall reduce the amount of outstanding commitments insofar as possible and report to the department the uncommitted balance of funds awarded under the grant.

NR 153.32(4)(g) (g) Upon termination, all prospective department liability ceases.

NR 153.32(4)(h) (h) Upon annulment, the grant agreement is null and void and all department liability is extinguished.

NR 153.32(5) (5) Termination settlement costs.