UNITED STATES
DEPARTMENT OF LABOR

USDOL/OALJ Reporter

93jtp14a.htm

DATE:     April 3, 1995  
CASE NO:  93-JTP-14

In the Matter of

GRAND RAPIDS INTER-TRIBAL COUNCIL
               Complainant

     v.

U.S. DEPARTMENT OF LABOR
               Respondent

                                 ORDER
                 GRANTING PARTIAL STIPULATION OF DISMISSAL
            and REMANDING FOR FURTHER PROCEEDINGS


     This proceeding arises under the Job Partnership Training
Act, 29 U.S.C. §1501 et seq., as amended, and
regulations published by the Secretary of Labor at 20 C.F.R.
Parts 626 - 638.  
A Final Determination Letter, declaring that the Grand Rapids
Inter-Tribal Council is indebted to the U.S. Department of Labor
in the amount of $219,195.00 was issued by a Grant/Contract
Officer of the Employment and Training Administration, U.S.
Department of Labor, on February 8, 1993.  A request for hear-
ing was filed and docketed on March 10, 1993.

     A hearing was scheduled to begin on March 9, 1994, in Grand
Rapids, Michigan.  The hearing was cancelled upon the parties'
representation that they had settled the case.

     On April 11, 1994, a "Partial Stipulation Agreement" re-
questing "dismissal with prejudice of the Grantee's appeal
regarding Findings I, II, III and V of the Grant Officers's Final
Determination pending before the Office of Administrative Law
Judges" was received.  A cover letter indicated that Finding IV
remained in dispute, pending review by the Grants Officer.  In
August, an exchange of telephone calls between this office and
the parties' counsels revealed only that the issue regarding
Finding IV remained unresolved, but that the parties were "hope-
ful" of reaching an agreement.

[PAGE 2]

     On February 16, 1995, I issued an Order to Show Cause,
requiring the parties to explain why the hearing request should
not be dismissed as abandoned or why the case should not be
remanded to the Grants Officer for further proceedings.  Both
parties have timely responded to the Order.

     Both parties have stated that their Stipulation Agreement
requesting dismissal with prejudice of the Complainant's appeal
with regard to Findings I, II, III and V should be granted.  The
Complainant requests that its appeal of issues regarding Finding
IV be remanded to the Grants Officer for further consideration,
arguing that lack of funding has prevented its compliance with
its agreement to submit revised Financial Status Reports, but
that the Department has indicated a continuing willingness to
accept and review the reports once they have been prepared.  In
contrast, the Department of Labor contends that the Complainant
has abandoned its appeal of Finding IV of the Grants Officer's
Final Determination, that the appeal should be dismissed with
prejudice, and that judgment in the amount of $46,155, the sum
disallowed in Finding IV, should be entered in its favor.

     The parties have stipulated that the appeal of Findings I,
II, III and V of the Grant Officer's Final Determination in this
matter be dismissed with prejudice.  Since there is no dispute
regarding those findings, the parties request for dismissal of
the appeal of those issues is GRANTED.  

     However, the parties do not agree as to the disposition of
issues regarding Finding IV.  The Complainant has clearly not
abandoned its appeal concerning Finding IV, but also has been
unable, because of financial difficulties, to provide the revised
Financial Status Reports which its agreement with the Department
of Labor requires.  In the Partial Stipulation Agreement, the
Department has represented that if the revised financial reports
are completed, submitted, reviewed and found acceptable in
accordance with regulations, then the disallowed costs "will be
allowed."  The Complainant appears to be mixed in a predicament
from which it cannot readily be extricated.  In these circum-
stances, summary disposition of this matter in favor of either
party is not appropriate.  29 C.F.R. §18.41.  Moreover, it
does not appear that this case is in proper posture to go forward
with a hearing; informal resolution of the dispute is within the
parties' grasp.  Therefore, the issues regarding Finding IV are
REMANDED to the Grants Officer for further proceedings directed
to obtaining and reviewing the necessary financial reports, and
resolving the disallowed costs issue without a formal hearing.

[PAGE 3]



                                                          

                                   J. MICHAEL O'NEILL
                                   Administrative Law Judge