[Code of Federal Regulations] [Title 20, Volume 3] [Revised as of April 1, 2003] From the U.S. Government Printing Office via GPO Access [CITE: 20CFR645.315] [Page 401] TITLE 20--EMPLOYEES' BENEFITS CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR PART 645--PROVISIONS GOVERNING WELFARE-TO-WORK GRANTS--Table of Contents Subpart C--Additional Formula Grant Administrative Standards and Procedures Sec. 645.315 What actions are to be taken if a State fails to make the required matching expenditures? (a) If State match expenditures do not satisfy the requirements of the FY grant award by the end of the three year fund availability period, the grant award amount will be reduced by the appropriate corresponding amount (i.e., the grant will be reduced by two (2) dollars for each one (1) dollar shortfall in State matching funds) when the grant is closed out. (b) Compliance with the fifteen percent (15%) administrative cost limit will be recalculated based on the FY formula grant award amount, as reduced under paragraph (a) of this section.