[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR81.31]

[Page 232]
 
                           TITLE 34--EDUCATION
 
PART 81--GENERAL EDUCATION PROVISIONS ACT--ENFORCEMENT--Table of Contents
 
                Subpart B--Hearings for Recovery of Funds
 
Sec. 81.31  Measure of recovery.

    A recipient that made an unallowable expenditure or otherwise failed 
to discharge its obligation to account properly for funds shall return 
an amount that--
    (a) Meets the standards for proportionality in Sec. 81.32;
    (b) In the case of a State or local educational agency, excludes any 
amount attributable to mitigating circumstances under the standards in 
Sec. 81.23; and
    (c) Excludes any amount expended in a manner not authorized by law 
more than five years before the recipient received the notice of a 
disallowance decision under Sec. 81.34.

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a(k), 1234b (a) and (b), 
and 3474(a))

[54 FR 19512, May 5, 1989; 54 FR 21622, May 19, 1989. Redesignated and 
amended at 58 FR 43473, Aug. 16, 1993]