[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: 34CFR81.40]

[Page 235-236]
 
                           TITLE 34--EDUCATION
 
PART 81--GENERAL EDUCATION PROVISIONS ACT--ENFORCEMENT--Table of Contents
 
                Subpart B--Hearings for Recovery of Funds
 
Sec. 81.40  Burden of proof.

    If the OALJ accepts jurisdiction of a case under Sec. 81.38, the 
recipient shall present its case first and shall have the burden of 
proving that the recipient is not required to return the amount of funds 
that the disallowance decision requires to be returned because--
    (a) An expenditure identified in the disallowance decision as 
unallowable was allowable;
    (b) The recipient discharged its obligation to account properly for 
the funds;
    (c) The amount required to be returned does not meet the standards 
for proportionality in Sec. 81.32;
    (d) The amount required to be returned includes an amount 
attributable to mitigating circumstances under the standards in 
Sec. 81.33; or
    (e) The amount required to be returned includes an amount expended 
in a manner not authorized by law more

[[Page 236]]

than five years before the recipient received the notice of the 
disallowance decision.

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

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