[Code of Federal Regulations] [Title 7, Volume 4] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR227.41] [Page 258] TITLE 7--AGRICULTURE CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE PART 227_NUTRITION EDUCATION AND TRAINING PROGRAM--Table of Contents Subpart D_Miscellaneous Sec. 227.41 Recovery of funds. (a) FNS may recover funds from a State agency under any of the following conditions: (1) If FNS determines, through a review of the State agency's reports, program, or financial analysis, monitoring, audit or otherwise, that the State agency's performance is inadequate or that the State agency has failed to comply with this part or FNS instructions and guidelines. (2) If FNS determines that the State agency is not expending funds at a rate commensurate with the amount of funds distributed or provided for expenditure under the program. (3) If FNS determines that a State agency is not providing full and timely reports. (b) FNS shall effect such recoveries of funds through adjustments in the amount of funds provided under the program.