[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR74.62]



[Page 233-234]

 

                        TITLE 45--PUBLIC WELFARE

 

           SUBTITLE A--DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

    PART 74_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR AWARDS AND SUBAWARDS TO INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER NONPROFIT ORGANIZATIONS, AND 

COMMERCIAL ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 74.62  Enforcement.



    (a) If a recipient materially fails to comply with the terms and 

conditions of an award, whether stated in a Federal statute or 

regulation, an assurance, an application, or a notice of award, the HHS 

awarding agency may,



[[Page 234]]



in addition to imposing any of the special conditions outlined in Sec. 

74.14, take one or more of the following actions, as appropriate in the 

circumstances:

    (1) Temporarily withhold cash payments pending correction of the 

deficiency by the recipient or more severe enforcement action by the HHS 

awarding agency.

    (2) Disallow (that is, deny both use of funds and any applicable 

matching credit for) all or part of the cost of the activity or action 

not in compliance.

    (3) Wholly or partly suspend or terminate the current award.

    (4) Withhold further awards for the project or program.

    (5) Take any other remedies that may be legally available.

    (b) In taking an enforcement action, the HHS awarding agency will 

provide the recipient or subrecipient an opportunity for such hearing, 

appeal, or other administrative proceeding to which the recipient or 

subrecipient is entitled under any statute or regulation applicable to 

the action. (See also 45 CFR parts 16 and 95.)

    (c) Costs to a recipient resulting from obligations incurred by the 

recipient during a suspension or after termination of an award are not 

allowable unless the HHS awarding agency expressly authorizes them in 

the notice of suspension or termination or subsequently. Other recipient 

costs during suspension or after termination which are necessary and not 

reasonably avoidable are allowable if:

    (1) The costs result from obligations which were properly incurred 

by the recipient before the effective date of suspension or termination, 

are not in anticipation of it, and in the case of a termination, are 

noncancellable; and

    (2) The costs would be allowable if the award were not suspended or 

expired normally at the end of the funding period in which the 

termination takes effect.

    (d) The enforcement remedies identified in this section, including 

suspension and termination, do not preclude a recipient from being 

subject to debarment and suspension under E.O.s 12549 and 12689 and the 

HHS implementing regulations at Sec. 74.13 of this part and 45 CFR part 

76.



[59 FR 43760, Aug. 25, 1994, as amended at 62FR 38218, July 17, 1997]