[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

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

[CITE: 7CFR3016.43]



[Page 180]

 

                          TITLE 7--AGRICULTURE

 

                         CHAPTER XXX--OFFICE OF

                      THE CHIEF FINANCIAL OFFICER,

                        DEPARTMENT OF AGRICULTURE

 

PART 3016_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE 

AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 3016.43  Enforcement.



    (a) Remedies for noncompliance. If a grantee or subgrantee 

materially fails to comply with any term of an award, whether stated in 

a Federal statute or regulation, an assurance, in a State plan or 

application, a notice of award, or elsewhere, the awarding agency may 

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 grantee or subgrantee or more severe enforcement 

action by the awarding agency,

    (2) Disallow (that is, deny both use of funds and 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 for the 

grantee's or subgrantee's program,

    (4) Withhold further awards for the program, or

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

    (b) Hearings, appeals. In taking an enforcement action, the awarding 

agency will provide the grantee or subgrantee an opportunity for such 

hearing, appeal, or other administrative proceeding to which the grantee 

or subgrantee is entitled under any statute or regulation applicable to 

the action involved.

    (c) Effects of suspension and termination. Costs of grantee or 

subgrantee resulting from obligations incurred by the grantee or 

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

allowable unless the awarding agency expressly authorizes them in the 

notice of suspension or termination or subsequently. Other grantee or 

subgrantee 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 grantee or subgrantee 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) Relationship to Debarment and Suspension. The enforcement 

remedies identified in this section, including suspension and 

termination, do not preclude grantee or subgrantee from being subject to 

``Debarment and Suspension'' under E.O. 12549 (see Sec. 3016.35).



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