[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 34CFR74.62]



[Page 127]

 

                           TITLE 34--EDUCATION

 

PART 74_ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS OF 

HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS--Table 

of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec.  74.62  Enforcement.



    (a) Remedies for noncompliance. If a recipient materially fails to 

comply with the terms and conditions of an award, whether stated in a 

Federal statute, regulation, assurance, application, or notice of award, 

the Secretary may, 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 

Secretary.

    (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 other remedies that may be legally available.

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

Secretary provides the recipient an opportunity for hearing, appeal, or 

other administrative proceeding to which the recipient is entitled under 

any statute or regulation applicable to the action involved.

    (c) Effects of suspension and termination. Costs of a recipient 

resulting from obligations incurred by the recipient during a suspension 

or after termination of an award are not allowable unless the Secretary 

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) Relationship to debarment and suspension. The enforcement 

remedies identified in this section, including suspension and 

termination, do not preclude ED from initiating a debarment or 

suspension action against a recipient under 34 CFR part 85 (see Sec.  

74.13).



(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)