[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: 34CFR81.32]



[Page 235]

 

                           TITLE 34--EDUCATION

 

PART 81_GENERAL EDUCATION PROVISIONS ACT_ENFORCEMENT--Table of Contents

 

                Subpart B_Hearings for Recovery of Funds

 

Sec.  81.32  Proportionality.



    (a)(1) A recipient that made an unallowable expenditure or otherwise 

failed to account properly for funds shall return an amount that is 

proportional to the extent of the harm its violation caused to an 

identifiable Federal interest associated with the program under which it 

received the grant or cooperative agreement.

    (2) An identifiable Federal interest under paragraph (a)(1) of this 

section includes, but is not limited to, the following:

    (i) Serving only eligible beneficiaries.

    (ii) Providing only authorized services or benefits.

    (iii) Complying with expenditure requirements and conditions, such 

as set-aside, excess cost, maintenance of effort, comparability, 

supplement-not-supplant, and matching requirements.

    (iv) Preserving the integrity of planning, application, 

recordkeeping, and reporting requirements.

    (v) Maintaining accountability for the use of funds.

    (b) The appendix to this part contains examples that illustrate how 

the standards for proportionality apply. The examples present 

hypothetical cases and do not represent interpretations of any actual 

program statute or regulation.



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



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