[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: 34CFR81.34]



[Page 236-237]

 

                           TITLE 34--EDUCATION

 

PART 81_GENERAL EDUCATION PROVISIONS ACT_ENFORCEMENT--Table of Contents

 

                Subpart B_Hearings for Recovery of Funds

 

Sec.  81.34  Notice of a disallowance decision.



    (a) If an authorized Departmental official decides that a recipient 

must return funds under Sec.  81.30, the official gives the recipient 

written notice of a disallowance decision. The official sends the notice 

by certified mail, return receipt requested, or other means that ensure 

proof of receipt.

    (b)(1) The notice must establish a prima facie case for the recovery 

of funds, including an analysis reflecting the value of the program 

services actually obtained in a determination of harm to the Federal 

interest.

    (2) For the purpose of this section, a prima facie case is a 

statement of the law and the facts that, unless rebutted, is sufficient 

to sustain the conclusion drawn in the notice. The facts may be set out 

in the notice or in a document that is identified in the notice and 

available to the recipient.

    (3) A statement that the recipient failed to maintain records 

required by law or failed to allow an authorized representative of the 

Secretary access to those records constitutes a prima facie case for the 

recovery of the funds affected.

    (i) If the recipient failed to maintain records, the statement must 

briefly describe the types of records that were not maintained and 

identify the recordkeeping requirement that was violated.



[[Page 237]]



    (ii) If the recipient failed to allow access to records, the 

statement must briefly describe the recipient's actions that constituted 

the failure and identify the access requirement that was violated.

    (c) The notice must inform the recipient that it may--

    (1) Obtain a review of the disallowance decision by the OALJ; and

    (2) Request mediation under Sec.  81.13.

    (d) The notice must describe--

    (1) The time available to apply for a review of the disallowance 

decision; and

    (2) The procedure for filing an application for review.



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



[54 FR 19512, May 5, 1989. Redesignated and amended at 58 FR 43473, Aug. 

16, 1993; 60 FR 46494, Sept. 6, 1995; 61 FR 14484, Apr. 2, 1996]