[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: 34CFR81.40]



[Page 238-239]

 

                           TITLE 34--EDUCATION

 

PART 81_GENERAL EDUCATION PROVISIONS ACT_ENFORCEMENT--Table of Contents

 

                Subpart B_Hearings for Recovery of Funds

 

Sec.  81.40  Burden of proof.



    If the OALJ accepts jurisdiction of a case under Sec.  81.38, the 

recipient shall present its case first and shall have the burden of 

proving that the recipient is not required to return the amount of funds 

that the disallowance decision requires to be returned because--

    (a) An expenditure identified in the disallowance decision as 

unallowable was allowable;

    (b) The recipient discharged its obligation to account properly for 

the funds;

    (c) The amount required to be returned does not meet the standards 

for proportionality in Sec.  81.32;

    (d) The amount required to be returned includes an amount 

attributable to mitigating circumstances under the standards in Sec.  

81.33; or

    (e) The amount required to be returned includes an amount expended 

in a manner not authorized by law more



[[Page 239]]



than five years before the recipient received the notice of the 

disallowance decision.



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

3474(a))



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

16, 1993]