[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2006]

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

[CITE: 45CFR77.3]



[Page 279]

 

                        TITLE 45--PUBLIC WELFARE

 

                    SUBTITLE A--DEPARTMENT OF HEALTH

                           AND HUMAN SERVICES

 

PART 77_REMEDIAL ACTIONS APPLICABLE TO LETTER OF CREDIT 

ADMINISTRATION--Table of Contents

 

Sec.  77.3  Conditions that may give rise to remedial actions.



    If the Department determines that any of the following conditions is 

present in a recipient organization's administration of a letter of 

credit, it may take remedial actions against the organization:

    (a) A recipient organization draws Federal funds through its letter 

of credit in excess of the aggregate grant award or contract authority 

currently available to it.

    (b) A recipient organization draws Federal funds for a particular 

program in excess of currently available grant award or contract 

authority for that program, even though the organization may not have 

exceeded its aggregate grant award or contract authority.

    (c) A recipient organization fails to file timely all reports and 

other data required by the Department in connection with its grant 

awards, contracts, or letter of credit.

    (d) A recipient organization accumulates, through its letter of 

credit or otherwise, excess amounts of Federal funds relative to its 

actual and immediate disbursement requirements.

    (e) A recipient organization's cash management system fails to 

comply with generally accepted accounting principles or Departmental 

regulations or demonstrates irregularities, misrepresentations, fraud, 

or abuse in its operation.