[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: 45CFR77.5]



[Page 279-280]

 

                        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.  77.5  Remedial action procedures.



    Except as provided in Sec.  77.6, the Department will use the 

following procedures whenever it seeks the remedial action specified in 

Sec.  77.4.

    (a) Notice. Prior to taking remedial action, the Department will 

provide the recipient organization written notice of its intended action 

setting forth both the legal and factual reasons therefor. Notice may be 

provided by certified or express mail, TWX, telegram, delivery, or 

similar means.

    (b) Opportunity to respond. (1) The recipient organization has 30 

days after receipt of the notice in which to submit to the Department a 

written statement setting forth any legal and factual reasons why it 

believes the proposed remedial action would be inappropriate. If no 

response is received by the Department within the 30-day period, the 

Department may make the proposed remedial action effective immediately. 

If a response opposing the taking of remedial action is received from 

the recipient organization within the 30-day period, no remedial action 

will be taken until a final decision has been reached under paragraph 

(c) of this section. (2) The Department may prepare a written reply to 

the recipient organization's response. Any such reply will be forwarded 

to the deciding official together with the notice sent to the recipient 

organization and the organization's response, and a copy of the reply 

will be served on the recipient organization.

    (c) Departmental decision. The Department's decision to take 

remedial action under this part will be made by an official of the 

Department who had no involvement with the initial determination to seek 

remedial action. The deciding official may affirm, reverse, or modify 

the initial determination. In making the decision, the official will 

consider only the notice provided by the Department, the recipient 

organization's statement, the Department's



[[Page 280]]



reply, together with any other documents attached to them, and 

statements at any informal conference held pursuant to paragraph (d) of 

this section. The official's decision will be provided to the recipient 

organization in writing and will constitute the Department's final 

administrative action on the matter.

    (d) Informal conference. If, in the judgment of the official 

designated to make a final decision, it would materially enhance his 

ability to resolve the matters in dispute, he may convene an informal 

conference to question or hear an oral presentation by the parties. If 

an informal conference is convened it will be transcribed.

    (e) Effect of decision. The decision in a proceeding under this 

section affects only the recipient organization's obligations related to 

its letter of credit and does not determine the organization's ultimate 

liability with respect to improperly spent funds or other misconduct.