(a)

1. (1) In those instances in which a subrecipient cannot document the allowability of certain cited questioned costs that will meet the applicable federal or state laws, rules, regulations, or policies, the state lead agency will have no recourse but to disallow these costs.
2. (2) Once this determination is made, the subrecipient will be officially notified by the state lead agency in writing of such a determination.

(b)

1. (1) The subrecipient will be given thirty (30) calendar days from the date of the state lead agency’s letter to remit the amount disallowed.
2. (2) The remittance must be paid from nonfederal funds (2 C.F.R. pt. 200).