(a)
- (1) The debt collection process begins with the state lead agency’s letter to the affected subrecipient and establishes the debt owed to the state lead agency because of costs that were disallowed during the audit resolution process.
- (2) The subrecipient must remit the disallowed costs to the state lead agency within thirty (30) calendar days from the date of the state lead agency’s letter.
- (b) Those subrecipients who do not remit disallowed costs or within this timeframe may be charged interest at the applicable prime rate on the debt starting the day after the due date of the remittance (2 C.F.R. pt. 200).