1. (a) The Federal awarding agency or pass-through entity may impose additional specific award conditions as needed, in accordance with paragraphs (b) and (c) of this section, under the following circumstances:

   1. (1) Based on the criteria set forth in § 200.205 Federal awarding agency review of risk posed by applicants;
   2. (2) When an applicant or recipient has a history of failure to comply with the general or specific terms and conditions of a Federal award;
   3. (3) When an applicant or recipient fails to meet expected performance goals as described in § 200.210 Information contained in a Federal award; or
   4. (4) When an applicant or recipient is not otherwise responsible.

2. (b) These additional Federal award conditions may include items such as the following:

   1. (1) Requiring payments as reimbursements rather than advance payments;
   2. (2) Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given period of performance;
   3. (3) Requiring additional, more detailed financial reports;
   4. (4) Requiring additional project monitoring;
   5. (5) Requiring the non-Federal entity to obtain technical or management assistance; or
   6. (6) Establishing additional prior approvals.

3. (c) The Federal awarding agency or pass-through entity must notify the applicant or non-Federal entity as to:

   1. (1) The nature of the additional requirements;
   2. (2) The reason why the additional requirements are being imposed;
   3. (3) The nature of the action needed to remove the additional requirement, if applicable;
   4. (4) The time allowed for completing the actions if applicable, and
   5. (5) The method for requesting reconsideration of the additional requirements imposed.
4. (d) Any specific conditions must be promptly removed once the conditions that prompted them have been corrected.

[79 FR 75882, Dec. 19, 2014]