1. (a) Subject to the provisions of § 81.31, an authorized Departmental official requires a recipient to return funds to the Department if—

   1. (1) The recipient made an unallowable expenditure of funds under a grant or cooperative agreement; or
   2. (2) The recipient otherwise failed to discharge its obligation to account properly for funds under a grant or cooperative agreement.

2. (b) An authorized Departmental offcial may base a decision to require a recipient to return funds upon an audit report, an investigative report, a monitoring report, or any other evidence.

   (Authority: 20 U.S.C. 1234a(a) (1) and (2))

[54 FR 19512, May 5, 1989. Redesignated and amended at 58 FR 43473, Aug. 16, 1993]