1. (a) If you are significantly under-performing based on the performance measures approved in your grant, or fail to collect appropriate data to allow performance measurement, AmeriCorps, or the State commission for formula grantees, may specify a period of correction, after consulting with you. As a grantee, you must report results at the end of the period of correction. At that point, if you continue to under-perform, or fail to collect appropriate data to allow performance measurement, AmeriCorps may take one or more of the following actions:

   1. (1) Reduce the amount of your grant;
   2. (2) Suspend or terminate your grant;
   3. (3) Use this information to assess any application from your organization for a new AmeriCorps grant or a new grant under another program administered by AmeriCorps;
   4. (4) Amend the terms of any AmeriCorps grants to your organization; or
   5. (5) Take other actions that AmeriCorps deems appropriate.
2. (b) If you are a State commission whose formula program(s) is significantly under-performing or failing to collect appropriate data to allow performance measurement, we encourage you to take action as delineated in paragraph (a) of this section.

[70 FR 39603, July 8, 2005]