c) If the Board determines a Mobile Team is deviating from its budget, the Board may reduce or deny future disbursements. In determining whether there will be a reduction or denial of disbursements, the Board will compare the terms of the approved budget with the actual practices of the Mobile Team, and:

1. 1) Any variance from the approved application that results in the negation of the existence of the factors necessary for approval of disbursements pursuant to Section 1700.305 of these rules shall result in the denial of disbursements; or
2. 2) Any variance that does not negate the reasons for approval pursuant to 1700.305, but results in a requirement of a lesser amount of funds than approved previously, will result in a reduction of disbursements to that level actually required.