(a) Under any of the circumstances described as violations in 150:15-11-1 during the application stage or grant stage, the State may take the following actions:

1. (1) Condition grant contracts;
2. (2) Withhold funds;
3. (3) Reduce the total amount of a grant award;
4. (4) Require the return of unexpended funds; require repayment of expended funds;
5. (5) Cancel a grant agreement and recover all funds expended in an ineligible manner prior to the date of notice of cancellation;
6. (6) Deny future program applications and participation for a period not to exceed two (2) program years; or
7. (7) Re-score an original project proposal upon which the grant award decision was based.

(b) Additionally, the State reserves the right under circumstances of possible program violations to request singularly, or in combination, information regarding:

1. (1) The administrative, planning, budgeting, management and evaluation functions, actions being taken to correct or remove the causes of the program violation(s);
2. (2) Any activities undertaken that were not in conformance with the approved program or application process or that were in non-compliance with applicable laws or regulations;
3. (3) The recipient's or applicant's capacity to carry out the approved or proposed program in a timely manner; and,
4. (4) Progress schedules for completing approved or proposed activities.