§ 1470.12. Special grant or subgrant conditions for "high-risk" grantees.
234 words·~1 min read·
/us/cfr/t29/s§ 1470.12·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)A grantee or subgrantee may be considered "high risk" if an awarding agency determines that a grantee or subgrantee:
(1)Has a history of unsatisfactory performance, or
(2)Is not financially stable, or
(3)Has a management system which does not meet the management standards set forth in this part, or
(4)Has not conformed to terms and conditions of previous awards, or
(5)Is otherwise not responsible; and if the awarding agency determines that an award will be made, special conditions and/or restrictions shall correspond to the high risk condition and shall be included in the award.
(b)Special conditions or restrictions may include:
(1)Payment on a reimbursement basis;
(2)Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given funding period;
(3)Requiring additional, more detailed financial reports;
(4)Additional project monitoring;
(5)Requiring the grante or subgrantee to obtain technical or management assistance; or
(6)Establishing additional prior approvals.
(c)If an awarding agency decides to impose such conditions, the awarding official will notify the grantee or subgrantee as early as possible, in writing, of:
(1)The nature of the special conditions/restrictions;
(2)The reason(s) for imposing them;
(3)The corrective actions which must be taken before they will be removed and the time allowed for completing the corrective actions and
(4)The method of requesting reconsideration of the conditions/restrictions imposed.