45 C.F.R. § 2541.120 Special grant or subgrant conditions for “high-risk” grantees.
Title 45 - Public Welfare
(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 grantee 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.
Title 45: Public Welfare
PART 2541—UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS
Subpart B—Pre-Award Requirements
§ 2541.120 Special grant or subgrant conditions for “high-risk” grantees.
