§ 600.212 - Special grant or subgrant conditions for “high-risk” recipients.

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A grantee or subgrantee may be considered “high risk” if an awarding agency determines that a grantee or subgrantee:

Has a history of unsatisfactory performance, or

Is not financially stable, or

Has a management system which does not meet the management standards set forth in this subpart, or

Has not conformed to terms and conditions of previous awards, or

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.

Special conditions or restrictions may include:

Payment on a reimbursement basis;

Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given funding period;

Requiring additional, more detailed financial reports;

Additional project monitoring;

Requiring the grantee or subgrantee to obtain technical or management assistance; or

Establishing additional prior approvals.

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:

The nature of the special conditions/restrictions;

The reason(s) for imposing them;

The corrective actions which must be taken before they will be removed and the time allowed for completing the corrective actions and

The method of requesting reconsideration of the conditions/restrictions imposed.

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§ 600.211 - State plans.

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§ 600.220 - Standards for financial management systems.