(a) 
         Subject to the provisions of  § 81.31, an authorized Departmental official requires a recipient to return funds to the Department if—
     
    
        
        (1) 
         The recipient made an unallowable expenditure of funds under a grant or cooperative agreement; or
     
    
        
        (2) 
         The recipient otherwise failed to discharge its obligation to account properly for funds under a grant or cooperative agreement.
     
    
        
        (b) 
         An authorized Departmental offcial may base a decision to require a recipient to return funds upon an audit report, an investigative report, a monitoring report, or any other evidence.
     
    
        
            Code of Federal Regulations
        
        (Authority: 
                20 U.S.C. 1234a(a)
             (1) and (2))
    
    
        
            Code of Federal Regulations
        
        [54 FR 19512, May 5, 1989. Redesignated and amended at 58 FR 43473, Aug. 16, 1993]