09 NCAC 03M .0802        RECOVERY OF STATE FUNDS

(a)  The disbursing agency shall take administrative action to recover grant funds in the event a recipient or subrecipient:

(1)           Is unable to fulfill the obligations of the contractual agreement;

(2)           Is unable to accomplish the purposes of the award as stated in the signed grant contract;

(3)           Is noncompliant with the reporting requirements as stated in the signed grant contract; or

(4)           Has used grant funds for purposes other than those described in the signed grant contract.

(b)  The disbursing agency shall seek the assistance of the Attorney General in the recovery and return of grant funds if legal action is required.

(c)  Any apparent violations of a criminal law or malfeasance, misfeasance, or nonfeasance in connection with the use of grant funds shall be reported by the agency to the Office of State Budget and Management, the Attorney General, and the State Bureau of Investigation.

History Note:        Authority G.S. 143C-6-22; 143C-6-23;

Eff. July 1, 2005;

Readopted Eff. July 1, 2016;

Amended Eff. July 1, 2024.