(a)  The disbursing agency shall take appropriate administrative action to recover State financial assistance 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.

(3)           Is noncompliant with the reporting requirements.

(4)           Has inappropriately used State financial assistance.

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

(c)  Any apparent violations of a criminal law or malfeasance, misfeasance, or nonfeasance in connection with the use of State financial assistance 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.