§ 66.12
regulations implementing the Execu-
tive Order.
(b) Requirements. A State need meet
only Federal administrative or pro-
grammatic requirements for a plan
that are in statutes or codified regula-
tions.
(c) Assurances. In each plan the State
will include an assurance that the
State shall comply with all applicable
Federal statutes and regulations in ef-
fect with respect to the periods for
which it receives grant funding. For
this assurance and other assurances re-
quired in the plan, the State may:
(1) Cite by number the statutory or
regulatory provisions requiring the as-
surances and affirm that it gives the
assurances required by those provi-
sions,
(2) Repeat the assurance language in
the statutes or regulations, or
(83) Develop its own language to the
extent permitted by law.
(a) Amendments. A State will amend a
plan whenever necessary to reflect: (1)
New or revised Federal statutes or reg-
ulations or (2) a material change in any
State law, organization, policy, or
State agency operation, The State will
obtain approval for the amendment and
its effective date but need submit for
approval only the amended portions of
the plan.
§66.12 Special grant or subgrant con-
ditions for “high-risk” grantees.
(a) A grantee or subgrantee may be
considered ‘thigh 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 stand-
ards 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 condi-
tions and/or restrictions shall cor-
respond 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;
28 CFR Ch. | (7-1-10 Edition)
(2) Withholding authority to proceed
to the next phase until receipt of -evi-
dence of acceptable performance within
a given funding period;
(3) Requiring additional, more de-
tailed financial reports;
(4) Additional project monitoring;
(5) Requiring the grante or sub-
grantee to obtain technical or manage-
ment assistance; or
(6) Establishing additional prior ap-
provals.
(c) If an awarding agency decides to
impose such conditions, the awarding
official will notify the grantee or sub-
grantee as early as possible, in writing,
of:
(1) The nature of the special condi-
tions/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 recon-
sideration of the conditions/restric-
tions imposed.
Subpart C—Post-Award
Requirements
FINANCIAL ADMINISTRATION
§66.20 Standards for financial man-
agement systems.
(a) A State must expand and account
for grant funds in accordance with
State laws and procedures for expend-
ing and accounting for its own funds.
Fiscal control and accounting proce-
dures of the State, as well as its sub-
grantees and cost-type contractors,
must be sufficient to—
(1) Permit preparation of reports re-
quired by this part and the statutes au-
thorizing the grant, and
(2) Permit the tracing of funds to a
level of expenditures adequate to es-
tablish that such funds have not been
used in violation of the restrictions
and prohibitions of applicable statutes.
(bo) The financial management sys-
tems of other grantees and subgrantees
must meet the following standards:
(1) Financial reporting. Accurate, cur-
rent, and complete disclosure of the fi-
nancial results of financially assisted
activities must be made in accordance
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