---
kind: "section"
citation: "41 C.F.R. § 105-71.112"
title: "41"
number: "105-71.112"
heading: "Special grant or subgrant conditions for “high-risk” grantees."
url: "https://uscodex.org/cfr/41/105-71.112"
---

# §105-71.112. Special grant or subgrant conditions for “high-risk” grantees.

- (a) A grantee or subgrantee may be considered “high 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 standards 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 conditions and/or restrictions shall correspond 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;
  - (2) Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given funding period;
  - (3) Requiring additional, more detailed financial reports;
  - (4) Additional project monitoring;
  - (5) Requiring the grantee or subgrantee to obtain technical or management assistance; or
  - (6) **Establishing additional prior approvals.**
- (c) 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:
  - (1) The nature of the special conditions/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 reconsideration of the conditions/restrictions imposed.**

## Notes

### Authority

Authority: Sec. 205(c), 63 Stat. 390, (40 U.S.C. 486(c)).

### Source

Source: 58 FR 43270, Aug. 16, 1993, unless otherwise noted.