---
kind: "section"
citation: "45 C.F.R. § 77.3"
title: "45"
number: "77.3"
heading: "Conditions that may give rise to remedial actions."
url: "https://uscodex.org/cfr/45/77.3"
---

# §77.3. Conditions that may give rise to remedial actions.


If the Department determines that any of the following conditions is present in a recipient organization's administration of a letter of credit, it may take remedial actions against the organization:

- (a) A recipient organization draws Federal funds through its letter of credit in excess of the aggregate grant award or contract authority currently available to it.
- (b) A recipient organization draws Federal funds for a particular program in excess of currently available grant award or contract authority for that program, even though the organization may not have exceeded its aggregate grant award or contract authority.
- (c) A recipient organization fails to file timely all reports and other data required by the Department in connection with its grant awards, contracts, or letter of credit.
- (d) A recipient organization accumulates, through its letter of credit or otherwise, excess amounts of Federal funds relative to its actual and immediate disbursement requirements.
- (e) A recipient organization's cash management system fails to comply with generally accepted accounting principles or Departmental regulations or demonstrates irregularities, misrepresentations, fraud, or abuse in its operation.

## Notes

### Authority

Authority: 5 U.S.C. 301.

### Source

Source: 50 FR 781, Jan. 7, 1985, unless otherwise noted.