81.30—Basis for recovery of funds.
(a)
Subject to the provisions of § 81.31, an authorized Departmental official requires a recipient to return funds to the Department if—
(1)
The recipient made an unallowable expenditure of funds under a grant or cooperative agreement; or
(2)
The recipient otherwise failed to discharge its obligation to account properly for funds under a grant or cooperative agreement.
(b)
An authorized Departmental offcial may base a decision to require a recipient to return funds upon an audit report, an investigative report, a monitoring report, or any other evidence.