81.31—Measure of recovery.
A recipient that made an unallowable expenditure or otherwise failed to discharge its obligation to account properly for funds shall return an amount that—
(b)
In the case of a State or local educational agency, excludes any amount attributable to mitigating circumstances under the standards in § 81.23; and
(c)
Excludes any amount expended in a manner not authorized by law more than five years before the recipient received the notice of a disallowance decision under § 81.34.