If a subrecipient materially fails to comply with the terms and conditions of a contract, CVAD may take one or more of the following actions, as appropriate in the circumstances.
- Place the program on a corrective action plan to remedy the issue.
- Temporarily withhold cash payments pending correction of the deficiency by the subrecipient.
- Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance.
- Require immediate reimbursement for any payment made on an ineligible expense.
- Wholly or partially suspend or terminate the current contract.
- Withhold further contracts for the project or program.
- Take other remedies that may be legally available.