09 NCAC 03M .0801. NONCOMPLIANCE WITH RULES

(a)  When a non-State entity does not comply with the requirements of this Subchapter, the agency shall take measures to ensure that the requirements are met including:

(1)           communicating the requirements to the non-State entity;

(2)           requiring a response from the non-State entity upon a determination of noncompliance; and

(3)           suspend payments to the non-State entity until the non-State entity is incompliance. 

(b)  Prior to disbursing any State funds, the grantor agency shall verify that the grantee has complied with the reporting requirements for the most recent applicable reporting period.  The agency shall consult with the Office of State Budget and Management during this verification process.  A grantor agency shall not disburse funds to any grantee that has been determined by the grantor agency to be noncompliant with the reporting requirements established by this Subchapter. 

(c) If the grantor agency finds that a non-State entity has used State funds for an unauthorized purpose, the grantor agency shall report such findings to the Attorney General, the Office of the State Budget and Management, the Office of the State Auditor, and the Office of the State Controller.

(d)  If a grantee has not met the reporting requirements established by this Subchapter and fails to submit revised reports in accordance with a grantor agency determination letter, the grantor agency shall suspend further payments to the grantee and report the grantee to the Office of the State Auditor and the Office of the State Controller.

(e)  Each grantor agency shall ensure that grantees and subgrantees have complied with the applicable provisions of this Subchapter. 

 

History Note:        Authority G.S. 143C-6-22; 143C-6-23;

Eff. July 1, 2005.