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(a) The MVCPA may withhold funds from a grantee or projects operated by the grantee when: (1) determination is made that the grantee has failed to: (A) comply with applicable federal or state laws, rules, regulations, policies, or the grant agreements on which the award of the grant is predicated; (B) submit required reports on time; (C) provide a response to audit or monitoring findings on time; (D) return any unused grant funds remaining on the expired grant within the required timeframe; (E) use funds appropriately; or (F) commence project operations within 45 days of the project start date; or (2) determination is made that the grantee has submitted reports or records with deficiencies, irregularities, or are delinquent. (b) The MVCPA may reduce or withhold grant funds when MVCPA allocations are depleted or insufficient funds are allocated. (c) The MVCPA will notify grantees of deficient conditions for withholding funds and the period of time within which to cure any deficiency. (d) Grantees have 15 days after receiving deficient notification to request an appeal. (e) The MVCPA director or MVCPA board designee will determine the outcome of the grant appeal. (f) Funds will be released when the MVCPA director or MVCPA board designee is provided with satisfactory evidence that the deficient conditions are corrected.
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