| (a) Cancellation. The Agency may cancel a grant if
the Agency determines that the grant recipient has failed to perform
as required in the grant request or award, or for circumstances that
lead the Agency to believe the grant recipient will fail to substantially
comply with the terms set forth in the request for proposal, request
for application, contract, or interagency agreement. Grounds for cancellation
may also include: failure to ensure a program's intended results;
waste, fraud or abuse of resources; and failure to timely capture,
report, or use information to improve decision making.
(b) Corrective Action. The Agency may take corrective
action in lieu of cancellation if it is determined by the Agency to
be the best course of action to facilitate the maximum use of funds.
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