CFR > Title 38 - Pensions, Bonuses, and Veterans' Relief > CHAPTER I—DEPARTMENT OF VETERANS AFFAIRS > PART 41—AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS > SUBPART B—Audits (§41.200 to §41.235) > 41.225—Sanctions.

41.225—Sanctions.

No audit costs may be charged to Federal awards when audits required by this part have not been made or have been made but not in accordance with this part. In cases of continued inability or unwillingness to have an audit conducted in accordance with this part, Federal agencies and pass-through entities shall take appropriate action using sanctions such as:
(a) Withholding a percentage of Federal awards until the audit is completed satisfactorily;
(b) Withholding or disallowing overhead costs;
(c) Suspending Federal awards until the audit is conducted; or
(d) Terminating the Federal award.
(Authority: Pub. L. 104-156; 110 Stat. 1396)