PUBLIC LAW 95-561—NOV. 1, 1978
92 STAT. 2 1 9 1
" (b) A U D I T RESOLUTION AND R E P A Y M E N T. — The Commissioner shall
Procedures.
adopt procedures to assure timely and appropriate resolution of audit findings and recommendations arising out of audits provided for in subsection (a). Such procedures shall include timetables for each step Timetables. of the audit resolution process and an audit appeals process. Where, under such procedures, the audit resolution process requires the repayment of Federal funds which were misspent or misapplied, the Commissioner shall require the repayment of the amount of funds under this title which have been finally determined through the audit resolution process to have been misspent or misapplied. Such repayment may be made from funds derived from non-Federal sources or from Federal funds no accountability for which is required to the Federal Government, Such repayments may be made in either a single payment or in installment payments over a period not to exceed three years. "WITHHOLDING OF PAYMENTS
" SEC. 186. (a) WITHHOLDING.—Whenever the Commissioner, after Notice and reasonable notice to any State educational agency and an opportunitj'^ hearing. for a hearing on the record, finds that there has been a failure to com- 20 USC 2836. ply substantially with any assurance set forth in the application of that State approved under section 142 or 162, the Commissioner shall notify the agency that further payments will not be made to the State under this title (or, in his discretion, that the State educational agency shall reduce or terminate further payments under this title to specified local educational agencies or State agencies affected by the failure) until he is satisfied that there is no longer any such failure to comply. U n t i l he is so satisfied, (1) no further payments shall be made to the State under this title, or (2) payments by the State educational agency under this title shall be limited to local educational agencies and State agencies not affected by the failure, or (3) payments to particular local educational agencies or State agencies shall be reduced, as the case may be. Where partial payments to a local educational agency are continued under this subsection, the expenditure of the payments shall be subject to such conditions as the Commissioner deems appropriate in light of the failure which led to the partial withholding. I n the case of a substantial and continuing violation, the Commissioner may suspend payments to such agency, after such agency has been given reasonable notice and opportunity to show cause why such action should not be taken. " (b) NOTICE TO P U B L I C OF COMMISSIONER W I T H H O L D I N G. — Upon sub-
mission to a State of a notice under subsection (a) that the Commissioner is withholding payments, the Commissioner shall take such action as may be necessary to b r i n g his action to the attention of the public within the State. " (c) COMPLIANCE A G R E E M E N T. — (1) The Commissioner may suspend
the initiation or continuation of his withholding action under subsection (a) during any period there is in effect a compliance agreement with the State educational agency under this subsection. Such an agreement shall be deemed to be in effect for the period specified therein, except that if the State educational agency fails to comply with the terms agreed to, such an agreement shall no longer be in effect and subsection (a) shall be fully operative. I n implementing such subsection, the Commissioner shall take into account any partial compliance by such agency under such agreement.
Suspension of withholding action.
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