2 CFR §200.208

1. (a)Federal agencies are responsible for ensuring that specific Federal award conditions and performance expectations are consistent with the program design (See § 200.202 and § 200.301).
2. (b)The Federal agency or pass-through entity may adjust specific conditions in the Federal award based on an analysis of the following factors:
   1. (1)Review of OMB-designated repositories of government-wide data (for example, SAM.gov) or review of its risk assessment (See § 200.206);
   2. (2)The recipient's or subrecipient's history of compliance with the terms and conditions of Federal awards;
   3. (3)The recipient's or subrecipient's ability to meet expected performance goals as described in § 200.211; or
   4. (4)A determination of whether a recipient or subrecipient has inadequate financial capability to perform the Federal award.
3. (c)Specific conditions may include the following:
   1. (1)Requiring payments as reimbursements rather than advance payments;
   2. (2)Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance;
   3. (3)Requiring additional or more detailed financial reports;
   4. (4)Requiring additional project monitoring;
   5. (5)Requiring the recipient or subrecipient to obtain technical or management assistance; or
   6. (6)Establishing additional prior approvals.
4. (d)Prior to imposing specific conditions, the Federal agency or pass-through entity must notify the recipient or subrecipient as to:
   1. (1)The nature of the specific condition(s);
   2. (2)The reason why the specific condition(s) is being imposed;
   3. (3)The nature of the action needed to remove the specific condition(s);
   4. (4)The time allowed for completing the actions; and
   5. (5)The method for requesting the Federal agency or pass-through entity to reconsider imposing a specific condition.
5. (e)Any specific conditions must be promptly removed once the conditions that prompted them have been satisfied.