20 CFR §641.430

1. (a)The Department has been unable to recover a debt from the applicant, whether incurred by the applicant or by one of its sub-recipients, or the applicant has failed to comply with a debt repayment plan to which it agreed. In this context, a debt is established by final agency action, followed by three demand letters to the applicant, without payment in full by the applicant.
2. (b)Established fraud or criminal activity of a significant nature within the applicant's organization.
3. (c)Serious administrative deficiencies identified by the Department, such as failure to maintain a financial management system as required by Federal regulations.
4. (d)Willful obstruction of the auditing or monitoring process.
5. (e)Failure to provide services to applicants as agreed to in a current or recent grant or to meet applicable core performance measures or address other applicable indicators of performance.
6. (f)Failure to correct deficiencies brought to the grantee's attention in writing as a result of monitoring activities, reviews, assessments, or other activities.
7. (g)Failure to return a grant closeout package or outstanding advances within 90 days after the grant expiration date or receipt of closeout package, whichever is later, unless an extension has been requested and granted.
8. (h)Failure to submit required reports.
9. (i)Failure to properly report and dispose of Government property as instructed by the Department.
10. (j)Failure to have maintained effective cash management or cost controls resulting in excess cash on hand.
11. (k)Failure to ensure that a sub-recipient complies with applicable audit requirements, including OMB Circular A-133 and the audit requirements specified at § 641.821.
12. (l)Failure to audit a sub-recipient within the period required under § 641.821.
13. (m)Final disallowed costs in excess of five percent of the grant or contract award if, in the judgment of the Grant Officer, the disallowances are egregious findings.
14. (n)Failure to establish a mechanism to resolve a sub-recipient's audit in a timely fashion. (OAA § 514(d)(4)).