23 CFR §1300.52

1. (a)Risk assessment.
   1. (1)All States receiving funds under the grant programs authorized under 23 U.S.C. Chapter 4 and Section 1906 shall be subject to an assessment of risk by NHTSA. In evaluating risks of a State highway safety program, NHTSA may consider, but is not limited to considering, the following for each State:
      1. (i)Financial stability;
      2. (ii)Quality of management systems and ability to meet management standards prescribed in this part and in 2 CFR part 200;
      3. (iii)History of performance. The applicant's record in managing funds received for grant programs under this part, including findings from Management Reviews;
      4. (iv)Reports and findings from audits performed under 2 CFR part 200, subpart F, or from the reports and findings of any other available audits; and
      5. (v)The State's ability to effectively implement statutory, regulatory, and other requirements imposed on non-Federal entities.
   2. (2)If a State is determined to pose risk, NHTSA may increase monitoring activities and may impose any of the specific conditions of 2 CFR 200.208, as appropriate.
2. (b)Non-compliance. If at any time a State is found to be in non-compliance with the requirements of the grant programs under this part, the requirements of 2 CFR parts 200 and 1201, or with any other applicable law, the actions permitted under 2 CFR 200.208 and 200.339 may be applied as appropriate.