Corrective Action by Participant

Section 653 Section 653.440  Corrective Action by Participant Whenever the independent audit, reconciliation process, or State Compliance Review discloses significant weaknesses, irregularities and areas of noncompliance (i.e., failure by the grantee to act in accordance with any of the terms and conditions of the grant contract or State law, including by way of example and information only and not by way of limitation, conflicts of interest, falsification of records or reports and inadequate internal controls), the participant shall correct the weaknesses, irregularities and noncompliance consistent with the corrective recommendations of the independent audit or State reconciliation. "Inadequate" means unable to meet the requirements of State laws, this Part, and the terms of the grant contract.