§ 200.343 - Effects of suspension and termination.


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  • § 200.343 Effects of suspension and termination.

    Costs to the non-Federal entity recipient or subrecipient resulting from financial obligations incurred by the non-Federal entity recipient or subrecipient during a suspension or after the termination of a Federal award or subaward are not allowable unless the Federal awarding agency or pass-through entity expressly authorizes them in the notice of suspension or termination or subsequently. However, costs during suspension or after termination are allowable if:

    (a) The costs result from financial obligations which were properly incurred by the non-Federal entity recipient or subrecipient before the effective date of suspension or termination, are and not in anticipation of it; and

    (b) The costs would be allowable if the Federal award was not suspended or expired normally at the end of the period of performance in which the termination takes effect.