(a) If ACF finds that the title IV-E agency fails to meet any of the conditions cited in Sec. 1355.53, or to substantially comply with the criteria, requirements and other undertakings prescribed by the approved APD, approval of the APD may be suspended.
(b) If the approval of an APD is suspended during the planning, design, development, installation, or operation of the system:
(1) The title IV-E agency will be given written notice of the suspension. This notice shall state:
(i) The reason for the suspension,
(ii) The date of the suspension,
(iii) Whether the suspended system complies with criteria for 50 percent FFP, and
(iv) The actions required by the title IV-E agency for future enhanced funding.
(2) The suspension will be effective as of the date the title IV-E agency failed to comply with the approved APD;
(3) The suspension shall remain in effect until ACF determines that such system complies with prescribed criteria, requirements, and other undertakings for future Federal funding.
(4) Should a title IV-E agency cease development of an approved system, either by voluntary withdrawal or as a result of Federal suspension, all Federal incentive funds invested to date that exceed the normal administrative FFP rate (50 percent) will be subject to recoupment. [58 FR 67946, Dec. 22, 1993, as amended at 77 FR 934, Jan. 6, 2012]