Section 81.31 - Measure of recoveryA recipient that made an unallowable expenditure or otherwise failed to discharge its obligation to account properly for funds shall return an amount that-
(a) Meets the standards for proportionality in § 81.32 ;(b) In the case of a State or local educational agency, excludes any amount attributable to mitigating circumstances under the standards in § 81.23 ; and(c) Excludes any amount expended in a manner not authorized by law more than five years before the recipient received the notice of a disallowance decision under § 81.34 .54 FR 19512, May 5, 1989; 54 FR 21622, May 19, 1989. Redesignated and amended at 58 FR 43473, Aug. 16, 1993 Authority: 20 U.S.C. 1221e-3 , 1234(f)(1) , 1234a(k) , 1234b (a) and (b) , and 3474(a)