Section R. 247.4303 - Procedures for adjusting or withholding fundsRule 303.
(1) The department may adjust or withhold project funds that are awarded under the act or may adjust project quantities or alter the project scope under any of the following circumstances:(a) Federal funds that are necessary for the completion of the project are not awarded to the recipient by the end of the following fiscal year in which the project was approved.(b) The actual comprehensive transportation fund revenues are below the estimated comprehensive transportation fund revenues on which a project award was made.(c) The actual cost of the project varies from the estimated costs on which a project award was made.(d) Revisions to the local transportation programs are requested by a recipient.(e) The scope of the project is reduced.(f) A recipient fails to comply with the act.(g) A recipient fails to maintain project equipment pursuant to the contract.(2) The department shall notify a recipient, by mail, of a department-initiated action to withhold funds for noncompliance. The notice shall clearly set forth the reasons for the proposed action. The recipient shall have 30 days from the date of issuance of the notice to respond or undertake corrective action. The department may grant an extension if the recipient files a written appeal with the department.(3) If, within 30 days after the date that the notice of intent to withhold was issued, the recipient has not corrected the reason for the withholding and notified the department of that correction, has not been granted an extension, or has not appealed the action, in writing, to the department and been granted a waiver, then the department shall send the applicant, by certified mail, a notification that funds are being withheld. Withholding of funds shall occur automatically after the notice of withholding is mailed.Mich. Admin. Code R. 247.4303