Risk assessment. (1) All States receiving funds under the grant programs authorized under 23 U.S.C. Chapter 4 and Section 1906 shall be subject to an assessment of risk by NHTSA. In evaluating risks of a State highway safety program, NHTSA may consider, but is not limited to considering, the following for each State:
Financial stability;
Quality of management systems and ability to meet management standards prescribed in this part and in 2 CFR part 200;
History of performance. The applicant's record in managing funds received for grant programs under this part, including findings from Management Reviews;
Reports and findings from audits performed under 2 CFR part 200, subpart F, or from the reports and findings of any other available audits; and
The State's ability to effectively implement statutory, regulatory, and other requirements imposed on non-Federal entities.
If a State is determined to pose risk, NHTSA may increase monitoring activities and may impose any of the specific conditions of 2 CFR 200.207, as appropriate.
Non-compliance. If at any time a State is found to be in non-compliance with the requirements of the grant programs under this part, the requirements of 2 CFR parts 200 and 1201, or with any other applicable law, the actions permitted under 2 CFR 200.207 and 200.338 may be applied as appropriate.
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