(a) Based upon reports submitted by States pursuant to Sec. 631.15
of this part, the Secretary shall make determinations regarding total
expenditures of funds within the State with reference to the amount
required to be reallotted pursuant to section 303(b) of the Act. For
purposes of this paragraph (a)--
(1) The funds to be reallotted will be an amount equal to the sum
of:
(i) Unexpended funds in excess of 20 percent of the prior program
year's formula allotment to the State, and
(ii) All unexpended funds from the formula allotment for the program
year preceding the prior program year.
(2)(i) The current program year is the year in which the
determination is made; and
(ii) The prior program year is the year immediately preceding the
current program year.
(3) Unexpended funds shall mean the remainder of the total funds
made available by formula that were available to the State for the prior
program
year minus total accrued expenditures at the end of the prior program
year.
(4) Reallotted funds will be made available from current year
allotments made available by formula.
(b) Based upon the most current and satisfactory data available, the
Secretary shall identify eligible States, pursuant to the definitions in
section 303(e) of the Act.
(c) The Secretary shall recapture funds from States identified in
paragraph (a) of this section and reallot and reobligate such funds by a
Notice of Obligation (NOO) adjustment to current year funds to eligible
States as identified in paragraph (b) of this section, as set forth in
section 303(a), (b), and (c) of the Act.
(d) Reallotted funds shall be subject to allocation pursuant to
Sec. 631.32 of this part, and to the cost limitations at Sec. 631.14 of
this part.
