The Secretary may, after reasonable notice and opportunity for
hearing to the State agency, take exception to and require repayment of
an expenditure for the operation of a QC program if it is found by the
Secretary that such expenditure is not necessary for the proper and
efficient administration of the QC program in the State. See sections
303(a)(8), 303(a)(9) and 303(b)(2), SSA, and 20 CFR 601.5. For purposes
of this section, an expenditure will be found not necessary for proper
and efficient administration if such expenditure fails to comply with
the requirements of subpart C of this part.
[52 FR 33528, Sept. 3, 1987, as amended at 52 FR 34343, Sept. 10, 1987]