Does a primary recipient have preaward authority?
If the primary recipient has been granted discretionary authority to disburse assistance to sub recipients the primary recipient can defer approval or refuse to grant funds. When approval is deferred, the primary recipient should give notice to the Federal agency which has the responsibility for compliance with Title VI. When a subrecipient is found in noncompliance it can defer making the grant, seek voluntary resolution, and if no settlement is reached, [after complying with statutory procedural requirements], may refuse to award assistance.
