The federal award, whether the award or subaward, may be terminated in whole or in part under the following circumstances:
- By FEMA or the recipient, if the recipient or subrecipient fails to comply with the terms and conditions of the award. If the non-compliance can be corrected, FEMA may first attempt to direct the recipient to correct the non-compliance.[237] For information on the remedies on non-compliance and notification procedures, refer to Part 8.K. FEMA may report in the Federal Awardee Performance and Integrity Information System.
- By FEMA or the recipient, if the subaward no longer effectuates the program goals or agency priorities.
- By FEMA, with the recipient’s consent, or by the recipient with the subrecipient’s consent. In either instance, the two parties must agree with the termination conditions, including the effective date and, in the case of a partial termination, the portion to be terminated. Only the consent of the two relevant parties is required for the termination.
- By the subrecipient upon sending to the recipient or FEMA written notification of the termination, including the reason for the termination, the effective date, and—in the case of a partial termination—the portion to be terminated. In the case of partial termination, FEMA may determine that a partially terminated award will not accomplish the purpose of the federal award, so FEMA may terminate the award in its entirety. If that occurs, FEMA will follow the requirements of 2 CFR § 200.341 and 2 CFR § 200.342 in deciding to fully terminate the award.
- By FEMA or the recipient pursuant to the termination provisions included in the award.
FEMA and the recipient must comply with closeout requirements even if an award is terminated in whole or in part.[238]