As a condition of being designated a high-risk grantee, the State will be placed on cost reimbursement basis effective immediately. Under a cost reimbursement payment basis, the grantee is required to submit receipts for expenditures to the Department for approval prior to drawing down any grant funds. In addition, the State must notify the Department prior to obligating funds and must provide documentation to ensure alignment with its approved plan, as requested. Please note that failure to comply with the high-risk conditions may constitute a material failure to comply with the requirements of the grant. If the grantee disagrees with the high-risk designation, it may request reconsideration by the Implementation and Support Unit.