Section 35.38 - Procedure for disbursal of funds to an alternate recipient(a) If funds are withheld from a recipient under this part, the Secretary may disburse the funds withheld directly to an alternate recipient.(b) The Secretary will require any alternate recipient to demonstrate: (1) The ability to comply with the Act and this part; and(2) The ability to achieve the goals of the Federal statute authorizing the Federal financial assistance.