7 Pa. Code § 138j.11
A Program grant may be canceled by the Secretary upon a determination that the grant recipient has violated the act, this chapter or the grant agreement, the grant funds or any portion thereof are not being or were not utilized or spent in the manner delineated in the grantee's approved grant application or were not used to implement the project set forth in the grantee's approved grant application. In addition, a Program grant may be canceled upon failure of the recipient to satisfy the verification requirements of this chapter. Upon cancellation the Secretary may seek recovery of the grant funds or any portion thereof as delineated in § 138j.12 (relating to right of recovery).
7 Pa. Code § 138j.11
This section cited in 7 Pa. Code § 138j.8 (relating to notice of disposition of application).