The required return of federal funds was not a penalty or a disgorgement, and therefore was not subject to the statutes of limitations on sanctions by the agency and administrative penalties generally. Instead, the funds were monies due the United States under the federal debt collection act, since the improper use had been discovered by an audit by the agency's inspector general, a predicate of the debt collection act.
Although the regulations were complex, there was sufficient notice of the regulation for due process purposes, given the common understanding of the relevant group -- here the specialized knowledge of a telecommunications carrier.
Although the hearing must be held at a time when the deprivation can be prevented, that does not necessarily mean that it must happen before the agency has reached its decision to deprive. Agency collection proceedings during the pendency of the litigation did not raise constitutional concerns.
Agency's interpretations of the regulations were not arbitrary and capricious.
Incomplete record provided in the current litigation did not prejudice the plaintiff, and the incomplete record offers sufficient grounds for the agency's decision.