§9916 Fiscal controls, audits, and withholding

Summary

States that get money under this law must set up money controls and accounting so the federal funds are spent and tracked properly. They must follow Office of Management and Budget cost and accounting rules. At least once a year the State must have an independent audit of how it spent the funds and any transfers, and must let the Secretary and the Comptroller General see and copy records if asked. Audits must follow generally accepted accounting principles and the rules in chapter 75 of title 31 (the Single Audit Act Amendments of 1996). Within 30 days after an audit finishes, the State’s chief executive must give a free copy to any audited entity, the state legislature, and the Secretary. Money found to be spent wrongly must be paid back or may be offset by the Secretary. The Secretary may withhold grants under sections 9905 or 9906 after notice and a hearing if a State is not using the funds as required or as promised under section 9908. The Secretary must act quickly on serious complaints. If many complaints appear in one fiscal year, the Secretary must investigate the State’s use of the funds.