29 U.S.C. § 49h: Fiscal controls and…

Summary

States must set up fiscal controls and accounting to make sure federal funds under this chapter are spent and recorded correctly. The Director of the Office of Management and Budget, working with the Comptroller General, will issue guidance on how to do audits and will review the states’ controls. At least once every two years, states must have an independent financial and compliance audit. Each audit must follow the applicable government auditing standards set by the Comptroller General. The Comptroller General will also evaluate how states spend these funds to see if the money was used properly and if the state met the program’s goals. The Comptroller General can access and copy any books, records, letters, or other documents needed. This does not remove the Department of Labor Inspector General’s duties under chapter 4 of title 5. If money is found not to have been spent correctly, the state must repay it, but only after notice and a fair hearing. The Secretary can offset those amounts against other payments the state gets under this chapter.

Title 29, §49h

Labor, Source: USLM XML via OLRC

(a)Audit

(1)Each State shall establish such fiscal control and fund accounting procedures as may be necessary to assure the proper disbursal of, and accounting for, Federal funds paid to the recipient under this chapter. The Director of the Office of Management and Budget, in consultation with the Comptroller General of the United States, shall establish guidance for the proper performance of audits. Such guidance shall include a review of fiscal controls and fund accounting procedures established by States under this section.

(2)At least once every two years, the State shall prepare or have prepared an independent financial and compliance audit of funds received under this chapter.

(3)Each audit shall be conducted in accordance with applicable auditing standards set forth in the financial and compliance element of the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions issued by the Comptroller General of the United States.

(b)Evaluations by Comptroller General

(1)The Comptroller General of the United States shall evaluate the expenditures by States of funds received under this chapter in order to assure that expenditures are consistent with the provisions of this chapter and to determine the effectiveness of the State in accomplishing the purposes of this chapter. The Comptroller General shall conduct evaluations whenever determined necessary and shall periodically report to the Congress on the findings of such evaluations.

(2)Nothing in this chapter shall be deemed to relieve the Inspector General of the Department of Labor of his responsibilities under chapter 4 of title 5.

(3)For the purpose of evaluating and reviewing programs established or provided for by this chapter, the Comptroller General shall have access to and the right to copy any books, accounts, records, correspondence, or other documents pertinent to such programs that are in the possession, custody, or control of the State.

(c)Repayment of funds by State

Each State shall repay to the United States amounts found not to have been expended in accordance with this chapter. No such finding shall be made except after notice and opportunity for a fair hearing. The Secretary may offset such amounts against any other amount to which the recipient is or may be entitled under this chapter.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2022—Subsec. (b)(2). Pub. L. 117–286 substituted “chapter 4 of title 5.” for “the Inspector General Act.” 1982—Pub. L. 97–300 amended section generally, substituting provisions requiring the States to prepare accounting procedures under Federal guidance, to submit to biennial audit with evaluation of expenditures by the Comptroller General and providing for repayment of improperly expended funds, for provisions requiring reports on expenditures to the Secretary under his

Regulations

and giving him authority to revoke State certification.

Statutory Notes and Related Subsidiaries

Effective Date

of 1982 AmendmentAmendment by Pub. L. 97–300 effective Oct. 1, 1983, but with Secretary authorized to use funds appropriated for fiscal 1983 to plan for orderly implementation of amendment, see section 181(i) of Pub. L. 97–300, which was formerly classified to section 1591(i) of this title. Termination of Reporting RequirementsFor termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which a report required under subsec. (b)(1) of this section is listed on page 8), see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance.

§49h Fiscal Controls and Accounting Procedures