42 U.S.C. § 300ee–15: Requirement of reports…

Summary

To get federal program payments for a fiscal year, a State must send a yearly report to the Secretary. The report must show who got the money, what the money was used for, whether spending matched the State’s identified needs and the program’s purpose, and what percentage of the payments went to administrative costs. The State must also keep proper financial controls and accounting and require financial and compliance audits either of the payments or of each agency that runs them. Audits must be done every two years, cover each fiscal year, and follow standards set by the Comptroller General. The State must give the audit to its legislature within 30 days after it is finished and make the reports and audits available for the public to inspect. A financial and compliance audit checks that financial statements are fair under accepted accounting rules and that the entity followed laws that affect its finances. The Comptroller General will also review State spending from time to time to make sure it follows the rules.

Title 42, §300ee–15

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Reports

The Secretary may not make payments under section 300ee–11(a) of this title for a fiscal year unless the State involved agrees to prepare and submit to the Secretary an annual report in such form and containing such information as the Secretary determines to be necessary for— (1)

(2)determining whether the payments were expended in accordance with the needs within the State required to be identified pursuant to section 300ee–13(a)(2) of this title;

(3)determining whether the payments were expended in accordance with the purpose described in section 300ee–11(b) of this title; and

(4)determining the percentage of payments received pursuant to such section that were expended by the State for administrative expenses during the preceding fiscal year.

(b)Audits

(1)The Secretary may not make payments under section 300ee–11(a) of this title for a fiscal year unless the State involved agrees to establish such fiscal control and fund accounting procedures as may be necessary to ensure the proper disbursal of, and accounting for, amounts received by the State under such section.

(2)The Secretary may not make payments under section 300ee–11(a) of this title for a fiscal year unless the State involved agrees that—

(A)the State will provide for—

(i)a financial and compliance audit of such payments; or

(ii)a single financial and compliance audit of each entity administering such payments;

(B)the audit will be performed biennially and will cover expenditures in each fiscal year; and

(C)the audit will be conducted in accordance with standards established by the Comptroller General of the United States for the audit of governmental organizations, programs, activities, and functions.

(3)The Secretary may not make payments under section 300ee–11(a) of this title for a fiscal year unless the State involved agrees that, not later than 30 days after the completion of an audit under paragraph (2), the State will provide a copy of the audit report to the State legislature.

(4)For purposes of paragraph (2), the term “financial and compliance audit” means an audit to determine whether the financial statements of an audited entity present fairly the financial position, and the results of financial operations, of the entity in accordance with generally accepted accounting principles, and whether the entity has complied with laws and regulations that may have a material effect upon the financial statements.

(c)Availability to public

The Secretary may not make payments under section 300ee–11(a) of this title for a fiscal year unless the State involved agrees to make copies of the reports and audits described in this section available for public inspection.

(d)Evaluations by Comptroller General

The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of payments received under section 300ee–11(a) of this title in order to ensure that expenditures are consistent with the provisions of this part.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 2505 of act July 1, 1944, was successively renumbered by subsequent acts, see section 238d of this title.

Amendments

1988—Subsec. (b)(1), (2). Pub. L. 100–690 substituted “make payments” for “payments”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–690 effective immediately after enactment of Pub. L. 100–607, which was approved Nov. 4, 1988, see section 2600 of Pub. L. 100–690, set out as a note under section 242m of this title.

§300ee–15 Requirement of Reports and Audits by States