§9916 Fiscal Controls, Audits, and Withholding

Summary

States that get money under this law must set up strong money controls and accounting so federal funds are spent correctly. They must follow OMB cost and accounting rules, do an independent audit at least once a year that follows generally accepted accounting principles and the Single Audit Act (chapter 75 of title 31; Single Audit Act Amendments of 1996), and make books and records available to the Secretary and the Comptroller General when reasonably asked. After each audit, the state’s chief executive must send a copy within 30 days to any audited entity, to the state legislature, and to the Secretary. If money is found to have been spent improperly, the State must repay it or the Secretary can offset those amounts. The Secretary may withhold grant or allotment funds under sections 9905 or 9906 if a State is not using the money as required, but only after giving notice and a hearing in that State. The Secretary must quickly respond to serious complaints about misuse; any complaint showing a State ignored an assurance under section 9908 is treated as serious. If there is a pattern of such complaints in any fiscal year, the Secretary must investigate the State’s use of the funds.