
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 29USC49h]

 
                             TITLE 29--LABOR
 
                 CHAPTER 4B--FEDERAL EMPLOYMENT SERVICE
 
Sec. 49h. Fiscal controls and accounting procedures


(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 the 
Inspector General Act.
    (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.

(June 6, 1933, ch. 49, Sec. 9, 48 Stat. 116; Pub. L. 97-300, title VI, 
Sec. 601(e), formerly title V, Sec. 501(e), Oct. 18, 1982, 96 Stat. 
1396; renumbered title VI, Sec. 601(e), Pub. L. 100-628, title VII, 
Sec. 712(a)(1), (2), Nov. 7, 1988, 102 Stat. 3248.)

                       References in Text

    The Inspector General Act, referred to in subsec. (b)(2), probably 
means the Inspector General Act of 1978, Pub. L. 95-452, Oct. 12, 1978, 
92 Stat. 1101, as amended, which is set out in the Appendix to Title 5, 
Government Organization and Employees.


                               Amendments

    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.


                    Effective Date of 1982 Amendment

    Amendment 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 Requirements

    For 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.

                  Section Referred to in Other Sections

    This section is referred to in sections 2939, 2942 of this title; 
title 39 section 3202.
