
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC9916]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
           CHAPTER 106--COMMUNITY SERVICES BLOCK GRANT PROGRAM
 
Sec. 9916. Fiscal controls, audits, and withholding


(a) Fiscal controls, procedures, audits, and inspections

                           (1) In general

        A State that receives funds under this chapter shall--
            (A) establish fiscal control and fund accounting procedures 
        necessary to assure the proper disbursal of and accounting for 
        Federal funds paid to the State under this chapter, including 
        procedures for monitoring the funds provided under this chapter;
            (B) ensure that cost and accounting standards of the Office 
        of Management and Budget apply to a recipient of the funds under 
        this chapter;
            (C) subject to paragraph (2), prepare, at least every year, 
        an audit of the expenditures of the State of amounts received 
        under this chapter and amounts transferred to carry out the 
        purposes of this chapter; and
            (D) make appropriate books, documents, papers, and records 
        available to the Secretary and the Comptroller General of the 
        United States, or any of their duly authorized representatives, 
        for examination, copying, or mechanical reproduction on or off 
        the premises of the appropriate entity upon a reasonable request 
        for the items.

                             (2) Audits

        (A) In general

            Subject to subparagraph (B), each audit required by 
        subsection (a)(1)(C) of this section shall be conducted by an 
        entity independent of any agency administering activities or 
        services carried out under this chapter and shall be conducted 
        in accordance with generally accepted accounting principles.

        (B) Single audit requirements

            Audits shall be conducted under this paragraph in the manner 
        and to the extent provided in chapter 75 of title 31 (commonly 
        known as the ``Single Audit Act Amendments of 1996'').

        (C) Submission of copies

            Within 30 days after the completion of each such audit in a 
        State, the chief executive officer of the State shall submit a 
        copy of such audit to any eligible entity that was the subject 
        of the audit at no charge, to the legislature of the State, and 
        to the Secretary.

                           (3) Repayments

        The State shall repay to the United States amounts found not to 
    have been expended in accordance with this chapter or the Secretary 
    may offset such amounts against any other amount to which the State 
    is or may become entitled under this chapter.

(b) Withholding

                           (1) In general

        The Secretary shall, after providing adequate notice and an 
    opportunity for a hearing conducted within the affected State, 
    withhold funds from any State that does not utilize the grant or 
    allotment under section 9905 or 9906 of this title in accordance 
    with the provisions of this chapter, including the assurances such 
    State provided under section 9908 of this title.

                     (2) Response to complaints

        The Secretary shall respond in an expeditious and speedy manner 
    to complaints of a substantial or serious nature that a State has 
    failed to use funds in accordance with the provisions of this 
    chapter, including the assurances provided by the State under 
    section 9908 of this title. For purposes of this paragraph, a 
    complaint of a failure to meet any one of the assurances provided 
    under section 9908 of this title that constitutes disregarding that 
    assurance shall be considered to be a complaint of a serious nature.

                         (3) Investigations

        Whenever the Secretary determines that there is a pattern of 
    complaints of failures described in paragraph (2) from any State in 
    any fiscal year, the Secretary shall conduct an investigation of the 
    use of funds received under this chapter by such State in order to 
    ensure compliance with the provisions of this chapter.

(Pub. L. 97-35, title VI, Sec. 678D, as added Pub. L. 105-285, title II, 
Sec. 201, Oct. 27, 1998, 112 Stat. 2744.)

                  Section Referred to in Other Sections

    This section is referred to in sections 9903, 9908 of this title.
