102 STAT. 3096
Records.
PUBLIC LAW 100-607—NOV. 4, 1988
and containing such information as the Secretary determines to be necessary for— "(1) securing a record and a description of the purposes for which pa3anents received by the State pursuant to such section were expended and of the recipients of such payments; "(2) determining whether the payments were expended in accordance with the needs within the State required to be identified pursuant to section 2503(a)(2); "(3) determining whether the payments were expended in accordance with the purpose described in section 2501(b); 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. "0)) AUDITS.—
Reports.
"(1) The Secretary may not payments under section 2501(a) 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 pa3maents under section 2501(a) 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 pa3anents; "(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 C!omptroller General of the United States for the audit of governmental organizations, programs, activities, and functions. "(3) The Secretary may not make payments under section 2501(a) 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 finsmcial 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 2501(a) 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 2501(a) in order to ensure that expenditures are consistent with the provisions of this part.
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