12 2 STA T . 2 7 2 6PUBLIC LA W 11 0– 2 89—J UL Y3 0 , 2008 ‘ ‘ (i i )establ is hm i n im u m r e q uirements fo ra g ree - ments , bet w een the grantee an d the C a p ital M agnet F und, regarding assistan c e from the Capital Magnet Fund, which shall include — ‘‘( I ) appropriate periodic financial and pro j ect reporting, record retention, and audit require- ments for the duration of the grant to the recipient to ensure compliance with the limitations and requirements of this section and the regulations under this section
and ‘‘(II) an y other requirements that the S ecretary determines are necessary to ensure appropriate grant administration and compliance . ‘‘( B )M ISU S EOF FU ND S.—If the Secretary of the T reasury determines, after reasonable notice and oppor- tunity for hearing, that a grantee has failed to comply substantially with any pro v ision of this section and until the Secretary is satisfied that there is no longer any such failure to comply, the Secretary shall— ‘‘(i) reduce the amount of assistance under this section to the grantee by an amount equal to the amount of Capital Magnet Fund grant amounts which were not used in accordance with this section; ‘‘(ii) require the grantee to repay the Secretary any amount of the Capital Magnet Fund grant amounts which were not used in accordance with this section; ‘‘(iii) limit the availability of assistance under this section to the grantee to activities or recipients not affected by such failure to comply; or ‘‘(iv) terminate any assistance under this section to the grantee. ‘‘(i) P E R IODI CR E P OR T S.— ‘‘( 1 )IN G ENER AL .—The Secretary of the Treasury shall submit a report, on a periodic basis, to the Committee on Ban k ing, H ousing, and U rban A ffairs of the Senate and the Committee on Financial Services of the House of Representa- tives describing the activities to be funded under this section. ‘‘( 2 ) REPORTS A V AILA B LE TO PUBLIC.—The Secretary of the Treasury shall make the reports required under paragraph (1) publicly available. ‘‘(j) REGULATIONS.— ‘‘(1) IN GENERAL.—The Secretary of the Treasury shall issue regulations to carry out this section. ‘‘(2) RE Q UIRED CONTENTS.—The regulations issued under this subsection shall include— ‘‘(A) authority for the Secretary to audit, provide for an audit, or otherwise verify an enterprise ’ s activities, to ensure compliance with this section; ‘‘(B) a requirement that the Secretary ensure that the allocation of each enterprise is audited not less than annually to ensure compliance with this section; ‘‘(C) a requirement that, for the purposes of subpara- graphs (A) and (B), any financial statement submitted by a grantee to the Secretary shall be reviewed by an inde- pendent certified public accountant in accordance with Deadlin e .
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