42 U.S.C. § 300ee–15 — Requirement of reports and audits by States

(a) Reports The Secretary can't pay a state under section 300ee-11(a) for a fiscal year unless the state agrees to submit an annual report, in whatever form and with whatever information the Secretary decides is necessary, to: (1) record and describe what the state spent its payments on, and who received them; (2) check whether the money was spent to meet the needs the state had to identify under section 300ee-13(a)(2); (3) check whether the money was spent for the purpose described in section 300ee-11(b); and (4) figure out what percentage of the money the state spent on administrative expenses during the previous fiscal year. (b) Audits (1) The Secretary can't pay a state unless it agrees to set up fiscal control and accounting procedures to properly track and account for the money. (2) The Secretary can't pay a state unless it agrees that: (A) it will arrange either a financial and compliance audit of the payments, or a single audit of each entity that manages the payments; (B) the audit happens every two years and covers spending for each of those years; and (C) the audit follows standards the U.S. Comptroller General sets for auditing government programs and activities. (3) The Secretary can't pay a state unless it agrees to send a copy of the audit report to the state legislature within 30 days after the audit is finished. (4) "Financial and compliance audit" means an audit checking whether the entity's financial statements fairly show its financial position and results, following standard accounting rules, and whether it followed the laws and regulations that affect those statements. (c) Availability to public The Secretary can't pay a state unless it agrees to make the reports and audits described in this section available for the public to inspect. (d) Evaluations by Comptroller General The Comptroller General of the United States must, from time to time, evaluate how states spend the payments they receive under section 300ee-11(a), to make sure the spending matches this part's rules.