46 U.S.C. § 13108 — Computing amounts allocated to States and State records requirements

(a) Amounts allocated under section 13104 are computed and paid to states as follows:
(1) During the second quarter of a fiscal year, based on computations made under section 13106 and submitted by the states for the prior fiscal year, the Secretary determines what percentage of available funds each eligible state^* gets for the next fiscal year.
(2) States are told the percentage, and the dollar amount if it can be figured out, as early as practical.
(3) If the Secretary later finds that a state^* got more or less money than it should have for a past year, because of newer or more accurate spending data, the Secretary may raise or lower the current year's payment to make up the difference.

(b) The Secretary must schedule payments, following program rules and Treasury regulations, to minimize the time between when money leaves the Treasury and when the state actually spends it.

(c) The Secretary must warn a state's boating authority that no more payments will be made until the program follows the required standards, or until a compliance failure is fixed, if the Secretary — after giving reasonable notice — finds that: (1) the state's boating safety program has changed so much that it no longer meets this chapter or its regulations; or (2) in running the program, the state substantially failed to follow the required standards.

(d) The Secretary must set up accounting, budgeting, and other fiscal procedures needed to run this section properly and efficiently. Records related to allocated amounts must be made available to the Secretary and the Comptroller General for audits.