42 U.S.C. § 9916 — Fiscal controls, audits, and withholding

Page 7959 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 9916 and especially with respect to compliance with section 9908(b) of this title. The Secretary shall submit, to each State evaluated, a report con- taining the results of such evaluations, and rec- ommendations of improvements designed to en- hance the benefit and impact of the activities carried out with such funds for people in need. On receiving the report, the State shall submit to the Secretary a plan of action in response to the recommendations contained in the report. The results of the evaluations shall be sub- mitted annually to the Chairperson of the Com- mittee on Education and the Workforce of the House of Representatives and the Chairperson of the Committee on Labor and Human Resources of the Senate as part of the report submitted by the Secretary in accordance with section 9917(b)(2) of this title. (Pub. L. 97–35, title VI, § 678B, as added Pub. L. 105–285, title II, § 201, Oct. 27, 1998, 112 Stat. 2743.) Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Labor and Human Resources of Senate changed to Committee on Health, Education, Labor, and Pensions of Senate by Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19, 1999. § 9915. Corrective action; termination and reduc- tion of funding (a) Determination If the State determines, on the basis of a final decision in a review pursuant to section 9914 of this title, that an eligible entity fails to comply with the terms of an agreement, or the State plan, to provide services under this chapter or to meet appropriate standards, goals, and other re- quirements established by the State (including performance objectives), the State shall— (1) inform the entity of the deficiency to be corrected; (2) require the entity to correct the defi- ciency; (3)(A) offer training and technical assist- ance, if appropriate, to help correct the defi- ciency, and prepare and submit to the Sec- retary a report describing the training and technical assistance offered; or (B) if the State determines that such train- ing and technical assistance are not appro- priate, prepare and submit to the Secretary a report stating the reasons for the determina- tion; (4)(A) at the discretion of the State (taking into account the seriousness of the deficiency and the time reasonably required to correct the deficiency), allow the entity to develop and implement, within 60 days after being in- formed of the deficiency, a quality improve- ment plan to correct such deficiency within a reasonable period of time, as determined by the State; and (B) not later than 30 days after receiving from an eligible entity a proposed quality im- provement plan pursuant to subparagraph (A), either approve such proposed plan or specify the reasons why the proposed plan cannot be approved; and (5) after providing adequate notice and an opportunity for a hearing, initiate proceedings to terminate the designation of or reduce the funding under this chapter of the eligible enti- ty unless the entity corrects the deficiency. (b) Review A determination to terminate the designation or reduce the funding of an eligible entity is re- viewable by the Secretary. The Secretary shall, upon request, review such a determination. The review shall be completed not later than 90 days after the Secretary receives from the State all necessary documentation relating to the deter- mination to terminate the designation or reduce the funding. If the review is not completed with- in 90 days, the determination of the State shall become final at the end of the 90th day. (c) Direct assistance Whenever a State violates the assurances con- tained in section 9908(b)(8) of this title and ter- minates or reduces the funding of an eligible en- tity prior to the completion of the State hearing described in that section and the Secretary’s re- view as required in subsection (b), the Secretary is authorized to provide financial assistance under this chapter to the eligible entity affected until the violation is corrected. In such a case, the grant or allotment for the State under sec- tion 9905 or 9906 of this title for the earliest ap- propriate fiscal year shall be reduced by an amount equal to the funds provided under this subsection to such eligible entity. (Pub. L. 97–35, title VI, § 678C, as added Pub. L. 105–285, title II, § 201, Oct. 27, 1998, 112 Stat. 2743.) § 9916. Fiscal controls, audits, and withholding (a) Fiscal controls, procedures, audits, and in- spections (1) In general A State that receives funds under this chap- ter shall— (A) establish fiscal control and fund ac- counting procedures necessary to assure the proper disbursal of and accounting for Fed- eral funds paid to the State under this chap- ter, including procedures for monitoring the funds provided under this chapter; (B) ensure that cost and accounting stand- ards 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 expendi- tures 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 Sec- retary and the Comptroller General of the United States, or any of their duly author- ized representatives, for examination, copy- ing, 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 re- quired by subsection (a)(1)(C) shall be con- ducted by an entity independent of any Page 7960 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 9917 agency administering activities or services carried out under this chapter and shall be conducted in accordance with generally ac- cepted accounting principles. (B) Single audit requirements Audits shall be conducted under this para- graph in the manner and to the extent pro- vided in chapter 75 of title 31 (commonly known as the ‘‘Single Audit Act Amend- ments of 1996’’). (C) Submission of copies Within 30 days after the completion of each such audit in a State, the chief execu- tive 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 Sec- retary. (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 ade- quate 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 expedi- tious and speedy manner to complaints of a substantial or serious nature that a State has failed to use funds in accordance with the pro- visions of this chapter, including the assur- ances 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 assur- ance 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 de- scribed in paragraph (2) from any State in any fiscal year, the Secretary shall conduct an in- vestigation of the use of funds received under this chapter by such State in order to ensure compliance with the provisions of this chap- ter. (Pub. L. 97–35, title VI, § 678D, as added Pub. L. 105–285, title II, § 201, Oct. 27, 1998, 112 Stat. 2744.) § 9917. Accountability and reporting require- ments (a) State accountability and reporting require- ments (1) Performance measurement (A) In general By October 1, 2001, each State that re- ceives funds under this chapter shall partici- pate, and shall ensure that all eligible enti- ties in the State participate, in a perform- ance measurement system, which may be a performance measurement system for which the Secretary facilitated development pursu- ant to subsection (b), or an alternative sys- tem that the Secretary is satisfied meets the requirements of subsection (b). (B) Local agencies The State may elect to have local agencies that are subcontractors of the eligible enti- ties under this chapter participate in the performance measurement system. If the State makes that election, references in this section to eligible entities shall be consid- ered to include the local agencies. (2) Annual report Each State shall annually prepare and sub- mit to the Secretary a report on the measured performance of the State and the eligible enti- ties in the State. Prior to the participation of the State in the performance measurement system, the State shall include in the report any information collected by the State relat- ing to such performance. Each State shall also include in the report an accounting of the ex- penditure of funds received by the State through the community services block grant program, including an accounting of funds spent on administrative costs by the State and the eligible entities, and funds spent by eligi- ble entities on the direct delivery of local services, and shall include information on the number of and characteristics of clients served under this chapter in the State, based on data collected from the eligible entities. The State shall also include in the report a summary de- scribing the training and technical assistance offered by the State under section 9915(a)(3) of this title during the year covered by the re- port. (b) Secretary’s accountability and reporting re- quirements (1) Performance measurement The Secretary, in collaboration with the States and with eligible entities throughout the Nation, shall facilitate the development of one or more model performance measurement systems, which may be used by the States and by eligible entities to measure their perform- ance in carrying out the requirements of this chapter and in achieving the goals of their community action plans. The Secretary shall provide technical assistance, including sup- port for the enhancement of electronic data systems, to States and to eligible entities to enhance their capability to collect and report data for such a system and to aid in their par- ticipation in such a system. (2) Reporting requirements At the end of each fiscal year beginning after September 30, 1999, the Secretary shall, directly or by grant or contract, prepare a re- port containing— (A) a summary of the planned use of funds by each State, and the eligible entities in the State, under the community services block grant program, as contained in each