31 U.S.C. § 3521 — Audits by agencies

Page 279 TITLE 31—MONEY AND FINANCE § 3521 ‘‘(4) to enhance coordination and efficiency on the part of agencies in reporting financial and perform- ance management information.’’ SPECIAL RULE FOR FISCAL YEARS 2000 AND 2001 Pub. L. 106–531, § 3(b), Nov. 22, 2000, 114 Stat. 2538, pro- vided that: ‘‘Notwithstanding paragraph (1) of section 3516(a) of title 31, United States Code (as added by sub- section (a) of this section), the head of an executive agency may submit a consolidated report under such paragraph not later than 180 days after the end of that agency’s fiscal year, with respect to fiscal years 2000 and 2001.’’ SUBCHAPTER III—AUDITING AND SETTLING ACCOUNTS § 3521. Audits by agencies (a) Each account of an agency shall be audited administratively before being submitted to the Comptroller General. The head of each agency shall prescribe regulations for conducting the audit and designate a place at which the audit is to be conducted. However, a disbursing official of an executive agency may not administra- tively audit vouchers for which the official is re- sponsible. With the consent of the Comptroller General, the head of the agency may waive any part of an audit. (b) The head of an agency may prescribe a sta- tistical sampling procedure to audit vouchers of the agency when the head of the agency decides economies will result from using the procedure. The Comptroller General— (1) may prescribe the maximum amount of a voucher that may be audited under this sub- section; and (2) in reviewing the accounting system of the agency, shall evaluate the adequacy and effectiveness of the procedure. (c) A disbursing or certifying official acting in good faith under subsection (b) of this section is not liable for a payment or certification of a voucher not audited specifically because of the procedure prescribed under subsection (b) if the official and the head of the agency carry out diligently collection action the Comptroller General prescribes. (d) Subsections (b) and (c) of this section do not— (1) affect the liability, or authorize the re- lief, of a payee, beneficiary, or recipient of an illegal, improper, or incorrect payment; or (2) relieve a disbursing or certifying official, the head of an agency, or the Comptroller General of responsibility in carrying out col- lection action against a payee, beneficiary, or recipient. (e) Each financial statement prepared under section 3515 by an agency shall be audited in ac- cordance with applicable generally accepted government auditing standards— (1) in the case of an agency having an In- spector General appointed under chapter 4 of title 5, by the Inspector General or by an inde- pendent external auditor, as determined by the Inspector General of the agency; and (2) in any other case, by an independent ex- ternal auditor, as determined by the head of the agency. (f) For each audited financial statement re- quired under subsection (a) of section 3515 of this title, the person who audits the statement for purpose of subsection (e) of this section shall submit a report on the audit to the head of the agency and the Controller of the Office of Fed- eral Financial Management. A report under this subsection shall be prepared in accordance with generally accepted government auditing stand- ards. (g) The Comptroller General of the United States— (1) may review any audit of a financial state- ment conducted under this subsection by an Inspector General or an external auditor; (2) shall report to the Congress, the Director of the Office of Management and Budget, and the head of the agency which prepared the statement, regarding the results of the review and make any recommendation the Comp- troller General considers appropriate; and (3) may audit a financial statement prepared under section 3515 of this title at the discre- tion of the Comptroller General or at the re- quest of a committee of the Congress. An audit the Comptroller General performs under this subsection shall be in lieu of the audit otherwise required by subsection (e) of this section. Prior to performing such audit, the Comptroller General shall consult with the In- spector General of the agency which prepared the statement. (h) Each financial statement prepared by an executive agency for a fiscal year after fiscal year 1991 shall be audited in accordance with this section and the plan required by section 3512(a)(3)(B)(viii) of this title. (i)(1) If the Government Accountability Office audits any financial statement or related sched- ule which is prepared under section 3515 by an executive agency (or component thereof) for a fiscal year beginning on or after October 1, 2009, such executive agency (or component) shall re- imburse the Government Accountability Office for the cost of such audit, if the Government Ac- countability Office audited the statement or schedule of such executive agency (or compo- nent) for fiscal year 2007. (2) Any executive agency (or component there- of) that prepares a financial statement under section 3515 for a fiscal year beginning on or after October 1, 2009, and that requests, with the concurrence of the Inspector General of such agency, the Government Accountability Office to conduct the audit of such statement or any related schedule required by section 3521 may re- imburse the Government Accountability Office for the cost of such audit. (3) For the audits conducted under paragraphs (1) and (2), the Government Accountability Of- fice shall consult prior to the initiation of the audit with the relevant executive agency (or component) and the Inspector General of such agency on the scope, terms, and cost of such audit. (4) Any reimbursement under paragraph (1) or (2) shall be deposited to a special account in the Treasury and shall be available to the Govern- ment Accountability Office for such purposes and in such amounts as are specified in annual appropriations Acts. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 961; Pub. L. 101–576, title III, § 304(a), Nov. 15, 1990, 104 Page 280 TITLE 31—MONEY AND FINANCE § 3521 Stat. 2852; Pub. L. 103–356, title IV, § 405(b), Oct. 13, 1994, 108 Stat. 3416; Pub. L. 104–208, div. A, title I, § 101(f) [title VIII, § 805(a)], Sept. 30, 1996, 110 Stat. 3009–314, 3009–392; Pub. L. 106–531, § 4(b), Nov. 22, 2000, 114 Stat. 2539; Pub. L. 110–323, § 6(a), Sept. 22, 2008, 122 Stat. 3547; Pub. L. 117–286, § 4(b)(55), Dec. 27, 2022, 136 Stat. 4349.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3521(a) ..... 31:44(1st sentence). June 10, 1921, ch. 18, § 304(1st par. 1st sentence), 42 Stat. 24. 31:65b. Sept. 12, 1950, ch. 946, § 119, 64 Stat. 838. 31:75, 41:21. July 31, 1894, ch. 174, § 22, 28 Stat. 210. 31:82. Aug. 23, 1912, ch. 350, § 1(last par. under heading ‘‘Office of the Comptroller of the Treasury’’), 37 Stat. 375. 3521(b) ..... 31:82b–1(a)(1st sen- tence words be- fore semicolon, last sentence). Aug. 30, 1964, Pub. L. 88–521, 78 Stat. 700; Jan. 2, 1975, Pub. L. 93–604, § 101, 88 Stat. 1959. 3521(c) ..... 31:82b–1(a)(1st sen- tence words after semicolon). 3521(d) ..... 31:82b–1(b). In the section, the word ‘‘audit’’ is substituted for ‘‘examination’’, and the word ‘‘official’’ is substituted for ‘‘officer’’, for consistency in the revised title and with other titles of the United States Code. In subsection (a), the words ‘‘Except as otherwise pro- vided’’ in 31:82(words before 5th comma) are omitted as unnecessary. The words ‘‘on and after August 23, 1912’’ are omitted as executed. The words ‘‘of an agency’’ are substituted for ‘‘public’’ for clarity and consistency. The words ‘‘preliminary to their audit by the General Accounting Office . . . as contemplated by section 78 of this title’’ are omitted as unnecessary. The words ‘‘Comptroller General’’ are substituted for ‘‘General Accounting Office’’ in 31:75 for consistency. The words ‘‘prepared and’’ in 31:82(words between 5th and 6th com- mas) are omitted as surplus. The words ‘‘by and through the administrative heads of divisions and bu- reaus’’ are omitted because of the authority vested in the heads of agencies. The words ‘‘and pay rolls’’ are omitted as being included in ‘‘vouchers’’. The text of 31:82(words after 6th comma) is omitted as executed. The text of 31:75(1st par.) is omitted as unnecessary be- cause of section 321(b) of the revised title. The words ‘‘head of each agency’’ are substituted for ‘‘head of each executive agency . . . Provided, That the same au- thority is conferred upon the officers responsible for the administrative examination of accounts for legisla- tive and judicial agencies’’ in 31:65b and ‘‘heads of the several executive departments and of the proper offi- cers of other Government establishments, not within the jurisdiction of any executive department’’ in 31:75 because of sections 101, 102, and 3501 of the revised title. The words ‘‘shall prescribe regulations for conducting the audit’’ are substituted for ‘‘It shall also be the duty of . . . to make appropriate rules and regulations to se- cure a proper administrative examination of all ac- counts sent to them, as required by section 78 of this title’’ for consistency and to eliminate unnecessary words. The words ‘‘and for the execution of other re- quirements of this chapter insofar as the same relate to the several departments or establishments’’ are omit- ted as unnecessary. The words ‘‘or places, at the seat of government or elsewhere . . . of fiscal officers’ ac- counts’’ in 31:65b are omitted as surplus. In subsection (b), the words ‘‘the Mayor of the Dis- trict of Columbia’’ are omitted as superseded by sec- tions 448(2) and 449 of the District of Columbia Self- Government and Governmental Reorganization Act (Pub. L. 93–198, 87 Stat. 802, 803). In subsection (c), the words ‘‘made by him’’ are omit- ted as surplus. The words ‘‘head of the’’ are added for consistency. The words ‘‘to recover the illegal, im- proper, or incorrect payment in accordance with proce- dures’’ are omitted as surplus. Editorial Notes AMENDMENTS 2022—Subsec. (e)(1). Pub. L. 117–286 substituted ‘‘chap- ter 4 of title 5,’’ for ‘‘the Inspector General Act of 1978 (5 U.S.C. App.),’’. 2008—Subsec. (i). Pub. L. 110–323 added subsec. (i). 2000—Subsec. (f). Pub. L. 106–531 struck out ‘‘(1)’’ be- fore ‘‘For each audited’’, substituted ‘‘subsection (a)’’ for ‘‘subsections (a) and (f)’’, and struck out par. (2) which read as follows: ‘‘Not later than June 30 fol- lowing the fiscal year for which a financial statement is submitted under subsection (g) of section 3515 of this title, the person who audits the statement for purpose of subsection (e) of this section shall submit a report on the audit to the head of the agency. A report under this subsection shall be prepared in accordance with gen- erally accepted government auditing standards.’’ 1996—Subsec. (f)(1). Pub. L. 104–208 inserted ‘‘and the Controller of the Office of Federal Financial Manage- ment’’ before period at end of first sentence. 1994—Subsec. (f). Pub. L. 103–356 amended subsec. (f) generally. Prior to amendment, subsec. (f) read as fol- lows: ‘‘Not later than June 30 following the fiscal year for which a financial statement is submitted under sec- tion 3515 of this title by an agency, the person who au- dits the statement for purpose of subsection (e) shall submit a report on the audit to the head of the agency. A report under this subsection shall be prepared in ac- cordance with generally accepted government auditing standards.’’ 1990—Subsecs. (e) to (h). Pub. L. 101–576 added sub- secs. (e) to (h). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–208 effective for fiscal year ending Sept. 30, 1997, see section 101(f) [title VIII, § 807] of Pub. L. 104–208, set out in a Federal Financial Management Improvement note under section 3512 of this title. AUDITS AND REPORTS OF AGENCY FINANCIAL STATEMENTS Pub. L. 105–206, title I, § 1103(d), July 22, 1998, 112 Stat. 709, provided that: ‘‘Subject to section 3521(g) of title 31, United States Code— ‘‘(1) the Inspector General of the Department of the Treasury shall, subject to paragraph (2)— ‘‘(A) audit each financial statement in accordance with section 3521(e) of such title; and ‘‘(B) prepare and submit each report required under section 3521(f) of such title; and ‘‘(2) the Treasury Inspector General for Tax Admin- istration shall— ‘‘(A) audit that portion of each financial state- ment referred to under paragraph (1)(A) that relates to custodial and administrative accounts of the In- ternal Revenue Service; and ‘‘(B) prepare that portion of each report referred to under paragraph (1)(B) that relates to custodial and administrative accounts of the Internal Rev- enue Service.’’ WAIVER OF REQUIREMENTS Pub. L. 101–576, title III, § 304(b), Nov. 15, 1990, 104 Stat. 2853, provided that: ‘‘The Director of the Office of Management and Budget may waive application of sub- sections (e) and (f) of section 3521 of title 31, United States Code, as amended by this section, to a financial statement submitted by an agency for fiscal years 1990 and 1991.’’ TIME LIMIT FOR RESOLVING PENDING AND NEW AUDITS Pub. L. 96–304, title III, § 305, July 8, 1980, 94 Stat. 928, provided that: ‘‘All unresolved audits currently pending Page 281 TITLE 31—MONEY AND FINANCE § 3522 within agencies and departments, for which appropria- tions are made under this Act, shall be resolved not later than September 30, 1981. Any new audits, involv- ing questioned costs, arising after July 8, 1980, shall be resolved within 6 months.’’ § 3522. Making and submitting accounts (a)(1) Unless the Comptroller General decides the public interest requires that an account be made more frequently, each disbursing official shall make a quarterly account. An official or agent of the United States Government receiv- ing public money not authorized to be kept as pay of the official or agent shall make a month- ly account of the money. (2) An official or agent of the Government re- ceiving public money shall make an account of public money received by the official or agent according to the appropriation from which the money was advanced. (b)(1) A monthly account shall be submitted to the appropriate official in the District of Colum- bia by the 10th day after the end of the month covered by the account. The official shall sub- mit the account to the Comptroller General by the 20th day after receiving the account. (2) An account (except a monthly account) shall be submitted to the appropriate official in the District of Columbia by the 20th day after the end of the period covered by the account. The official shall submit the account to the Comptroller General by the 60th day after re- ceiving the account. (3) Notwithstanding paragraphs (1) and (2) of this subsection, an account of the armed forces shall be submitted to the Comptroller General by the 60th day after the account is received. However, during a war or national emergency and for 18 months after the war or emergency ends, an account shall be submitted to the Comptroller General by the 90th day after the account is received. (4) Notwithstanding paragraphs (1) and (2) of this subsection, an account of a disbursing offi- cial of the Department of Justice shall be sub- mitted to the Comptroller General by the 80th day after the account is received. (c) An official shall give evidence of compli- ance with subsection (b) of this section if an ac- count is not received within a reasonable time after the time required by subsection (b). (d) The head of an agency may require other returns or reports about the agency that the public interest requires. (e)(1) The Comptroller General shall dis- approve a requisition for an advance of money if an account from which the advance is to be made is not submitted to the Comptroller Gen- eral within the time required by subsection (b) of this section. The Comptroller General may disapprove the request for another reason re- lated to the condition of an account of the offi- cial for whom the advance is requested. How- ever, the Secretary of the Treasury may over- rule the decision of the Comptroller General on the sufficiency of the other reasons. (2) The Secretary may extend the time re- quirements of subsection (b)(1) and (2) of this section for submitting an account to the proper official in the District of Columbia or waive a condition of delinquency only when there is, or is likely to be, a manifest physical difficulty in complying with those requirements. If an ac- count is not submitted to the Comptroller Gen- eral on time under subsection (b), an order of the President or, if the President is ill or not in the District of Columbia, the Secretary is re- quired to authorize an advance. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 961.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3522(a)(1) 31:44(1st sentence). June 10, 1921, ch. 18, § 304(1st par. 1st sentence), 42 Stat. 24. 31:496(1st sentence). R.S. § 3622; Feb. 27, 1877, ch. 69(8th complete par. on p. 249), 19 Stat. 249; July 31, 1894, ch. 174, § 12(last par.), 28 Stat. 209. 31:497. Aug. 30, 1890, ch. 837, § 4, 26 Stat. 413. 3522(a)(2) 31:498. R.S. § 3623. 3522(b)(1), (2). 31:44(1st sentence). 31:78(1st, last sen- tences). July 31, 1894, ch. 174, § 12(1st par.), 28 Stat. 209; Mar. 2, 1895, ch. 177, § 4, 28 Stat. 807. 31:496(2d sentence). 3522(b)(3) 31:44(1st sentence). June 10, 1921, ch. 18, § 304(1st par. 1st sentence), 42 Stat. 24. 31:80. Mar. 2, 1901, ch. 803(3d par. on p. 910), 31 Stat. 910; July 9, 1918, ch. 143, ch. XVIII(last par.), 40 Stat. 892. 31:80a. Nov. 21, 1941, ch. 499, 55 Stat. 781. 31:80b. Dec. 26, 1941, ch. 629, 55 Stat. 862; Dec. 23, 1944, ch. 720, 58 Stat. 923. 31:80c. Feb. 20, 1942, ch. 95, 56 Stat. 94. 31:496(3d sentence). 3522(b)(4) 31:44(1st sentence). 31:81. Mar. 4, 1907, ch. 2918, § 1(3d par. under heading ‘‘United States Courts’’), 34 Stat. 1360. 3522(c) ..... 31:496(4th sentence). 3522(d) ..... 31:496(last sen- tence). 3522(e)(1) 31:44(1st sentence). 31:78(2d sentence). 3522(e)(2) 31:44(1st sentence). 31:78(3d, 4th sen- tences). In the section, the words ‘‘Comptroller General’’ are substituted for ‘‘General Accounting Office’’ for con- sistency. In subsection (a)(1), the words ‘‘of the United States’’ and ‘‘and the Secretary of the Senate shall render his accounts as otherwise provided’’ in 31:497 are omitted as unnecessary. The words ‘‘Except as otherwise pro- vided’’ in 31:496 are omitted as unnecessary. The words ‘‘official or agent of the United States Government’’ are substituted for ‘‘officer or agent of the United States’’ for consistency in the revised title and with other titles of the United States Code. The word ‘‘pay’’ is substituted for ‘‘salary, pay, or emolument’’ for con- sistency and to eliminate unnecessary words. In subsection (a)(2), the words ‘‘official or agent of the Government’’ are substituted for ‘‘officers, agents, or other persons’’ for consistency in the revised title and with other titles of the Code. The word ‘‘distinct’’ is omitted as surplus. The word ‘‘received’’ is sub- stituted for ‘‘application’’ for consistency in the re- vised title. In subsection (b)(1), the text of 31:496(2d sentence) is omitted as surplus. The text of 31:78(last sentence) is omitted as unnecessary because of 39:410. The words ‘‘Except as otherwise provided by law’’ are omitted as unnecessary. The words ‘‘mailed or otherwise’’ are omitted as surplus. The words ‘‘District of Columbia’’ are substituted for ‘‘Washington’’ for consistency. The words ‘‘The official shall submit the account’’ are sub- stituted for ‘‘and shall be transmitted’’ for clarity. The words ‘‘and received by’’ are omitted as surplus. The