42 U.S.C. § 9915 — Corrective action; termination and reduc-

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