-CITE-
    31 USC CHAPTER 75 - REQUIREMENTS FOR SINGLE AUDITS          01/03/2007

-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION
    CHAPTER 75 - REQUIREMENTS FOR SINGLE AUDITS

-HEAD-
                CHAPTER 75 - REQUIREMENTS FOR SINGLE AUDITS            

-MISC1-
    Sec.                                                     
    7501.       Definitions.                                          
    7502.       Audit requirements; exemptions.                       
    7503.       Relation to other audit requirements.                 
    7504.       Federal agency responsibilities and relations with
                 non-Federal entities.                                
    7505.       Regulations.                                          
    7506.       Monitoring responsibilities of the Comptroller
                 General.                                             
    7507.       Effective date.                                       

                                AMENDMENTS                            
      1996 - Pub. L. 104-156, Sec. 2, July 5, 1996, 110 Stat. 1396,
    amended chapter analysis generally, substituting in item 7504
    "Federal agency responsibilities and relations with non-Federal
    entities" for "Cognizant agency responsibilities" and in item 7507
    "Effective date" for "Effective date; report".

-End-

-CITE-
    31 USC Sec. 7501                                            01/03/2007

-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION
    CHAPTER 75 - REQUIREMENTS FOR SINGLE AUDITS

-HEAD-
    Sec. 7501. Definitions

-STATUTE-
      (a) As used in this chapter, the term - 
        (1) "Comptroller General" means the Comptroller General of the
      United States;
        (2) "Director" means the Director of the Office of Management
      and Budget;
        (3) "Federal agency" has the same meaning as the term "agency"
      in section 551(1) of title 5;
        (4) "Federal awards" means Federal financial assistance and
      Federal cost-reimbursement contracts that non-Federal entities
      receive directly from Federal awarding agencies or indirectly
      from pass-through entities;
        (5) "Federal financial assistance" means assistance that non-
      Federal entities receive or administer in the form of grants,
      loans, loan guarantees, property, cooperative agreements,
      interest subsidies, insurance, food commodities, direct
      appropriations, or other assistance, but does not include amounts
      received as reimbursement for services rendered to individuals in
      accordance with guidance issued by the Director;
        (6) "Federal program" means all Federal awards to a non-Federal
      entity assigned a single number in the Catalog of Federal
      Domestic Assistance or encompassed in a group of numbers or other
      category as defined by the Director;
        (7) "generally accepted government auditing standards" means
      the government auditing standards issued by the Comptroller
      General;
        (8) "independent auditor" means - 
          (A) an external State or local government auditor who meets
        the independence standards included in generally accepted
        government auditing standards; or
          (B) a public accountant who meets such independence
        standards;

        (9) "Indian tribe" means any Indian tribe, band, nation, or
      other organized group or community, including any Alaskan Native
      village or regional or village corporation (as defined in, or
      established under, the Alaskan Native Claims Settlement Act) that
      is recognized by the United States as eligible for the special
      programs and services provided by the United States to Indians
      because of their status as Indians;
        (10) "internal controls" means a process, effected by an
      entity's management and other personnel, designed to provide
      reasonable assurance regarding the achievement of objectives in
      the following categories:
          (A) Effectiveness and efficiency of operations.(!1)

          (B) Reliability of financial reporting.(!1)
          (C) Compliance with applicable laws and regulations;

        (11) "local government" means any unit of local government
      within a State, including a county, borough, municipality, city,
      town, township, parish, local public authority, special district,
      school district, intrastate district, council of governments, any
      other instrumentality of local government and, in accordance with
      guidelines issued by the Director, a group of local governments;
        (12) "major program" means a Federal program identified in
      accordance with risk-based criteria prescribed by the Director
      under this chapter, subject to the limitations described under
      subsection (b);
        (13) "non-Federal entity" means a State, local government, or
      nonprofit organization;
        (14) "nonprofit organization" means any corporation, trust,
      association, cooperative, or other organization that - 
          (A) is operated primarily for scientific, educational,
        service, charitable, or similar purposes in the public
        interest;
          (B) is not organized primarily for profit; and
          (C) uses net proceeds to maintain, improve, or expand the
        operations of the organization;

        (15) "pass-through entity" means a non-Federal entity that
      provides Federal awards to a subrecipient to carry out a Federal
      program;
        (16) "program-specific audit" means an audit of one Federal
      program;
        (17) "recipient" means a non-Federal entity that receives
      awards directly from a Federal agency to carry out a Federal
      program;
        (18) "single audit" means an audit, as described under section
      7502(d), of a non-Federal entity that includes the entity's
      financial statements and Federal awards;
        (19) "State" means any State of the United States, the District
      of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
      Guam, American Samoa, the Commonwealth of the Northern Mariana
      Islands, and the Trust Territory of the Pacific Islands, any
      instrumentality thereof, any multi-State, regional, or interstate
      entity which has governmental functions, and any Indian tribe;
      and
        (20) "subrecipient" means a non-Federal entity that receives
      Federal awards through another non-Federal entity to carry out a
      Federal program, but does not include an individual who receives
      financial assistance through such awards.

      (b) In prescribing risk-based program selection criteria for
    major programs, the Director shall not require more programs to be
    identified as major for a particular non-Federal entity, except as
    prescribed under subsection (c) or as provided under subsection
    (d), than would be identified if the major programs were defined as
    any program for which total expenditures of Federal awards by the
    non-Federal entity during the applicable year exceed - 
        (1) the larger of $30,000,000 or 0.15 percent of the non-
      Federal entity's total Federal expenditures, in the case of a
      non-Federal entity for which such total expenditures for all
      programs exceed $10,000,000,000;
        (2) the larger of $3,000,000, or 0.30 percent of the non-
      Federal entity's total Federal expenditures, in the case of a
      non-Federal entity for which such total expenditures for all
      programs exceed $100,000,000 but are less than or equal to
      $10,000,000,000; or
        (3) the larger of $300,000, or 3 percent of such total Federal
      expenditures for all programs, in the case of a non-Federal
      entity for which such total expenditures for all programs equal
      or exceed $300,000 but are less than or equal to $100,000,000.

      (c) When the total expenditures of a non-Federal entity's major
    programs are less than 50 percent of the non-Federal entity's total
    expenditures of all Federal awards (or such lower percentage as
    specified by the Director), the auditor shall select and test
    additional programs as major programs as necessary to achieve audit
    coverage of at least 50 percent of Federal expenditures by the non-
    Federal entity (or such lower percentage as specified by the
    Director), in accordance with guidance issued by the Director.
      (d) Loan or loan guarantee programs, as specified by the
    Director, shall not be subject to the application of subsection
    (b).

-SOURCE-
    (Added Pub. L. 98-502, Sec. 2(a), Oct. 19, 1984, 98 Stat. 2327;
    amended Pub. L. 104-156, Sec. 2, July 5, 1996, 110 Stat. 1396.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Alaskan Native Claims Settlement Act, referred to in subsec.
    (a)(9), probably means the Alaska Native Claims Settlement Act,
    Pub. L. 92-203, Dec. 18, 1971, 85 Stat. 688, as amended, which is
    classified generally to chapter 33 (Sec. 1601 et seq.) of Title 43,
    Public Lands. For complete classification of this Act to the Code,
    see Short Title note set out under section 1601 of Title 43 and
    Tables.

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-156 reenacted section catchline without change
    and amended text generally, substituting present provisions for
    similar provisions defining terms used in this chapter.

                       SHORT TITLE OF 1996 AMENDMENT                   
      Section 1(a) of Pub. L. 104-156 provided that: "This Act
    [amending this chapter and enacting provisions set out as notes
    below] may be cited as the 'Single Audit Act Amendments of 1996'."

                                SHORT TITLE                            
      Section 1(a) of Pub. L. 98-502 provided that: "This Act [enacting
    this chapter] may be cited as the 'Single Audit Act of 1984'."

-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.

-MISC2-
                         TRANSITIONAL APPLICATION                     
      Section 3 of Pub. L. 104-156 provided that: "Subject to section
    7507 of title 31, United States Code (as amended by section 2 of
    this Act) the provisions of chapter 75 of such title (before
    amendment by section 2 of this Act) shall continue to apply to any
    State or local government with respect to any of its fiscal years
    beginning before July 1, 1996."

                    CONGRESSIONAL STATEMENT OF PURPOSE                
      Section 1(b) of Pub. L. 104-156 provided that: "The purposes of
    this Act [see Short Title of 1996 Amendment note above] are to - 
        "(1) promote sound financial management, including effective
      internal controls, with respect to Federal awards administered by
      non-Federal entities;
        "(2) establish uniform requirements for audits of Federal
      awards administered by non-Federal entities;
        "(3) promote the efficient and effective use of audit
      resources;
        "(4) reduce burdens on State and local governments, Indian
      tribes, and nonprofit organizations; and
        "(5) ensure that Federal departments and agencies, to the
      maximum extent practicable, rely upon and use audit work done
      pursuant to chapter 75 of title 31, United States Code (as
      amended by this Act)."
      Section 1(b) of Pub. L. 98-502 provided that: "It is the purpose
    of this Act [enacting this chapter] - 
        "(1) to improve the financial management of State and local
      governments with respect to Federal financial assistance
      programs;
        "(2) to establish uniform requirements for audits of Federal
      financial assistance provided to State and local governments;
        "(3) to promote the efficient and effective use of audit
      resources; and
        "(4) to ensure that Federal departments and agencies, to the
      maximum extent practicable, rely upon and use audit work done
      pursuant to chapter 75 of title 31, United States Code (as added
      by this Act)."

       TENNESSEE VALLEY AUTHORITY AUDITS UNAFFECTED BY SINGLE AUDIT
                               REQUIREMENTS
      Section 2(b) of Pub. L. 98-502 provided that: "The provisions of
    this Act [enacting this chapter] shall not diminish or otherwise
    affect the authority of the Tennessee Valley Authority to conduct
    its own audits of any matter involving funds disbursed by the
    Tennessee Valley Authority."

-FOOTNOTE-               

    (!1) So in original.

-End-

-CITE-
    31 USC Sec. 7502                                            01/03/2007

-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION
    CHAPTER 75 - REQUIREMENTS FOR SINGLE AUDITS

-HEAD-
    Sec. 7502. Audit requirements; exemptions

-STATUTE-
      (a)(1)(A) Each non-Federal entity that expends a total amount of
    Federal awards equal to or in excess of $300,000 or such other
    amount specified by the Director under subsection (a)(3) in any
    fiscal year of such non-Federal entity shall have either a single
    audit or a program-specific audit made for such fiscal year in
    accordance with the requirements of this chapter.
      (B) Each such non-Federal entity that expends Federal awards
    under more than one Federal program shall undergo a single audit in
    accordance with the requirements of subsections (b) through (i) of
    this section and guidance issued by the Director under section
    7505.
      (C) Each such non-Federal entity that expends awards under only
    one Federal program and is not subject to laws, regulations, or
    Federal award agreements that require a financial statement audit
    of the non-Federal entity, may elect to have a program-specific
    audit conducted in accordance with applicable provisions of this
    section and guidance issued by the Director under section 7505.
      (2)(A) Each non-Federal entity that expends a total amount of
    Federal awards of less than $300,000 or such other amount specified
    by the Director under subsection (a)(3) in any fiscal year of such
    entity, shall be exempt for such fiscal year from compliance with -
    
        (i) the audit requirements of this chapter; and
        (ii) any applicable requirements concerning financial audits
      contained in Federal statutes and regulations governing programs
      under which such Federal awards are provided to that non-Federal
      entity.

      (B) The provisions of subparagraph (A)(ii) of this paragraph
    shall not exempt a non-Federal entity from compliance with any
    provision of a Federal statute or regulation that requires such non-
    Federal entity to maintain records concerning Federal awards
    provided to such non-Federal entity or that permits a Federal
    agency, pass-through entity, or the Comptroller General access to
    such records.
      (3) Every 2 years, the Director shall review the amount for
    requiring audits prescribed under paragraph (1)(A) and may adjust
    such dollar amount consistent with the purposes of this chapter,
    provided the Director does not make such adjustments below
    $300,000.
      (b)(1) Except as provided in paragraphs (2) and (3), audits
    conducted pursuant to this chapter shall be conducted annually.
      (2) A State or local government that is required by constitution
    or statute, in effect on January 1, 1987, to undergo its audits
    less frequently than annually, is permitted to undergo its audits
    pursuant to this chapter biennially. Audits conducted biennially
    under the provisions of this paragraph shall cover both years
    within the biennial period.
      (3) Any nonprofit organization that had biennial audits for all
    biennial periods ending between July 1, 1992, and January 1, 1995,
    is permitted to undergo its audits pursuant to this chapter
    biennially. Audits conducted biennially under the provisions of
    this paragraph shall cover both years within the biennial period.
      (c) Each audit conducted pursuant to subsection (a) shall be
    conducted by an independent auditor in accordance with generally
    accepted government auditing standards, except that, for the
    purposes of this chapter, performance audits shall not be required
    except as authorized by the Director.
      (d) Each single audit conducted pursuant to subsection (a) for
    any fiscal year shall - 
        (1) cover the operations of the entire non-Federal entity; or
        (2) at the option of such non-Federal entity such audit shall
      include a series of audits that cover departments, agencies, and
      other organizational units which expended or otherwise
      administered Federal awards during such fiscal year provided that
      each such audit shall encompass the financial statements and
      schedule of expenditures of Federal awards for each such
      department, agency, and organizational unit, which shall be
      considered to be a non-Federal entity.

      (e) The auditor shall - 
        (1) determine whether the financial statements are presented
      fairly in all material respects in conformity with generally
      accepted accounting principles;
        (2) determine whether the schedule of expenditures of Federal
      awards is presented fairly in all material respects in relation
      to the financial statements taken as a whole;
        (3) with respect to internal controls pertaining to the
      compliance requirements for each major program - 
          (A) obtain an understanding of such internal controls;
          (B) assess control risk; and
          (C) perform tests of controls unless the controls are deemed
        to be ineffective; and

        (4) determine whether the non-Federal entity has complied with
      the provisions of laws, regulations, and contracts or grants
      pertaining to Federal awards that have a direct and material
      effect on each major program.

      (f)(1) Each Federal agency which provides Federal awards to a
    recipient shall - 
        (A) provide such recipient the program names (and any
      identifying numbers) from which such awards are derived, and the
      Federal requirements which govern the use of such awards and the
      requirements of this chapter; and
        (B) review the audit of a recipient as necessary to determine
      whether prompt and appropriate corrective action has been taken
      with respect to audit findings, as defined by the Director,
      pertaining to Federal awards provided to the recipient by the
      Federal agency.

      (2) Each pass-through entity shall - 
        (A) provide such subrecipient the program names (and any
      identifying numbers) from which such assistance is derived, and
      the Federal requirements which govern the use of such awards and
      the requirements of this chapter;
        (B) monitor the subrecipient's use of Federal awards through
      site visits, limited scope audits, or other means;
        (C) review the audit of a subrecipient as necessary to
      determine whether prompt and appropriate corrective action has
      been taken with respect to audit findings, as defined by the
      Director, pertaining to Federal awards provided to the
      subrecipient by the pass-through entity; and
        (D) require each of its subrecipients of Federal awards to
      permit, as a condition of receiving Federal awards, the
      independent auditor of the pass-through entity to have such
      access to the subrecipient's records and financial statements as
      may be necessary for the pass-through entity to comply with this
      chapter.

      (g)(1) The auditor shall report on the results of any audit
    conducted pursuant to this section, in accordance with guidance
    issued by the Director.
      (2) When reporting on any single audit, the auditor shall include
    a summary of the auditor's results regarding the non-Federal
    entity's financial statements, internal controls, and compliance
    with laws and regulations.
      (h) The non-Federal entity shall transmit the reporting package,
    which shall include the non-Federal entity's financial statements,
    schedule of expenditures of Federal awards, corrective action plan
    defined under subsection (i), and auditor's reports developed
    pursuant to this section, to a Federal clearinghouse designated by
    the Director, and make it available for public inspection within
    the earlier of - 
        (1) 30 days after receipt of the auditor's report; or
        (2)(A) for a transition period of at least 2 years after the
      effective date of the Single Audit Act Amendments of 1996, as
      established by the Director, 13 months after the end of the
      period audited; or
        (B) for fiscal years beginning after the period specified in
      subparagraph (A), 9 months after the end of the period audited,
      or within a longer timeframe authorized by the Federal agency,
      determined under criteria issued under section 7504, when the 9-
      month timeframe would place an undue burden on the non-Federal
      entity.

      (i) If an audit conducted pursuant to this section discloses any
    audit findings, as defined by the Director, including material
    noncompliance with individual compliance requirements for a major
    program by, or reportable conditions in the internal controls of,
    the non-Federal entity with respect to the matters described in
    subsection (e), the non-Federal entity shall submit to Federal
    officials designated by the Director, a plan for corrective action
    to eliminate such audit findings or reportable conditions or a
    statement describing the reasons that corrective action is not
    necessary. Such plan shall be consistent with the audit resolution
    standard promulgated by the Comptroller General (as part of the
    standards for internal controls in the Federal Government) pursuant
    to section 3512(c).
      (j) The Director may authorize pilot projects to test alternative
    methods of achieving the purposes of this chapter. Such pilot
    projects may begin only after consultation with the Chair and
    Ranking Minority Member of the Committee on Governmental Affairs of
    the Senate and the Chair and Ranking Minority Member of the
    Committee on Government Reform and Oversight of the House of
    Representatives.

-SOURCE-
    (Added Pub. L. 98-502, Sec. 2(a), Oct. 19, 1984, 98 Stat. 2329;
    amended Pub. L. 103-272, Sec. 4(f)(1)(W), July 5, 1994, 108 Stat.
    1363; Pub. L. 104-156, Sec. 2, July 5, 1996, 110 Stat. 1399.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The effective date of the Single Audit Act Amendments of 1996,
    referred to in subsec. (h)(2)(A), is the effective date of Pub. L.
    104-156, which is classified generally to this chapter. See section
    7507 of this title.

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-156 reenacted section catchline without change
    and amended text generally, substituting present provisions for
    similar provisions relating to audit requirements and exemptions
    from such requirements for State and local governments receiving
    Federal financial assistance of $100,000 or more in any fiscal year
    and requiring audits to be conducted annually in most instances, to
    cover entirety of government operations, for reports to be made on
    audits in specified time period, and for appropriate corrective
    action plans to be submitted to Federal officials for any material
    State or local noncompliance with Federal laws and regulations.
      1994 - Subsec. (b)(2). Pub. L. 103-272, Sec. 4(f)(1)(W),
    substituted "October 19, 1984" for "the date of enactment of this
    chapter" in subpar. (A) and for "such date" in subpar. (B).
      Subsec. (d)(5), (6). Pub. L. 103-272, Sec. 4(f)(1)(W)(iii),
    redesignated par. (6) as (5) and struck out former par. (5) which
    read as follows: "Each State or local government which, in any
    fiscal year of such government, receives directly from the
    Department of the Treasury a total of $25,000 or more under chapter
    67 of this title (relating to general revenue sharing) and which is
    required to conduct an audit pursuant to this chapter for such
    fiscal year shall not have the option provided by paragraph (1)(A)
    for such fiscal year."
      Subsec. (g). Pub. L. 103-272, Sec. 4(f)(1)(W)(iv), substituted
    "section 3512(c)" for "section 3512(b)".

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Governmental Affairs of Senate changed to Committee
    on Homeland Security and Governmental Affairs of Senate, effective
    Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth
    Congress, Oct. 9, 2004.
      Committee on Government Reform and Oversight of House of
    Representatives changed to Committee on Government Reform of House
    of Representatives by House Resolution No. 5, One Hundred Sixth
    Congress, Jan. 6, 1999.

-End-

-CITE-
    31 USC Sec. 7503                                            01/03/2007

-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION
    CHAPTER 75 - REQUIREMENTS FOR SINGLE AUDITS

-HEAD-
    Sec. 7503. Relation to other audit requirements

-STATUTE-
      (a) An audit conducted in accordance with this chapter shall be
    in lieu of any financial audit of Federal awards which a non-
    Federal entity is required to undergo under any other Federal law
    or regulation. To the extent that such audit provides a Federal
    agency with the information it requires to carry out its
    responsibilities under Federal law or regulation, a Federal agency
    shall rely upon and use that information.
      (b) Notwithstanding subsection (a), a Federal agency may conduct
    or arrange for additional audits which are necessary to carry out
    its responsibilities under Federal law or regulation. The
    provisions of this chapter do not authorize any non-Federal entity
    (or subrecipient thereof) to constrain, in any manner, such agency
    from carrying out or arranging for such additional audits, except
    that the Federal agency shall plan such audits to not be
    duplicative of other audits of Federal awards.
      (c) The provisions of this chapter do not limit the authority of
    Federal agencies to conduct, or arrange for the conduct of, audits
    and evaluations of Federal awards, nor limit the authority of any
    Federal agency Inspector General or other Federal official.
      (d) Subsection (a) shall apply to a non-Federal entity which
    undergoes an audit in accordance with this chapter even though it
    is not required by section 7502(a) to have such an audit.
      (e) A Federal agency that provides Federal awards and conducts or
    arranges for audits of non-Federal entities receiving such awards
    that are in addition to the audits of non-Federal entities
    conducted pursuant to this chapter shall, consistent with other
    applicable law, arrange for funding the full cost of such
    additional audits. Any such additional audits shall be coordinated
    with the Federal agency determined under criteria issued under
    section 7504 to preclude duplication of the audits conducted
    pursuant to this chapter or other additional audits.
      (f) Upon request by a Federal agency or the Comptroller General,
    any independent auditor conducting an audit pursuant to this
    chapter shall make the auditor's working papers available to the
    Federal agency or the Comptroller General as part of a quality
    review, to resolve audit findings, or to carry out oversight
    responsibilities consistent with the purposes of this chapter. Such
    access to auditor's working papers shall include the right to
    obtain copies.

-SOURCE-
    (Added Pub. L. 98-502, Sec. 2(a), Oct. 19, 1984, 98 Stat. 2332;
    amended Pub. L. 103-272, Sec. 4(f)(1)(X), July 5, 1994, 108 Stat.
    1363; Pub. L. 104-156, Sec. 2, July 5, 1996, 110 Stat. 1401.)

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-156 reenacted section catchline without change
    and amended text generally, substituting present provisions for
    similar provisions relating to other audit requirements, including
    compliance and evaluation audits of individual Federal assistance
    programs, audits by State and local governmental entities, and
    provisions requiring Federal agencies to arrange for funding cost
    of conducting audits that are in addition to audits required by
    this chapter.
      1994 - Subsec. (a). Pub. L. 103-272 substituted "extent" for
    "extend" in second sentence.

-End-

-CITE-
    31 USC Sec. 7504                                            01/03/2007

-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION
    CHAPTER 75 - REQUIREMENTS FOR SINGLE AUDITS

-HEAD-
    Sec. 7504. Federal agency responsibilities and relations with non-
      Federal entities

-STATUTE-
      (a) Each Federal agency shall, in accordance with guidance issued
    by the Director under section 7505, with regard to Federal awards
    provided by the agency - 
        (1) monitor non-Federal entity use of Federal awards, and
        (2) assess the quality of audits conducted under this chapter
      for audits of entities for which the agency is the single Federal
      agency determined under subsection (b).

      (b) Each non-Federal entity shall have a single Federal agency,
    determined in accordance with criteria established by the Director,
    to provide the non-Federal entity with technical assistance and
    assist with implementation of this chapter.
      (c) The Director shall designate a Federal clearinghouse to - 
        (1) receive copies of all reporting packages developed in
      accordance with this chapter;
        (2) identify recipients that expend $300,000 or more in Federal
      awards or such other amount specified by the Director under
      section 7502(a)(3) during the recipient's fiscal year but did not
      undergo an audit in accordance with this chapter; and
        (3) perform analyses to assist the Director in carrying out
      responsibilities under this chapter.

-SOURCE-
    (Added Pub. L. 98-502, Sec. 2(a), Oct. 19, 1984, 98 Stat. 2333;
    amended Pub. L. 104-156, Sec. 2, July 5, 1996, 110 Stat. 1402.)

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-156 substituted "Federal agency
    responsibilities and relations with non-Federal entities" for
    "Cognizant agency responsibilities" in section catchline and
    amended text generally. Prior to amendment, text read as follows:
      "(a) The Director shall designate cognizant agencies for audits
    conducted pursuant to this chapter.
      "(b) A cognizant agency shall - 
        "(1) ensure that audits are made in a timely manner and in
      accordance with the requirements of this chapter;
        "(2) ensure that the audit reports and corrective action plans
      made pursuant to section 7502 of this title are transmitted to
      the appropriate Federal officials; and
        "(3)(A) coordinate, to the extent practicable, audits done by
      or under contract with Federal agencies that are in addition to
      the audits conducted pursuant to this chapter; and (B) ensure
      that such additional audits build upon the audits conducted
      pursuant to this chapter."

-End-

-CITE-
    31 USC Sec. 7505                                            01/03/2007

-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION
    CHAPTER 75 - REQUIREMENTS FOR SINGLE AUDITS

-HEAD-
    Sec. 7505. Regulations

-STATUTE-
      (a) The Director, after consultation with the Comptroller
    General, and appropriate officials from Federal, State, and local
    governments and nonprofit organizations shall prescribe guidance to
    implement this chapter. Each Federal agency shall promulgate such
    amendments to its regulations as may be necessary to conform such
    regulations to the requirements of this chapter and of such
    guidance.
      (b)(1) The guidance prescribed pursuant to subsection (a) shall
    include criteria for determining the appropriate charges to Federal
    awards for the cost of audits. Such criteria shall prohibit a non-
    Federal entity from charging to any Federal awards - 
        (A) the cost of any audit which is - 
          (i) not conducted in accordance with this chapter; or
          (ii) conducted in accordance with this chapter when
        expenditures of Federal awards are less than amounts cited in
        section 7502(a)(1)(A) or specified by the Director under
        section 7502(a)(3), except that the Director may allow the cost
        of limited scope audits to monitor subrecipients in accordance
        with section 7502(f)(2)(B); and

        (B) more than a reasonably proportionate share of the cost of
      any such audit that is conducted in accordance with this chapter.

      (2) The criteria prescribed pursuant to paragraph (1) shall not,
    in the absence of documentation demonstrating a higher actual cost,
    permit the percentage of the cost of audits performed pursuant to
    this chapter charged to Federal awards, to exceed the ratio of
    total Federal awards expended by such non-Federal entity during the
    applicable fiscal year or years, to such non-Federal entity's total
    expenditures during such fiscal year or years.
      (c) Such guidance shall include such provisions as may be
    necessary to ensure that small business concerns, qualified HUBZone
    small business concerns, and business concerns owned and controlled
    by socially and economically disadvantaged individuals will have
    the opportunity to participate in the performance of contracts
    awarded to fulfill the audit requirements of this chapter.

-SOURCE-
    (Added Pub. L. 98-502, Sec. 2(a), Oct. 19, 1984, 98 Stat. 2333;
    amended Pub. L. 104-156, Sec. 2, July 5, 1996, 110 Stat. 1403; Pub.
    L. 105-135, title VI, Sec. 604(e)(3), Dec. 2, 1997, 111 Stat.
    2634.)

-MISC1-
                                AMENDMENTS                            
      1997 - Subsec. (c). Pub. L. 105-135 substituted "small business
    concerns, qualified HUBZone small business concerns, and" for
    "small business concerns and".
      1996 - Pub. L. 104-156 reenacted section catchline without change
    and amended text generally, substituting present provisions for
    similar provisions relating to regulations, including
    implementation guidelines for regulations, criteria for determining
    appropriate charges to programs of Federal financial assistance for
    cost of audits, and guidelines to ensure that small business
    concerns and business concerns owned and controlled by socially and
    economically disadvantaged individuals have opportunity to
    participate in contracts awarded to fulfill audit requirements of
    this chapter.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-135 effective Oct. 1, 1997, see section
    3 of Pub. L. 105-135, set out as a note under section 631 of Title
    15, Commerce and Trade.

    GUIDELINES FOR ACCEPTANCE OF AUDITS BY STATE AND LOCAL GOVERNMENTS
                       RECEIVING FEDERAL ASSISTANCE
      Pub. L. 104-201, div. A, title VIII, Sec. 808(c), Sept. 23, 1996,
    110 Stat. 2607, provided that: "The Director of the Office of
    Management and Budget shall issue guidelines to ensure that an
    audit of indirect costs performed by the Federal Government is
    accepted by State and local governments that receive Federal funds
    under contracts, grants, or other Federal assistance programs."

-End-

-CITE-
    31 USC Sec. 7506                                            01/03/2007

-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION
    CHAPTER 75 - REQUIREMENTS FOR SINGLE AUDITS

-HEAD-
    Sec. 7506. Monitoring responsibilities of the Comptroller General

-STATUTE-
      (a) The Comptroller General shall review provisions requiring
    financial audits of non-Federal entities that receive Federal
    awards that are contained in bills and resolutions reported by the
    committees of the Senate and the House of Representatives.
      (b) If the Comptroller General determines that a bill or
    resolution contains provisions that are inconsistent with the
    requirements of this chapter, the Comptroller General shall, at the
    earliest practicable date, notify in writing - 
        (1) the committee that reported such bill or resolution; and
        (2)(A) the Committee on Governmental Affairs of the Senate (in
      the case of a bill or resolution reported by a committee of the
      Senate); or
        (B) the Committee on Government Reform and Oversight of the
      House of Representatives (in the case of a bill or resolution
      reported by a committee of the House of Representatives).

-SOURCE-
    (Added Pub. L. 98-502, Sec. 2(a), Oct. 19, 1984, 98 Stat. 2333;
    amended Pub. L. 104-156, Sec. 2, July 5, 1996, 110 Stat. 1403.)

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-156 reenacted section catchline without change
    and amended text generally. Prior to amendment, text read as
    follows: "The Comptroller General shall review provisions requiring
    financial or financial and compliance audits of recipients of
    Federal assistance that are contained in bills and resolutions
    reported by the committees of the Senate and the House of
    Representatives. If the Comptroller General determines that a bill
    or resolution contains provisions that are inconsistent with the
    requirements of this chapter, the Comptroller General shall, at the
    earliest practicable date, notify in writing - 
        "(1) the committee that reported such bill or resolution; and
        "(2)(A) the Committee on Governmental Affairs of the Senate (in
      the case of a bill or resolution reported by a committee of the
      Senate); or
        "(B) the Committee on Government Operations of the House of
      Representatives (in the case of a bill or resolution reported by
      a committee of the House of Representatives)."

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Governmental Affairs of Senate changed to Committee
    on Homeland Security and Governmental Affairs of Senate, effective
    Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth
    Congress, Oct. 9, 2004.
      Committee on Government Reform and Oversight of House of
    Representatives changed to Committee on Government Reform of House
    of Representatives by House Resolution No. 5, One Hundred Sixth
    Congress, Jan. 6, 1999.

-End-

-CITE-
    31 USC Sec. 7507                                            01/03/2007

-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION
    CHAPTER 75 - REQUIREMENTS FOR SINGLE AUDITS

-HEAD-
    Sec. 7507. Effective date

-STATUTE-
      This chapter shall apply to any non-Federal entity with respect
    to any of its fiscal years which begin after June 30, 1996.

-SOURCE-
    (Added Pub. L. 98-502, Sec. 2(a), Oct. 19, 1984, 98 Stat. 2334;
    amended Pub. L. 104-156, Sec. 2, July 5, 1996, 110 Stat. 1404.)

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-156 struck out "; report" after "Effective
    date" in section catchline and amended text generally. Prior to
    amendment, text read as follows:
      "(a) This chapter shall apply to any State or local government
    with respect to any of its fiscal years which begin after December
    31, 1984.
      "(b) The Director, on or before May 1, 1987, and annually
    thereafter, shall submit to each House of Congress a report on
    operations under this chapter. Each such report shall specifically
    identify each Federal agency or State or local government which is
    failing to comply with this chapter."

-End-