Page 17 TITLE 29—LABOR § 49i

priated for fiscal 1983 to plan for orderly implementation of amendment, see section 181(i) of Pub. L. 97–300,

which is classified to section 1591(i) of this title.

EFFECTIVE DATE OF 1954 AMENDMENT

Amendment by act Aug. 3, 1954, effective July 1, 1954,

see section 8 of act Aug. 3, 1954, set out as a note under

section 49b of this title.

TRANSFER OF FUNCTIONS

For history of transfer of functions of United States

Employment Service to Secretary of Labor, see note

set out under section 49 of this title.

CROSS REFERENCES

Transfer of Federal property to States, see section

49c–1 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 49c–1, 1531 of

this title; title 39 section 3202.

§ 49h. Fiscal controls and accounting procedures

(a) Audit

(1) Each State shall establish such fiscal control and fund accounting procedures as may be

necessary to assure the proper disbursal of, and

accounting for, Federal funds paid to the recipient under this chapter. The Director of the Office of Management and Budget, in consultation

with the Comptroller General of the United

States, shall establish guidance for the proper

performance of audits. Such guidance shall include a review of fiscal controls and fund accounting procedures established by States under

this section.

(2) At least once every two years, the State

shall prepare or have prepared an independent

financial and compliance audit of funds received

under this chapter.

(3) Each audit shall be conducted in accordance with applicable auditing standards set

forth in the financial and compliance element of

the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions

issued by the Comptroller General of the United

States.

(b) Evaluations by Comptroller General

(1) The Comptroller General of the United

States shall evaluate the expenditures by States

of funds received under this chapter in order to

assure that expenditures are consistent with the

provisions of this chapter and to determine the

effectiveness of the State in accomplishing the

purposes of this chapter. The Comptroller General shall conduct evaluations whenever determined necessary and shall periodically report to

the Congress on the findings of such evaluations.

(2) Nothing in this chapter shall be deemed to

relieve the Inspector General of the Department

of Labor of his responsibilities under the Inspector General Act.

(3) For the purpose of evaluating and reviewing programs established or provided for by this

chapter, the Comptroller General shall have access to and the right to copy any books, accounts, records, correspondence, or other documents pertinent to such programs that are in

the possession, custody, or control of the State.

(c) Repayment of funds by State

Each State shall repay to the United States

amounts found not to have been expended in accordance with this chapter. No such finding

shall be made except after notice and opportunity for a fair hearing. The Secretary may offset such amounts against any other amount to

which the recipient is or may be entitled under

this chapter.

(June 6, 1933, ch. 49, §9, 48 Stat. 116; Pub. L.

97–300, title VI, §601(e), formerly title V, §501(e),

Oct. 18, 1982, 96 Stat. 1396; renumbered title VI,

§601(e), Pub. L. 100–628, title VII, §712(a)(1), (2),

Nov. 7, 1988, 102 Stat. 3248.)

REFERENCES IN TEXT

The Inspector General Act, referred to in subsec.

(b)(2), probably means the Inspector General Act of

1978, Pub. L. 95–452, Oct. 12, 1978, 92 Stat. 1101, as

amended, which is set out in the Appendix to Title 5,

Government Organization and Employees.

AMENDMENTS

1982—Pub. L. 97–300 amended section generally, substituting provisions requiring the States to prepare accounting procedures under Federal guidance, to submit

to biennial audit with evaluation of expenditures by

the Comptroller General and providing for repayment

of improperly expended funds, for provisions requiring

reports on expenditures to the Secretary under his regulations and giving him authority to revoke State certification.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97–300 effective Oct. 1, 1983,

but with Secretary authorized to use funds appropriated for fiscal 1983 to plan for orderly implementation of amendment, see section 181(i) of Pub. L. 97–300,

which is classified to section 1591(i) of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 39 section 3202.

§ 49i. Recordkeeping and accountability

(a) Records

Each State shall keep records that are sufficient to permit the preparation of reports required by this chapter and to permit the tracing

of funds to a level of expenditure adequate to insure that the funds have not been spent unlawfully.

(b) Investigations

(1) The Secretary may investigate such facts,

conditions, practices, or other matters which

the Secretary finds necessary to determine

whether any State receiving funds under this

chapter or any official of such State has violated any provision of this chapter.

(2)(A) In order to evaluate compliance with

the provisions of this chapter, the Secretary

shall conduct investigations of the use of funds

received by States under this chapter.

(B) In order to insure compliance with the provisions of this chapter, the Comptroller General

of the United States may conduct investigations

of the use of funds received under this chapter

by any State.

(3) In conducting any investigation under this

chapter, the Secretary or the Comptroller General of the United States may not request new

compilation of information not readily available

to such State.

(c) Reports

Each State receiving funds under this chapter

shall—