(e) NOTIFICATION.—If the Director receives credible 
information of a gross violation of internationally recog-
nized human rights by a covered recipient or a sub-
recipient of a covered recipient in connection with an 
award provided by the Service, then the Director shall, in 
consultation with the diplomatic or consular post of the 
United States for the applicable country— 
(1) immediately notify the relevant covered re-
cipient and require that the covered recipient submit 
a report under subsection (d)(2) not later than 60 
days after such notification; 
(2) immediately notify the government of the 
applicable country if the Director determines such 
notification is appropriate; and 
(3) to the maximum extent practicable, assist 
such government in taking effective measures to 
bring the responsible members of the unit of a for-
eign security force to justice. 
(f) REVIEW OF ALLEGATIONS.— 
(1) REFERRAL.—Unless the covered recipient 
submits information showing, to the satisfaction of 
the Director, that the alleged violation has been re-
solved, abated, or did not occur, the Director shall, 
not later than 30 days after receiving information 
relating to an allegation under subsection (d)(5),
refer such alleged violation to the Inspector General 
and the diplomatic or consular post of the United 
States for the country at issue, including the report 
provided by the covered recipient under subsection 
(d)(2), and notify the covered recipient of such refer-
ral. 
(2) INVESTIGATION.— 
(A) PRELIMINARY DETERMINATION.—The 
Inspector General shall, not later than 30 days 
after a referral of an alleged violation under 
paragraph (1), determine whether the referral 
requires an investigation and may make a rec-
ommendation to the Director as to whether the 
award should be suspended during the course of 
the investigation. 
(B) SUSPENSION OF AWARD.— 
(i) IN
GENERAL.—Upon receiving a 
recommendation from the Inspector Gen-
eral under subparagraph (A), the Director 
may suspend the award until a final dis-
position of such award under subsection 
(g). 
(ii) APPEAL.—A covered recipient 
may appeal a suspension under subsection
(g) pursuant to subpart G of part 4, Code 
of Federal Regulations. 
(C) DETERMINATION THAT NO INVESTIGA-
TION IS REQUIRED.—If the Inspector General 
determines under subparagraph (A) that the re-
ferral does not require further investigation, the 
Inspector General shall document the rationale 
for such determination and shall notify the rel-
evant Committees of Congress. 
(D) DETERMINATION THAT AN INVESTIGA-
TION IS REQUIRED.—If the Inspector General 
determines that an investigation is required 
under subparagraph (A), the Inspector General 
shall complete such investigation not later than 
180 days after a referral under paragraph (1) 
and prepare a report on such investigation, 
which shall include— 
(i) the Inspector General’s conclusions 
regarding whether or not any allegations 
that the covered recipient or any sub-
recipient of the covered recipient has com-
mitted a gross violation of internationally 
recognized human rights in connection 
with the award are substantiated and re-
garding the effectiveness of the actions of
the recipient and any subrecipient in pre-
venting and responding to such violations; 
(ii) recommendations based on the 
findings of such investigation; and 
(iii) a recommendation on whether the 
award should be terminated. 
(E) SUBMISSION
OF
REPORT.—The In-
spector General shall provide the report re-
quired by subparagraph (C) to the Director and 
the diplomatic or consular post of the United 
States for the country at issue. 
(g) ADDITIONAL PROCEDURES.—The following re-
quirements apply to any administrative action to enforce 
the requirements of this section with respect to a covered 
recipient: 
(1) WRITTEN RESPONSE.—A covered recipient 
subject to administrative action under this sub-
section may submit, not later than 30 days after the 
date of such administrative action, a written re-
sponse to contest such action. 
(2) MEETING.—The Director, or a representa-
tive, shall meet with a covered recipient that has 
filed a response under subparagraph (1) and re-
quests such a meeting not later than 45 days after 
the date of such administrative action to allow such
covered recipient an opportunity to present informa-
tion, including witness testimony, for inclusion in the 
administrative record. 
(3) TIMELINE FOR DETERMINATION.—The Di-
rector shall, not later than 45 days after conclusion 
of any procedures required by paragraphs (1) and 
(2), make a determination in writing as to whether 
to continue, modify, or terminate an administrative 
action under this subsection. 
(4) RECONSIDERATION.—A covered recipient 
that was the subject of an administrative action 
under this subsection may request a reconsideration 
of such administration action based upon— 
(A) newly discovered evidence; 
(B) a change in ownership or management; 
or 
(C) such other factors as the Director de-
termines appropriate. 
(h) FINANCIAL
AND
PROGRAMMATIC
AUDIT
OF 
GRANTS.— 
(1) IN GENERAL.—The Director shall perform 
and require compliance with periodic financial and 
programmatic audits of covered recipients receiving 
financial assistance from the Director. The Director 
shall prioritize audits of programs—
(A) with new land-use restrictions; 
(B) in fragile or conflict-affected states; or 
(C) in regions that otherwise have an ele-
vated risk of gross violations of internationally 
recognized human rights. 
(2) SPECIFIC AWARD CONDITION AUDITS.—The 
Director shall carry out regular audits of any cov-
ered recipient that is subject to specific award condi-
tions under subsection (i). 
(i) REMEDIES FOR NONCOMPLIANCE.—Each agree-
ment for financial assistance made by the Director with 
a covered recipient is subject to the provisions of subpart 
D of part 200 of chapter II of subtitle A of title 2 of 
the Code of Federal Regulations. The Director may con-
sider, in determining an appropriate remedy of a violation 
of a grant requirement under such provision, whether the 
covered recipient was in compliance with subsection 
(a)(1)(D) at the time of such violation. 
(j) ANNUAL REPORT.—The Director, in consultation 
with the Secretary of State, shall, not later than 1 year 
after the date of enactment of this Act and annually there-
after, submit to the appropriate committees of Congress 
a report summarizing, with respect to the previous cal-
endar year—