under section 675C(a) and all activities of the enti-
ty.’’, 
(B) in paragraph (2)(A) by striking ‘‘ex-
cept’’ and all that follows through ‘‘require-
ment’’, and inserting ‘‘(but if an elected official 
chooses not to serve, such official may designate 
a representative to serve as the voting board 
member); and’’, and 
(C) by adding at the end the following: 
‘‘(3) COMPLIANCE
WITH
TAX-EXEMPT
AND 
OTHER
REQUIREMENTS.—The board of a private, 
nonprofit organization shall ensure that the board 
operates and conducts activities under the subgrant 
made under section 679(Ca) that complies with— 
‘‘(A) the requirements for maintaining tax- 
exempt status under section 501(a) of the In-
ternal Revenue Code of 1986 (26 U.S.C. 
501(a)) regarding the governance of charities 
under section 501(c)(3) of the Internal Revenue 
Code of 1986 (26 U.S.C. 501(c)(3)); and 
‘‘(B) applicable requirements of State non-
profit law.’’, and 
(2) in subsection (b)— 
(A) in paragraph (1)— 
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(i) by redesignating subparagraphs 
(A), (B), and (C) as clauses (i), (ii), and 
(iii), respectively, and 
(ii) in paragraph (2) by adding ‘‘Ref-
erences under this subtitle to the board of 
an eligible entity shall apply to such other 
mechanism.’’ at the end, 
(B) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B); respectively, 
(C) 
by 
striking 
‘‘PUBLIC
ORGANIZA-
TIONS.—’’ and inserting,‘‘BOARD OR OTHER 
MECHANISM.—(1)’’, and 
(D) by adding at the end the following: 
‘‘(2) COMPLIANCE WITH STATE REQUIRE-
MENTS AND POLICY.—The board of a public en-
tity shall ensure that the board operates in a 
manner that complies with State requirements 
for open meetings, financial transparency, and 
State open records policy.’’, and 
(3) by adding at the end the following: 
‘‘(c) EXPERTISE.—Each eligible entity shall ensure 
that the members of the board are provided resources, 
which may include contracted services with individuals and 
organizations with expertise in financial management, ac-
counting, and law, to support the work of the board. 
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‘‘(d) BOARD VACANCIES.—To fulfill the requirements 
under this section, an eligible entity shall fill a board va-
cancy not later than 6 months after such vacancy arises. 
In the event that an eligible entity is unable to fill a board 
vacancy in the 6-month period, the entity shall certify to 
the State that it is making a good faith effort to fill the 
vacancy and shall receive one additional 6-month period 
to fill such vacancy. 
‘‘(e) OPERATIONS AND DUTIES OF THE BOARD.— 
The duties of a board described in paragraph (1) or (2) 
of subsection (a) shall include— 
‘‘(1) in the case of a board for a private, non-
profit organization that is an eligible entity, having 
legal and financial responsibility for administering 
and overseeing the eligible entity, including making 
proper use of Federal funds; 
‘‘(2) establishing terms for officers and adopt-
ing a code of ethical conduct, including a conflict of 
interest policy for board members; 
‘‘(3) participating in a comprehensive commu-
nity needs assessment conducted at least once every 
three years, developing and adopting for the cor-
responding eligible entity an agency-wide strategic 
plan, and preparing the community action plan for 
the use of funds under this subtitle; 
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‘‘(4) approving the eligible entity’s operating 
budget; 
‘‘(5) reviewing all major policies such that— 
‘‘(A) for private, nonprofit organizations 
that are eligible entities, a review includes con-
ducting annual performance reviews of the eligi-
ble entity’s chief executive officer (or individual 
holding an equivalent position); and 
‘‘(B) for local public entities that are eligi-
ble entities, a review includes participating in 
annual performance reviews of the eligible enti-
ty’s chief executive officer (or individual holding 
an equivalent position); 
‘‘(6) performing oversight of the eligible entity 
to include— 
‘‘(A) conducting assessments of the eligible 
entity’s progress in carrying out programmatic 
and financial provisions in the community ac-
tion plan; and 
‘‘(B) in the case of any required corrective 
action, reviewing the eligible entity’s plans and 
progress in remedying identified deficiencies; 
and 
‘‘(7) concerning personnel policies and proce-
dures— 
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‘‘(A) in the case of private, nonprofit orga-
nizations that are eligible entities, adopting per-
sonnel policies and procedures, including for 
hiring, annual evaluation, compensation, and 
termination, of the eligible entity’s chief execu-
tive officer (or individual holding a similar posi-
tion); and 
‘‘(B) in the case of local public entities 
that are eligible entities, reviewing personnel 
policies and procedures, including for hiring, 
annual evaluation, compensation, and termi-
nation, of the eligible entity’s chief executive of-
ficer (or individual holding a similar position). 
‘‘(f) CONFLICT OF INTEREST.—In establishing the 
conflict of interest policy described in subsection (e)(2), 
a board shall ensure that such policy— 
‘‘(1) requires a board member to recuse 
themself from any discussion, deliberations, and 
votes relating to any contract or transaction from 
which the following would receive a direct financial 
benefit from the eligible entity: 
‘‘(A) such board member; 
‘‘(B) the immediate family member of such 
board member; or 
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‘‘(C) an organization or a business from 
which such board member, or an immediate 
family of such board member, receives a direct 
financial benefit; 
‘‘(2) prohibits a board member from receiving 
compensation for serving on the board from the eli-
gible entity other than for reasonable expenses, ex-
cept that a board member’s receipt of an economic 
benefit from the eligible entity because such member 
is eligible to receive benefits and services under this 
subtitle shall not be considered to be compensation 
for purposes of this subsection; and 
‘‘(3) ensures all activities funded under this 
subtitle are conducted free of personal or family fa-
voritism.’’. 
SEC. 11. OFFICE OF COMMUNITY SERVICES. 
Section 678(b) of the Community Services Block 
Grant Act (42 U.S.C. 9912(b)) is amended by inserting 
‘‘, acting through the Director,’’ after ‘‘The Secretary’’. 
SEC. 12. TRAINING, TECHNICAL ASSISTANCE, AND OTHER 
ACTIVITIES. 
Section 678A(c) of the Community Services Block 
Grant Act (42 U.S.C. 9913(c)) is amended to read as fol-
lows: 
‘‘(c) DISTRIBUTION REQUIREMENT.— 
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‘‘(1) IN
GENERAL.—The amounts reserved 
under section 674(b)(2)(A) for activities to be car-
ried out under this subsection shall be distributed di-
rectly to eligible entities and other community serv-
ices network organizations for— 
‘‘(A) professional development for key com-
munity services network organization personnel; 
‘‘(B) activities to improve community serv-
ices network organization program quality, fi-
nancial management, compliance, and govern-
ance practices (including practices related to 
performance management information systems); 
‘‘(C) activities that train community serv-
ices network organizations in building and 
using evidence of effectiveness in achieving the 
purposes of this subtitle; and 
‘‘(D) activities to ensure responsiveness to 
identified local needs. 
‘‘(2) ELIGIBLE ENTITIES OR ORGANIZATIONS.— 
Eligible entities and other community services net-
work organizations described in this subsection shall 
include such entities and organizations (and their 
partners, including institutions of higher education), 
with demonstrated expertise in providing training to 
individuals and organizations on methods of effec-
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tively addressing the needs of low-income and work-
ing families and communities.’’. 
SEC. 13. FISCAL CONTROLS, AUDITS, AND WITHHOLDING. 
Section 678D of the Community Services Block 
Grant Act (42 U.S.C. 9916) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) in paragraph (A) by inserting 
‘‘and, notwithstanding the applicability of 
subparagraph (B), issue payment to sub-
recipients on an advance basis.’’ before the 
semicolon at the end, and 
(ii) by amending subparagraph (B) to 
read as follows: 
‘‘(B) SINGLE AUDIT REQUIREMENTS.— 
‘‘(i) IN
GENERAL.—Audits shall be 
conducted under this paragraph in the 
manner and to the extent provided in 
chapter 75 of title 31, United States Code 
(commonly known as the ‘Single Audit Act 
Amendments of 1984’), except in the event 
a serious financial deficiency is identified. 
‘‘(ii) 
SERIOUS
FINANCIAL
DEFI-
CIENCY.—In the event that such a defi-
ciency is identified, the Secretary shall 
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order an audit conducted as described in 
subparagraph (1), or an audit of each of 
the accounts involved, in accordance with 
subparagraph (2).’’, and 
(B) by amending paragraph (3) to read as 
follows: 
‘‘(3) REPAYMENTS.—If the Secretary, after re-
view of the audit, finds that a State has not ex-
pended an amount of funds in accordance with this 
subtitle, the Secretary is authorized to withhold 
funds from the State under this subtitle until the 
State remedies the improperly expended funds for 
the original purpose for which the grant funds were 
intended.’’, and 
(2) in subsection (b)(3) by inserting ‘‘or a com-
plaint of a serious deficiency concerning any State’’ 
after ‘‘any fiscal year’’. 
SEC. 14. ACCOUNTABILITY AND REPORTING REQUIRE-
MENTS. 
Section 678E(b) of the Community Services Block 
Grant Act (42 U.S.C. 9917) is amended— 
(1) in paragraph (3) by striking ‘‘Labor and 
Human Resources’’ and inserting ‘‘Health, Edu-
cation, Labor, and Pensions’’, and 
(2) by striking paragraph (4). 
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SEC. 15. LIMITATIONS ON USE OF FUNDS. 
Section 678F(a)(1) of the Community Services Block 
Grant Act (42 U.S.C. 9918(a)(1)) is amended by striking 
‘‘amounts reserved under section 674(b)(3)’’ and inserting 
‘‘amounts appropriated under section 674(c)’’. 
SEC. 16. DISCRETIONARY AUTHORITY OF THE SECRETARY. 
Section 680 of the Community Services Block Grant 
Act (42 U.S.C. 9921) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) by striking ‘‘funds reserved under 
section 674(b)(3)’’ and inserting ‘‘amounts 
made available to carry out this section’’, 
and 
(ii) by striking ‘‘through (4)’’ and in-
serting ‘‘and (3)’’, and 
(B) by striking subparagraph (4), and 
(2) in subsection (c) by striking ‘‘Labor and 
Human Resources’’ and inserting ‘‘Health, Edu-
cation, Labor, and Pensions’’. 
SEC. 17. COMMUNITY FOOD AND NUTRITION PROGRAMS. 
The Community Services Block Grant Act (42 U.S.C. 
9922) is amended by striking section 681. 
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SEC. 18. NATIONAL OR REGIONAL PROGRAMS DESIGNED 
TO 
PROVIDE 
INSTRUCTIONAL 
ACTIVITIES 
FOR LOW-INCOME YOUTH. 
The Community Services Block Grant Act (42 U.S.C. 
9923) is amended— 
(1) by striking section 682, and 
(2) by redesignating section 683 as section 681. 
Æ 
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