Source: https://www.gpo.gov/fdsys/pkg/USCODE-2010-title31/html/USCODE-2010-title31-subtitleV-chap75.htm
Timestamp: 2016-07-25 22:56:52
Document Index: 799369506

Matched Legal Cases: ['§2', '§1', '§1', '§2', '§7502', '§2', '§4', '§2', '§4', '§4', '§4', '§7503', '§2', '§4', '§2', '§7504', '§2', '§2', '§2', '§2', '§604', '§808', '§7506', '§2', '§2', '§7507', '§2', '§2']

CHAPTER 75—REQUIREMENTS FOR SINGLE AUDITS
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.
1996—Pub. L. 104–156, §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”.
(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;
(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:
(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;
(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.
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’.”
Pub. L. 98–502, §1(a), Oct. 19, 1984, 98 Stat. 2327, provided that: “This Act [enacting this chapter and provisions set out as notes under this section] may be cited as the ‘Single Audit Act of 1984’.”
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.”
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—
Pub. L. 98–502, §1(b), Oct. 19, 1984, 98 Stat. 2327, provided that: “It is the purpose of this Act [enacting this chapter and provisions set out as notes under this section]—
Pub. L. 98–502, §2(b), Oct. 19, 1984, 98 Stat. 2334, provided that: “The provisions of this Act [enacting this chapter and provisions set out as notes under this section] 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.”
§7502. Audit requirements; exemptions
(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—
(d) Each single audit conducted pursuant to subsection (a) for any fiscal year shall—
(e) The auditor shall—
(3) with respect to internal controls pertaining to the compliance requirements for each major program—
(f)(1) Each Federal agency which provides Federal awards to a recipient shall—
(2) Each pass-through entity shall—
(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—
(Added Pub. L. 98–502, §2(a), Oct. 19, 1984, 98 Stat. 2329; amended Pub. L. 103–272, §4(f)(1)(W), July 5, 1994, 108 Stat. 1363; Pub. L. 104–156, §2, July 5, 1996, 110 Stat. 1399.)
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, §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, §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, §4(f)(1)(W)(iv), substituted “section 3512(c)” for “section 3512(b)”.
§7503. Relation to other audit requirements
(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.
(Added Pub. L. 98–502, §2(a), Oct. 19, 1984, 98 Stat. 2332; amended Pub. L. 103–272, §4(f)(1)(X), July 5, 1994, 108 Stat. 1363; Pub. L. 104–156, §2, July 5, 1996, 110 Stat. 1401.)
§7504. Federal agency responsibilities and relations with non-Federal entities
(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.
(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.
(Added Pub. L. 98–502, §2(a), Oct. 19, 1984, 98 Stat. 2333; amended Pub. L. 104–156, §2, July 5, 1996, 110 Stat. 1402.)
(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—
(Added Pub. L. 98–502, §2(a), Oct. 19, 1984, 98 Stat. 2333; amended Pub. L. 104–156, §2, July 5, 1996, 110 Stat. 1403; Pub. L. 105–135, title VI, §604(e)(3), Dec. 2, 1997, 111 Stat. 2634.)
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.
Pub. L. 104–201, div. A, title VIII, §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.”
§7506. Monitoring responsibilities of the Comptroller General
(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).
(Added Pub. L. 98–502, §2(a), Oct. 19, 1984, 98 Stat. 2333; amended Pub. L. 104–156, §2, July 5, 1996, 110 Stat. 1403.)
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—
§7507. Effective date
This chapter shall apply to any non-Federal entity with respect to any of its fiscal years which begin after June 30, 1996.
(Added Pub. L. 98–502, §2(a), Oct. 19, 1984, 98 Stat. 2334; amended Pub. L. 104–156, §2, July 5, 1996, 110 Stat. 1404.)
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.”