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 subrecipients 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 deficiency In the event that such a deficiency is identified, the Secretary shall 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 review of the audit, finds that a State has not expended 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 complaint of a serious deficiency concerning any State after any fiscal year.