§ 7501. — Definitions.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC7501]
TITLE 31--MONEY AND FINANCE
SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION
CHAPTER 75--REQUIREMENTS FOR SINGLE AUDITS
Sec. 7501. Definitions
(a) As used in this chapter, the term--
(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;
(8) ``independent auditor'' means--
(A) an external State or local government auditor who meets
the independence standards included in generally accepted
government auditing standards; or
(B) a public accountant who meets such independence
standards;
(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:
(A) Effectiveness and efficiency of operations.\1\
---------------------------------------------------------------------------
\1\ So in original.
---------------------------------------------------------------------------
(B) Reliability of financial reporting.\1\
(C) Compliance with applicable laws and regulations;
(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;
(14) ``nonprofit organization'' means any corporation, trust,
association, cooperative, or other organization that--
(A) is operated primarily for scientific, educational,
service, charitable, or similar purposes in the public interest;
(B) is not organized primarily for profit; and
(C) uses net proceeds to maintain, improve, or expand the
operations of the 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.
(b) In prescribing risk-based program selection criteria for major
programs, the Director shall not require more programs to be identified
as major for a particular non-Federal entity, except as prescribed under
subsection (c) or as provided under subsection (d), than would be
identified if the major programs were defined as any program for which
total expenditures of Federal awards by the non-Federal entity during
the applicable year exceed--
(1) the larger of $30,000,000 or 0.15 percent of the non-Federal
entity's total Federal expenditures, in the case of a non-Federal
entity for which such total expenditures for all programs exceed
$10,000,000,000;
(2) the larger of $3,000,000, or 0.30 percent of the non-Federal
entity's total Federal expenditures, in the case of a non-Federal
entity for which such total expenditures for all programs exceed
$100,000,000 but are less than or equal to $10,000,000,000; or
(3) the larger of $300,000, or 3 percent of such total Federal
expenditures for all programs, in the case of a non-Federal entity
for which such total expenditures for all programs equal or exceed
$300,000 but are less than or equal to $100,000,000.
(c) When the total expenditures of a non-Federal entity's major
programs are less than 50 percent of the non-Federal entity's total
expenditures of all Federal awards (or such lower percentage as
specified by the Director), the auditor shall select and test additional
programs as major programs as necessary to achieve audit coverage of at
least 50 percent of Federal expenditures by the non-Federal entity (or
such lower percentage as specified by the Director), in accordance with
guidance issued by the Director.
(d) Loan or loan guarantee programs, as specified by the Director,
shall not be subject to the application of subsection (b).
(Added Pub. L. 98-502, Sec. 2(a), Oct. 19, 1984, 98 Stat. 2327; amended
Pub. L. 104-156, Sec. 2, July 5, 1996, 110 Stat. 1396.)
References in Text
The Alaskan Native Claims Settlement Act, referred to in subsec.
(a)(9), probably means the Alaska Native Claims Settlement Act, Pub. L.
92-203, Dec. 18, 1971, 85 Stat. 688, as amended, which is classified
generally to chapter 33 (Sec. 1601 et seq.) of Title 43, Public Lands.
For complete classification of this Act to the Code, see Short Title
note set out under section 1601 of Title 43 and Tables.
Amendments
1996--Pub. L. 104-156 reenacted section catchline without change and
amended text generally, substituting present provisions for similar
provisions defining terms used in this chapter.
Short Title of 1996 Amendment
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'.''
Short Title
Section 1(a) of Pub. L. 98-502 provided that: ``This Act [enacting
this chapter] may be cited as the `Single Audit Act of 1984'.''
Termination of Trust Territory of the Pacific Islands
For termination of Trust Territory of the Pacific Islands, see note
set out preceding section 1681 of Title 48, Territories and Insular
Possessions.
Transitional Application
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.''
Congressional Statement of Purpose
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--
``(1) promote sound financial management, including effective
internal controls, with respect to Federal awards administered by
non-Federal entities;
``(2) establish uniform requirements for audits of Federal
awards administered by non-Federal entities;
``(3) promote the efficient and effective use of audit
resources;
``(4) reduce burdens on State and local governments, Indian
tribes, and nonprofit organizations; and
``(5) ensure that Federal departments and agencies, to the
maximum extent practicable, rely upon and use audit work done
pursuant to chapter 75 of title 31, United States Code (as amended
by this Act).''
Section 1(b) of Pub. L. 98-502 provided that: ``It is the purpose of
this Act [enacting this chapter]--
``(1) to improve the financial management of State and local
governments with respect to Federal financial assistance programs;
``(2) to establish uniform requirements for audits of Federal
financial assistance provided to State and local governments;
``(3) to promote the efficient and effective use of audit
resources; and
``(4) to ensure that Federal departments and agencies, to the
maximum extent practicable, rely upon and use audit work done
pursuant to chapter 75 of title 31, United States Code (as added by
this Act).''
Tennessee Valley Authority Audits Unaffected by Single Audit
Requirements
Section 2(b) of Pub. L. 98-502 provided that: ``The provisions of
this Act [enacting this chapter] 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.''
Section Referred to in Other Sections
This section is referred to in title 49 section 47107.
