§ 7505. — Regulations.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC7505]
TITLE 31--MONEY AND FINANCE
SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION
CHAPTER 75--REQUIREMENTS FOR SINGLE AUDITS
Sec. 7505. Regulations
(a) The Director, after consultation with the Comptroller General,
and appropriate officials from Federal, State, and local governments and
nonprofit organizations shall prescribe guidance to implement this
chapter. Each Federal agency shall promulgate such amendments to its
regulations as may be necessary to conform such regulations to the
requirements of this chapter and of such guidance.
(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--
(i) not conducted in accordance with this chapter; or
(ii) conducted in accordance with this chapter when
expenditures of Federal awards are less than amounts cited in
section 7502(a)(1)(A) or specified by the Director under section
7502(a)(3), except that the Director may allow the cost of
limited scope audits to monitor subrecipients in accordance with
section 7502(f)(2)(B); and
(B) more than a reasonably proportionate share of the cost of
any such audit that is conducted in accordance with this chapter.
(2) The criteria prescribed pursuant to paragraph (1) shall not, in
the absence of documentation demonstrating a higher actual cost, permit
the percentage of the cost of audits performed pursuant to this chapter
charged to Federal awards, to exceed the ratio of total Federal awards
expended by such non-Federal entity during the applicable fiscal year or
years, to such non-Federal entity's total expenditures during such
fiscal year or years.
(c) Such guidance shall include such provisions as may be necessary
to ensure that small business concerns, qualified HUBZone small business
concerns, and business concerns owned and controlled by socially and
economically disadvantaged individuals will have the opportunity to
participate in the performance of contracts awarded to fulfill the audit
requirements of this chapter.
(Added Pub. L. 98-502, Sec. 2(a), Oct. 19, 1984, 98 Stat. 2333; amended
Pub. L. 104-156, Sec. 2, July 5, 1996, 110 Stat. 1403; Pub. L. 105-135,
title VI, Sec. 604(e)(3), Dec. 2, 1997, 111 Stat. 2634.)
Amendments
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.
Effective Date of 1997 Amendment
Amendment by Pub. L. 105-135 effective Oct. 1, 1997, see section 3
of Pub. L. 105-135, set out as a note under section 631 of Title 15,
Commerce and Trade.
Guidelines for Acceptance of Audits by State and Local Governments
Receiving Federal Assistance
Pub. L. 104-201, div. A, title VIII, Sec. 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.''
Section Referred to in Other Sections
This section is referred to in sections 7502, 7504 of this title;
title 49 section 47107.
