Sec. 3. Audit and accountability of grantees
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In this section— the term covered grant program means— grants awarded under section 115 of the Second Chance Act of 2007 ( 42 U.S.C. 17511 ); grants awarded under section 201 of the Second Chance Act of 2007 ( 42 U.S.C. 17521 ); and grants awarded under section 211 of the Second Chance Act of 2007 ( 42 U.S.C. 17431 ); the term covered grantee means a recipient of a grant from a covered grant program; and the term unresolved audit finding means an audit report finding in a final audit report of the Inspector General of the Department of Justice that a covered grantee has used grant funds awarded to that grantee under a covered grant program for an unauthorized expenditure or otherwise unallowable cost that is not closed or resolved during the 12-month period beginning on the date on which the final audit report is issued.
Beginning in fiscal year 2016, and each fiscal year thereafter, the Inspector General of the Department of Justice shall conduct audits of covered grantees to prevent waste, fraud, and abuse of such funds. The Inspector General shall determine the appropriate number of covered grantees to be audited each year. A grantee that is found to have an unresolved audit finding under an audit conducted under subsection
(b)may not receive grant funds under a covered grant program in the fiscal year following the fiscal year to which the finding relates. If a covered grantee is awarded funds under the covered grant program from which it received a grant award during the 2-fiscal year period during which the covered grantee is ineligible for an allocation of grant funds as a result of subsection (b), the Attorney General shall— deposit an amount equal to the amount of the grant funds that were improperly awarded to the covered grantee into the General Fund of the Treasury; and seek to recoup the costs of the repayment to the Fund from the covered grantee that was erroneously awarded grant funds. The Attorney General, in awarding grants under a covered grant program shall give priority to eligible entities that during the 2-year period preceding the application for a grant have not been found to have an unresolved audit finding. For purposes of this subsection, the term nonprofit , when used with respect to an organization, means an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and is exempt from taxation under section 501(a) of such Code. A nonprofit organization that holds money in offshore accounts for the purpose of avoiding paying the tax described in section 511(a) of the Internal Revenue Code of 1986, shall not be eligible to receive, directly or indirectly, any funds from a covered grant program. Each nonprofit organization that is a covered grantee shall disclose in its application for such a grant, as a condition of receipt of such a grant, the compensation of its officers, directors, and trustees. Such disclosure shall include a description of the criteria relied upon to determine such compensation. No amounts authorized to be appropriated to the Department of Justice under this Act, or any amendments made by this Act, may be used by the Attorney General, or by any individual or organization awarded discretionary funds through a cooperative agreement under this Act, or any amendments made by this Act, to host or support any expenditure for conferences that uses more than $20,000 in Department funds, unless the Deputy Attorney General or such Assistant Attorney Generals, Directors, or principal deputies as the Deputy Attorney General may designate, provides prior written authorization that the funds may be expended to host a conference. A conference that uses more than $20,000 in such funds, but less than an average of $500 in such funds for each attendee of the conference, shall not be subject to the limitations of this paragraph. Written approval under paragraph
(1)shall include a written estimate of all costs associated with the conference, including the cost of all food and beverages, audiovisual equipment, honoraria for speakers, and any entertainment. The Deputy Attorney General shall submit an annual report to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives on all approved conference expenditures referenced in this paragraph. Amounts made available under a covered grant program may not be used by any covered grantee to— lobby any representative of the Department of Justice regarding the award of grant funding; or lobby any representative of the Federal Government or a State, local, or tribal government regarding the award of grant funding. If the Attorney General determines that a covered grantee has violated paragraph (1), the Attorney General shall— require the covered grantee to repay the grant in full; and prohibit the covered grantee from receiving a grant under the covered grant program from which it received a grant award during at least the 5-year period beginning on the date of such violation.
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U.S. Code
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- 42 USC 17431
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