Page:United States Statutes at Large Volume 102 Part 4.djvu/112

 102 STAT. 3082

PUBLIC LAW 100-607—NOV. 4, 1988 monthly payments for eligible individuals provided home and community-based health services under this part in the State exceeds 65 percent of the national average monthly payments determined and published for the fiscal year under paragraph (1).

42 USC 300dd-4.

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"SEC. 2405. REQUIREMENT OF REPORTS AND AUDITS BY STATES. "(a) REPORTS.—

"(1) The Secretary may not make payments under section 2401(a) for a fiscal year unless the State involved agrees to prepare and submit to the Secretary, by not later than January 1 following the fiscal year, an annual report in such form and containing such information as the Secretary determines (after consultation with the States and the Comptroller General of the United States) to be necessary for— "(A) securing a record and a description of the purposes for which payments received by the State pursuant to section 2401(a) were expended and of the recipients of such payments; (B) determining whether the payments were expended in accordance with the purpose of this part; and "(C) determining the percentage of payments received pursuant to section 2401(a) that were expended by the State for administrative expenses during the fiscal year involved. "(2) Each report by a State under paragraph (1) for a fiscal year also shall include— "(A) information on the number and t5rpe of eligible individuals provided home and community-based health services by the State under this part for the fiscal year; "(B) information on the types of home and communitybased health services so provided; "(C) information on the average monthly costs of such services and a comparison of such costs with costs of providing services in hospitals, nursing facilities, and similar institutions; and "(D) such other information as the Secretary may require to provide for an evaluation of the program under this part and its cost-effectiveness. "(b) AUDITS.—

"(1) The Secretary may not make pa3mients under section 2401(a) for a fiscal year unless the State involved agrees to esteblish such fiscal control and fund accounting procedures as may be necessary to ensure the proper disbursal of, and accounting for, amounts received by the State under such section. "(2) The Secretary may not make payments under section 2401(a) for a fiscal year unless the State involved agrees that— "(A) the State will provide for— "(i) a financial and compliance audit of such payments; or "(ii) a single financial and compliance audit of each entity administering such payments; "(B) the audit will be performed biennially and will cover expenditures in each fiscal year; and "(C) the audit will be conducted in accordance with standards established by the Comptroller General of the United

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