unresolved audit finding

(1) Audit requirement (A) In general Beginning in the first fiscal year beginning after May 29, 2015 , and in each fiscal year thereafter, the Inspector General of the Department of Justice shall conduct audits of recipients of a covered grant to prevent waste, fraud, and abuse of funds by grantees. The Inspector General shall determine the appropriate number of grantees to be audited each year. (B) Definition In this paragraph, the term “unresolved audit finding” means a finding in the final audit report of the Inspector General that the audited grantee has utilized grant funds for an unauthorized expenditure or otherwise unallowable cost that is not closed or resolved within 12 months from the date when the final audit report is issued. (C) Mandatory exclusion A recipient of a covered grant that is found to have an unresolved audit finding shall not be eligible to receive a covered grant during the following 2 fiscal years. (D) Priority In awarding covered grants the Attorney General shall give priority to eligible entities that did not have an unresolved audit finding during the 3 fiscal years prior to submitting an application for a covered grant. (E) Reimbursement If an entity is awarded a covered grant during the 2-fiscal-year period in which the entity is barred from receiving grants under subparagraph (C), the Attorney General shall— (i) deposit an amount equal to the grant funds that were improperly awarded to the grantee into the General Fund of the Treasury; and (ii) seek to recoup the costs of the repayment to the fund from the grant recipient that was erroneously awarded grant funds.


34 USC § 20704(b)(1)

Scoping language

In this paragraph
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