(A)
Programmatic and financial assessment
(i)
In general
Not later than 60 days after December 21, 2018, the Director of the Office of Audit, Assessment, and Management of the Office of Justice Programs at the Department of Justice (referred to in this section as the “Director”) shall—
(I)
conduct a comprehensive analysis and evaluation of the internal controls of the Office of Juvenile Justice and Delinquency Prevention (referred to in this section as the “agency”) to determine if States and Indian Tribes receiving grants are following the requirements of the agency grant programs and what remedial action the agency has taken to recover any grant funds that are expended in violation of grant programs, including instances where—
(aa)
supporting documentation was not provided for cost reports;
(bb)
unauthorized expenditures occurred; and
(cc)
subrecipients of grant funds were not in compliance with program requirements;
(II)
conduct a comprehensive audit and evaluation of a selected statistically significant sample of States and Indian Tribes (as determined by the Director) that have received Federal funds under subchapter II, including a review of internal controls to prevent fraud, waste, and abuse of funds by grantees; and
(III)
submit a report in accordance with clause (iv).
(ii)
Considerations for evaluations
In conducting the analysis and evaluation under clause (i)(I), and in order to document the efficiency and public benefit of subchapters II and V, the Director shall take into consideration the extent to which—
(I)
greater oversight is needed of programs developed with grants made by the agency;
(II)
changes are necessary in the authorizing statutes of the agency in order that the functions of the agency can be performed in a more efficient and effective manner; and
(III)
the agency has implemented recommendations issued by the Comptroller General or Office of Inspector General relating to the grant making and grant monitoring responsibilities of the agency.
(iii)
Considerations for audits
In conducting the audit and evaluation under clause (i)(II), and in order to document the efficiency and public benefit of subchapters II and V, the Director shall take into consideration—
(I)
whether grantees timely file Financial Status Reports;
(II)
whether grantees have sufficient internal controls to ensure adequate oversight of grant funds received;
(III)
whether grantees’ assertions of compliance with the core requirements were accompanied with adequate supporting documentation;
(IV)
whether expenditures were authorized;
(V)
whether subrecipients of grant funds were complying with program requirements; and
(VI)
whether grant funds were spent in accordance with the program goals and guidelines.
(iv)
Report
The Director shall—
(I)
submit to the Congress a report outlining the results of the analysis, evaluation, and audit conducted under clause (i), including supporting materials, to the Speaker of the House of Representatives and the President pro tempore of the Senate; and
(II)
shall
(B)
Analysis of internal controls
(ii)
Report
Not later than 180 days after December 21, 2018, the Administrator shall submit to Congress a report containing—
(I)
the findings of the analysis and evaluation conducted under clause (i);
(II)
a description of remedial actions, if any, that will be taken by the Administrator to enhance the internal controls of the agency and recoup funds that may have been expended in violation of law, regulations, or program requirements issued under subchapters II and V; and
(III)
a description of—
(aa)
the analysis conducted under clause (i);
(bb)
whether the funds awarded under subchapters II and V have been used in accordance with law, regulations, program guidance, and applicable plans; and
(cc)
the extent to which funds awarded to States and Indian Tribes under subchapters II and V enhanced the ability of grantees to fulfill the core requirements.