Sec. 7-396a. Audits of agencies receiving state grants.
Sec. 7-396a. Audits of agencies receiving state grants. (a) Any agreement for a
state grant entered into between a state agency and a public or private agency shall
provide for an audit acceptable to such state agency of any grant expenditures made by
such public or private agency and, unless otherwise provided by the state agency, the
cost of such audit may be considered an allowable expense under such grant agreement.
The Auditors of Public Accounts shall have access to all records and accounts of such
public or private agency for the fiscal year in which such grant is made. A copy of any
audit performed under the provisions of this section shall be filed with the Auditors of
Public Accounts.
(b) Notwithstanding the provisions of subsection (a) of this section, in the case of
an agreement for a state grant entered into between a state agency and a public or private
agency where the state agency has received funding for such grant from the federal
government, the cost of any required audit shall be considered an allowable expense
under such grant agreement, provided the cost of such audit is an allowable expense
under the federal grant regulations.
(P.A. 76-68, S. 6, 7; P.A. 84-316, S. 1, 2; P.A. 85-613, S. 20, 154; P.A. 87-573, S. 9, 11; P.A. 88-61, S. 1, 2; P.A. 89-81, S. 2.)
History: P.A. 84-316 added Subsec. (c) re payment of cost of audits; P.A. 85-613 made technical changes; P.A. 87-573 inserted a reference to reporting requirements in Subsec. (a), effective July 1, 1987, and applicable to audits for fiscal
years beginning on or after that date; P.A. 88-61 authorized in Subsec. (b) the cost of the annual audits of state agency
grants to be considered an allowable expense under grant agreements; P.A. 89-81 deleted former Subsec. (a), transferring
provisions to Subsec. (c) of Sec. 2-90, and relettered remaining Subsecs.