---
kind: "section"
citation: "31 U.S.C. § 7305"
title: "31"
title_heading: "Money and Finance"
number: "7305"
heading: "State auditing requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/31/7305"
units:
  - "Subtitle V — General Assistance Administration"
  - "Chapter 73 — Administering Block Grants"
---

# §7305. State auditing requirements

- (a) The chief executive officer of each [State](/usc/31/6201.md?p=2) shall conduct financial and compliance audits of [block grant amounts](/usc/31/7302.md?p=1) received under the Omnibus Budget Reconciliation Act of 1981 (Public Law 97–35, 95 Stat. 357) and amounts received under a consolidated [assistance program](/usc/31/7102.md?p=2) established or provided for in the Act. An audit shall be conducted for the 2-year period beginning on October 1, 1981, and for each 2-year period thereafter. As far as practicable, the audit shall be conducted consistent with standards the [Comptroller General](/usc/31/7501.md?p=a-1) prescribes for the audit of governmental entities, programs, activities, and functions.
- (b) An audit under [subsection (a)](#a) of this section is in place of other financial and compliance audits of those amounts that the chief executive officer of the [State](/usc/31/6201.md?p=2) is required to conduct under another provision of the Omnibus Budget Reconciliation Act of 1981 (Public Law 97–35, 95 Stat. 357) unless the other provision, by explicit reference to this section, provides otherwise.

## Source credit

(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1041.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
| 7305 | 31:1243(note). | Aug. 13, 1981, Pub. L. 97–35, § 1745, 95 Stat. 764. |

In subsection (a), the word “prescribes” is substituted for “established”, and the word “entities” is substituted for “organizations”, for consistency in the revised title and with other titles of the United States Code.

In subsection (b), the words “of funds” and “conducted” are omitted as surplus.

### Editorial Notes

### References in Text

The Omnibus Budget Reconciliation Act of 1981, referred to in text, is Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 357. For complete classification of this Act to the Code, see Tables.