---
kind: "section"
citation: "31 U.S.C. § 7504"
title: "31"
title_heading: "Money and Finance"
number: "7504"
heading: "Federal agency responsibilities and relations with non-Federal entities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/31/7504"
units:
  - "Subtitle V — General Assistance Administration"
  - "Chapter 75 — Requirements for Single Audits"
---

# §7504. Federal agency responsibilities and relations with non-Federal entities

- (a) Each Federal [agency](/usc/31/6401.md?p=1) shall, in accordance with guidance issued by the [Director](/usc/31/6101.md?p=5) under [section 7505](/usc/31/7505.md), with regard to [Federal awards](/usc/31/7501.md?p=a-4) provided by the [agency](/usc/31/6401.md?p=1)—
  - (1) monitor [non-Federal entity](/usc/31/7501.md?p=a-13) use of [Federal awards](/usc/31/7501.md?p=a-4);
  - (2) assess the quality of audits conducted under this chapter for audits of entities for which the [agency](/usc/31/6401.md?p=1) is the single Federal [agency](/usc/31/6401.md?p=1) determined under [subsection (b)](#b);
  - (3) participate in and furnish information for the review under [subsection (e)](#e); and
  - (4) identify [recipients](/usc/31/7501.md?p=a-17) that expend $300,000 or more in [Federal awards](/usc/31/7501.md?p=a-4) or such other amount specified by the [Director](/usc/31/6101.md?p=5) under [section 7502(a)(3)](/usc/31/7502.md?p=a-3) during the [recipient](/usc/31/7501.md?p=a-17)’s fiscal year but did not undergo an audit in accordance with this chapter.
- (b) Each [non-Federal entity](/usc/31/7501.md?p=a-13) shall have a single Federal [agency](/usc/31/6401.md?p=1), determined in accordance with criteria established by the [Director](/usc/31/6101.md?p=5), to provide the [non-Federal entity](/usc/31/7501.md?p=a-13) with technical [assistance](/usc/31/6501.md?p=1) and assist with implementation of this chapter.
- (c) The [Director](/usc/31/6101.md?p=5) shall designate a Federal clearinghouse to—
  - (1) receive copies of all reporting packages developed in accordance with this chapter; and
  - (2) perform analyses to assist the [Director](/usc/31/6101.md?p=5) in carrying out responsibilities under this chapter.
- (d) Not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, the [Director](/usc/31/6101.md?p=5) shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives a report listing the [recipients](/usc/31/7501.md?p=a-17) identified under [subsection (a)(4)](#a-4).
- (e)
  - (1) The [Director](/usc/31/6101.md?p=5) shall designate 1 or more Federal [agencies](/usc/31/6401.md?p=1) to conduct a Government-wide analysis of [single audit](/usc/31/7501.md?p=a-18) quality, which may include a consideration of the results of reviews of [single audit](/usc/31/7501.md?p=a-18) quality by—
    - (A) Federal [agencies](/usc/31/6401.md?p=1);
    - (B) inspectors general of Federal [agencies](/usc/31/6401.md?p=1);
    - (C) [State](/usc/31/6201.md?p=2) auditors; and
    - (D) external peer reviews conducted in accordance with [generally accepted government auditing standards](/usc/31/7501.md?p=a-7).
  - (2) Not later than 3 years after the date of enactment of this subsection, and every 6 years thereafter, the Federal [agencies](/usc/31/6401.md?p=1) designated under [paragraph (1)](#e-1) shall complete a Government-wide analysis of [single audit](/usc/31/7501.md?p=a-18) quality.
  - (3) The [Director](/usc/31/6101.md?p=5) shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives and make publicly available a summary of the results of each review under [paragraph (2)](#e-2).
- (f) Not later than 2 years after the date of enactment of this subsection—
  - (1) the [Administrator](/usc/31/6101.md?p=6) of General Services, in coordination with the [Director](/usc/31/6101.md?p=5), the Council on [Federal Financial Assistance](/usc/31/7501.md?p=a-5) (or any successor thereto), and key management [single audit](/usc/31/7501.md?p=a-18) liaisons of Federal [agencies](/usc/31/6401.md?p=1) designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop analytic tools to use audit data in the Federal clearinghouse to identify cross-Governmental risks to [Federal award](/usc/31/6401.md?p=5) funds; and
  - (2) the [Director](/usc/31/6101.md?p=5), in coordination with the [Administrator](/usc/31/6101.md?p=6) of General Services, the Council on [Federal Financial Assistance](/usc/31/7501.md?p=a-5) (or any successor thereto), and key management [single audit](/usc/31/7501.md?p=a-18) liaisons of Federal [agencies](/usc/31/6401.md?p=1) designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop a strategy to use audit data in the Federal clearinghouse to identify cross-Governmental risks to [Federal award](/usc/31/6401.md?p=5) funds.
- (g) Not later than 4 years after the date of enactment of this subsection, the [Comptroller General](/usc/31/7501.md?p=a-1) of the United States shall complete an evaluation of—
  - (1) the effectiveness of the strategy and analytic tools developed under [subsection (f)](#f);
  - (2) reporting burdens for auditors and audited entities and the capacity of auditors and audited entities to fulfill the requirements under this chapter; and
  - (3) the responsiveness of Federal [agencies](/usc/31/6401.md?p=1) to repeat [single audit](/usc/31/7501.md?p=a-18) findings and corrective action plans.

## Source credit

(Added Pub. L. 98–502, § 2(a), Oct. 19, 1984, 98 Stat. 2333; amended Pub. L. 104–156, § 2, July 5, 1996, 110 Stat. 1402; Pub. L. 118–207, § 2, Dec. 23, 2024, 138 Stat. 2701.)

## Notes

### Editorial Notes

### References in Text

The date of enactment of this subsection, referred to in subsecs. (d), (e)(2), (f), and (g), is the date of enactment of Pub. L. 118–207, which was approved Dec. 23, 2024.

### Amendments

2024—Subsec. (a)(3), (4). Pub. L. 118–207, § 2(1), added pars. (3) and (4).

Subsec. (c)(2), (3). Pub. L. 118–207, § 2(2), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “identify recipients that expend $300,000 or more in Federal awards or such other amount specified by the Director under section 7502(a)(3) during the recipient’s fiscal year but did not undergo an audit in accordance with this chapter; and”.

Subsecs. (d) to (g). Pub. L. 118–207, § 2(3), added subsecs. (d) to (g).

1996—Pub. L. 104–156 substituted “Federal agency responsibilities and relations with non-Federal entities” for “Cognizant agency responsibilities” in section catchline and amended text generally. Prior to amendment, text read as follows:

“(a) The Director shall designate cognizant agencies for audits conducted pursuant to this chapter.

“(b) A cognizant agency shall—

“(1) ensure that audits are made in a timely manner and in accordance with the requirements of this chapter;

“(2) ensure that the audit reports and corrective action plans made pursuant to section 7502 of this title are transmitted to the appropriate Federal officials; and

“(3)(A) coordinate, to the extent practicable, audits done by or under contract with Federal agencies that are in addition to the audits conducted pursuant to this chapter; and (B) ensure that such additional audits build upon the audits conducted pursuant to this chapter.”