---
kind: "section"
citation: "42 U.S.C. § 1397e"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1397e"
heading: "Administrative and fiscal accountability"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1397e"
units:
  - "Chapter 7 — Social Security"
  - "Subchapter XX — Block Grants and Programs for Social Services and Elder Justice"
  - "Division A — Block Grants to States for Social Services"
---

# §1397e. Administrative and fiscal accountability

- (a) **Reporting requirements; form, contents, etc.** Each [State](/usc/42/619.md?p=5) shall prepare reports on its activities carried out with funds made available (or transferred for use) under this division. Reports shall be prepared annually, covering the most recently completed [fiscal year](/usc/42/619.md?p=3), and shall be in such form and contain such information ([including](/usc/42/1301.md?p=b) but not limited to the information specified in [subsection (c)](#c)) as the [State](/usc/42/619.md?p=5) finds necessary to provide an accurate description of such activities, to secure a complete record of the purposes for which funds were spent, and to determine the extent to which funds were spent in a manner consistent with the reports required by [section 1397c of this title](/usc/42/1397c.md). The [State](/usc/42/619.md?p=5) shall make copies of the reports required by this section available for public inspection within the [State](/usc/42/619.md?p=5) and shall transmit a copy to the [Secretary](/usc/42/1301.md?p=a-6). Copies shall also be provided, upon request, to any interested [public agency](/usc/42/11851.md?p=8), and each such [agency](/usc/42/1397n–12.md?p=1) may provide its views on these reports to the Congress.
- (b) **Audits; implementation, etc.** Each [State](/usc/42/619.md?p=5) shall, not less often than every two years, audit its expenditures from amounts received (or transferred for use) under this division. Such [State](/usc/42/619.md?p=5) audits shall be conducted by an entity independent of any [agency](/usc/42/1397n–12.md?p=1) administering activities funded under this division, in accordance with generally accepted auditing principles. Within 30 days following the completion of each audit, the [State](/usc/42/619.md?p=5) shall submit a copy of that audit to the legislature of the [State](/usc/42/619.md?p=5) and to the [Secretary](/usc/42/1301.md?p=a-6). Each [State](/usc/42/619.md?p=5) shall repay to the [United States](/usc/42/1301.md?p=a-2) amounts ultimately found not to have been expended in accordance with this division, or the [Secretary](/usc/42/1301.md?p=a-6) may offset such amounts against any other amount to which the [State](/usc/42/619.md?p=5) is or may become entitled under this division.
- (c) **State reports on expenditure and use of social services funds—** Each report prepared and transmitted by a [State](/usc/42/619.md?p=5) under [subsection (a)](#a) shall set forth (with respect to the [fiscal year](/usc/42/619.md?p=3) covered by the report)—
  - (1) the number of individuals who received services paid for in whole or in part with funds made available under this division, showing separately the number of children and the number of [adults](/usc/42/619.md?p=1) who received such services, and broken down in each case to reflect the types of services and circumstances involved;
  - (2) the amount spent in providing each such type of service, showing separately for each type of service the amount spent per [child](/usc/42/1382c.md?p=c) recipient and the amount spent per [adult](/usc/42/619.md?p=1) recipient;
  - (3) the criteria applied in determining eligibility for services (such as income eligibility guidelines, sliding fee scales, the effect of public assistance benefits, and any requirements for enrollment in school or training programs); and
  - (4) the methods by which services were provided, showing separately the services provided by [public agencies](/usc/42/11851.md?p=8) and those provided by private [agencies](/usc/42/1397n–12.md?p=1), and broken down in each case to reflect the types of services and circumstances involved.

  The [Secretary](/usc/42/1301.md?p=a-6) shall establish uniform definitions of services for use by the [States](/usc/42/619.md?p=5) in preparing the information required by this subsection, and make such other provision as may be necessary or appropriate to assure that compliance with the requirements of this subsection will not be unduly burdensome on the [States](/usc/42/619.md?p=5).

- (d) **Additional accounting requirements—** For other provisions requiring [States](/usc/42/619.md?p=5) to account for Federal [grants](/usc/42/1397j.md?p=10), see [section 6503 of title 31](/usc/31/6503.md).

## Source credit

(Aug. 14, 1935, ch. 531, title XX, § 2006, as added Pub. L. 97–35, title XXIII, § 2352(a), Aug. 13, 1981, 95 Stat. 870; amended Pub. L. 98–369, div. B, title VI, § 2663(h)(2), July 18, 1984, 98 Stat. 1169; Pub. L. 100–485, title VI, § 607, Oct. 13, 1988, 102 Stat. 2410; Pub. L. 111–148, title VI, § 6703(d)(1)(B), Mar. 23, 2010, 124 Stat. 803.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1397e, act Aug. 14, 1935, ch. 531, title XX, § 2006, as added Jan. 4, 1975, Pub. L. 93–647, § 2, 88 Stat. 2347, related to program evaluation and assistance, prior to the general revision of this subchapter by section 2352(a) of Pub. L. 97–35.

A prior section 1397e–1, act Aug. 14, 1935, ch. 531, title XX, § 2007, as added Jan. 2, 1980, Pub. L. 96–178, § 4(b), 93 Stat. 1296, related to child day care services, prior to the general revision of this subchapter by section 2352(a) of Pub. L. 97–35. See section 1397f of this title.

### Amendments

2010—Pub. L. 111–148, which directed substitution of “this division” for “this subchapter” wherever appearing in subtitle 1 of title XX of act Aug. 14, 1935, was executed by making the substitution wherever appearing in this section, which is in subtitle A of title XX act Aug. 14, 1935, to reflect the probable intent of Congress.

1988—Subsec. (a). Pub. L. 100–485, § 607(1), substituted “Reports shall be prepared annually, covering the most recently completed fiscal year, and shall be in such form and contain such information (including but not limited to the information specified in subsection (c))” for “Reports shall be in such form, contain such information, and be of such frequency (but not less often than every two years)” in second sentence.

Subsecs. (c), (d). Pub. L. 100–485, § 607(3), added subsec. (c) and redesignated former subsec. (c) as (d).

1984—Subsec. (c). Pub. L. 98–369 substituted “section 6503 of title 31” for “section 202 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4212)”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1984 Amendment

Amendment by Pub. L. 98–369 effective July 18, 1984, but not to be construed as changing or affecting any right, liability, status, or interpretation which existed (under the provisions of law involved) before that date, see section 2664(b) of Pub. L. 98–369, set out as a note under section 401 of this title.