State Audit Requirements for Proposed Block Grant and Consolidated Assistance Programs

A clarification was requested of the State audit requirements for proposed block grant and consolidated assistance programs. It was recommended that a single set of requirements be made applicable to all block grant and consolidated assistance programs. GAO recommended that: (1) audits be required at least every 2 years; (2) audits be made in accordance with standards issued by the Comptroller General; (3) each audit include a financial and compliance audit; (4) at reasonable intervals, the scope of the audit be expanded to cover issues of economy, efficiency, and effectiveness; and (5) these requirements be made applicable to all block grants and consolidated programs.