24 "(8) three appointed by the President from among 1 2 elected officers of small communities.". 3 TITLE VII-FLEXIBLE GRANTS FORMULAS 4 The President shall take all steps as may be necessary 5 to establish guidelines and procedures for the effective con6 sultation and coordination of the needs, efforts, and resources 7 of small communities with the executive branch of the Gov8 ernment and with the Congress. Formulas will be derived 9 for distribution of grants to small communities through a 10 process of consultation between representatives of small 11 communities, Congress, and the executive branch. 12 23 13 14 TITLE VIII-REGULATORY FLEXIBILITY Notwithstanding any other provision of law the Director of the Office of Management and Budget may provide 15 for the waiver of any rule, regulation, or order of any instru 16 mentality of the United States which is not a court of the 17 United States under article III of the Constitution pursuant 18 to guidelines to establish such waivers. 19 TITLE IX-SMALL COMMUNITIES CONTRACTS 20 Notwithstanding any other provision of law, small com21 munities may by contract obtain assistance or services 22 through large or small communities or through instrumen23 talities of State or local government which meet Federal 24 assistance requirements with respect to equal employment, 25 1 pollution, and citizen participation. The Director of the Office 2 of Management and Budget shall establish guidelines and 3 procedures for such contracts. Notwithstanding the provisions 4 of this title, State law shall not be superseded. 5 6 7 TITLE X-SMALL COMMUNITY SET-ASIDES; The Director of the Office of Management and Budget 8 shall establish a procedure for allocating a single cash grant 9 to small communities in lieu of grants presently received 10 if the small communities desire such an option. If the small 11 community participates it would be given as a single cash 12 grant based on the average of the last two years of Federal 13 funding it received with the stipulation that it would receive 14 the amount, and no more, from the Federal Government and 15 would not have to meet any requirements, standards, and 16 so forth, imposed by the Federal Government during this 17 period. 18 19 TITLE XI-EFFECT ON OTHER LAWS The provisions of this Act shall be in addition to the pro20 visions of any other law or regulation under which any 21 remedy or right of appeal is provided for any person, or any 22 procedure is provided for the inquiry into or investigation 23 of any matter, and nothing in this title shall limit or affect. 24 any such remedy, right of appeal, or procedure. 1 2 3 26 TITLE XII-AUTHORIZATION OF APPROPRIATIONS There are authorized to be appropriated such sums as 4 may be necessary for carrying out the purposes of this Act. 6 7 8 9 14 TITLE XIII-FINANCIAL MANAGEMENT OF FED ERAL ASSISTANCE PROGRAMS, GENERAL FI NANCIAL MANAGEMENT PURPOSE AND INTENT SEC. 1301. It is the purpose of this title to authorize 10 policies and requirements needed to improve the financial 11 management of federally assisted programs administered by 12 State and local governments. The title authorizes the estab15 lishment of consistent Federal financial policies and requirements to guide State and local government administra15 tion of Federal funds and to promote more efficient use of 16 audit resources. It is the intent of Congress that the policies 17 and requirements established under this title reflect acceptance of State and local governments' capabilities, proce19 dures, and organization where there is sufficient protection 20 of the Federal Government's interest. 18 21 22 23 24 ACCOUNTING AND AUDITING DEFINITIONS SEC. 1302. (a) As used in this section— (1) The term "audit" means a systematic review or appraisal to determine and report on whether 27 (A) financial operations are properly con ducted; (B) financial reports are presented fairly; (C) applicable laws and regulations have been complied with in terms of title I, section 703, as applied in the law granting Federal assistance, beneficiary eligibility, applicant eligibility, and that funds have been used for intended purposes. (D) applicable laws and regulations have been complied with other than those in (C) above. (E) resources are managed and used in an economical and efficient manner; and (F) desired results and objectives are being (F) desired results and objectives are being achieved in an effective manner. The above elements of an audit are most commonly referred to as financial items (1) and (2), compliance (3) and (4); economy/efficiency, item (5); and program results, item (6). Collectively, they represent the full scope of an audit and provide the greatest benefit to all potential users of Government audits. In develop ing audit plans, however, the audit scope should be tail ored to each specific program according to the circum 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 28 stances relating to the program, the management needs to be met, and the capacity of the audit facilities. (2) The term "grant" or "grant-in-aid" means money or property provided in lieu of money paid or furnished by the Federal Government to a State or local government under programs that provide financial assistance through grant or contractual arrangements. The term does not include technical assistance programs or other assistance in the form of loans, loan guarantees, or insurance. (3) "Independent audit": For purposes of this section an independent audit is an audit conducted by independent public accountants, or by independent qualified accountants or examiners from a State or local agency. An independent public accountant or independent qualified accountant or examiner is one who has not personal interest directly or indirectly in the financial affairs of the government being audited, or in the financial affairs of any of the officers of the government being 20 audited. Acceptable audits are those undertaken by State audit agency subject to review for quality. (4) (a) As used in this section, "generally accepted auditing standards" means those auditing standards pronounced by the American Institute of Certified Public Accountants and incorporated in its Statements on Audit |