HB1669.html

Article 1 of Chapter 81 of Title 36 of the Official Code of Georgia Annotated, relating to local government budgets and audits, is amended by striking Code Section 36-81-8.1, relating to grant certification, and inserting in its place a new Code Section 36-81-8.1 to read as follows:
"36-81-8.1.
(a) As used in this Code section, the term 'subrecipient' means an entity that receives a grant of state funds from the Governor´s emergency fund or from a special project appropriation through a contract with a local government.
(b) ~~On and after January 1, 1999, each~~ Each grant of state funds to a recipient local government from the Governor´s emergency fund or from a special project appropriation in an amount greater than $5,000.00 shall be conditioned upon the receipt by the state auditor of a properly completed grant certification form. The form shall be designed by the state auditor and shall be distributed with each covered grant as required by this Code section. The grant certification form shall require the certification by the recipient local government and by the local government auditor that the grant funds were used solely for the express purpose or purposes for which the grant was made. Such form shall be filed with the state auditor in conjunction with the annual audit required under Code Section 36-81-7 for each year in which such grant funds are expended or remain unexpended by the local government. For grant funds to subrecipients, the certification by the local government auditor required by this subsection may also be made by an in-house or internal auditor of the local government who meets the education requirements contained in subparagraph (a)(3)(A) of Code Section 43-3-6. The cost of performing any audit required by this subsection shall be an eligible expense of the grant. However, the amount charged shall not exceed one-half of 1 percent of the amount of the grant or $250.00 per required audit, whichever is less. The local government to whom the grant is made may deduct the cost of any such audit from the funds disbursed to the subrecipient.
(c) Where the grant of state funds is for $5,000.00 or less, the grant shall be conditioned upon receipt by the state auditor of a properly completed grant certification form as required by subsection (b) of this Code section except that only the local government shall certify that the grant funds were used solely for the express purpose or purposes for which the grant was made. Where the grant is to a subrecipient, the grant shall be conditioned upon receipt by the local government of a notarized affidavit executed by the executive director, president, chairperson, chief executive officer, or other responsible party representing the subrecipient, by whatever name or title, to whom the grant funds are disbursed. The affidavit shall certify under oath that the funds were used solely for the express purpose or purposes for which the grant was made. Such affidavit shall be made on a form designed by the state auditor and shall be distributed with each covered grant as required by this Code section.
(d) Notwithstanding subsection (b) or (c) of this Code section, either the Governor, the Appropriations Committee of the House of Representatives, or the Appropriations Committee of the Senate shall have the right and authority to direct and require any local government to obtain an audit of any grant of state funds from the Governor´s emergency fund or from a special project appropriation, regardless of the amount thereof.
(e) The failure to comply with the requirements of this Code section shall result in a forfeiture of ~~such~~ a state grant and the return to the state of any such grant funds which have been received by the local government. In the case of a state grant awarded to a subrecipient, the subrecipient shall be responsible for the return to the state of any such grant funds if it is determined that the funds were not used for the express purpose or purposes for which the grant was made. A grant recipient or subrecipient shall be ineligible to receive funds from the Governor´s emergency fund or from a special project appropriation until all unallowed expenditures are returned to the state, except that a recipient local government shall not be ineligible for such funds where a subrecipient has not used funds it received for the express purpose or purposes for which the grant was made.
(f) No subrecipient shall be considered an agent of the local government or be indemnified or held harmless by the local government for any negligence, misfeasance, or malfeasance of the subrecipient, and a recipient local government shall not be liable for any expenditure of state grant funds by a subrecipient."