unresolved audit finding
(1) Audit requirement (A) Definition In this paragraph, the term “unresolved audit finding” means a finding in the final audit report of the Inspector General of the Department of Justice under subparagraph (C) that the audited grantee has used grant funds for an unauthorized expenditure or otherwise unallowable cost that is not closed or resolved within 1 year after the date on which final audit report is issued. (B) Audits Beginning in the first fiscal year beginning after December 13, 2016 , and in each fiscal year thereafter, the Inspector General of the Department of Justice shall conduct audits of grantees under this section to prevent waste, fraud, and abuse of funds by grantees. The Inspector General shall determine the appropriate number of grantees to be audited each year. (C) Final audit report The Inspector General of the Department of Justice shall submit to the Attorney General a final report on each audit conducted under subparagraph (B). (D) Mandatory exclusion Grantees under this section about which there is an unresolved audit finding shall not be eligible to receive a grant under this section during the 2 fiscal years beginning after the end of the 1-year period described in subparagraph (A). (E) Priority In making grants under this section, the Attorney General shall give priority to applicants that did not have an unresolved audit finding during the 3 fiscal years before submitting an application for a grant under this section. (F) Reimbursement If an entity receives a grant under this section during the 2-fiscal-year period during which the entity is prohibited from receiving grants under subparagraph (D), the Attorney General shall— (i) deposit an amount equal to the amount of the grant that was improperly awarded to the grantee into the General Fund of the Treasury; and (ii) seek to recoup the costs of the repayment under clause (i) from the grantee that was erroneously awarded grant funds.