REPORTS, RECORDKEEPING, AND INVESTIGATIONS.

SEC. 143. REPORTS, RECORDKEEPING, AND INVESTIGATIONS. (a) Standardized Records.— Section 165(a) of the Act (29 U.S.C. 1575(a)) is amended by adding at the end the following new paragraphs: 106 STAT. 1049 “(3) In order to allow for the preparation of national estimates necessary to meet the requirements of subsection (c), recipients shall maintain standardized records for all individual participants and provide to the Secretary a sufficient number of such records to provide for an adequate analysis. “(4) (A) Except as provided in subparagraph (B), records maintained by recipients pursuant to this subsection shall be made available to the public upon request. “(B) Subparagraph (A) shall not apply to— “(i) information, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy; and “(ii) trade secrets, or commercial or financial information, obtained from a person and privileged or confidential. “(C) Recipients may charge fees sufficient to recover costs applicable to the processing of requests for records under subparagraph (A).”. (b) Audit Notice.— Section 165(b) is amended by adding the following new paragraph: “(3) (A) In carrying out any audit under this Act (other than any initial audit survey or any audit investigating possible criminal or fraudulent conduct), either directly or through grant or contract, the Secretary, the Inspector General, or the Comptroller General shall furnish to the State, administrative entity, recipient, or other entity to be audited, advance notification of the overall objectives and purposes of the audit, and any extensive recordkeeping or data requirements to be met, not fewer than 14 days (or as soon as practicable), prior to the commencement of the audit. “(B) If the scope, objectives, or purposes of the audit change substantially during the course of the audit, the entity being audited shall be notified of the change as soon as practicable. “(C) The reports on the results of such audits shall cite the law, regulation, policy, or other criteria applicable to any finding. “(D) Nothing contained in this Act shall be construed so as to be inconsistent with the Inspector General Act of 1978 (5 U.S.C. App.) or government auditing standards issued by the Comptroller General.”. (c) Monitoring of Service Providers.— Section 165(c) of the Act (29 U.S.C. 1575(c)) is amended to read as follows: “(c) Each State, each administrative entity, and each recipient (other than a subrecipient, grantee or contractor of a recipient) receiving funds under this Act shall— “(1) make readily accessible reports concerning its operations and expenditures as shall be prescribed by the Secretary; “(2) prescribe and maintain comparable management information systems, in accordance with guidelines that shall be prescribed by the Secretary, designed to facilitate the uniform compilation, cross tabulation, and analysis of programmatic, participant, and financial data, on statewide and service delivery area bases, necessary for reporting, monitoring, and evaluating purposes, including data necessary to comply with section 167; and “(3) monitor the performance of service providers in complying with the terms of grants, contracts, or other agreements made pursuant to this Act.”. (d) Report Information; Record Retention.— Section 165 of the Act is further amended by adding the following new subsections: 106 STAT. 1050 “(d) (1) The reports required in subsection (c) shall include information pertaining to— “(A) the relevant demographic characteristics (including race, ethnicity, sex, and age) and other related information regarding participants; “(B) the activities in which participants are enrolled, and the length of time that participants are engaged in such activities; “(C) program outcomes, including occupations, for participants; “(D) specified program costs; and “(E) information necessary to prepare reports to comply with section 167. “(2) The Secretary shall ensure that all elements of the information required for the reports described in paragraph (1) are defined and reported uniformly. “(e) The Governor shall ensure that requirements are established for retention of all records pertinent to all grants awarded, and contracts and agreements entered into, under this Act, including financial, statistical, property and participant records and supporting documentation. For funds allotted to a State for any program year, records shall be retained for 2 years following the date on which the annual expenditure report containing the final expenditures charged to such program year’s allotment is submitted to the Secretary. Records for nonexpendable property shall be retained for a period of 3 years after final disposition of the property. “(f) (1) Each substate grantee and service delivery area shall submit quarterly financial reports to the Governor with respect to programs under this Act. Such reports shall include information identifying all program costs by cost category in accordance with generally accepted accounting principles and by year of the appropriation. “(2) Each State shall submit a summary of the reports submitted pursuant to paragraph (1) to the Secretary on a quarterly basis. “(g) Each State, substate grantee, and service delivery area shall maintain records with respect to programs under this Act that identify— “(1) any program income or profits earned, including such income or profits earned by subrecipients; and “(2) any costs incurred (such as stand-in costs) that are otherwise allowable except for funding limitations. “(h) (1) The Secretary shall conduct a biennial study on the provision of supportive services under programs conducted pursuant to title II. Such study shall identify— “(A) the amount and proportion of funds expended for supportive services under title II; “(B) the types of supportive services provided; “(C) the relative share of funds expended for each type of supportive service; “(D) the characteristics of the participants receiving supportive services; and “(E) such other factors as the Secretary determines to be appropriate. “(2) The Secretary shall submit a report to the Congress containing the results of each study conducted pursuant to paragraph (1).”.