(a) Contents No part B institution shall be entitled to its allotment of Federal funds for any grant under section
1063 of this title for any period unless that institution meets the requirements of subparagraphs (C), (D), and (E)
of section
1058 (b)(1) of this title and submits an application to the Secretary at such time, in such manner, and containing or accompanied by such information, as the Secretary may reasonably require. Each such application shall
(1) provide that the payments under this chapter will be used for the purposes set forth in section
1062 of this title; and
(2) provide for making an annual report to the Secretary and provide for
(A) conducting, except as provided in subparagraph (B), a financial and compliance audit of an eligible institution, with regard to any funds obtained by it under this subchapter at least once every 2 years and covering the period since the most recent audit, conducted by a qualified, independent organization or person in accordance with standards established by the Comptroller General for the audit of governmental organizations, programs, and functions, and as prescribed in regulations of the Secretary, the results of which shall be submitted to the Secretary; or
(B) with regard to an eligible institution which is audited under chapter
75 of title
31 deeming such audit to satisfy the requirements of subparagraph (A) for the period covered by such audit.
